by Vin Maru, Gold Seek:
It is our firm belief that the precious metals sector has bottomed out and the downside is very limited from here on out. While there doesn’t seem to be an immediate rush back into the sector, now is a great time to be acquiring physical metals, but more importantly producers with growth profiles. That’s where we really see the value and upside potential. Now would be a good time to start adding and scaling into any new positions you plan on taking.
If we would have to make a speculative/educated guess/evaluation, by looking at the charts and fundamentals for precious metals and the miners, we believe that the worst is over. We are fairly certain that we have seen the bottom over this past summer and building a good position in the physical, ETFs, and select miners right now is looking very promising.
Support has pretty much held throughout the summer and it’s looking good going into the fall. While we still may see one more down wave, it would be more of a fake breakdown below support just to scare the remaining weak hands. If that happens, I would think backing up the truck is a good idea, and start getting aggressive in adding exposure to the sector. Buying at support around $1570 is a good place to start adding to positions. Over the next few weeks we expect gold to trade around $1600 (+ or – $30) in a sideways trading range.
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