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

Personally I'd be buying on this dip at 19.60. Unless you're buying monster boxes or a decent amount of paper a buck ain't gonna make or break anyone and since $20 has been broken and seems to be holding, althou choppy, I'd bet against it dropping under $19. But what do I know lol

There DOES seem to be a shift in spot pricing, but, it's so new, it will take time to tell what the signals may be. In a nutshell, Overnight has been UP, demand and Buying...Then, NY day selling off....From what I read, all of the sudden there is a large demand for physical in assorted Asian Areas, enough so to force long lines of the public to wait to buy their gold.
Something in the air..a feeling of simmering tension...fear...loss of security, really, which causes people to react in intense ways..
Good news for us stackers and investors...there is SO much "news" of Gold and Silver everywhere now, it's like the feeding frenzy has begun...
So, we'll see how this plays out...supply/demand....it really will come down to this...with SO many "Tons" of gold going into paper gold etf's, I wonder how long the system can handle the stress of inventories diminishing, and, such...This "Paper"/Futures system could implode if supply runs dry...by then, it's a parabolic run up in spot...
Something is in the air...I can't put my finger on it...The death of paper currencies will cause a lot of pain for many...much joy for us stackers.

IMO, tomorrow's job report will determine if we drop to $18.50.

just a few thoughts...


Gold and silver have had great moves as of late. They could run higher without taking a break. However, ideally (which usually doesn't happen in markets as you would like too) a rest or pull back of some sort would be IDEAL and would help the trend along.

Be interesting to see what happens.

@Zack

No matter what you do, when you put money into the market, always use some sort of stop or exit in case things dont pan out. When you have profits, always use some sort of trailing stop to gather profits.

How you do this will depend again, on your time frame, your objectives, the asset you are putting money into and how your emotions are in tune with the stops/trailing stops you use.

As an example, for a while a strategy I have used on recent bio tech IPO stocks that make fresh 52 highs is this- once I establish its character with a small line, when I buy the fresh 52 highs, I size up for the next 52 high break out, especially if the stock has consolidated for a time period and it displays a common pattern and behavior I have traded before.

So say the bio stock is XYZ, it bases and consolidates, the next fresh 52 high b/o is 80. So lets say I have already treaded this stock and it hits the 52 high 80.01, I grab a line. I know already the pattern of this stock. My objective is to ONLY play the break out and nothing more. So the stock runs to say 84 the first day. I will then place my trailing stop at 83, (1 point)and also put in a rule that I will allow the stock to violate dropping below 83 IF it only happens in the first hour of trading.

So lets say it never drops close to 83, day two it runs to 86. Day three and it runs again, to 90. Day four it goes to 95 and closes at 95. Day five comes by and even after the first hour of trading, the stock is still at 94. I also observe that the stock is showing signs that it is tired. It is 1 pt below its previous day close.

Therefore, without any question in my mind AND according to my plan, this is where my exit is, I have made my target set by my rules. I then sell.

To me, I have been moving the trailing stop up, getting ready to harvest profits. I also prefer this method because it allows me to limit my risk in the biotech area. There is always the risk of some unknown and I personally dont want to get hit.

Another trend trader might just sit there for the entire move that plays out for half a year or year. That trader might not have a problem with taking that risk. This is where I say, some stops, depending on the asset you trade and your emotions, it is best to combine them together, you fortify in your mind your game plan and you have zero questions in your mind about what to do.

How you determine this will come from thousands of hours of reading the tape, watching price and watching the assets you trade. But again, no matter what you do, how you pick your exits for either getting out of a trade that just didnt work out OR harvesting steady profits, have something.

As you will come to learn if you continue this, being a successful trader and investor is about limiting your risk, taking a stop if things dont work out but also, once you have a profit, to walk away with a very nice profit. Remember also, you will NEVER EVER be able to squeeze out the entire move and profits in a trade or investment, it just cant be done.

That is why you concentrate on what you can control. Zach, when you keep reading the other book, I want you to pay attention CLOSELY to what is said about Pat Hearne.

pretty strong buying today in miners....someone is buying the dip..

XAU up 2.85%.

I know these questions are towards YUP I thought I'd give my opinion on a few of the questions:




If any asset is still in an uptrend and making new 52 week highs.. I personally wouldn't be selling... I would wait until I start seeing a decline. I certainly wouldn't sell on the "high's" not my whole position anyways.. I might take some profits off the table after some growth but that's about it.



I don't think you'd wait for a 52 week low to start selling... I think YUP was saying you don't BUY assets on 52 week lows.. or perhaps you can short them... but not buying them....
As an asset is on the decline you should already have your "stops" in place... so emotion is out of it and it sells.... don't wait for it to hit a 52 week low to sell.

@yup Thank you for the advice. Have set trailing stop losses on two that are in profit. Two are at a loss d/t Brexit, but on an upward climb and getting close to my entry point, hopefully next week they will be in profit as well. Buying the 52 week high has worked, but the hiccup from Brexit had me concerned for a bit. Should have waited until after the vote; lesson learned. Next event coming will be our election, if I hold anything other than miners will get out before the vote, then buy back afterwards. Foreign market last night had silver down, US buyers stepped in and it found support I see once I got up this afternoon. This tells me overseas buyers are tired, and I would think American buyers would be taking a breather soon as well. This is what I see from the tape. Am I way off? Still reading every chance I get, have gotten to the great crash of 1907 where the bankers asked Jesse to please stop selling.
@AgcoinAu Thanks for the link. Will read up on it. Paid in silver? You'll have to replace that in the next good dip