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

This is purely anecdotal, but a coin shop was telling me yesterday that a lot of long held hoards of stuff like 40% Kennedy's have been recently coming in to them. Perhaps we are entering a capitulation phase in this market? That might portend a real bottom in what technically has been simply an relentless downtrend the last few years.

My personal view is tht if you look dispassionately at the historical charts, there was a span from 1985 through 2005 where silver was rangebound between $5 and $9, (it actually came back down to $9 as late as 2008) and we could well be moving back to that paradigm, maybe adjusted just a bit upwards for inflation, but I wouldn't count on even that.

Sorry, I am new to this game. What is meant by chop and sideways action?

@luckycuss

I tend to think, based on several metrics that sentiment continues to be super high for gold and silver, therefore not sure that there has been any sort of puke. Who knows who

Finally, I have mentioned several times in this long thread that, to your point, another entirely possible scenario, whenever this downtrend is over with, that both gold and silver trade in a range for a very long time. Over the years I have seen countless assets that traded in this manner after having years of being in some sort of trend that ended.

@punman- all assets will move exactly as was said, sideways, at one point or another. In this case, in talking say about silver, we can see it has moved sideways for about 2 weeks here... upper range being rougly 17.20s and a lower range of 15ish.... sideways with no clear move in any direction.

Just a quick note, observations today in gold and silver-

1- FOMC minutes did nothing to move gold and silver,

2- Gold and silver pulled away from their attempts to enter the gap. Watch to see if there is follow through selling to move it down out of the gap.

3- looking at our proxies, GLD and SLV, its interesting they started higher into the gap today, making higher highs over yesterday and ended the day, both making lower lows over yesterday.

I don't know where prices are going over the short-term, but the long-term trend is upwards. This is why I will continue to apply dollar cost averaging and buy gold, silver and platinum in both coin and bar form, bullion and numismatic.

@Yup7676 - I agree with you somewhat - but for many of us, our buying isn't always just about profit. I've collected for well over 40 years and have sold very little - I really have no desire to sell any of my holdings, (lived through two big price spikes), and when I pass on, my children may do as they wish with the collection.

there is no difference in paper or buying physical in my eyes. If you saw prices, as an example, hit 15 dollars an oz in silver, and let us say for reasons of illustration in this matter, IF 15 an oz was a fresh yearly high, I would and could buy physical silver because the probability is there that it is going higher.

Once I get confirmation that its is going higher and I am sitting on a profit then I would start to pyramid higher, buying PHYSICAL.

Therefore, whether you bought contracts, or ETFs that followed the metal or physical, so long as you had a trend in place in price, it would work on all of them.

The DISADVANTAGE a stacker has is he/she has no way to hedge his physical holdings, unless he took out contracts according to his physical holdings. This is what miners do all the time tho.

I too am collecting, albeit I have really curtailed a lot of buying as prices have dropped, seeking better deals which I am now getting as dropping prices have knocked down all coins.

However, what I wont be doing is buying say sheets of pandas, rolls and rolls of eagles, as far as investment goes, this is a terrible time to be trying to buy a dip or put any sort of money and thinking of getting a future return...