Every picture tells a story and silver’s story is not a pretty one as the above chart clearly depicts.
I’m not convinced that the June low was the final low for this prolonged bear period that currently exists within this precious metals bull market. A final capitulation could be on the cards and arrive sometime this summer, maybe May/June time.
The USD refuses to trade below the ‘79’ level even though it has tested this level no less than six times over the last two years.
We keep asking the question; Is this the real deal or another head fake? The 2014 rally has all but fizzled out as silver has given back the gains it made from January to mid-February.
I am a silver bull, but not a perma-silver bull, as I believe there is a time to be fully invested and a time to be on the side lines. In our very humble opinion now is not the time to be Cavalier especially as we enter the relatively inactive summer season for both silver and gold.
The lion’s share of our portfolio is in cash as we patiently wait for the real bottom to form and the opportunity to buy at bargain price levels. We are aware that this down trend has been in place for three years and as such has tested everyone’s patience to the extreme. However, that’s not a reason to aggressively hit the acquisition trail.
Patience is the word of the day and also use this time to do your own due diligence in terms of which stocks are good quality and should be acquired when the time comes and which stocks to avoid.
The miners have started 2014 very well indeed on the back of rising gold prices, so the question is; is this the real deal or another head fake? Is the bottom really in? Could there be a final capitulation just ahead of us? Will the summer doldrums take the PMs lower?
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