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

@Montana
I know what you mean. I was stacking so if something occurred with the fiat currency I'd have food, wine, and silver for trading. My goal has not been met with the silver stacking, but after discovering this thread and reading from page one up to current, moved the portfolio into miners for the most part and going with yups advice. My stacking has ended for now and putting my extra $ into the market. I figure once the ride is over with miners to physical silver stock, will leave part of the proceeds in the silver stock so we can take possession down the road if need be, and start moving into other sectors.

There's 1 part of investing terminology I get confused on, due to my dyslexia..it's all these pages and headlines crying "record shorts since 2009"..blah blah blah....it seems all the big commercial gamblers have lost a lot of money today, and, are scrambling to sell contracts as fast as they can, and buy new ones..maybe YUP can correct me, or, fill me in. Gold over 15 month high, hovering at 1290..silver at 17.86. I NO longer pay any attention to things I read about "the commercials"...they have to guess as much as anybody else...seems their wrong this time.

@mycoguy

Not sure I understand your question. I guess you are asking about the Commercials and talk about them being short.

I guess the best way to answer your question is to say that first of all, anything you read about the commercials, retailers, and other groups listed in the reports are probably already long gold and silver.

I say that because the COT reports are for the most part useless. The data in some cases is at least a week old. They are NOT updating (do you really think funds, traders and other market participants are going to make it easy to ride their coattails by simply reading what they do LOL)them in real time.

In fact, I bet you will next read headlines that say something like "the recent COT showed that blah blah blah blah were net long x amount of contracts".

I say throw away and ignore the COT data. Why? Because its OLD. Price is NOW, we dont care about old data from a week ago. By the time you read what the COT did with traders, commercials etc they have already flipped or started their positions or exited.

A common mistake I see all the time is to follow those reports. Just follow price.

We are going higher because this is buying. gold, silver, mining stocks are all being accumulated and in an uptrend. There are clear signs that this is not a short squeeze. Sure, there will be those caught selling short but the volume foot prints in gold mining stocks tell us accumulation and the fact that we are hitting yearly highs, 52 highs, means steady straight up buying.


IF you follow what is talked about in the COT, you will always be many steps behind. There are some facts that can be gleaned from the COTs but none that will show the hand of the sellers and buyers as it happens. That is always and is expressed by price.

Averaging in at the low prices, especially in miners, since the big gap down in Sept 2014 not bad-- (LOL). But--whateva!! (Voice from the past)

@zack

yea its counter-intuitive. But in markets, nothing is on sale. Furthermore, why would anyone want to be a bag holder and sit underwater for years, not knowing where the change is coming all the meanwhile that money could be used for assets that were going higher and give large returns. Pretty simple concept.

so buying a downtrend is a waste of emotional capital and monetary capital. The proper thing was at the time to sell it short and put money to work in other areas of the market that were going higher. As an example, while silver and gold were bleeding, biotech stocks, when the market had an appetite for risk, were double, tripling etc and they were commonly doing that.. 52 highs in bio techs constantly. Now that area is pretty much done for now and not as strong as it once was.

Thats how markets work tho, all the time.

I have always bought 52 highs at the start, and sold 52 lows at the start. I have a process, I have a stop, I enter with a plan. Sometimes a 52 high doesn't work. USually there is a very good reason and the stop saved me from staying wrong... and on to the next one and bammm, it was off to the races.

I personally will gladly buy assets at 52 highs provided its at the start of the move, market conditions are cooperating and I have a plan to get out if I am wrong. It has made me very profitable consistently over the years to look for 52 highs to buy and sell 52 lows. Even if I am wrong 4 -5 times in a row, I still manage to make excellent returns on the one or 2 that do work.

Averaging down is the kiss of death and a waste of good money.

I got involved in a strange situation with Silvercrest buying more shares Friday AM...Silver spot was creaming up, and, I wanted more shares..you can only buy OTC stocks with a limit, at least on my 2 accts..anyway, the price just kept going up, and, no orders went through...I kept raising my limit..finally, at $1.21, I got my order. Then, about 30 minutes later, even with spot still going higher, the share price plummeted down to as low as 0.99...still up 0.03 for the day...not quite sure what happened..unusual for this grey sheet to make such swift ups & downs, usually it's been steady up, up, up for weeks, usually 0.02-0.05 up per day. Anyway, it is what it is..I am confident the price will be well over $1.75 soon, if not higher. Hard to believe, when First Majestic Silver bought them out late last year, we shareholders got swapped out to FM shares, and, this new OTC symbol, SVCMF, and, the price was 0.11/share. I got 333 shares in my acct, and, it just sat there doing nothing for weeks.
Needless to say, the stock is doing quite well, and, has provided me with my largest gains, along with Great Panther Silver. Another great gainer has been Silvercorp, a Pink Sheet Silver stock..bought in at 1.39...and more at 1.55....it's now at 2.39............
My First Majestic is kickin butt too. I sold my Avino, as there were too many days with spot silver up, and, ASM consistently down, very irritating, so, I converted that money into Silvercreast, Silverbull, and Silvercorp...all tiny companies in the big scheme of things...what's nice is for not much money, one can own thousands of shares, and, when they go up even pennies, it makes a excellent day. Holding till the top for sure.
Here's a summary from FX Empire today:
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"markets rallied again during the session on Friday as the US dollar continues to fall. With this being the case, looks as if the market is ready to continue to go much higher as we have cleared the shooting star from last week. Pullbacks at this point time will more than likely attract buyers, as it appears that we have not only broken out, but we are ready to go much higher as silver is much more attractive than the US dollar at this point in time. We currently have a target of $20 going forward."
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Notics FX Empire's use of YUP's favorite words: PRICE ACTION" in their Gold Forecast:
"Gold prices surged on Friday as general dollar weakness helped the yellow metal gain traction. Prices broke out of a tight range that has encapsulated prices of the yellow metal since February. Prices sliced through the 2016 highs at 1,283, and are now poised to test target resistance near the 2015 highs at 1,307. Support is seen near the 10-day moving average at 1,248.
Momentum on the yellow metal has turned positive as the MACD (moving average convergence divergence) index generated a buy signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread. The index moved from negative to positive territory confirming the buy signal. Additionally, the RSI (relative strength index) moved higher with price action which reflects accelerating positive momentum. The current reading of 67, is on the upper end of the neutral range just below the overbought trigger level of 70.
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Now...just 1 "Black Swan" event(I won't discuss bombings, or such, that just isn't nice in here), more like a default of some large bank...really bad news about the economy, USA or Global, bears taking control of our equities markets, etc...will really snap the "rubber band" for spot....demand for gold as a risk aversion option seems quite high now, and gaining momentum.

Depends on your broker zck...if a normal situation, most brokers allow trading with sold funds before the 3 day settlement is up...a "gift" of sorts...don't do what I did, by mistake, and that was bought and sold too many 1 day...2 day stock flips...got in trouble fast......broker put me on 90 day suspension, where I HAVE to wait full 3 days before funds available! It sucks......these places frown on "day trading", and messed up settlements, so I had to learn the hard way. One can set up an acct with an option label, but, without advice on the incredible complications involved, I would be very, very careful to do this...margins vary from stock to stock, and, brokers require xxxxxxx% of funds held while buying on margin..throw in a quick 2 day flip, and you get some serious issues popping up. Not for the faint of heart. Great if you are a "gambler"...just tryin to help.
Calvin

@MontanaCMR

I do yes, thats very thoughtful of you. let me unblock my messages and you can shoot me an email.