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

@fist

yea I dont understand what it is that folks, as the prices drop and remain depressed, continue to snatch up silver. I just don't get it. I understand everyone wants a deal and a bargain. I get that part, makes sense.

However, there is no real issue in regards to supply with silver for starters. Furthermore, silver and gold are depressed assets that keep going lower, so there shouldn't be a rush to buy each and every dribble lower.

Finally, this downtrend is not going to reverse itself overnight nor in a few days and then reverse course and shoot higher. Trends are a process and take time.

Big week coming up here for gold and silver.

I'll have some new charts up for the weekend. Just wanted to leave tho a few observations-

1- Friday, gold continued to show follow through selling, despite even the Euro/ECB headlines.

2- a lot of talk about no taper, yes taper and around we go. Tapering is happening as we speak, rates have already been moving up, even if in the slightest manner. More is coming. Just a lucky guess? No. Interest rate sensitive stocks were smacked this week as well, just take a look at REITs, Utes and even the long bond got trashed Friday. This is not an accommodating enviroment for gold.

As I said earlier I'll have some new charts earlier so you can follow along see exactly what I am talking about and what we could see.

The premium always go up after a drop, especially a large drop. This is to cover the expected losses from buying silver at a higher price point. If the price stays down the premium reduces after either the inventory at the new prices catch up or someone blinks and everyone has to lower their prices to be competitive.

Anybody still selling? even at the current spot price I got rid of ~50oz of silver for well over 30/oz over the weekend. I wonder if anybody else is seeing a bit of a disconnect between spot price and street price

Premiums will stay high, silver would have to go nearly sub $15 to take it home for $20, that's why buying now is about the same as was buying when we hit 18.xx some months back now.

Lately, if you can find bars for .89 over spot, it's a steal, it took awhile for the lower premium to show up, and currently many 90% collectors are just buying .999 because 90% premiums are higher.

heads up guys

gold and silver making some moves lower. they could bounce as there is some support in these areas and they could slice through so wait and watch,

ok let me bring this up to speed. been a busy week with a lot of things happening in the markets under the surface and involved in a lot of projects.

So we talked about getting to those areas in price on the charts from last week. here we have some updated charts now, again keeping it super super super simple so everyone can grasp how price formations and prices repeat..... every day that goes by, even the slightest up or down goes towards painting the overall picture. Those of you who have patiently watched this everyday are getting this, those who blow off and scoff at everyday price action are missing out.

First up is silver-





Please turn your attention to the blue line. thats the lower end of our range. where I have the green arrow pointing, you can see a previous attempt where price dipped and then we caught a bounce. Again we are in that same area. We cannot say for sure that this this happens again nor can we say that for sure we now rip below it. Odds are higher that we could dip below, reason being, the more an area is probed repeatedly by price, the higher likelihood that it finally gives in. Furthermore, the path of least resistance and trend are down in silver, as well as gold.






Everything that I mentioned about silver applies to gold as well. You can see we came into that previous area of support, price repeated the move and came into it today and bounced. We don't know exactly yet how it acts. Confirmation is needed here as well.

Now some scenarios I see playing out here are- 1- we get a bounce and the same range play develops 2- we get a flattish move and more chop and then a move in either direction 3- it slices right down.

If we do slice past these range lows, a re-test of the yearly lows would be in order. From there, both silver and gold could then either bounce up from their yearly lows or continue to move lower and make newer yearly lows.

It is all wait and see but we are seeing the strength of this downtrend play out. As I have said many times, a downtrend doesn't change overnight. No trend, whether an uptrend or downtrend, turns on a dime, its a process that takes time and plays out. EVENTUALLY gold and silver will find an area of support that holds, moves away from it and doesn't retest it.

Full disclosure- as of today, I initiated a line short in gold.

Well, we have gotten a bit of a flattish bounce. The question is- just a one timer and then back into the upper range or we stay flat and tomorrow continue lower.

thats how we stand, remain patient and observe and we'll get our clues.