Gold and Silver: When Smart People Start Talking About the Bottom You Might Want to Listen

When smart people start talking about a price bottom in the gold and silver market, you might want to listen.

Don Harrold of the Day Trade Show, thinks the bottom is coming soon. In fact, silver got close enough to his $17.50 price target that he's not really concerned whether or not it goes any lower.

Market Anthropology, a master at creating charts mapping parallel patterns in seemingly unrelated markets, recently made The Case for Buying Precious Metals.

They listed 4 factors that flipped them from bearish to bullish on precious metals, including gold and silver:

1. Market structure and momentum went from a gradual and erosive decline - to a full waterfall cascade.
2. Ratio expressions for the sector have extended beyond historical extremes.
3. Both the currency and interest rate backdrops have shifted.
    A. We have a less favorable opinion on the US dollar; &
    B.  Interest rates have spiked - relieving yield differentials unfavorably impacting the sector.
4. Anecdotal evidence of prominent gold bulls capitulating and despondent conditions within the sector.

Finally, Kitco, known for running down the very precious metals they offer for sale, featured an interview with David Gurwitz, Managing Director of Charless Nenner Research, making the case that Cycles Say Gold is Bottoming.

Now that you listened, what do you think. Are gold and silver at or near the bottom? If not, how much further do they have to fall?