Friday, January 28, 2011

Rejoice!! Prices Have Dropped!!

This article below could be alarming to some of you but in all reality it, if it comes to pass, it should be a cause for joyous celebration.

I urge caution though; if you plan to purchase, timing the market can be dangerous. I try and get out as much quality information as possible to you on the mailing list and weed out the rubbish but at the end of the day we are all adults and must make our own decisions. (If you would like to be on the email list leave a comment below and I will include you).

Look at the 3 year chart below. I started buying silver around the August time from of ’08 at a little over $18.00. For the next YEAR prices fell. I bought all the way down to $8.87. Every month I couldn’t really understand what was happening because everyone was talking about silver shortages and the premiums were going up as prices went down and there was general panic. I kept learning more about the market and my faith increased and I just kept buying. Kept buying……

I promise you all that when silver hits $75 an ounce and falls back dramatically to $40 and ounce you will have this same thought process going on so gird yourself now. Don’t become discouraged, be wise and buy. 90% of successful traders learn emotional containment.

Now for those of you who want to graduate to the next level, and some of you have, you can get a BullionVault or GoldMoney account and protect yourself from some of the higher premiums. They do have a premium they charge and storage fees (minimal) but they have greater access to markets and you will pay less for ounce. Also you will have money outside of the banking system and more than an arm’s length away from particular entities that would rather you have your metal on US shores.

Personally I don’t see prices going to where he suggests but I would not be surprised. I certainly would NOT be disappointed.

And now for the's the original link.

Predictable Gold and Silver Correction A Half-Done Buying Opportunity

By: Peter Cooper, Arabian Money

-- Posted Friday, 28 January 2011 | Share this article | Source:

Gold has corrected in price by more than 20 per cent no less than 46 times since the present bull market started back in 2001, according to analysts at MidasLetter. Silver has always been even more volatile.

That is why ArabianMoney warned about a correction earlier this month (click here) while still expecting silver to deliver the best absolute price performance for any major asset class by the end of the year (click here).

Buy the dips

The smart investor will therefore use price weakness like the current correction to stock up on precious metals. Indeed, if observers want any confirmation that gold is still in a bull market then they need only consider this correction itself.

This is just more of the same up-and-down upward progress we have seen for a decade, with no sign of a parabolic blow-off or obvious spike – except for the short-term one in silver that is correcting.

Corrections are of course always shocking if you have just bought and have not had the experience of recent years in the precious metals market. The tendency is to panic sell, and that amplifies the downtrend.

Talk about investors selling out of precious metals and rotating into stocks is largely rubbish. If ever there was an over-extended trend it is the current rally in global stock markets, and emerging markets are leading the correction phase that has now started.

The real retail boom in precious metal ownership has barely started. From today visitors to the world’s tallest building in Dubai, The Burj Khalifa can buy gold from vending machines. But there are still only going to be six of them in the whole country.

Still falling

Gold and silver prices probably have some way to fall just yet. The normal pull-back from a gold high is $200 or 15 per cent, that would be down to $1,243, and it could go a little lower than that if the bears get louder, say to $1,150. Silver looks headed below $22 and perhaps as low as $20.

So if you want to get the maximum price gain for silver available this year then that will be the moment to pounce, and then you need to watch carefully for a price peak, although if past trends are a guide the second half of the year will just head higher and higher until the end of the year.

ArabianMoney newsletter readers have the benefit of actual, actionable investment ideas for precious metals while we can only offer general trends on this free website. How to ride this price trend is well worth considering in depth (click here to sign-up).

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