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

I have been investing in stocks for over 30 years. I have quadrupled my money over that time. All you need is discipline and savings. I do think PM's are the same way. If you gradually collect them and take advantage of the rare super bull markets in PM's then you take your profits and invest them elsewhere. This is if you actually want to build wealth over time. If you want to get rich quick you will get poor quick. Of course, I just love gold and silver coins. It is not rational so I understand why people collect PM's in various forms. I am not down on PM's.

I apologize for not having time to throw up some charts will try for mid-week.

Keep these key numbers in mind for now-

Gold- over 1264.90 will be a big deal if it happens.

Silver- over 18.54 will be a big deal if it happens.

Finally, Q3 is over and what has been leading here is a big deal in the sense in that trends and long term movements continue from here.

http://finviz.com/futures_performance.ashx?v=17

My point is highlighting this is to stress an important point- Last year we had a lot of folks, including the public an individuals even on this forum, calling for much lower prices in gold and silver. Notice how the PMs are leading the indices (tho individual stocks/sectors are REALLY high up but this is not the forum for that and notice the Nazzy is really running) but my point is a ton of folks, even ones here that called for much lower prices, basically look silly, because PMs remain in uptrends and its entirely possible, based on probabilities, that PMs go higher even from here.

So remember, pay attention to price action. Ignore anyone who makes predictions and doesn't believe in price action. Allow the market to show its hand and what it wants to do.

Last thought- it is possible PMs run higher even as indices move up. Remember, correlations come and go. There is no law, rule or guideline that says PMs and markets cant go higher up together. If you think that isn't possible then you obviously are not a student of markets and price action.

Close but no cigar.. yet.

I like the set up on silver for starters tho. You can see its starting a new range, broke out on a shorter time frame (broke over 18.32, last weeks high) and sets up beautifully, not as beautiful as a swimsuit model from Colombia, but the set up is beautiful. If I was trading silver, I would be a buyer of it tomorrow, IF, 18.55 was hit.

Gold came awfully close and then pulled back. It still can break out higher but it wont be coming into that price area we talked about, (1264.91) in the best possible manner. Again, thats not to say gold gets on a tear, as an example. Anything is possible but we prefer, when a move starts, we prefer it to come in with fresh buying, where its just starting out.

All in all, very constructive price action, despite it being early this week. Note tho, we have had many several constructive weeks to get us to this very important point in price. Just think, a few months ago, the public and other traders were running their mouths, saying how gold was going to get undercut, blow up, fall down to 1,000 and below, you people know who you are lol, and yet look where gold stands.

The bottomline is one must respect the uptrend and downtrend and must learn to read price action and NOT use one's opinion when looking at financial assets that are traded. If you cannot grasp uptrends and downtrends and simple price action it is probably best you do not even invest any cash in markets, such as gold and silver.

Everyone who had price targets or predictions for much lower on gold and silver looks pretty silly now, dont they? As I always repeat, allow the elements of price and time to do their thing, they will show their hand, never try and get ahead of price.

I love price action and trends, they never have sent me down the wrong path and have exposed me to limited risk.

Ok here we go-

oh a shorter time frame, these are your swing guys,

Silver- over 18.43

gold - 1263.70


If those prices, on a shorter time frame get broken higher, then it opens up for the other numbers I have highlighted in earlier posts to be broken, those numbers are on a longer context time frame and are even more important.

well, silver and gold are coiled up to go higher. My only personal skepticism, IF we hit the targets mentioned, is that it is only a knee jerk move, based on news.

In other words, it will be interesting to see IF gold and silver hit those targets,, will the move stick or is this yet another false break out...

time will tell...

Key numbers again are-

gold- breaking above 1264.90

silver- breaking above 18.54

@Mac

well, we got the break out.

Now, right now, is if the break out sticks into the cash open tomorrow AM. Then it remains to be seen if it sticks, in other words, will gold follow through from this break out.

Hard to answer tonight and tomorrow because we go into the weekend so next week will be interesting.

What we DO know is gold and silver been primed for this move, they have been exhibiting very constructive price action for weeks. On the flip side, gold and silver have struggled many times, to hold these break outs.

I doubt that the action in Syria has anything to do with the current prices, This has been building up for weeks now and is not at all unexpected.

note- as we go into the close for gold, for COMEX, 1:30 EST, gold is pulling back, which makes total sense to me.

Can't say I am surprised. Watch the close....