by BarretCapital » Thu Dec 15, 2011 08:51:39 AM
Precious metals: It shouldn’t be much of a surprise that the markets are taking a hit because of the European debt crisis. The normal standard has become to have choppy extreme markets. In terms of the precious metals, we are heading into what is known as the seasonal period of strength.
This week the strength of the US dollar has contributed to the decline in gold and silver, along with the explanation of selling anything and everything to get into cash. This counters the worlds’ central banks view, as they bought more gold in the 3rd quarter than anytime in the past 40 years.
From a technical point of view, the sort term seasonal pattern shows that gold often bottoms out around the last 10 days of the year and creates new tops in the following year in February. Look for buying opportunities in these markets.
As usual, if you need help building a commodities portfolio, please contact me at any time.
Jamie Cohen
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Email: Info@barretcapital.com