opinion

Metals: Time to buy fear?

Kitco Media
By Jonathan Da Silva
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On July 12, we wrote: "an overshoot to the downside on capitulative selling in the metals sector is extremely common; bottom pickers should expect to have their mental capital tested, even as the signs of an impending bottom pileup."

Prices for gold and silver are now deep into the yellow highlighted support zone we have been highlighting for weeks. Sentiment is even more depressed, price continues to stretch downward, and weekly stochastics are oversold. The price is in a major support zone. Note the Bollinger band crash on the weekly charts in gold and silver, now occurring as well.

Certainly, bulls' mental capital is and has been in the process of being tested. An old adage is that the best time to buy is when you are most scared to do so: Are we there yet?

Thanks and have a great weekend,

Kitco Media

Jonathan Da Silva

Jonathan Da Silva developed a passion for hard money and economics from a young age having been influenced by family who sought to teach me that "nothing is free", and the importance of intrinsic value early on. My interest in markets grew keener during the great financial crisis of 2008; leaning on family with vast trading experience, I began to self-educate on technical analysis and economics- drawing inspiration from the works of individuals like W.D. Gann and Adam Smith. I have been a proud member of the Kitco team since 2017 and hope that my writing inspires readers to consider an objective view of the metals, and the greater financial markets.

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