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

The selloff occurred after roll over to the next contract, so I wouldn't expect a bounce. May silver is the thing to watch.

The worst thing you can get is a big bounce. The best thing is that gold trades sideways and builds a base.

QE will only end upon the issuance of new money. There is no practical way to remove it. The only way it works is if it can stimulate growth in excess of its cost and thus becomes self liquidating. In that regard its a miserable failure. As we have added more QE we have actually received less growth. The law of diminishing returns. The Fed is caught in a quandry because they have the responsibility of maintaining the low rates and t the same time encouraging risk taking. Unfortunately for them, thats a free market phenomenom.

"I agree with you on copper...but based on supply should it even be 3.30 a pound?"

No based on demand. Its well known the Chinese and Koreans stockpile many base metals, particularly copper. The only way they can win the currency war is by domesticly sourcing what they need.

well that was a fade today. If you are playing along at home, you can see today both SLV and GLD failed to make higher highs. as far as what direction we go in the short term, that will be decided by time, days, weeks, months.

again the scenario going forward are of a range in terms of price which in time resolves itself, as of which we remain in a downtrend. Trying to predict what and where happens is a fools game. I will say tho, if you are looking for higher prices in the short term, that will take a lot of work to happen.

Everything is a process in markets and it will be the same with determining when the selling is done and where silver and gold find their footing and change their trends, but for now the path of least resistance is down.

@allspice

yes, QE has been limited in what it has been able to accomplish. Some assets rose but not all. Commodity prices never reached their high pre 08 levels, in fact every successive wave of QE did less and less for the commodity market, with only a handful of commodities actually going higher. The Fed carried out and,, and successfully accomplished their mission with QE. Things ARE getting better slowly but surely, there's no doubting that, we are and have been in an economic recovery.

I think going forward there will be less and less QE and that's one big reason gold and silver have come down, remember the market is a discounting mechanism that works months in advance. That's why I don't feel silver and gold are going to zero, they are just under going a repricing.

Yes, the world has a lot of uncertainty to it. there can be hot spots all over the world. Sure, countries will have their economic problems. There's flare ups everywhere. But does this mean gold and silver rise? No. The past few months have shown this.

SO what gets the price up? For that to happen we need institutional investors and funds to show up. They are the market makers and movers, not the public. Without them, without their steady accumulation prices will NOT rise. The volume you see, its been institutional selling, liquidation and its been heavy serious volume... its shown that they are distributing their positions , selling out.

So again, without heavy duty steady buying, gold and silver will keep going down until the selling stops and then where it goes after it stops, is any ones guess.

Predicting an actual price of silver, gold (or any other asset such as stock prices) is a fools game. Calling tops and bottoms is a fools game. Over the years I wish I had a nickel for every single prediction that was made, they are always wrong. In FACT, if its predicted, it never happens.

How do I feel about gold and silver? I think they are coming down and further to fall. I don't think tho that they will go to zero and I don't think that their run is over for good. Just now gold and silver, going forward, money is leaving, its rotating out and going into other areas. When will silver and gold come back? I have no clue, there's nothing to say that in 6 months they start to recover... and there's nothing to say that they stay stagnant for a decade. We just don't know.

That said, the MARKET doesn't care what I feel, and really what matters to me is that I am following the right trend and its direction. Nothing else matters to me. I am a trend and momentum trader and that's what pays me. For the time being, the trend is clearly down and I am making my profits with the declines in silver and gold. ... and yes, while I have been selling gold and silver short, I am still very long gold.

... and so yes,, as you say in your last sentence, the wisest thing for now is to watch the market and follow what it wants to do, if it wants to continue lower let it trend lower. When its ready to change, you will see it, you will notice more buying than selling, you will see volume that favors buyers.... and as I have been saying, if you must buy up here at these levels, then nibble and go slow. I cant imagine anyone being happy buying when silver was at 27 thinking they got a good deal and NOW look where its at. I mean really,,, I am sure silently many have regrets even if they don't want to acknowledge it publicly.

@ yup7676


Arrogant,dellusional,plebian,drivel point of view.

Starting to come off as aN AMERICAN paper silver TRADER,in a drollish kind of way.