Gold/Silver Show Signs of a Bottom

When it comes to buying gold or silver, the best buy signals are found in what we refer to as “pocket pivots.” These are statistically significant buy signals we have developed and used with great effect in our own handling of the precious metals in 2011 as we ourselves have thus far outperformed the S&P 500 Index over 50-fold as of this writing.

The action in both silver and gold is very constructive off of these recent lows, and with European officials looking to open up the “Euro-QE” spigot as they leverage the European Financial Stability Facility or EFSF, to the tune of 1.3 trillion euros. In our view, this is negative for currencies, particularly fiat currencies like the euro and dollar, and when combined with the strong technical bottoming action we are seeing in both metals, could eventually lead to a breakout to new highs for yellow and white metals. Silver and gold tend to follow one another around, but we might consider gold to be in the leading position currently given that it remains much closer to its all-time highs than silver does.

Source: Market Watch

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