Here is an article from today and what these experts think of the precious metal markets for the rest of 2012.
Today’s positive reversal in precious metals and shares of most gold
and silver companies has lent further credence to those who recently
have said that the sector is due to resume its uptrend.
One individual in this camp is Bill Fleckenstein, who in his latest weekly column for MSN Money – entitled Has gold’s next bull run began? – argued that “the stage remains set for more rallies” in the sector.”
Describing the action of gold stocks
over the past two weeks, Fleckenstein wrote that “The action in the
miners the next day (i.e., the day last week’s column was published) was
strong, but not definitive. Still, I felt there was some chance it
could turn out to be “the” low for the year, while expecting that some
part of the range between $1,580 and $1,540 an ounce for gold could be
retested once or twice.”
“Tuesday was negative, as the metals went on a nerve-testing
roller-coaster ride,” he continued. “First, they staged a pretty decent
turnaround, led by silver, which declined about 1.5% overnight but
quickly turned that loss into a similar-sized rally. That didn’t stick,
however, and silver lost 1% on the day. Gold turned a roughly 1.5% loss
into a tiny loss, then that fizzled, and it ended up losing over 1% on
the day. However, gold mining stocks, amazingly, behaved pretty well.”
“The next day’s trading
(Wednesday, May 23) brought a giant, stunning reversal to the upside in
gold stocks, even as other metals were tanking, then reversed, making
it seem very likely that their collective low on May 16 will not be
broken.”
Looking ahead, Fleckenstein contended that ”What a precious metals
bull would like to see is silver, gold and the miners all ratchet up ‘a
level’ together on decent volume. We’ve seen better behavior from the
miners (finally), but gold and silver need to start acting like the
miners are beginning to (if you can believe I said that) if they really
want to convince us that the whole complex has turned the corner.”
He went on to say that “If May 16 was the low, of course, it means
folks will have to pay up a bit to capture this idea going forward.
However, given how depressed the metals complex has been, paying up a
little bit and being a bit more confident in one’s risk assessment is
not an insane strategy, especially with regard to mining stocks. When
markets or sectors have been bludgeoned as the metals and the miners
have, any subsequent rally will also have pullbacks, so it’s not
necessary to leap to a decision at the very first sign of strength.”
Give us a call at Valley Goldmine Utah for all of your precious metals needs. 801.889.7200 or valleygoldminesaltlake.com
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