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

Miners are continuing to go lower, with a set of lower highs and lower lows. Notice also PAAS with the down grade today.

Silver barely holding on, gold looks weak also. Again, NONE of this should be a surprise, we said things looked lower coming into this week.

HOwever, for those sitting back from the beginning of the year, you should not be fretting the action today. Even within long term frames are periods of either dips or where things go dormant. It does NOT mean you rush out and sell immediately.

On the other hand, if you been dip buying as of late or been buying many months after the initial start of the move, this sort of selling is going to make you uncomfortable, going to make you fret and emotionally, when you have money in the market, you are going to doubt the trend, you are going to only focus on your gains being eroded.

This is why I repeat: you buy as soon as the move starts, when you have received confirmation, you set a stop or exit, and then you sit tight and allow the trend to run. You need that cushion to help you ride out these time periods.

^ Well, soon enough people will remember there's still no consensus on who (or why) we will get the next POTUS... I personally expect shakiness to continue till after that debacle settles.

So would now be a good time to buy since the prices are lower but we are still in an uptrend?

you could dip buy, but you would need to know where is enough of a dip. Assuming you wanted to nibble a little, maybe wait a few more days.

I say that because are pretty much on a path to lower prices still and this wont go away with just a handful of days.

The price action was ugly for sure, everything went out at the LOD so its clear more is coming tomorrow (selling) and into Friday possibly before a bounce and then we take it from there.

We do remain tho in an uptrend. Now you can see why I was saying you started buying RIGHT as the trend started. There would be violent moves down, counter trend moves in the overall primary up trend. It happens ALL the time, and its the late comers that always get punished and hurt first.

Also, if you have not been buying properly and were nonchalantly buying dips, well you would have been caught out as well. I repeat tho, if you been buying and bought when this move started almost SEVEN MONTHS AGO, you would not be out and jumping out.

Everything we are seeing today is normal run of the mill behavior. I have seen these sort of moves in any sort of asset in an up trend that runs for a while and then days like this show up.

Like Buckeye's chart and even mine when I zoom out over a year, long term, over a year, it has been an uglyyyyy chart, not smooth and up up and away.

Remember how in May to June silver, after breaking out, went into slide down the drain mode? Eventually we did come back. You needed, once again to 1- buy right 2- use a stop that give you enough room to stay in.

Why are prices sliding? The "why" I dont care about but you must realize that silver and gold are bucking a FOUR YEAR DOWNTREND. We are seeing now the levels of overhead supply, as price has to grind through each level on the way up. As it goes up, it will find sellers. Remember I always say "price has memory".

This is NOT to say the uptrend is toast. Just keep in mind tho, breaking a 4 year downtrend was a huge deal and despite that, we will see selling pressure on the way back up.

Another factor to keep in mind is that the market is a study in cycles or rotation. While gold and silver have enjoyed a great run, other areas of the stock market and other financial assets are experiencing run ups. Eventually these will also stop running, some more than others. So keep that thought in mind, that money is always flowing to different areas constantly and it doesn't necessarily mean that an area that was rising has now been abandoned.


In the coming days I suppose you will hear and see many pieces saying how "gold has topped out" and "is the run over for gold" and so on. Its normal, things have a way of feeding on themselves and then its on to the next thing... and before you know it, gold and silver should find themselves, through time, working back up.

Furthermore, dont forget, markets arent easy. They will throw head fakes and NOT do the obvious but fool the most people. I am actually surprised we didnt get this sort of selling much earlier in the year in fact, so it is good to see something shake things up and make people jump off.

@SA4H

higher highs do not mean you go and buy. As an example, gold and silver, could, as an example of one scenario that could play out, is, they bounce for several days and then after a day, proceed to continue their selling.

This is will be a process as well.This selling has left technical damage, expressed in price. In other words, time is needed for things to set up again and I highly doubt we see gold and silver back at yearly highs in a matter of days or even weeks. In fact, it would be BETTER if it took some months before we saw yearly highs again.

So lets keep it super simple. Want to buy gold and silver mining stocks, as an example or add to your existing position?

In my case, I would be a buyer of gold and silver mining stocks again IF/WHEN they make fresh 52 highs. Simple. Until that happens, I dont do anything at all. It could take 6 months, 6 weeks, I dont care, I wont add until I see fresh yearly 52 highs.

Why do I like to wait to add in this manner? I do this because this confirms a couple things-

1- fresh 52 highs confirm the resumption of the trend

2- putting money to work where the momentum is back again


I have done this sort of set up over and over and over and over so I know it works, it works for me.

IF you understand what levels in price are being tested and what areas are holding, in other words, what areas received support and then price continued to move higher from, then you could also start to accumulate from there.

For now, one should watch to see where prices first settle at and then we can take it from there.

just as an observation, I like to use GLD and SLV ETFs as proxies to the PMs.

Looking at GLD, we can see GLD now getting into the lower end, the 125s. If you are wanting this to hold, it would be best for GLD to stay around here, test it and bounce out of it. Otherwise, it too will break the range and tumble even more as we saw with silver earlier in the week.

Interestingly enough, notice how SLV has yet to breach yesterday LOD at least for today, as of this writing. Its close and dangling ever so close to breaking yesterdays low and quite frankly surprising it hasn't seeing that silver today managed to make yet another lower low over yesterdays low.


Patience is key here AND allowing time to does its thing.

so briefly...


gold has come into that lower end.. will it be touched, will it bounce... today the selling pretty much slowed down on the lower end of the range, let us see if tomorrow it tries for the low end or starts to bounce away

silver continued lower today however, it did stop an area where it could bounce, the 18.62s.

Notice also many silver miners, gold miners sold off early and then sharply bounced and ended positive today. Let us see if this divergence in the metals and miners means anything AND if these miners can get follow through and work back into the ranges.

I want you to also pay attention to what happens in the coming days. Is there a FAST recovery in prices, back to the ranges and highs OR will it be more continued selling and lower? We want to pay attention to that to give us insight as to how strong this trend is, the price action will tell us who has the upper hand, sellers or buyers.