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

@Nod

maybe..... maybe.....

thus far, the price action has been constructive in terms of not moving lower. Instead, its pushed higher, and continued to hang on without being slapped back.

The follow through is key. However, one must not forget that sooner or later, there are major points of resistance ahead.

Pardon my delay in updating this thread, work has me stretched thin, I hope to have an update tomorrow.

The terminilogy may be relatively new but the physical concept of an emerging market isn't.

In 2011, the emerging market hedge fund capital reached a new record level of 121 BILLION.

China and India are big players in this market and are watched closely by anyone in the business of trading precious metals.

yea I agree with BB, thats what he was alluding too.

That said, China and India, despite the gold they buy, are not major players nor sway the PM markets.

I think if anything, this rise in gold in silver is best played by-

1- traders such as myself looking for confirmation to buy based on a break of trendlines

2- if you have physical silver and gold and have regrets you didnt sell on the way down, here is your chance to sell some, or sell all.

Its still way to early to declare that gold and silver are finally out. It is constructive how there has been solid buying and no new yearly low was hit. We are getting a series of higher highs and higher lows, which are indicative of continued buying, and it has not given up its move forward. all positives in looking for a run up.

but the fact is I have seen this happen before many times in other assets, they have a nice rise, it looks good and then poof, it stalls out, and this is because there is simply a lot of resistance at various price levels and also that trends, once set in motion, run for a long course and take a while to get out of.

@angel

yea thats all just nonsense and noise. Soros puts are only a hedge and furthermore, that information is MONTHS old (the filing date versus when he put on that position)so it means nothing.

Dollar wont crash, period.

If there was anything "wrong", such as a crash, it will NOT be talked about. Anything predicted does not happen, a crash will show with subtle signs first, wayyyy before the crash. However, this market is strong and risk is still on, especially when market leadership is high beta names such as WYNN NFLX GOOG FB TSLA just to name a few. The doomsayers will be waiting a long time for a crash lol

Finally, the ultimate safe haven, the US long bond would be soaring and grinding higher... it hasnt been.

Yep, BB and Yup understood me perfectly.

I just want to touch on something Angel said; "Legal".

In the old days the Legal code was based on the moral code of the society that wrote it. In other words our moral code said it was wrong to Kill, Steal, and Rape. We, as a society codified that code into Law. Their are societies whose moral codes allow for the execution of a Rape victim. And because their moral code allows it, their Legal Code does as well. I'm not making judgement or want to start controversy. I'm just pointing out examples of how moral codes influence legal codes.

That's the way it used to be. Now in the United States, and many other Western European countries, the Legal code is whatever the highest bidder says it is. When people started to default on their Credit Card Payments and loans and got out from under that debt via Bankruptcy; the Banks and other lending institutions had the Bankruptcy laws changed in their favor. When the Banks decided they could make a lot of money by getting rid of Glass-Steagall and the Commodity Futures Modernization Act of 2000, they did. Not a judgement just a fact.

Laws are no longer based on a moral code. Moral codes are seen as being based on Religion. Religion is seen as being anathema to government. Qed; a legal system based on a moral code is bad. Laws, and those who make them, are then open to the highest bidder. WHATEVER law is then made, not contrary to the Constitution, is Legal.

Just wanted to point it out. No biggie.

I disagree that China isn't a factor in the silver and gold market. I also have been trading forex and PM's for quite some time and truly believe that technicals driving price trumps the fundamentals of a supply/demand commodity market. However, with Chinese citizens allowed to invest in PMs along with the demand created by domesticate consumption, I think there is certainly an effect on the PM market. Granted, banks, governments, and hedge funds drive prices on a daily basis.

I waited patiently for a month for the latest breakout on the daily for silver and have been rewarded nicely. IMO,which is meaningless of course, I see silver consolidating for a time then taking out 23 before taking a run at 25. For the PM doomsdayers, I say we see 25 before we see 15.

I hoarded in the 80s at 6 and dumped it all at 40 and now am hoarding for my 2 year old as long as price is below 25.

Cheers, -Kurt

Sorry guys, going to have an update tonight.