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Where To Buy: Precious Metals Collapse

|Includes:AUY, FCX, SPDR Gold Trust ETF (GLD), SLV

Precious metals have crashed today. The SPDR Gold Trust (ETF) (NYSE:GLD), is trading at $160.45, -8.60 (-5.09%) and the iShares Silver Trust (ETF) (NYSE:SLV) is trading at $29.79, -5.13 (-14.69%). In the last few days, silver has collapsed more than 25%. This fall was long overdue as amateur investors had been buying these metals up recklessly.

The buy level for these two metals in the short term is right in the current area. The GLD hit major support at $159.50 and the SLV at $29.50. Both these levels were triggered. While a sharp bounce will come in, be extra careful. It will not last long and both these metals will head lower.

Gareth Soloway

Stocks: GLD, SLV, FCX, AUY