When can I buy gold and silver? Is it on the verge of a big move?

“The question everyone keeps asking is: When can I buyGold and silver? With what is unfolding across the pond and the bullish outlook for the U.S. dollar index, the next move is a coin toss. I do feel a large move brewing in the marketplace, so I am preparing for fireworks in the first quarter of 2012.”

The past few months have been tough for those holding precious metals stocks, PM futures contracts or physical bullion. Silver is trading down 41%, precious metals stocks down 30% and gold 15%. It has people scratching their heads.

The question everyone keeps asking is: When can I buy gold and silver?

Unfortunately there is not a simple answer. With what is unfolding across the pond and the bullish outlook for the U.S. dollar index, the next move is a coin toss. That being said, I do feel a large move brewing in the marketplace, so I am preparing for fireworks in the first quarter of 2012.

If you step back and look at the weekly trend charts of the dollar index and the S&P 500 index you will see the strength in the dollar, along with a possible top in equities forming. What these charts are saying is that in the next three months we should know if stocks and commodities are going to start another multimonth rally or roll over and start a bear market sell-off.

With the holiday season nearing, hedge fund managers are sitting on the sidelines just waiting for their year-end performance bonuses. I cannot see any large sell-off start until January. Sell-offs in the market require strong volume, and the second half of December is not a time of heavy trading volume.

This leaves us with a light-volume holiday season, major issues overseas and no big-money players willing to cause waves.

So, let’s take a quick look at the charts to see where the line in the sand is for the dollar index, Gold and silver.

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Tags: price of silver, Silver, silver analysis, silver futures, silver futures prices, silver news, silver price, silver price 2012, silver price forecast, silver prices, silver spot, spot silver

Posted by Silver Guru on Dec 27 2011. Filed under Silver Analysis. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry