What Happens To Gold And Silver Next? Look Out Below?

Reading Kitco commentaries this morning I find the current market moves bizarre. Background to my comment: For years (since before 2007) I have read Gold worshipers saying buy gold because inflation is coming. As I watch the fed and others fighting the ravages of the GFC I see this gold nuts saying "look at how much money they are printing, We are going to turn into Germany/Austria circa 1920s. We better buy gold". However those gold bugs failed to understand that the printing was not even coming close to the amount of money that was lost during the GFC. That loss of money was accompanied by a huge reduction in the velocity of money. Europe has certainly suffered from the stagnant velocity of money, that we have now. So yesterday the ECB does something to counteract the depressive forces hoping to speed the velocity of money. One key feature is banks now have to pay to deposit funds with central banks, instead of getting interest. So in Europe Depression is the problem yet Gold bugs are buying. It just leads me to the impression that no matter what the situation is gold bugs will say buying gold is the cure. Theres another name for that isn't there: Snake oil salesmen

... and here we go again...

as someone said yesterday, what we saw was a knee jerk reaction. Today, we find gold putting in a lower high and lower low, the first clue in gold losing its move from yesterday. Add to that the fact that there was zero follow through.

all today does really is set up gold and silver to short again.

Taking your argument further Barclays bank and others shouldn't have been fined for manipulating the Libor rate. That rate effects the mortgages we pay. The london daily gold fix is a starting point for the markets. Even if you are half right what the bank a was doing was a form insider trading which would have seen some of their customers( usually the least able to afford it) loosing out!

Corruption always means something and to think it doesn't only encourages more corruption.

fistfulladirt are you a market trader?

... and @Fistfulladirt is right...

No matter what is said or printed about supposed manipulation or even if there are settlements, it will never trump that powerful fact that price action sets the market.

gold and silver will rise when the market is ready to let them rise. Whether that happens now, later, is really up to the market, which will resolve this issue by the element of time.

Well, its managed to recoup its gains and losses from the ECB day and has continued to move higher. However, today is going into the upper end of the range from where it broke down...

can it hold it and move over that area or is this the wall where it stops?

We'll have to watch and see but I think its clear that gold and silver are locked in this range bound trade that will be around for a while. The sellers dont have the resolve to drive this much lower for now, the buyers have managed to buy at key areas but for how much longer will they buy?

My thought- gold and silver are dead money for the time being... based solely on price action.

I like my silver coins but they have got to be a collectable for me to get interested. As this thread says silver is going nowhere for quite some time.

This week I purchased another collectable at 30% face and will sell it at 200% + of face value.

Which investment item would you buy?

Could be, but it could drop to $10 an oz or lower as well, I am not against buying some silver right now but I wouldn't spend too much on it unless you are buying as a collection vers investment. Right now I add to my stack only things that I like, not because its the cheapest but because they appeal to me with possible potential to increase in value but at the very least hold their value such as some semi numismatic bullion coins etc , straight up cheap silver will always be stuck to the spot price up and down.