In early February we wrote, “Don’t be unsettled by short term pullbacks or day to day volatility. One should use pullbacks as buying opportunities on this long term upward trend in gold and silver.”
It is characteristic in gold and silver to witness short term volatile pullbacks at the beginning of major moves to shakeout the short term speculators looking for overnight riches and who lack patience and fortitude.
The recent selloff is just one of the many shakeouts that somehow manages to occur when precious metals are about to take off. For weeks we have stated that we were on the verge of a breakout at $35 in silver, $4 copper and $1800 gold. Coincidence??? We think not.
Listen to my recent interview with Gregg Greenberg from thestreet.com discussing the recent pullback in precious metals and why we believe that gold and silver will rebound.