Print This Post | Topic: Silver — February 5th, 2010

Taking a quick look at the chart we can see that Silver prices took it on the chin today dropping $1.11 or 6.78%. The RSI has dropped below the ‘30′ level suggesting that silver is oversold and this is a level that we have seen for over a year.

What to do now? We humbly suggest that you hold tight to your core position and take a good look at some of your favourite silver producers, select a few and buy them.

Its an old cliché to ‘Buy on Dips’ but its a good one and this is a dip, go gently and bag a few of them for your core holdings. Silver may still go further down so save some cash to enable you to buy a few more stocks a little later, if silver prices to do go lower.

Things will improve even though it looks bleak at the moment.

Got a comment then please add it to this article, all opinions are welcome and appreciated.

All the best.