VIDEO — Nick Santiago: Silver Breakout Has Begun, Gold to Follow After Hitting US$1,500

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Back in January, Nick Santiago of InTheMoneyStocks.com was bearish on gold in the short term.

Speaking at a time when the yellow metal was just below US$1,800 per ounce, he said he was expecting a "pretty substantial decline" in the next year or so — in fact, he saw gold potentially falling as low as US$1,450.

With Q3 drawing to a close and gold near US$1,625, Santiago still thinks it has further to fall.

"There are going to be bounces in gold, but I still believe that we're probably headed to that US$1,500 area," he told the Investing News Network. "If we breach US$1,500 we'll go to US$1,450. But down to US$1,500 I will be a heavy buyer of the precious metal."

Santiago, who is CEO and chief market strategist at InTheMoneyStocks.com and focuses on technical trading, said that institutions will be ready to load up on gold when it gets down to these lower levels.

"That's just a very, very good pullback range from the prior attempt at a new all-time high," he explained.

While gold still has further to drop, Santiago believes silver has bottomed out.

In January, he mentioned US$18 per ounce as a major pullback point for the white metal, and said that's when he would be loading up. Silver got to that point at the end of August, and Santiago said that on September 1 he made a large physical purchase.

"I think silver is starting to break out already — that chart is amazing," he said. "I think silver is going to lead the way — gold will play catch up once it gets to that US$1,500 range."

Watch the interview above for more from Santiago on precious metals.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.