Precious Metal Buying Area's For Long Term Investor's

Do you believe that Gold and Silver is real money ? Do you believe that Gold and Silver have more demand than supply ? Do you believe that Gold over the long run preserves purchasing power ? Do you believe Gold is in a bull market ?

If you answered yes to all of the above and you want to accumulate Gold and Silver long term here are the price area's you should buy. (NOTE : this is not trend following. It is average down. ONLY LONG TERM BUYERS should be attempting this. THE GOAL IS TO ADD ON THE WAY DOWN and should be done with LIMITED FUNDS AND NOT YOUR LIFE SAVINGS. SHOULD SILVER COLLAPSE -- THE LOSSES COULD BE WITH YOU FOR A WHILE.

Contents: Silver

(We will be adding more charts over the coming weeks)

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ONLY do this if your a real long term bull and are prepared to go the distance.

February 9 2009 last update - Add the 2nd portion of long term silver purchase at 15.10 (remember -- only a small portion of your money should be invested this way and you should be a long term buyer and prepared to hold. Best way to play this one is with physical silver)

SILVER -- Long term buyers @ 10% -- 16.00 Feb 5

Long term buyers @ 10% -- 15.10 Feb 9 2010 NEXT BUY -- $14

STATUS: 20% long at $15.55 as of Feb 9 2010.

Assumption: Your a long term silver investor and your convinced silver is going higher, much higher in the future. The price area's below show where silver can be accumulated. If you own no silver and want to start to accumulate, the template below can serve as a plan of accumulation and is a great way to get started.

This type of strategy is an average down strategy. IT IS NOT A TREND FOLLOWING STRATEGY (which is what I follow). It is a strategy that you should only use a small portion of you money with. VERY SMALL. The reason is this. If you don't use a tiny amount only, you will not have the STOMACH to sustain the loss and you WILL abandon the POSITION. If you have say $5000 you want to throw at SILVER..........then USE no more than $1000 of it to use this strategy.

A 2nd way to trend trade it is to WAIT TILL A KEY AREA HAS BEEN REACHED. IF PRICE HOLDS THERE..............and starts to RALLY YOU GET ON BOARD. THEN YOU PLACE YOUR STOP BELOW THE LOWS OF THE PULLBACK. In this example if you bought at 16.00 --- YOU STOP SHOULD BE JUST BELOW that area. If you get stopped OUT, and price moves down to the next area..............again you wait and try to get on board again. ODDS SUGGEST that ONE OF THESE AREAS WILL BE THE ULTIMATE LOW if silver is going much higher. It's going to be catching the right one. Once you do.......YOU RIDE IT.

Silver January 28 2010

The White Oval's are the long term support area's

Silver has three Long term Buy Areas: 16.00, 12.00, 8.00

Silver has four Medium term Buy Areas: 16.00, 15.40, 14.00, 12,00

Silver is at a long term and medium term buy area for those who are accumulating for the long and medium term at the 16.00 area.

LONG TERM PLAN: (Determine Amount of Capital Available)

Average down to $10.94 Long term goal

Range: 3 Year Price Zone

BUY ZONE 16.00 15.10 14.00 12.00 8.00

PERCENTAGE 10% 10% 10% 20% 50%

STATUS: X X

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Jan 28 2010

Central Fund of Canada = Buys Physical Gold and Silver