Is silver going back to $50 an ounce?

07-Jun-2011 When a commodity drops in price significantly I know I will get lots of emails from readers asking if they should buy, sell or hold their nerve. When silver went exponential earlier this year I guess it is all too easy to say it was "due for a correction" - one of those meaningless phrases you read all the time in the media. It suggests that someone somewhere knows what is happening and that only an idiot would be surprised if the price fell after such a massive rise in such a short time. Regular readers know I have no such illusions about my abilities to forecast any short-term movements. My interest is in long term fundamentals and I have no doubt that silver at the current price of $40 is a steal.

If you are thinking of buying silver or gold this year I would worry more about getting in than what price you pay to join the game. Gold and silver are in long-term bull markets and it is more important to take a position than it is to try and get in at the bottom. Reason? You won't get in at the bottom. Don't convince yourself that you know enough about any market to call the bottom - or indeed to sell at the top. It won't happen.

At the beginning of the year I laid out my acquisition plan and I am sticking to it. 2011 is an acquisition year and that means I will be focusing on buying not focusing on the price. Availability of funds is the thing that usually holds people back and I notice that more than one newsletter writer is suggesting investing an equal amount each and every month until you are all in. I think this is sound advice. I always say you should buy on a dip but chances are a lot of people simply don't have the money available when the dip occurs.

The main thing for me is that I am investing money in long-term bull trends and in my opinion that should be the aim of all investors if they want to sleep at night. I like to be in markets that look good to make me 30% plus profits when the year ends not in a one week frenzy which will give you a heart attack.

Gold and silver remain such opportunities. In fact the relentless rise of gold is getting almost boring now. How many time scan you ay "Oh, I see gold is at an all time high again"?Those of you who think you have missed the boat are really missing the point. Sure you missed the last 30% gain but don't let that be a reason to miss out on the next 30% gain.

Silver is a buy.

Gold is a buy.

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