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

@traevin

Thats a hard question to answer because price would need some time to establish at where it breaks that trend line. So this is just hypothetical.. and a few simple charts would help which I can do much later to illustrate why and what I am looking for...

but say yesterday was rock bottom and we got a massive spurt of buying, which again isn't going to happen,..

for me, my method of trading, I would be looking at over 20.58 as a starting point. As you can see, we are quite a ways from there.

Thats why the element of time will be key, once this downtrend is done, to help us spot where do prices begin to break the downtrend.

The other thing to consider tho, is even if we hit an area in price that breaks the trend line, in this case upwards, we are going to encounter a lot of selling. Remember, price has memory. There are going to be areas where sellers step in and sell, only until there is enough buying will that area be breached, so its going to no doubt take multiple attempts.

SO for every level that silver and gold have dropped through, they will encounter selling at these levels on the way up. This is going to take time, there be a lot of chop, grind and sideways movement. It will come down to the buyers and how much buying happens that will push the PM's through those points. That, we wont know until we start seeing the buy.

Patience and time, then are going to be needed. Also, to help the probabilities of a better break of the downtrend, we would want to see a nice long time period of consolidation,a long base,, where finally the price after months, perhaps even years, finally breaks, and in this case if you are looking for higher prices in PMs, it breaks higher. THAT would be ideal and some of the best price action for higher prices.

Again, I'll try and get some charts up later tonight so everyone can visualize the price action; thats what I mostly use charts for, to help identify price patterns that are developing...nothing more than that because they do NOT tell us the future...

So to recap -this is what I will and am looking for to be a buyer again of silver and gold-

1- time is needed

2- as price moves in any direction, because price has memory, because there is always overhead supply (again referring to PRICE not actual physical silver and gold) it is going to encounter sellers if there is previous levels in front of it...

3- a long time period of consolidation, where the PM's trade in a range, the range then narrows, it tightens, and then finally explodes, in this scenario we would want higher prices (tho this exact same pattern plays out and sets up for when an asset is getting ready to break lower).

Really, this is what we have been seeing for a very long time now in this downtrend. It never changes. Prices hit yearly lows. Yearly lows, also known as 52 lows, mean sellers are in control big time, the asset is weak and in turns means lower prices are ahead. This feeds on itself since the momentum is to the downside, the trend is down.

Finally, we could see silver and gold do absolutely nothing for a long time as well.... thats another option once the downtrend is over.

Yep they don't call 'em liars, er lawyers for nuthin.

From Ask Fleck 11-6-2014

Q: As one of the savers who the FED has worked hard to wipe out(I mean what do you do? If you don't hold high yield debt,and start eating into your savings,your lifes work is destroyed before your eyes),this has been a nightmare. All the rules you learn are that as you get to retirement time you shift to bonds,but of course the FED has destroyed that. At this point instead of retiring,I'm looking at a new career that I will be stuck with until I drop-yet I would have been ok(not rich,but ok)in a normalized rate environment.

But the one protection,hard assets like gold have been manipulated,no way around that,based on the giant paper sales during the most illiquid hours during gold positive news. Real sellers don't sell this way.
25 tons at once at 3AM? Then another 38 tons around 8AM? All paper gold that does not exist? Considering the Comex has some obscene number,I've heard everything from 50-100 paper contracts per real ounce. What if someone sold 50 times the float of a stock without borrowing the shares?

I guess my question is why on earth is this legal? It seems if it was anything but gold,they would be looking at using RICO to get the bad guys.

In the end if you are not a good boy and do what the FED wants and buy the stock market no matter what the price,or do not have the cash to ride this out as someone who has worked their whole life and was planning on living off the interest of what you had earned or saved,you are cannon fodder to be wiped out so the banksters and those in their ivory towers can be saved. I just wish the whole thing had blown up in 2008.

Fleck (Bill Fleckenstein): Good question. The paper market has gotten out of control with naked shorting, something ought to be done but no one cares ex. the miners top management. As for the Fed, don't get me started - they are criminals.

I think Fleck was a bit harsh on the Fed--whatever their true purpose is, they are doing the bidding of CONgress, and like it or not, we who choose to vote, elect them. Who they REALLY report to (Congress and the Fed), well plenty to say there, but Greenspan, recently, made the point that he was "only following orders", at least to paraphrase and summarize. LOL--whatever. Think I heard that sometime before.

@yup7676

I haven't read any more than a small portion of your posts due to the constant repetition & self-aggrandizement. What I have read is consistent with your statement that "even a broke clock is right once". This statement, like many others you have posted, is only partially correct. The correct statement is "Even a stopped clock is right twice a day". There's a world of difference between the 2 statements. I caution all forum members to remember that in many cases partially correct information can be worse than no information at all.

I guess my question for @trdhrdr007 is then why come to this post if you disagree with what this thread is about? lol

must be one of the die hard PM folks, which I mean, is ok, nothing wrong in that :)

@Domain555

Forgot to mention,,, I know you been away from the Futes, but Pork Bellies, we longer run them at the CME, they were delisted in 2010/2011 somewhere there...