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

Silver trading exactly as we had talked about, in a very weak manner and falling hard, whereas gold is fighting to stay at the lower end of the range. Never did like the price action in silver in the past few weeks myself, just was so anemic to gold and couldnt even really push up with it.

Notice that gold, on the other hand, for the session, has yet to break yesterdays LOD.

Observation- is silver signaling that gold will be dragged lower in the coming days, weeks? Or are gold and silver going to divert big time? Or is this just a temporary drop in silver? Look to price to answer these questions in the short to near term.

This is a wonderful playground for short intra-day traders. For longer term traders, such as myself, nothing to see, nothing interests me. Palladium on the other hand is the better place to be, if you dont mind the wild rides down lol.

Long term investors in gold and silver are going to have to exercise a lot of patience, might be carrying a lot of risk but at the same time, I would strongly caution anyone who is quick to trumpet that silver and gold are going down super hard.

The only vague pattern I can pick up, in seeing these sort of things is again- very ugly sloppy uptrend in gold and silver. One where they run up, appear to want to go much higher and reach that exact point and trade back down to where they look like death, where at that point, they rocket back up. NOT my type of favorite pattern to trade.

Silver has manufacturing uses while gold not so much. This might signal a slump in manufacturing world wide.

I could possibly afford to buy a .25 ounce gold coin every month. I would pick a common gold commemorative or straight bullion coin. Then I could dollar/cost average and stack up some gold in case the economy blows up which it probably will do in the next 10-20 years. These crashes come on a regular basis. We had one in 1987, 2001, 2008-9, so we are over due once more. All the problems that were supposed to be solved after recent collapse have just been kicked down the road. Soon Wall Street and Bankers will get too greedy and plunge us into another big frenzy and then the crash which they create.

AgCoin

I have been active stock investor for decades and have seen crashes coming about once every 8-10 years. I expect this to continue and we are entering the time period that should set us up for another bear market. We have been in a bull market since 2009. This might be good for PM's if people get scared enough as in 2010-11. Investors still tend to sell at the peak of the down market and buy at the peak of the upscale market. I bet this is true for PM's as well.

Gold and silver reverted back to lower ranges. Gold is testing the lower end of a range formed back in early April.

Silver, the technical picture if far worse but this should not be a surprise, at all. All that weakness is showing up as the selling is very strong and silver is really rolling over here in the short term.

At this stage, silver really looks like death. It is just crashing every single range it built, lower. See if yesterdays low of 17.55

By now you should be used to this pattern we have been seeing. Good runs by gold, silver higher, constructive price action. Then the big area looms ahead and they break down and start to roll over. As they roll over and come to important areas where they should break lower, they bounce. Rinse and repeat.

its early in the session but both gold and silver are struggling with silver really taking a beating.

chart structure in the short term continues to worsen.

I know it sounds crazy but this is the pattern, run it up, make it come into important areas to break higher and then failure to follow through and run it right back down, to the point where it looks like silver and gold are not going to hold.

Very sucky crappy pattern and so glad I am not a part at all of trading gold or silver, theres no point, not for my time frame.

I say keep it simple-

see if silver is going to come into the late January lows and see if it holds. So for now, lets see if silver gets down to 16.64 in time. When it gets into that area, watch and see if it holds or gives away. PRice action feels like just a steady drip way down into those areas.

Gold looks better still but you can see the weakness coming in. It has lost its upper range and is breaking down, the low end of the range its now into has it in the 1240s. So lets see if gold re-visits 1240s.

So there you have it- once again the PMs could not hold at the important break through areas. The fact that they are being dropped kicked again just means theres no real buyers that want to commit higher. At the same time, we have experienced time periods where just as gold and silver get to the cliff, buyers show up. For now we will wait and see if this pattern holds or is this the time where gold and silver crater at the lower end, maybe not, maybe yes, cant predict or front run markets.


My suggestion is unless you are trading this range on a short time frame, there is nothing here for you to invest in. There a lot better places, like Palladium if you really must have PMs.

I'll stick my neck out, and, make my BOLDEST prediction of the year..Gold, will end the year between $1.00, and $1,300, and, Silver will end at either $1.00, or $21, somewhere in-between, maybe...
Seriously, my physical bullion, locked far, far away, is doing better than my mining stocks, that's for sure..maybe by 2018 I may see green again...

First day in a while where silver and gold dont break through their previous LOD.

Still, nothing to see here as silver and gold remain locked in their ranges and not having the ability to hold their break outs higher. Continue to look for any levels that might/will hold up.

Glad I dont have a single dime or interest in gold and silver, lots of other great places to be making money than in gold and silver.