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

Silver just took a nearly 4% nosedive out of nowhere, wiping out a month of gains in minutes. I don't get it.

Alfred E. Newman would say.."What, ME worry?"...still in range, still technically in Upswing...now, if Silver drops below $13.60, Houston, we have a problem..hoping it settles in around $17.50 for a bottom(pricing in March rate Hike, rising dollar, and stock markets record highs).
These consolidations can be GREAT news on the next leg UP. Right now, Gold is down 1.32%..but, Silver slammed..down almost 4%...

How is cash king when the stock market has moved up in the last few months?

On Monday we noted how despite the fact that gold and silver had made progress and broken out of their current range and pushed higher, we noticed on Monday how the close for both silver and gold was rather weak as they went out at their lows.

On Tues they started their decent, breaking down and falling into their previous range. IF you are keep track at home, you can go back and see the various ranges, price wise that we have noted.

Silver and gold now sit at the bottom of the range they broke out of going back to early February.

I can understand that for those looking for prices are probably disappointed but you need to remember a few things-

1- gold and silver have 4 years worth of over head supply, as expressed in price. In other words, there are many levels where sellers and buyers are going to step in. We are seeing this at work almost every single day in gold and silver. The only element that will work out this overhead supply will be the element of time.

2- Gold and silver remain in up trends, even with it being pretty ugly.

3- You get official confirmation of a down trend if/when gold breaks 1124.30 and silver at 14.73, those are the yearly lows. Those get broken on the down side and without a doubt, the downtrend is back.

4- Just take it easy with gold and silver, there are a lot of other areas in the market to park your money than silver and gold or PM miners.

5- Some trends are beautiful like the women in the Brazilian beach volleyball team. Others are so wretched, sloppy, messy that they look like dog vomit. Right now, gold and silver trends are like latter. Again, only the element of time can work this out.

6- Indecision on the part of major market participants leads to this constant back and worth. The market clearly cannot make up its mind and is still awaiting more info, looking ahead into the future.

7- Be patient and do not get frustrated. I realize many folks would love to see these go to the moon. HOwever, markets take their darn time. If silver and gold go into a downtrend, so be it. It is not the end of the world, there are many many many places where you can put money to work instead of putting lots of it into silver and gold.

always, let price action be your guide as it NEVER lies.

Back and forth, back and forth. Seriously? Lets let it go back to what it was at in April of 2011.

when I look at gold and silver, for a trade, I just see numbers, same with sugar. I see just numbers when I look at some stock, like say when I look at stocks at 52 highs. Where is it at? What is it trying to do? What has it done in the past?

How is it acting? Can some good money be made in it by selling it or buying it? Is it even worth it to try even if it sets up for a trade?

Right now I see nada in silver and gold and the PM miners. Uptrend is there. But for my money, my time frame, its just not worth it. My personal edge, what puts digits in my bank account is buying right, buying leader ship, adding on the way up and sitting tight to capture as much as I can, to with stand any violent or crazy moves.

With gold and silver, the only thing I see for now trading wise, is if you were/are swing trading it. There are traders enjoying these range bound price action moves, they are loving it.

They identify the current ranges, as they develop and sell the upper end of the range and buy the low end of the range, rinse and repeat. There is some great money to be made doing that and some traders are enjoying just trading the break outs to the upside on a very short term time frame.

Personally, I just see nada (although the equity market has been the places to be since last last year and continues to be constructive) for now OTHER than I continue to collect silver and gold coins, expanding my world bullion collection until gold and silver confirm a downtrend, then I will narrow down my collection and pull back on collecting as I did when gold and silver where in down trends.

IF I have time this weekend, I would like to throw up some non-PM charts to discuss how this same price action in gold and silver is present in other commodities, such as gold, silver, cotton, etc.


But just a tid bit-

corn had a really nice break out a few weeks ago. Now, granted, corn has been rather weak for a while now. However, it has been forming a HUGE base since July of last year, worked out of the downtrend and is really trying to blast out of it. This is positive constructive price action, again, corn is not in a downtrend but its been very pathetic, I dont think corn is even up 1% for the year LOL

but the point is this- every single time corn perks up and does break out, it is so so so short lived and poof, there goes a whole week or two of buying.

Cotton is another one like corn, like gold, like silver. Remember I put up a chart a few weeks back? Cotton still remains strong, positive constructive price action, it is in an uptrend especially after a period of spectacular selling within the up trend last year.

The potential is THERE. However, every time it breaks out, poof, the break out higher is wiped out and its back to square A.

So dont think that gold and silver are just being singled out here. Something will give, in time, the market WILL show its hand, whether all these are going up again or down again, in their long term trends.

Just be patient,, be patient,,, TIME will work things out and while I realize that most want to see higher prices, especially in gold and silver, we just need to be patient and let the market show us whether the uptrend is going to smooth out or the down trend takes over again.

time and patience... are so key in markets.

Just a heads up, today gold and silver broke lower out of their current range, so look for lower prices ahead, look and see if prices go to the lower end of the range this week.

Outside of that, not much to say, pretty much the same price action you should be accustomed to by now, which is ranges being formed, broken higher, broken lower, etc etc.