Precious Metals Bulls are just about fully invested in their chosen sector whether it is gold, silver or uranium. So there is little more we can do to drive this market higher to where we believe it belongs.

We are there ahead of the herd because we think differently to them. We have recognised through fundamental and technical analysis that this is the place to be and has been for the last few years. We believe that to be invested in the stock market in general or to be holding the folding stuff is sheer folly. So this begs the question: just when will the herd wake up and actually move some of their investment cash into the precious metals market?

It is also interesting to note that uranium stocks get sold off with gold and silver stocks when gold goes down? The mind boggles! As uranium stands at $120/lb a massive increase since the year began. Back to the question of when will the herd see the light? They would argue that the DOW is at record levels and that they are doing well. An English stockbroker beamed with delight when he told me that the Merger and Acquisition activities in London were already ahead of last year’s figures. Two companies merging add nothing to the GDP in my opinion. No, we are looking for an ignition that will push gold and silver to new highs and therefore grab their attention. We can’t foresee a dramatic event in the near term that would create that ignition so we could be in for a rather slow summer. Gold is trading at around $660 an ounce and silver is trading at around $12.90 an ounce, which is still a profitable level for the miners.

We will continue to hold and ride through any rough patch, as we still believe the best is yet to come.