Did Gold And Silver Bottom Out?

[SevenEyedJeff]

They are both up, right now at least. Not used to seeing the green arrows lately.

 

[sirellyn]

I'm learning myself and through others that you should never try to guess top or bottom, it's a really futile effort and thats not where you'll make the most money either. If the price is much higher than average, sell or short. If the price is much lower than average buy. (Adjust for inflation of course.)

Gold and silver are lower than average right now so buy.

 

[cbc58]

my guess is no... they haven't bottomed out. to arrive at this conclusion i use my tried and true method of investment. i just bought some silver and it is therefore guaranteed to go down. works everytime -- when i think it is the right time to buy or sell a stock.... they do the exact opposite.

 

[Dr.3D]

From this chart, I would guess silver and gold have bottomed out.
Notice how the ratio has returned to nearly the same level it was last year and is now starting to return to lower levels again.

 

[tmosley]

How can you tell if gold and silver have bottomed out by the ratio of the two? It seems to me that that chart says that silver is going to rise relative to gold, but it says nothing about what it is going to do relative to the dollar.

 

[Dr.3D]

How can you tell if gold and silver have bottomed out by the ratio of the two? It seems to me that that chart says that silver is going to rise relative to gold, but it says nothing about what it is going to do relative to the dollar.

Good question.

Here is another chart showing the relationship of the U.S. Dollar Index to the Gold/Silver Ratio. Notice how as the U.S. Dollar Index begins to turn around, so does the Gold/Silver Ratio.

 

[SLSteven]

That chart makes my head hurt!

 

[Dr.3D]

That chart makes my head hurt!

LOL, sorry about all of the vertical grid lines. I've gotten sort of used to them.

 

[Dr.3D]

Here is another indicator as to the possibility of the gold and silver having bottomed out.
Notice last year it was right around this time when it bottomed and then see where we are this year.

 

[bander87]

Today remained somewhat flat. I think we hit bottom.

 

[BCR_9er]

I think it will bottom out at the end of this week and start climbing next monday. Just my little guess.

 

[Crash Martinez]

Down again...

$0.70 so far today. I want more money to invest!

 

[SevenEyedJeff]

I just love this...on the brink of WWIII and gold goes down again.

 

[Dr.3D]

Well, silver still isn't as low as it was at 2am on the 12th.

 

[theoakman]

there's no way to know if it bottomed out. I plan on buying both for the next 2 years anyway. Most of us who bought gold at 900-1000 felt it was undervalued there. I dunno about you, but I still believe that. I myself will be comfortable buying gold until it hits around 1600 (assuming it does). Never planned on selling it any time soon, so I could care less how far it drops. I'm hoping it stays below 1600 for the next couple of years so I can get more. The only thing I'm mad about with gold being at 800 and silver being at 14 is that I don't have much money to buy more right now.

 

[Paulitician]

I think it bottomed out in May. What we have been seeing the entire summer, and recently, is immense volatility. It could take us another week, another month, or even another season, however, until gold makes a run-up to the next, significant temporary top. So if you're buying today, you bought the day before yesterday, or you bought when it was at $850 in May those were pretty good buys but you'll have to wait sometime before you see some gains.

 

[Mahkato]

I prefer to think of it as the Dollar topping out.

 

[youngbuck]

Well it obviously didn't bottom out, because everything is a lot lower right now. Silver below $13/oz, palladium under $300/oz, and gold under $800/oz.

 

[Dr.3D]

Well it obviously didn't bottom out, because everything is a lot lower right now. Silver below $13/oz, palladium under $300/oz, and gold under $800/oz.

Just goes to show, you can never outguess the central banks.

 

[pacelli]

Personally I think gold and silver are both a STEAL at these prices.