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

holy cow, I just realized this thread I started 4 years ago, just passed that a few days ago, where the heck has the time gone LOL

@ilikeikes

yea no problem.

I really dont know. Like I been saying still in an uptrend, until we touch those yearly lows and smash through the yearly lows, we remain in an uptrend.

could we end up touch the yearly lows? could we see some nasty downturns? it is possible, anything is possible in markets. heck I seen assets go from yearly highs to yearly lows BACK to yearly highs,, all in 12 months time. As an example, check out oil.

I guess I am trying to say dont put too much into gold and silver for now, UNTIL they really show strength and a very smooth uptrend. No need right now to commit large amounts of capital while the uptrend is not that smooth.

I remember when I was buying miners and GLD when it came out, I bought GLD as low at the 47s, added in the 50s and then later on in the 70s. Then I just SAT. I enjoyed that huge run, including the miners. The uptrend was very smooth and beautiful. Sure it had some big drops but you got plenty of cushion, that when they pulled back, it was like a minor blimp.

One big difference tho, was the fact that the historical highs for gold were only the 800s. Momentum was super strong and once we broke the previous all time highs, it was off to the races. I think we can see that happen again once we challenge the all high times in gold and silver. That, however, is going to take a lot of time and buying.

So just take it easy for now on purchasing silver and gold miners, dont bet the mortgage, stay small, there are TONS of other nice beautiful trends out there right now.

Yup, are you still thinking Pass is looking good based on price action?

Based on fundamentals (e.g., earnings report), it doesn't look like a good buy. It doesn't look like price action, alone, is enough to make purchasing decisions. Fundamentals like earnings report are also important.

At least our little stashes of PM's give us something physical to hold onto that has value, That is IF you haven't sunk your money into Paper PM's because they are pretty much the same as Fiat because they too are based on the promise that they will be provided when demanded (Good Luck with that)

@MontanaCMR

Once the ER hit for PAAS, the chart structure changed and it remains to be seen if the market will give PAAS a pass on its ER or will allow time to digest the move down and continue to move higher.

so price action wise, its lost some of its luster, but time will tell if it can reclaim where it was at or will the market sell it down from here.

If you look at what has happened since its ER, its starting to form a range. At this point, it doesn't look bad, it doesn't look great, more time is needed to see what direction the range breaks. Perhaps the old "a rising tide lifts all boats" effect gives PAAS a pardon. Again, time will tell and the direction of that range break will tell us what the market wants to do next.

I am not sure what they reported, I rarely, if ever look at Fundies, I solely trade price. As in the case of PAAS, the trade, and this is common with stocks, one strategy is to trade in front of their earnings date and then cut the position. I personally never hold a position right into earnings to avoid surprises, a mistake I committed and learned from many many years ago.

Fundies do play a role in stocks and are important. For big institutions, in some cases they evaluate a company on various metrics, including growth, margins, revenues, sales, etc. From there, after they have internally investigated the company, they put money to work. That money pushes the price of the stock and gets traders, in various time frames, to put their money to work as they take note.

However, many times there are many companies with good fundies and yet their stock may not move, go down or perhaps just do nothing at all.

This is where following price action is key, as you want your money to give you a return, no matter how great the ER was.

The best stocks to buy are those who report a great ER and follow it through with great price action. The best stocks to sell short are those who have crappy ERs and continue to sink.

There are caveats and risks to this as well tho, perhaps a company becomes so devalued that activist investors show up, pushing up the price and calling for changes and the stock rises, which then stops the bleeding of the companies stock or perhaps there is a company with a great ER and price action and then suddenly the shares plummet because it is later announced that they are offering a secondary or perhaps acquiring a company.

These are the risks that a speculator has to face and should be prepared to face.

I was thinking of fact that FDR made owning and selling gold illegal during the Great Depression. I think having lots of silver coins might even be better than gold if we have some hyperinflation as currency is so frail that citizens of the world lose faith in it and suddenly see the King has no cloths. With trillions of dollars of debt how are we ever going to work our way out of that except by inflating the currency or some dramatic increase in productivity. I don't believe in the latter and if it were to happen it would be robots and computers and not people leading the way. There really is nothing that makes our currency good except blind faith and the fact our money is better than even worse money of other countries. Imagine if I as an individual had so much debt that just servicing that debt was my major expense. Who in the world would loan me more money.....the Chinese? Does the IMF or some world body decide when a country is such a bad risk they cut off funds or loans?

If? That's already began. Another reason is sanctions.

See, today is a good example of what I was referring too when I say there are a lot easier places to make money in markets.

While the markets continue to rip higher, continue to grind higher, paying you to just sit in the trend and do nothing, gold and silver are flopping around again, vacillating between wanting to move lower and/or going sideways.

Looking at miners, past couple of trading here and they are look very messy, sloppy. They had a nice few weeks of pushing, bouncing higher and now losing steam. See the pattern?

So while longer time frames, they look fine, shorter time frame wise, they look sloppy and not a clear strong money flow for now.

We talked PAAS last week. nice run into its ER, after the ER dropped, flopped around, and it looks like on Monday it broke the range, lower. But even the nicer reporting names are also struggling now, which tells us over all we have weakness that is permeating the entire sector for now.

My friends, there are many many many many MANY beautiful charts, trends, moving higher in the markets over gold and silver. If you are contemplating gold/silver, or the gold/silver miners, go easy on them.