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

update to come....

Ok lets get into it-

Been nothing but a grind lower, retracement these past few weeks. That's it. All very boring. However, every time we see this price action, ranges on the lower end have developed with each passing week. You know what happens with that...... we are establishing a moment where a major move breaks and happens, in this case lower.

In terms of price action, there is NOTHING that is saying prices have bottomed for good with silver and gold. Furthermore, the longer these ranges hold, the harder and more time will be spent by gold and silver trying to get over them, if they even do try to go higher from here. Remember, all those areas where gold and silver have been sold, these price points equal supply, areas where sellers will continue to sell gold and silver.

Ok lets first look at our proxy GLD which illustrates exactly the ranges.





Take a look where I have each arrow pointing. Green arrow, white arrow, red arrow and now the blue arrow. Price drop, churn in each of these ranges, which can be seen at each colored arrow,,,, and then a drop occurs. Take a look at the blue arrow. Can you see what happens next? Thats right, the high probable price action is another drop and range. Yes, a lot of folks have scoffed at daily price movements but as you can see its been painting a picture, saying STAY AWAY from gold.

Refusing and deliberately choosing to ignore price action WILL make you a poor person and thinking that prices are stable or have stopped going down are improper thinking. In addition, anyone saying "in the end, no one really knows where the price of silver and gold are going " is WRONG. Again, just by paying attention to price, WE DO KNOW where prices are going, and they are lower.

So the picture doesn't look good if you are looking for higher prices. However, if you are selling short, such as myself and countless other traders, there will be nice money to be made as this powerful downtrend continues.


Sliver is no different. It also have the same ranges, with each break lower leading to a range, then a drop, then a range, then a drop. Just a steady train crash in slow motion. Again, by paying attention to price we know that silver is also in a strong downtrend and we know that lower prices are on tap until this price pattern stops.

Looks look at the chart for our proxy for silver, SLV.





So there you have it. Nothing has changed. Just a lot of chop, drop, chop, drop, chop, chop, drop. Both metals are still in downtrends.

Strong, continued buying and accumulation is NOT present with gold and silver. There are no "foot prints" left by the institutions and funds that they are buying silver and gold. If they were, prices would not be falling as they are.

Dont be fooled into thinking that someone is buying cheap. Rather, it can be said, what is cheap, will become cheaper. As far as investments, silver and gold are not the place to be at for now.

As always, feel free to ask questions and I will update as I always do. Together, if we see prices change, we'll spot it together.

How long will this continue? What will cause this trend to break/reverse?
Isn't the trend for PM going up around spring time? That pattern happened the last 3+ years (it doesn't mean the price going even higher after spring time.... as in the past, after the spring rise, price drop in the summer...)

update-

last day of the year for the markets.... both silver and gold at the lower end of the range in just two days.

Watch and see if, how, or when we slice through. I suspect we continue this slow death in gold and silver.

Must be hard to be sitting on tons of gold and silver and just watching gains disappear.

I stopped buying gold in 2007 and sold half my holding in 2011( leaving what I had left as an effective freebie.) I am a risk intolerant investor and since 2011 have been amazed at the absolutely, to me, idiotic gold market. I think gold has a real foundation price of much closer to US$800.00 oz ( where the pre 2007 traditional supports were) So I with my risk intolerance, half expect to see Gold and, to a lesser extent silver, to plummet in price when those who have bought and held realize they may be losing their initial investment. IMHO gold has been a big boys market for the last few years. By big boys I mean futures traders who deal $100,000s or more at a time. Small time gold buyers are exposed to the influences those players have on the market

I see we have some fireworks in the futures market with gold and silver.

Should be interesting if this is going to be one heck of a short squeeze or the start of something where silver and gold try to hold their levels.

I hope you are correct. I will be a buyer of silver dollars at $28 for BU and gold coins at $650 an oz. I look forward to $20 gold coins at $700 and $10 gold coins at $400.