Entering text into the input field will update the search result below

CEF: Calling A Bottom In Metals


  • Technical analysis suggests we may have "bottomed" in metals.
  • Fundamental analysis continues to support long-term ownership of gold/silver.
  • The CEF is a great vehicle to gain exposure to both physical gold and silver.
  • Looking for more investing ideas like this one? Get them exclusively at Macro Trading Factory. Get started today »

Thesis Summary

In the last few weeks, we have seen silver and gold slowly meandering with no real sense of direction. It looks to me like this is a "bullish consolidation", and within the next few weeks, months, and even years, I am expecting much higher levels from both gold and silver. For lack of a better term, I am "calling the bottom" on metals and believe this is a great place to add to your position. In this article, I discuss why and how to gain exposure to the metals if you haven't already.

Source: Commoditytrademantra.com

Technical analysis

While I rarely dabble in technical analysis, it can be very helpful to identify key turning points. If done well, and coupled with the correct fundamental analysis, it can help us identify "low-risk" entry points. Below, we can see the latest price action in gold and silver.

Source: Tradingview

The above charts show the price movements in silver and gold dating as far back as mid-August. While the two metals don't necessarily trade in sync, we can see essentially the same structures developing on both.

Our area of concern starts on the 24th of September, which is when we saw the metals reach a low of sorts, following what was a tremendous rally in the months of July-August. Since then, both gold and silver have been meandering with no real direction. We can identify, in my opinion, an initial move up to around $1,925 gold and $26 silver, followed by a classic A-B-C corrective structure.

I believe both gold and silver may have bottomed on Friday the 30th, essentially retesting the September levels. A test which, as of writing this on Monday, they have passed with flying colors. Both gold and silver are up a good +1%, and we can now see the MACD start to turn up.

Macro Trading Factory is a new service focused on macro views, market outlook, and asset-allocation.

We demonstrate portfolio and risk management, in a simple and relaxed manner.

Our model-portfolio is:

  • Well-diversified, containing up to 25 leading ETFs and CEFs.

  • Managed by a team of professionals, led by TMT.

  • Aiming to outperform the SPY on a risk-adjusted basis.

  • Allowing you to keep-up with your daily-routine.

MTF is your perfect solution if you're looking for an ongoing, professional, trusted, affordable guidance, especially with little time on their hands.

Macro Trading Factory = An Upward Trajectory!

Macro Trading Factory for An Upward Trajectory!

This article was written by

James Foord profile picture
Macro, crypto, commodities, international equities and so much more.

James Foord is an economist and financial writer with over five years of experience writing about stocks and crypto. His lifelong interest in monetary policy and innovative technologies led him to specialize in macroeconomics, crypto and technology. Given the current macro outlook, he is focused on commodities, real assets, international equities and value stocks.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.