GOLD & SILVER - Happy Days are here again...

GOLD & SILVER - Happy Days are here again...
originally published September 18th, 2013
It could not look better for the Precious Metals sector. The Fed
took the line of least resistance and chickened out of tapering
altogether, which is bad news for the dollar, and good news for
just about everything else, especially gold and silver. Today the
Fed made plain that it is going to continue to refill the punch
bowl. Someone will have to pay for this continued profligacy of
course and that someone will anyone adversely affected by a
falling dollar and increasingly rampant inflation.
We are not going to waste time dwelling on who will lose from all
this at this time, as our job is to concentrate on what will benefit from it, and today’s action shows that
one of the biggest beneficiaries from this policy will be the Precious Metals sector – gold, silver and
Precious Metals stocks.
The bigger the rise in gold and silver and the PM stocks indices on the day of an announcement like
this, the more bullish it is, so if you are not currently positioned in the sector, or are considering
committing more funds to the sector, you should not be put off by today’s big rise – on the contrary,
this is the clearest indication that you could want that the sector is starting a major new uptrend that
will take it much higher. So you can now commit what you want to the sector with confidence. Gold
had its biggest rise for 15-months today and the GDX soared on massive record volume, both events
together being a sure sign that the sector is going much higher. If you are wondering what to buy,
please refer to the recent big gold and silver stocks recs on the site, and also go for gold and silver
themselves of course and gold and silver ETFs. Speculators may also consider out of the money Calls
– remember to go out a few months, as there will likely be periods of consolidation on the way.
It’s the biggest public holiday of the year in Chile, the equivalent of the 4th July in the US, and the
whole country is shut down, so I was not able to respond as rapidly as I would have liked to today’s
developments, due to being stuck at a celebration with people drinking and dancing etc. In the
morning we will examine today’s developments on the charts, but in closing I would like to
re-emphasize that this is the most bullish day for gold and silver for YEARS. What we saw today was
the starting gun being fired on a really major uptrend.
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