Silver appears to be bottoming

While I'm still very nervous about what may happen after the D-day, i.e. the end of QE2 on Jun 30 and I still think it is very likely there may be a more severe sell off of precious metals, the price actions of silver in the past few weeks are revealing a bottoming pattern. It appears the silver price has a very strong support at about $35. Given what is going on around the world, which is fundamentally super bullish for precious metals over a long term, together with being supported by the bullish technical price patterning,  I think it may be wise to start to accumulate silver and related products.  But I'd do this slowly, using the dollar averaging approach, i.e. buy a small portion at a time and add more if its price drops further over time. I will add some positions of AGQ, a leverage ETF for silver.

To be very clear, this is a 2 times leverage fund; as such it is more risky but also potentially more profitable. It will roughly increase by 200% of silver prices but will also drop as much and quickly, double the loss if silver prices drop. Less risky silver ETFs include SIVR or SLV. As I said, don't be surprised if silver indeed experiences severe sell off in the next few weeks. Considered to have been warned.