The silence is deafening.  Week after week for the last 4 years has seen each lower low in metals and miners met with a bottoming cry by many in the market.  However, the silence has been noticeable at these current lows.  Are so many that certain that gold is going to significantly break $1,000?  Weren’t so many as equally certain that gold was going to break out over $2,000 in 2011?  What I can tell you is that the camp which expects sub-$1,000 gold has grown to the extent that one has to consider that they may be disappointed.

There comes a point in time when a market has been so decimated from a severe correction that it is time to begin looking the other way.  In the metals complex, it is just about that time.  While I have no confirmation of a bottom actually being in place, we are seeing signs that the market is ripe for long term bottoms being formed. 

This past week, I had the privilege of interviewing Doug Eberhardt, a wholesale dealer in the metals market.   For those that believe, as I do, that a long term bottom is forming in the metals market, I highly suggest that you hear what he has to say   Again, since I view this market as bottoming, one should be seriously considering purchases of metals as we have finally hit the “BUY BOXES” I put out several years ago, and all three products happen to be within their respective “BUY BOXES.” 

In fact, I remember when I put these target boxes out around 2-3 years ago, and many thought I was quite crazy since it looked so unusual, as it was so much lower than the price of the market at the time.  If you remember, 3 years ago, GLD was still over 150, and I was looking down to the 100 region at the time once the upside set up at the time invalidated.  And, when I was looking for the $14 region in silver when it was hovering near $30, people thought I had lost my mind.  So, even though there is a smaller “possibility” that GLD can drop as low as the 75 region, I think the time for action has arrived, and one needs to be buying deeper drops at this time. This is the deeper target region we set for ourselves years ago, even before the metals topped, so I believe now is the time for action.