As we discussed in our recent webinar last week, one possible action would be to sell one's precious metals holdings before Friday's close on July 29, then rebuy them today at a lower price.

When the debt ceiling agreement was reached over the weekend, the general market gapped up while precious metals gapped down in futures trading.

We would use this gap down as a buying opportunity to either add to your existing positions in precious metals or to buy back what you sold last week.

Keep in mind that the precious metals may go a bit lower over ensuing days so one may decide to scale back into their full position.

That said, we continue to believe that the long term direction of precious metals is up given the highly favorable fundamental backdrop that will send the dollar lower, and stocks and commodities, especially precious metals, higher.