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

Here's 1 author's take on the fall...interesting, to say the least, how 1 entity could influence so much in such a large scope.
http://www.marketslant.com/articles...-silver-etfs

some thoughts-

I really dont see what the big worry is. Is it fun seeing this drop? Probably not if you have your money tied up in it. However, if you are sitting in gold and silver from the start of the year, you are still in good shape.

If you are worried, taking profits is fine. Thats what works BEST for me, it fits my goals, my objectives, my profits, my bank account. Experience tells me this is NOT a pretty uptrend for now and I prefer to play the the run ups in gold and silver and sit out these declines for now, its not like when gold first hit the all time highs and raced higher, experience tells me this.

Just because I book profits doesn't mean that this trend is done. It is my experience, my time frame, my goal and objective as a trader who has done this for a while now, that I personally dont want to sit in this up trend and enjoy these pull backs.

As far as how gold has dropped- We havent even pulled back 10% yet, how are you going to handle 15% or 20% drop? Its possible. doesn't mean the trend is done tho.

IF you are a dip buyer, a nibbler, once these continued cascading days stop, there will be places to nibble. When you nibble, please dont go and put all your money in. Go in small increments. Your safety net of dip buying is the fact you are buying in a down trend.

Remember, these corrections are healthy. They should be embraced, they help the trend along, its normal and it would be bad for gold and silver to just keep running higher with out some deep pull backs that cause despair.

Is it fun watching unrealized gains erode? No, but it does happen, it is part of having money in markets. I remember way back when I owned GLD after its offering in the 40s, I was holding and we got into the 50s, and 60s and then a pull back came in, coming into the mid 55s and then after that big dip, gold continued running higher.

Was it fun? No but sometimes you need to give up those gains when you have an uptrend charging up towards all time highs. There has to be some give backs, after all, what makes a market place are buyers and sellers.

@Cascade

I know, I didnt mean anyone personally, in fact I was more of referring to a lot of comments coming around regarding gold and silver in general, not specifically here on the forum.

There is a lot of noise at the moment- gold and silver are done. How bad will it get? Sell everything and get out now and so on.

Yes, these swings are violent. I have enjoyed my fair share of wild swings in many assets, often they happened out of the blue. After being subjected to these wild moves tho, you do get used to it and you mange to just tune it out.

I have seen and traded assets with violent moves like we are seeing now in gold and silver. I prefer to back off when I see these solely because I want no part of it. I make my profit and emotionally and mentally happy to move on and get back in later.

I think part of the reason tho I really am not suprised is because-

1- I was expecting this to happen months ago, it didnt tho lol

2- in the past few weeks as the range got tighter I could sense the fall coming, I was prepared when it happened this week

3- I see this drop as a result of again, FOUR YEARS OF OVERHEAD SUPPLY, in terms of price. I mean really, there are a TON of levels that silver and gold will need to gnaw through and sellers WILL BE PRESENT for a while.

4- the all time highs for gold, from here, dont seem that far off for me. With how fast gold can move and seeing we are in up trend, with the element of time I think we can hit it and rip past it. How far I dont know and heck I could be wrong, (which I am TOTALLY OK BEING WRONG) but having enjoyed the last uptrend from previous years, with gold in an uptrend and holding, not giving up all of its gains from the 800 area I think gold over time can get up past the 1,900s where there is nothing but clear blue skies and ZERO overhead supply.


Do I have a crystal ball? No. But trend following over the years has taught me and burned into my brain familiar patterns, familiar price action and behavior from other assets and so far it is playing out as I had thought. I mean really, whats NOT to like about being in an asset in an uptrend.

The final thought I would say is remember too the market is a study in cycles, rotation. While the market corrects, re-prices assets, its always moving to one area, then after a period of time it comes back to another area it was previously on and so on. Typically, assets in uptrends do not just stop in their tracks after a few months or years. They do continue on, either in a nice steady grind or an ugly bumpy revolting manner lol

We are in a period like 2004-2005 on this ratio chart, however this time on steroids. If the ratio fills the gap a little below 150, maybe we lose most of the gains in the miners this year to date, but I am not seeing 200 happening again and possibly by later in 2017, a move starting toward 80 on the ratio, that would be welcome for the miners and gold too. I'll average in a very small chunk of the miners each day through BGEIX, on the hunch that it will pan out that way. Also have small GTC orders in on CEF--some have hit already. Got lots of shiny stuff at home--that won't be released any time soon. javascript:insertsmilie('')

Oh boy oh boy! I smell $12 silver coming. I like buying, and lower prices mean I get to buy more. It also means people will be dumping some semi-collectable coins at the local shop.

@THQ; My sentiments exactly...

Well maybe not exactly $12 but I can see $16-$15 as a definite possibility. I'm using this as a buying opportunity. And I'll be hitting the local shops and shows this weekend as well for some bullion and silver coins.

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