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

All that does is prove that their profits have nothing to do with whether its minded or not if true. Theyll adjust or someone else will come in and do it for them.

As mentioned their methods havent changed since it was 500 an ounce in the mid 2ks, if their costs have gone up its just because theyre going after stuff they wouldnt have before or exanded greatly to take advantage of the higher prices.

BTW- one other point I want to highlight in regards to gold and silver as they bounce around.

I find it very interesting that among the weakest group of stocks in the market are indeed the silver and gold miners, many are lining up close to making fresh 52 year lows.

While its not always a rule, many times before a drop in gold and silver, these miners of PMs start their run lower. Again, this isn't always the case but it is worth noting.

Thing is, gold mining has always been a tough biz. For sure going forward, the market is discounting via the miner's stock that production and how profitable they will be.

I think we'll see a lot of consolidation in the area as time goes on.


For gold and silver, I just see tho that the best of times are in the rear view mirror.

Ok, lets take a look at whats happening-

First of all, its pretty clear nothing is really helping gold and silver out. Syria, zippo. Talk of continued QE, nada. Debt cieling nonsense and political drama... zilch. NOTHING has helped spike up gold.

You'll recall on 9/18 we had a mother of a push up. Decent volume in the GLD even, that was the previous FOMC meeting. Yet, that entire move has been faded, in fact on 10/1 GLD dipped briefly below the low of day set on 9/18.

So in essence, all those gains were due to short sellers being squeezed but that has evaporated. Furthermore, none of those gaps ever got filled, gold and silver did not prevail over them. Rather, they reverted and backed away from those crucial gaps from earlier in the year.

Some might say- sentiment is too negative tho. Things will change. Unfortunately, sentiment is not something that can be easily gauged nor reliable all the time. That is why we differ ALWAYS to price action. So lets look at what we have, lets see what story is being painted by the price action.

GLD- we can see from 9/12 to now GLD has traded in a range. The upper end has us at 129.50ish and lower of 124ish. There have been traders with shorter time frames that have successfully made money bouncing around this range. But thats all it has been, a range, with two days were GLD had a pop above, which then was quickly rejected.

We can see that from 7/11 to about 8/7 a similar range existed which at one point, GLD proceeded to rip higher.

Today, GLD chalked up a lower high and lower low from yesterday. So the question comes up- what happens tomorrow? Does it touch the lower end of this range and bounce from there? Or does it bounce lower tomorrow and slices lower, going lower than the low established on 10/1?

Thats to be decided by the market. So keep your eyeballs peeled to that.

Silver is acting the same way. Lets look at our proxy, SLV. SLV has has a upper range of mid 23s with a low of 18.80ish on the lower end. Silver also had its attempt to pop out of this range but no avail. Just as gold, silver has been turned away from filling those gaps and running back lower. For the most part, silver and mirrored gold and its price action.

SLV today made a higher high and a higher low. Its not completely near its lower end of the range. Once again, watch how SLV acts tomorrow. Will it break out of this range as well? Or does it make a move up? Is it following GLD or will GLD end up following SLV?

So that's how we stand. One way or another, this range will break. So patience, which I always emphasis continues to be required,,,,, so hang in there and don't get antsy, this is a long process.

wanted to put this up-

did you guys see what happened today? GLD snapped LOD and closed at the LOD.

I will have a recap later tonight. I am leaning on much lower prices to come as I will explain later.

Yes it has Mr Bishopp.

I am leaning on the side of lower prices based on the price action. but I will again detail my reasons why later on.

I do say this,,, no one should be purchasing gold and silver for now. Wait and see if this plays out for lower prices, which would be in your favor.

ok lets look at where we stand and see whats going on by turning to our proxies-

first up is gold and we'll refer to GLD as we have been for months now. Need I say more? It continues to drop. Today, GLD put in a second lower high and lower low. This tells us right off the bat gold has the high probability of making another big drop down AND falling out of the range it has been trading in. Tomorrow is a big day for gold.

Silver is acting the same way and we'll turn to SLV which has been our proxy. Here we see silver also putting in a second day of a lower high and lower low. While its not near the lower end of the range, there is nothing to say that it cascades lower, following gold. A drop in SLV below 19.88 breaks us out of the range and will take silver lower.

So it appears this range we have been in since 9/6 is about to finally break, and its going to break lower. Should this happen tomorrow, I would expect silver and gold to accelerate lower, first targeting their yearly lows.

Now, some dont seem to understand whats going on here. Let me repeat myself again: when any asset class such as a currency, bond, stock or commodity trades in a narrow range, it is the sign of indecision. The market is awaiting more information and wont take a stance in either direction. That is why we have seen repeatedly this range. This is all part of the process.

The breaking of this range is VERY significant. It signals and confirms the direction of the move going forward. In this case, we are looking at snapping out of this range bound trade and moving southward. That in turn increases greatly the chances of gold and silver racing to their yearly lows again.

Once they touch their yearly lows, we will see if the sellers can push this even lower, most cases this does happen as we have seen every time this year.

That my friends, is the power of the trend and in this case, we are seeing the force and strength of this downtrend. For that reason I have emphasized that despite having bounces, all of them did not negate the super strong downtrend in PMs.

Ignoring a downtrend in the financial markets in a a very dangerous and foolish thing to do. No matter how much you believe in something, the market does NOT CARE about your opinion nor reasons why a certain asset class should be up instead of down.

Therefore, if you are looking and must buy, wait for a few days and then, for god's sake people, nibble. I dont want anyone to see their hard earned cash be wasted for not waiting and being patient.

I will be looking personally to sell short silver and gold as it appears they will be setting up. IF we get those signals, that will be my trigger and confirmation. As I see them now, they are acting as an asset that is getting ready to be sold short.