Gold volume did spike at the bottom. Capitulation is likely in.

In this post, I lamented the fact that the chart does not show much volume into my modeled chart bottom.  As a result of lack of volume, I started to wonder if I got the wave count wrong.  I explained that after such a big smack down I would expect to see capitation style volume.  High volume into the bottoming process GREATLY increases confidence in the probability of the call.


But look at the gold chart below.  GLD did have a significant volume spike (200million shares traded into the bottom).  That is what I was expecting for silver but since the metals trade similar fashion I think the GLD volume spike greatly increases my confidence that the bottom is in for both gold and silver.

I think anyone buying in this territory with at least a 1 year time frame is going to do very well for themselves.  Having said that I will repeat that gold is for long term savings so anyone who loads up on margin or using other forms of debt is not thinking clearly.  You don't take out debt in order to claim to have savings folks!  You have savings only after paying off your normal debt.

Note: I might wait for the next several percent or even 10% pullback in silver until it hits the bottom of the channel again before pulling the trigger.  Conversely, if Silver breaks out again Monday, I probably will buy another tranche.  Either way I will be buying more silver in the next couple days as a result of finally having noticed the high volume capitulation bottom in gold shown above.  Silver could begin to move quickly IMO if stocks begin to roll over as government starts yet another war. What a pathetic Bush-esque joke: "we have to kill people with drones in order to save people from chemical weapons".  PATHETIC AND EVIL.