bottom pickers

Exert;kitco 21 aug

$AUD935 gold – right now

Gold and silver are deeply oversold, the shares even more so particularly the emerging producers. Depths not envisioned by most if not all now scream – “buy me”, that is if you believe the fundamentals and long term trends are still in place for gold.

Some of the base metals have become highly attractive too. There are repeating divergence patterns in stock markets indicating to this analyst that a turn is approaching in sentiment – it seems impossible but resources and precious metals will recover. Just as the worst of the financial results are being reported this year and things look as if the commodity boom will surely end – we will all get a surprise once again. I refer to mining and precious metals not real estate or the US economy.

Gold stocks did not follow gold up into that initial $US1000 + high and they were hammered further as gold subsequently fell. They did not follow the false break to $US987 either and then got hammered even further shaking gold stocks from all but the strongest hands. The buying patterns are now slowly changing which is what turns the RSI indicators and creates the divergences – this is a give away that the worst id over now for some stocks.

Many of these miners have been making significant progress towards increasing production and tangible results are imminent or already in place “at the stope face”. The markets will most likely bottom due to this confluence of occurrences (including the over sold condition of the physical metals and mining stock indicies) and strong hands will soak up more and more paper at these levels.

Progress at the mines may not be recognized in the share prices until results are reported – after the fact – but the smart money knows this and is picking up fallen and low lying fruit right now.

We now track the share charts closely on my PDF files which have evolved significantly since I released them two years ago – yet they are still too cheap. Patterns are emerging and market timing will be assisted via this process. The market too – is highly fluid with company failures (some sadly fatal), new emerging companies on the scene and takeovers – this takes more time than the average investor has to keep informed about. Turn your radars on now because he who hesitates is lost for the lowest prices - but be careful on your choice of stocks – and patient on your entry levels.

Plenty to pick from. My pick;EXM