Why Now Looks like a Good Time to Buy Gold
Jun 4th, 2008 | By Dominic Frisby | Category: Gold MarketJust as it was during the credit crunch, the biggest beneficiary of the next wave of the financial crisis and the ensuing panic will be gold and precious metals.
And all these meaningless statements from central bankers about fighting inflation do is present us with another opportunity to buy them.
Given that we are now in a seasonally a weak time of year and given also the move it has made since last August, I am impressed with gold’s resilience. I am even more impressed with silver, which quickly retraced much of yesterday’s losses. I will write more on this in the coming weeks, but it seems that silver’s time may finally be coming.
Another retest of $850 is possible for gold, even likely. But the technical support at this level makes it such an obvious buy-point, I really don’t see it slipping much below there for any significant period, except perhaps to shake out a few weak hands. $850 is where I have some buy orders. Perhaps you should have some there too.
Source: Why Now Looks like a Good Time to Buy Gold
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Dominic Frisby is MoneyWeek’s commentator on commodities, and is an active private investor in junior mining and energy companies. He is the presenter and producer of Commodity Watch Radio - an internet radio show run in association with Minesite, where Dominic discusses the commodities and financial markets with leading lights of the sector.