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

Today is a PERFECT example, yet again, of why we buy right, sit tight and do nothing as you add up.

If you been playing the dip buying game in the miners as an example you will find yourself at perhaps either being in the red or seeing gains eroded. If you been buying too much, or buying every 52 high, you also probably are looking at your gains being evaporated.

The selling today was pretty violent in the PMs and miners and I have got to think, based on how they sold them hard and heavy into the close that probabilities are high we see even lower prices from here, we shouldnt be surprised.

For gold, that 1260s, if they dont hold and it doesn't get back into it, means lower prices are a probability. Silver needs those 16.90s to hold as well other wise it drops into a lower range.

Still too early to say tho and the coming days and next week will provide more clues. Do the buyers that have been active let it fall from here even further? Dont know.

There are a couple of factors are play. First, as we have mentioned a few times here early in the year, there is a ton of overhead resistance in terms of price. I think we start to see that kick in here.

The second is that many trends, in all assets, are struggling to hold. Its a mix of break outs followed by failed break outs. From a technical stand point, financial markets are broken and things probably have been going this way since November of 2014, its just that now, we are seeing it be wide spread.

Thirdly, this tandem that we saw going higher, which was the Yen, the US Long Bond, and the PMs, there are signs that the Yen is starting to languish, its not as strong as it was, the US Long Bond has been also sluggish and not returning for a while now to its previous highs. I think PMs and miners follow up here.

I am basing all of this on price action. I dont care what the Fed does, I dont care about an election year, I dont care what the Bank of Japan does, etc. I am referring to how you can sense, via price, the tone changing in the Yen, the Long Bond. Today, the selling in the miners and metals as the day went on is something we havent seen in a while.

Does this mean that the uptrend is done? No it doesn't. It just simply means that for now we shouldnt be surprised if going forward the market doesn't throw its weight behind buying anymore silver and gold for now. Remember, markets price in and work in the future, ahead in time.

Some trends, after they have run simply go into a period of time where they get dumped, sold off and left alone. It could be many months of just selling, followed by nothing at all.

For now, we want to see what kind of range gold and silver settle into. First up is to see if they can hold these previous levels in the range. Give it time.

An uptrend just doesn't start and then stop and roll over, everything is a process. I have seen assets in an uptrend that hit a yearly high and then pull back in price for months and then after that time period, come back again, hitting new yearly highs.

For now, again tho, let us see what kind of range do we see. Do we see the same range and behavior as before or is some new range going to develop, below the previous one

Allow time to help provide us with clues as expressed by price action.

Anyone who has bought miners, at any price or strategy, experienced erosion to profits today. With the VGPMX, I plan to continue to hold as most was bought between $7.50 and $8.00. If the price drops below $9.00, I might reconsider as I would like to make a profit on my first miner purchase. In my world, a 12% increase in a matter of months is great.

Today is also a good reminder for me that nobody, regardless of approach, know where the markets are headed tomorrow, next week, or next month.

None of this really matters with physical silver purchases as I don't plan to sell any year soon, regardless of price.

Today was just the opposite of a few weeks ago, when daily, my screens were screaming green, and making so much profit I was stunned...still on "House Money", so, I didn't lose anything, really, and, thank goodness I don't use stop losses, or, all would have sold today for sure. I now treat my miners like I do my bars and coins in my vault, with zero emotions...it is what it is, and that's all it is. Heavy man.

Grateful, yes on miners. However, for physical collection stuff, I would prefer lower prices.

A few on message boards have said its crazy to buy physical and never sell. However, I disagree. People have land, and never sell, paintings and never sell, and for me silver, and don't plan to ever sell. I figure the day job is where I make money. The miners is for fun, and physical is hobby.

Yup,
"Next week will be big." I want to purchase some more pyshical silver, but is "big next week" a buying op... or a return to the up trend?

Didn't take long at all for green to appear on my screen..it's amazing how fast things change in gold and silver...seems like a LOT of "dippers" are moving in right now....with the cushion I have, I slept well last night. 6 months ago, I would have panicked and sold everything, I kid you not. I read 2 BILLION DOLLARS OF GOLD WAS SOLD SHORT 5-16.... very interesting piece of data. Until the miners unify, and, form a global union of sorts, futures and leases manipulation will never end. Its the only commodity you can sell even when you don't own it....pretty bizarre, IMHO.

Silver taking a nice veer towards $12. I'm waiting.

Anyone buying tonight? I kinda want to pick up some poured silver, but hate to raise my spot cost average of about $16.