Seeking Alpha

Anthony Bevilaqua's  Instablog

Anthony Bevilaqua
Send Message
Co-Creator and Vice President of "Euro Pacific Precious Metals", a Peter Schiff company, offering gold, silver and platinum bullion to investors looking to hedge against economic uncertainty and currency devaluation. Formerly a Registered Investment Advisor focusing on Separately... More
My company:
"Euro Pacific Precious Metals" - A Peter Schiff Company
My book:
"How an Economy Grows and Why It Crashes" Schiff, Peter
  • How Low Will Gold and Silver Go? 1 comment
    Jan 25, 2011 12:44 PM | about stocks: AEM, SLW, GDX, GLD, SLV, ABX, AU, DGP
    Gold and silver prices have been correcting over the past few weeks.  These corrections, short term changes in asset prices +/- 5%, are normal and healthy
     
    Casey Research accumulated all price declines greater than 5% in gold and silver over the past decade - gold’s average decline was 12.8% and silver’s 19.7%
     
    The table below shows the annual low for gold over the past 10 years. 
     
     
    YEAR
    ANNUAL LOW
    2001
    APRIL 2
    2002
    JANAURY 4
    2003
    APRIL 7
    2004
    MAY 10
    2005
    FEBRUARY 8
    2006
    JANUARY 5
    2007
    JANUARY 10
    2008
    OCTOBER 24
    2009
    JANUARY 15
    2010
    FEBRUARY 5
     
     
    Notice that the annual low occurred most prominently in January and February over the past decade. 
     
    So far gold has fallen from $1421.60 to $1330 (-7%).  Silver has fallen from $30.75 to $26.87 (-14%).  Based off the historical  average declines, we may seea pullback to $1,240 in gold and $25 for silver.
     
    2011 seems to be following this trend – meaning that the best buying opportunity of the year may be presenting itself.
     
    Gold and silver are on “sale” right now, so keep my number handy.
     
     
    2010 Returns Recap
     
    Silver                     +81.9%
    Gold                      +30.7%
    Nasdaq                 +16.9%
    S&P 500                +12.8%
    Dow                       +11.0%


    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Stocks: AEM, SLW, GDX, GLD, SLV, ABX, AU, DGP
Back To Anthony Bevilaqua's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • hookem63
    , contributor
    Comments (7) | Send Message
     
    Logical - dollar down, commodities up
    confusing - dollar down, gold down
    27 Jan 2011, 12:00 PM Reply Like
Full index of posts »
Latest Followers

Latest Comments


Most Commented
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.