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

@ Terry8835...MY 2 cents worth on your question: In the "Old Days", basic rule was STOCKS DOWN...GOLD(thus, Silver) UP...THESE days, it's ANYONE's Guess...I could list 5 MAJOR events this year, that, if they happened in say, 1979, GOLD right now would be well over 1500, due to the issues involved. THIS year, everything is the opposite...BAD NEWS is GOOD NEWS, as they say. MY opinion on all of this is pure "Monkey Business"...I don't G.A.S. what anybody else may think about corruption, and, manipulation in the FX Markets and Bullion Markets, to me, it is rampant, and, bad news, and, happened again this week with Italy Referendum. Euro UP/Gold Down...OPPOSITE of what SHOULD have happened, under "normal" circumstances. The fact that the Paper Gold Market is so unreal(500 to 1 ratio), and, so easily manipulated(all the big selloffs happen at the same time of night, at certain times of year, mostly when China's markets are closed on vacation), who knows what will happen anymore. I think you WILL see massive profit-taking on the stock exchanges soon...and, a LOT more close to Inaugural Day, which, when the smoke clears, SHOULD be good for Gold. As usual, only time will tell.

The other day I mentioned how silver was diverging from gold. Silver made a range break today on a shorter time frame, out of a base. Keep on eye on this, if it can build on this and move continue to move higher.

Gold continues to stay in a range, could it be ready to follow silver? Time will tell.

Yea, like we all turned a blind Eye on all of this? No...still going on as this being written. My hope is someday, the Miners form their own exchange..run BY miners, as a consortium, with NO futures, and, real-time-real bar sales, to stop the madness.

Silver still keeping its gains and holding above the range it broke out of on a shorter time frame.

Gold on the other hand, is pushing for the lower end of its current range, and should 1158.60 break, lower prices are in store.

Will be interesting to see if this divergence continues between silver and gold and which one will be leading or following the other.

You know when stocks, or any other financial assets are hitting record highs it is like a herd of cattle. Anything can spook these markets and you have stampede for the exits. Most of my limited success has been based on luck and just buying and holding for years. To me the fastest way to lose your money is to trade a lot in any market. Hot tips are usually slow poison. If you think gold or silver will be selling for $2500 an ounce or $50 an ounce, respectively, in ten years then start stacking it. These gold and silver major bull markets don't come around that often so you got to be ready. There was one in the 80's and it took about 30 years to have another one of major proportions. At some point there will be a major sell off but who knows when? I guess this is why I say to take some profits if you have them but don't get out of the market completely. Be it PM's, stocks, real estate it will crash and it will come back. The smart money buys when there is blood in the street.

So bit of congestion here for gold, broke that 1158.60 today and bounced. still in a range.

silver- after falling briefly this AM back into the range that it had just broke out of, its once again back above the range from last week, holding its gains from last week.

either this range holds or doesn't, simple as that. the direction that range breaks will be the next move for the PMs. This divergence between gold and silver will resolve itself also.

SilverTracker, Using American Gold Eagles as the example, depending on where you buy your 1/10 oz., they are about a $24 premium over spot right now, maybe a little more. Gold would have to go to $1400/oz. for you to break even. For the 1/4 oz., premium right now is about $40-45 over spot. So, gold would only have to go up a little less than $200 above is current price for you to break even. This shows the 1/4 oz. as the better overall deal IMO.

@Terry, great post.

I agree and am hoping silver drops under $15.50 so I can start buying physical again. It's been difficult to keep with my strategy of only buying below my average cost, but it's helped me avoid chasing prices.