“Jonathan has advised us for 5 years and always provided consistent, truly independent thinking with emphasis on capital preservation”

Tim Bacon (CEO, Colville Estate) and Marylyn Bacon (Kent) (2011)

Precious Metals' investing

Posted by jdavis on June 20, 2014

The above is Silver.  Silver broke up out of its 1st and 2nd hurdles this week. The 2nd is the lower falling trend line, shown.

It is a fair assumption it will close above this line tonight.  In other words, it will have a weekly close above Resistance.  This is important to the bullish case.

 

The target now for Silver is $26/26.5.  That equates to c $1500/1550 for Gold.  As recently as December Gold was sub $1200.

We bought, heavily, into Gold and Small Capitalisation Gold Mining shares in the Autumn of last year.

The leader (leading indicator) in the Precious Metals market - Small Cap Miners - has been moving like a rocket ship.  In just the last two weeks it has rocketed a massive 28% (in US$). 

The technical indicators are very positive and confirming the trend is up.

The minimum target is $60/65 but I suspect it will be more like $90.

This year.

NB. In early 2011, the GDXJ Index peaked at $180. Look where it is now, in comparison.

I hasten to say though we remain of the view, until something changes it, that precious metals are still in a long term bear market, which started in 2011.

We would have to see Silver rise above $28, with strength, before we would even contemplate that the long term trend has changed from down to up, for Gold and Silver and mining shares.

 

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