Gold and Silver Investing on the Correction

The current correction is the major trend in gold and silver investing and will continue to influence the market for some time. Correctional periods are normal and to be expected in any healthy market, though the current correction will most likely bring questions as to the fundamentals of the market over the comings weeks. During the times of uncertainty, a strong far view of the future in gold and silver is commonly the best way to bring the most money in for you investing practices. As we watch the prices of gold and silver correct, it is important to keep that dynamic in mind going forward.

Gold is down again by 0.25 percent, closing at $1,557 per troy ounce on Tuesday. This continuance of the downward trend brings gold to a 6.44 percent depreciation for the month. With gold hovering just above, we can expect a breach of the $1,550 level, at which we will then be looking for support around $1,533. If that level is then breached, we will be looking for a breach of the psychologically significant $1,500 level. Keeping in mind through all this that the current correctional phase in gold is expected and healthy.

Silver has fallen a little more dramatically than gold at 9.47 percent for the month. On a weekly scale, silver has decreased by 1.88 percent, closer to gold’s 1.14 percent. Silver is still performing well in the market, but will endure the same correctional conditions of gold, though possibly to a lesser degree. With the silver price currently at 27.68, we’re seeing the most affordable prices in silver since December 29.

Mitigating factors in the current correctional include international news and economic reports out of the United States. The US Housing Starts as well as the minutes from the April meeting of the Federal Open Markets Committee have the potential to dampen the correction briefly. However, the correctional dynamic is strong and promises to continue despite adverse economic data.

Major banks including Goldman Sachs, Credit Suisse, and Citi have all released reports placing gold and silver at higher prices at year end, providing the kind of investing opportunity in which a lot of money can be made. It is not unusual to see a correction of 35 or 40 percent in these markets, particularly in a market that has enjoyed an 11 year long bull run.

A correction is a normal and healthy part of any market, and most surely a market that has been on an extended bull market run. Gold and silver investing will be very interesting over the coming weeks and months.

GS social media share img

Get Your Complementary Award Winning Guides Below

 Publish Real Money Magazine

 Publish Gold Investment Magazine

 Publish IRA 401K Kit Magazine

 Real Money Magazine