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

@jmgi, who 'invests' in gold? I can think of many better investments. Gold is a hedge, a safe haven against failing currencies. Who expects big gains in PM's? Maybe once or twice in a lifetime.

Lots of confusion I see.

1- Buy low and sell high is a stupid saying that has been taken out of context grossly misunderstood. How does one know how low will it go? Guess what, the market can take any asset lower or higher than one can imagine. You manage risk better when you avoid assets that are moving lower. Imagine the folks who bought ENRON, buying it as went lower... we know how that ended.

2- There is a time to buy, a time to sell and a time to do nothing at all in markets. All of you here are known as retail. None of you, nor I can move the markets. We must therefore pay attention to price and volume which are the foot prints, the calling card of what institutional funds are doing. Therefore, when assets move at yearly highs, that is your safety net that money is flowing and they are making commitments to that particular asset. No one in the financial markets buys assets because its "cheap" and just sits and waits. No, They put their money to work to make gains from the start, not because its a "good price".

Therefore, when prices start to rise, when yearly highs are hit at the start, that is where you also must start to buy. Conversely, when prices start to hit yearly lows, you must leave that asset or start selling it short.

I have said it many times before, If you cannot grasp that very simple market concept I mentioned above, you are setting yourself up for constant failure in markets, whether you are an investor or trader.

3- Charts CANNOT predict the future. Charts are only reference points, nothing more, nothing less. What matters ALWAYS is PRICE ACTION. What is it doing now, what is it trying to do, how weak or strong is it.

Lets say over a year, the USD hits, 94 cents three times on a chart and each time it bounces higher. Does this mean because it happened 3 times and it shows it on the chart, that another test of 94 cents makes it a sure clincher that it bounces again? A blind novice would be wrong and is reading the chart wrong.

Why? Because the more an area of price is probed, the more chance, the higher PROBABILITIES that that area gets breached and it goes much lower in the case of our 94 cent dollar example. That is WHY you cannot look at a chart and say, "hey it did this before, its going to happen for sure". The price points are only for reference. Again, you cannot look at a chart and just point at areas and say "hey look its going to happen again". That is a great way to lose money.

Gold is in the context of a very long context, as in decades, in a uptrend. Narrow it down and you can see gold had a 4 year down trend. Generally speaking, and this is a repetition of what I just said earlier, assets that made yearly highs before eventually come back again to yearly highs. For this reason, gold at some point will push past its historical highs it has hit. It has already gone through a long time period of correction and consolidation and it has been healthy it has happened.


I could go on and on but I dont have the time to explain things in detail nor am I open to debate on what I know what to be true, tested and proven. Take it or leave it, I could care less.

Gold miners pulling back hard and heavy so far this week after making 52 highs. Pretty much the same pattern we have seen before.

Gold, after making a 52 high high last week has continued to pull back. Silver has not made a 52 high yet.

Looks as if market will continue to correct these moves higher in price, rather by time, which will make the moves deeper in price.

Is it NOT a pretty pattern in the gold and silver markets.Gold however, remains in up trend, as well as gold miners. Silver as well, tho silver and silver miners are the weakest of the bunch in the PM group.

@jmgi

IF I were looking to buy silver miners, yes, I would wait until the 52 highs were hit.

Two of the better miners around are WPM and PAAS. Both their charts are garbage at the moment and I see zero reason to buy them.

Gold and silver are a tough market to invest/trade in right now. For every constructive move made higher, they take 2 quick steps back to wipe everything out, in a sense.


I would really ONLY get involved in gold and silver until they exhibit the same type pattern and price action as found in palladium. I continued grind higher followed by pull backs that result in fresh new highs, over and over. This is where you make big money AND know the buying is in strong hands.

Gold and silver continue to act sloppy and while they remain in uptrends, its NOT a pretty pattern.

AT some point there will be a resolution- either gold and silver finally smooth out their patterns and the uptrend becomes cleaner and finally sticks OR the uptrend dies and the downtrend returns. The 3rd option is that gold and silver just remain in this no mans land of slop and chop that we have been seeing.

Like Terry said, there are a LOT of great places to park your money right now in that have prettier patterns and stronger trends, RATHER than gold and silver.

Which is why for while now I have not traded any of these range breaks on gold and silver because I would rather sit in emerging market stocks or many of the other many trends/themes that are working in markets, such as robotics, gaming, to name a few.

... and yea, there are many Closed Ended Funds, such as GLV that pay you a MONTHLY dividend, preferred stocks, that pay you a fat yield. Imagine owning 10,000 shares of one of these that pays out 12 cents per share, per month,,, do the math and you can see that it is a much better investment currently than gold or silver.

While gold and silver remain in uptrends, they just arent pretty enough for my money, I want a trend that has a discernible pattern. IF they can smooth out, get that uptrend to grind higher and hold those gains, I am game.

gold and silver working on breaking down even further after their nice moves from 2 weeks ago.

continued pattern of not being able to hold on to gains without deep tracements in price remains in place.

Just want to point out one thing-

the fat baby in North Korea has been running his mouth for weeks. Again he runs his mouth tonight.

YET.. gold can ONLY muster a move over 1,300, not too mention that it gave up its break out from last week.

The take away- gold is a very weak asset for now and remains in weak hands. It really should have maned up last week and held those gains, not given them up. The bounce tonight is very anemic. Will it flex its muscles when the cash markets? Watch and see , that will give you some good clues.

Yes, you could start to stack it a little at a time consistently. Consistency is key. You stack it every month for 20 years and you will find an opportunity to sell it or it will just serve as long term insurance against a major blow to world economy or our fiat currency.