Loading ...If Not In Yet – At Least Dip A Toe In
Since gold and silver are about as oversold as they are going to get and the turmoil in treasuries and repos etc. is likely to add to some type of action by the FED, better to take a small position, if you are not already in. Don’t know if Powell and the FED will leak his remarks early or announce something before his actual Noon appearance but the downside is limited and the upside more likely to be dramatic for at least the short term. So, even if no new policy initiatives are actually implemented before the March 16-17 FED meeting, it is quite likely something is either pre-announced or at least hinted at by Powell today.
Do you still see $40 silver by the end of next month?
Yes, late April.
The metals and miners are in an impulsive move down. We are in a mini-March 2020 sell off in the PMs and I’m planning my buys at lower levels. It’s plain and simply too early to venture back in, and doing so could be costly. Time to replace enthusiasm with patience.
If it’s a mini of last year I agree. If it goes much more it will be a repeat of last year and repeats rarely happen.
“Since gold and silver are about as oversold as they are going to get”
I challenge that premise.
And whatever means you are using to reach that conclusion.
Without specifying my preferred metrics, here are several readings for CEF;
currently versus at typical OS conditions
18 vs <0
-38 vs <-150
52 vs <35
51 vs <30, often <10
these are off monthly indicators; they move SLOWLY.
not every cycle drops into these lower zones, but the potential is there this time, over coming months.