New Paradigm; Sell The Rally?

I just had been meaning to write up a small piece on whats been going on here with the PMs but yea....


Basically gold and silver have been range bound for weeks and weeks now. The range has been broken and resolved.. to the downside.... and it is down and it will continue its trend down.

Buying the dips going forward is going to be a painful proposition for anyone who does it each time. Sadly, the public continues to do something until it doesn't work and then wonders what happened.

Remember, what is cheap, will become cheaper. If anything as of yesterday, gold and silver should be sold short and not bought.

stick to market leaders in the PM area, that would be palladium and platinum.

The upside if you are buying physical coins? Well, there's gonna be a ton of bargains. I can already sense and smell desperate members of the public dumping their gold and silver coins... and as I thought, APMEX doing a deal with ebay did mark a top in the PMs market.

let me give you an EXAMPLE- I bought a family member a silver Somalian elephant. I knew this was going to drop hard but this was a gift. Had I waited a couple day of days (I couldn't because again, this was a gift and supplies are limited of these so I wasn't going to blow this gift like that since I know they LOVE elephants) it went from 42ish to 39ish in a handful of days.

But again, the upside is- flush out the general public and the love affair with gold and silver,,, and watch, in time it will be quietly working itself up again.

so dont blow your wad, sit tight and look for the deals. Again, let me repeat myself. DO NOT use all your cash at once, because these prices are going to slide even further and that LAST thing I want to see and read here is folks having remorse that they could have gotten it for less if they had waited,, so PLEASE PLEASE wait before buying a ton of coins at a time!

and now back to the trading desk!

I was buying gold as it was making yearly highs, ima at those points cost averages in GLD, buying on the way up were at 448, 772 and I stopped there. I am expecting gold to hit yearly lows at which point I will watch the reaction and depending on how it goes, begin to liquidate. Time will tell.

Gold proof coins and Silver proof I have been buying every single year as the prices rose.

This year I have been selling short gold and silver as it has moved lower.

Yes. I want to be clear, I am not saying gold and silver are useless. I believe a little bit of your savings should be in some hard assets, including PMs. I am not financial advisor either. I am a trader.

That said, I can say based on the latest days action, that you should stay away from gold and silver for now. Why? Because they are going lower from here.

If you want to buy today, PLEASE PLEASE PLEASE PLEASE PLEASE nibble. If you have a 100 bucks, spend on 25 on some silver as an example,,, go easy no matter how much you have.

right now the BIGGGGG money is being made right now as we speak selling silver and gold short so please don't get in the way of the selling!

PLEASEEEEEEE my friends, even if you don't agree with me, have caution, you WILL get better entry points into silver and gold.

hey Barry

yea I think, looking herei mean the volume is steady (selling) I think come Tuesday we get more selling becfore we get another bounce or chop.

the fact however that this week the steady range bound chop we had was resolved to the downside gives way to more selling ... till we hit areas of support which will again be only temporary before the markets decides to chop, resume selling or bounce. Out of three, best case scenario in coming weeks and days is a fall, followed by more chop/sideways before the next move resumes.

i wouldnt doubt in fact, one of biggest losers % wise will be gold and silver this year. I cant wait to see ebay with joe public dumping their eagles left and right.

I like Vespers post and it reminded me of something I want to say-

I want to state fully, I am neither as pro or against PMs.

I LOVE coin collecting, my main focus for YEARS has been silver and gold proof coins, from private mints and gov mints.

As far as PMs go tho, I am a trend trader. I am looking for the trend and will either buy or sell them.

So, if I have given anyone the impression I am anti-pms, I'm not, nor am for them.

However, in coin form, as a collector, I appreciate their beauty and history they tell.

@Vesper

yea I was thinking that's what we should start to see in the coming days, weeks and months.

And I'm sure it wont be just eagles, I bet Libertads, Pandas and probably even vintage gold coins. Because as these prices drop, and hard, panic will set in and, I mean I hate to say this but gold and silver have been pushed so hard on the public, that sadly, the general public is the one who takes the brunt of these moves.

This time we are seeing the big move to the downside in gold and silver.

Perhaps when the coin Ads disappear in the various newspapers such as Chicago Tribune, USA Today, we have some sort of temporary bottom. I would think that dealers are moving fast to move their inventory, as they have been for months now.

Well, I think I did pretty good today. I bought when gold had crept just above $1600 to $1604 and silver was still at around $29.80. The rest of the day silver went down a bit more but then came back up to $29.80 and gold actually went up a bit to $1610.

Usually, when I make a purchase as prices are falling I misjudge the bottom and the prices end up continuing to drop sharply immediately after my purchase. Who knows what the future holds, but I bought what I wanted to buy at the price I wanted to buy it at.