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

This was a fun read.

Yeah, BullionByPost is still extracting the urine. Even with their "best value" 1oz gold coins they're still charging 10% over spot.

(P.S. Silver is crashing...)

well quite the day that's for sure.

Another strong gap down, and mind you this one came even on higher volume. For those who want to understand these terms pull up any chart and look at the volume portion of the chart and a good place to see this is using the symbols SLV and GLD. Now I realize many will scoff and say that's "paper" but you are wrong. These contracts, the futures markets are running the show.. and the volume is telling us again, as I have said many times, that this is heavy duty fund and institutional selling.

After a shock and awe day of selling, you might think that now it is a great time to back up the truck. Thing is, and I have traded these markets for a while now so I know, but commodities are super volatile and they can continue a strong trend until it wears out those who try and step in front of it. Folks, gold isn't like some stock where you have a certain type of investor or speculator who says, ok,, there's "value" at this price. Sorry but we wont have "value" investors step forward.

In fact, the big funds have been silently and surely distributing out of their gold positions.. so as I have said earlier, what has happened is of no real shock. Remember all the tight ranges we had for weeks and weeks. I wrote about this earlier in this threads FIRST post as part of what we would see... in this time period, market participants were deciding the direction of gold and silver just doing nothing with it... however as we have seen, these ranges have been resolved each and every time to the downside.. and now we are getting fast and furious selling.

I invite anyone who has the time to examine charts of SLV and GLD, which for simplicity sake (and because most wont even have a futures account), will show you the points where the ranges were broke and the volume that came in with it. My hope is that you can follow along with what I am saying and see that is not just mere guess work nor luck but that trends and patterns do make themselves manifest and give early warning signs. Its all there, you just have to look for it.

At this point I will be looking for two scenarios. I will patiently wait for them. I will not get ahead and make predictions. Let me repeat again- I make my money by patiently watching and waiting for confirmation and identifying the trend. So here's what I will look for next-

1- Range bound trade at these levels. At some point, we will stop going lower, however that is not to say that the selling has stopped. so we could just trade in a very narrow range once again.

2- a retracement of the highs we were at. This is also a likely scenario, as gold and silver levitate back up. It is not uncommon for a % of the price to retrace back up. But this is why I said for you folks at home to mark these past two days on your calender. mark the high and low of these days, the prices. These WILL repeat themselves. I would not be surprised that silver and gold attempt to retrace up to those prices and then stall and fall again with heavy downside volume, setting up another leg lower. So please, I ask of you, if you see a bounce, don't get ahead of yourself and start buying. Rather reject the urge, it is not an all clear.

Time will be needed to see how much further we go to the downside. These sort of things cant be rushed. This trend will take time to play out. BTW- keep this in mind,, everyone is asking the same thing,, even on the desks, "how low will we go". Well,,,, perhaps the answer is as simple as when everyone STOPS asking this question.

I would like to see how gold reacts at 1350, 1300 and the same levels with silver at 20.

My friends, I want you to know that I do not care what you do with your money, that's your business. But I do beg of all of you to please be careful. I would hope that if I can help all of you or many of you, to avoid the common pitfalls and traps that hurt the unknowing investor and speculators, that is of buying in too soon,, that is my goal and objective.

I realize many of you are firm believers in the PMs. But I would hate to see anyone, with their hard earned money, keep buying gold and silver and I kept quiet.

I came to this coin forum because I have come back into the hobby of coin collecting. I love it, its a great escape from work. I want to learn whats out there in coins. I enjoy reading the other forums even if I don't collect those type coins. This forum is about learning and sharing. I don't know a ton of coin collecting. I am learning.

But I do know a lot and have much experience in trading commodities, currencies, stocks and bonds and I wish to share what I know works and will be of assistance to fellow collectors. I know many of you stack, and I don't object to it. I am not against PMs. I have been long gold for over a decade now. I think we all can agree that we like silver and gold :D... But my concern for my fellow collectors is that they don't get trapped by at higher levels when clearly lower prices are ahead.

SHOULD the trend change, I will see it, I will spot it. I will share with everyone what I see if things change.

Finally, whats the best that can be done now with lower prices? Well, if you MUST buy, then buy small in size, nibble. Don't go to town with all your dollars, take it slow and easy. Here's what I suggest

* first, put some money to work in gold over silver.

* look for gold and silver coins that have carried premuims and that have started to slide.

I think at the top of the list should be proof silver and gold. Pandas. Libertads. Go for the high end stuff so you can have cushion. Look for proof Buffs, proof silver and american eagles etc.

Good advise "yup7676"

Yes! I agree with high end numismatic mostly will keep their value during a down PM market.

Slabs MS-70 silver Panda and gold Panda is a good investment for me during this down period.

The Mint has pulled the ASE proofs from sale for a repricing. Be interesting to see what they come back as probably at least 5 maybe 10 lower

I cannot stress enough that I really really wouldnt do that.

Money is all about diversification of assets and investments. Not putting your eggs in one basket