David Fuller's view In my last two Audios of 2009 and also Comment of the Day on New Year's eve, I mentioned that the missing ingredients for gold and silver were upward dynamics to confirm the return of buyers - in force - following last month's correction and short-term oversold condition. To familiarise new subscribers with this term, I am referring to a single-day surge that emboldens bulls and worries anyone with a short position in these instruments. I felt the upward dynamic would be forthcoming because we were seeing it in other metals, not least platinum (weekly & daily) last week, and palladium (weekly & daily) which I did not mention in my recent commentaries but has led on the upside once again.

Today, I am pleased to say that we have seen further strength by the recent leaders and also the previously missing upward dynamics for gold (weekly & daily) and silver (weekly & daily). I think this technical action indicates that the recent corrections are over and that upward trends are likely to be resumed, as we have already seen with palladium and platinum. Accordingly, I increased my silver long by 10%, paying $17.26 for another March position, including spread-bet dealing costs. I bought silver for its catch-up potential and I remain long of gold and platinum futures.

I last mentioned BlackRock World Mining Trust (BRWM LN), a longstanding core holding in my personal long-term investment portfolio, on 16th December, stating: "I regard internationally-listed BRWM as the safest way to particulate in the [mining] sector because it holds most of the top miners and currently sells at a discount to NAV of over 15%. I opened spread-bet trades in BRWM (weekly & daily) during earlier stages of its recovery and bought it again today because it appears to be breaking up out of a large consolidation pattern at a time when metals and mining shares remain in form. This afternoon, I paid 563.5p for a June contract, including spread-bet dealing costs.


Lastly, late this afternoon I increased my gold longs by approximately 30 percent, paying $1120.3 for another April position, including spread-bet dealing costs. I also hold February gold which is currently on automatic rollover as these contracts expire later this month.