Not that support matters a HECK of a lot in the medium term as soon as they raise the debt level up bullion will shoot, as soon as they start talk of QE 3 bullion will shoot. There are a half dozen other short term things that could happen.But SupportGOLD - $1365 SILVER $28.50
great time to buy here
Previous post made a comment: "there are no visible shortages".The U.S. mint does not share you opinion.Source:http://catalog.usmint.gov/webapp/wcs/stores/servlet/CategoryDisplay?catalogId=10001&storeId=10001&categoryId=13738&langId=-1&parent_category_rn=10191&top_category=10191
I like support levels.Support levels require technical anakysis.When a support level is broken, lower prices are expected to follow, until a deeper over sold condition develops.When a support level holds, higher prices are expected, until prices become over bought, and a correction will follow.$28.50 is reasonable support, eventhough silver hit $28.30 this morning, and bounced.How much does it cost to make an ounce of gold? Mine 1 oz of silver?To mine an ounce of gold is only $450 on average for Newmount, Barrack, and other mining corporations.Silver mining costs are only $10 an ounce.Why are the metals, trading so much higher? Demand. Just demand.At some point, the metals will come crashing down. When the demand falls, and todays buyers start selling.With currencies falling, and demand strong, the bull market in the metals should last a few more years. Resulting in much higher prices.I do not think you will see $100 silver, but $50 and $70 are very probable.Metal dealers are happy, as they can charge a good premium and make good money.
If silver takes out the 50 DMA which I fully expect, then the first good support level is at $24.90.But usually when gold and silver make a run like they have with no correction less than 10%, then I would look for a 4-6 month correction.