Even a long-term precious metals bull like Cazenove’s Robin Griffiths pays attention to the short-term movements.
He details his game plan in an interview with King World News. Here’s gold:
“I think the long-term trend for gold is absolutely in place and the final high is so far higher than we’ve been that there’s nothing to worry about. However, in the short-term it became overbought and it’s very likely to fall back to its 200 day moving average which is in broad numbers $1,400.”
“I think in the case of silver, which of course had a huge catch-up move with gold and then had a shakeout after that because it moved far too fast, the low of that correction period is in and I think we’re within days of the correct moment to be buying back into silver again.”
“I was in South Africa just the other day where some of the richest holes in the ground exist, but the miners have to go down four kilometers and then along seven kilometers to get to the seam. It can take them two hours out of each working day to get to and from the place where they do the digging. So there’s no way they are going to be making money out of that just yet. The price of bullion needs to go way higher before the stocks themselves start to fly. The day will come when the mining companies take off, but that’s in the future still.”
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