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

Look, I dont want to come across flippant or arrogant but the fact is if you been fearing this market for the past several years you should be absolutely ashamed of yourself.

If you have NOT been LONG this market since it broke out of its range that it has been in for close to 3 years, shame on you.

To make you all feel better, I too, as an inexperienced trader once made the same mistakes and same faulty reasoning I often too thought, "oh man this market has gone too far". But as I changed my habits as a trader and after it was passed on to me to be a disciple of PRICE, I looked at things completely different and was less caught off guard by the market.

So after I refined myself (and I am still far from PERFECT) and became a student of price, that I actively spent countless hours examining the 52 high and 52 low asset lists and followed price, or where the money was going and observed patterns, I stopped thinking like many of you do. I learned to move with the market and whenever the behavior changes or gives a reason to be cautious, I too follow it.


Too many people, too many of the general public feel this market is overbought. That it has gone on too far. I have no respect for anyone who ignores price action and has not put in the work to really see whats happening underneath the surface and too acknowledge that markets are ALWAYS right. I manage my risk, I manage my losses and I manages my gains on that simple truism.

The simple truth is that this market has been very tame up to this point, we have enjoyed a wonderful uptrend for months and we have been barely getting any down days, when we do pull back, they are very shallow. This has conditioned the public and traders to be ready to JUMP at a moments notice that the "big one" is around the corner.


We could pull back for a week and STILL be in an uptrend. The market could care LESS about Trump. THis is NOT about Trump. Rather, the market has broken out higher because it had spent almost 3 years doing nada, in a range, with very vicious pull backs. Now tho, we have enjoyed, what on the Nasdaq a 16 year BREAK OUT!!!!! Thats MASSIVE! Just think, anyone who was underwater from the 2000s has now been made whole AND with a profit, That price action is telligng you all you need to know WHY we are and have been going higher.

Many world markets are also breaking out to all time highs, so this is a global march higher in equity markets, doesn't matter if its Africa, the Middle East, Asia, Europe, all these global stock markets are busting out higher. THAT IS ALL THE PROOF YOU NEED THAT THERE IS A GLOBAL MARKET BREAK OUT HIGHER. (caps not for yelling but to emphasis a very key point that is not talked about in terms of market structure).

Probabilities are very high we could embark in a time period of rising stock prices that will make many many many people rich. Volatility, the trend has been, as of late, to be dying off, it is in a downtrend. So of COURSE, anything little to make it move up, as the VIX has done nothing but go straight down, will cause a counter trend move.

That is going to set people on edge as market participants tend to get very complacent when markets just grind higher.


Anyways, I got off course here. BTW, I mentioned last week the beautiful price action and break outs higher in RGLD, GOLD, AEM to name a few. There are some really sexy looking price action in gold miners. I wouldnt go buying now as the move started last week but gold miners look great for now and are back in fashion with the market.

Nice bounce this last week when the market coughed and sputtered, yah know, they can say it's trump but it's just the new normal, and it kicked silver up nice, volatility is still in the air, after all these years! And physical demand only finally took a breather last year after buyers and investors were soaking up nearly 1/4 of yearly mined silver, buoying prices, and making silver look like it's in short supply, what can we say, it's an alternative investment that sheds dollars. Possible high of 21 this year and possible low of 14. I'm tapped for the year, I already overbought, if gold dips below 1200 I'll buy another oz. of gold and call it a year.

What happens to the dollar. It's been crashing this week and broke below where it was when Trump was elected. And still falling... should be bullish for precious metals. Let's see what happens

Bought quite a few shares of Integra Gold stock, an exploration company and it is being bought out, so stand to double my money once the buyer follows through with what they said they would pay. My question is, what's up with Sibanye Gold? Is it a good time to buy since it has crashed? Just looking for a place to park the proceeds once they come through. I like the metals, don't really want to have to watch the market everyday and worry, I feel confident the metals and miners will go up in the future. Thank you for any input.

silver and gold in a shorter time frame are setting up in this little range. how they break out of it, up or down, is going to set up the next move of importance.

Thanks Yup.

not much in the way of charts, been pretty busy here.

I will say this tho-

some gold miner charts, at the present, look very impressive. If they keep this type of pattern and price action that will put them right into yearly highs, again IF they continue. Put your attention going forward to names such as

FNV
RGLD
AEM

these are a few examples of true leaders in the gold mining sector, this is where the money is flowing. Look to see if this chart structure continues to gain ground and remain constructive going forward.

Gold, as of now, looks constructive but the question remains are we just going to hit the upper end of the range, go a little past and then flop again and break down again? LEts keep this super simple- The key number on gold is breaking above, 1297.40

Silver, not even on my radar, personally speaking, dont really care for it and consider it inferior to gold, always. It is the poor mans gold and subject to even wilder swings than gold. However, if you want to where you stand, until it breaks 18.66, no need to get interested. Again, keep it simple. Just about all the silver miners look like trash, at BEST for now. Obviously things can change but for now, nothing to get excited or that comes close to the leadership exhibited by gold names.

As always, these price points are subject to change as chart structures change so we will re-visit as time goes on.

I'd like to illustrate a few things in charts but I am just too darn busy with the markets at this time to spend much time here talking shop.

Final closing thought-

Its interesting in the past few weeks that these gold miners are setting up, with constructive price action. Not only that, current market leadership, as of this writing includes the Utes, or the Utility sector. Then when we examine deeper market structure of whos leading higher we also spot pockets of strength in REITs. Whats the common theme here? These are/can be very interest rate sensitive areas, areas that are supposed to drop as Fed rates move higher.

My observation is this- lots of growth sectors are and have been moving higher, the market has been and is exhibiting many sectors of leadership, breadth looks excellent and its dragging up along with it these other areas and putting these interest sensitive sectors at market leadership, mainly REITS and Utes, gold miners have yet to hit yearly highs but are inching closer.

so is the market saying interest rates will be capped going forward? Remember, the market looks into the future,,Or is the correlation not valid going forward, that is, as overall markets go higher, such as the indices like the SPX, also known to you people as the S & P, will gold also rise in tandem? This is very possible scenario.

time will tell but a lot of interesting things happening underneath the surface.

Thanks for the update, Yup. My father-in-law passed away and left my wife a safety deposit box of eagles. I'm now reading this thread with more interest.

I did sell about a dozen, just to make sure they were real..but now waiting on Yuppster to help retire early.