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

Energy seems to be the favorite thing to tank from the speeches, it usually recovers but would be nice to get rid of the speed bumps. It seems to happen like clock work every single time.

PMs did finally react though so at least thats something.

It appears we have our catalyst to finally snap us out of this range and it looks like the move will resolve itself to the downside. Already the futures markets are indicating a lower open in the AM for gold and silver. Should be interesting to see if this carries into tomorrow.

Lets look at our proxies-
GLD- higher high , lower low. Also note that today it made a fresh 52 low.

SLV- higher high, lower low. Again, please note the 52 low.

WHENEVER you see a yearly low on any sort of asset, it indicates great weakness and further validates the strength, confirms the downtrend. This applies to bonds, stocks, currencies, you name it.

So at this point, the question everyone has is- is this the bottom? Where is the bottom?

For starters, all assets, when they are in a strong trend, follow the path of LEAST resistance and have plenty of momentum that carries them much farther than is expected. That is why picking levels is the best way to handle these moves. So what levels are we looking for in silver and gold?

These things tend to run to round numbers. In the case of gold, a break of 1350 could see us first coming into 1300. Silver, a break here and we are looking for 20. The coming days and weeks will show us the way down.

I would not be buying this dip. Dip buyers have been completely smashed to bits and I am sure its not a good feeling. If you must nibble, then do so at 1300 for gold and 20 for silver. Keep in mind tho, these are not reference points where just because they came into them that means gold and silver are done going down.

What will it take for a reversal of this trend? More selling for starters to exhaust the sellers and let things smooth out. Also, a catalyst of some sort in the favor of gold and silver. However, there are none in sight, and the more gold and silver stay down here price wise, the harder and longer it will take for them to come back.

So going forward, if you must buy, please be careful. Don't go blowing a big wad of cash on silver or gold, right here, right now. If you must buy, then nibble, look for coins that have high numismatic value and or proofs that are coming down in price and consider buying gold over silver. Finally, if you are buying these coins for investment, make sure you can employ some sort of strategy to hedge your purchases.

However, if at all possible RESIST the urge to buy. There's no hurry to buy, no rush at all.

I don't know, but predictions may not be your forte.

Ya let her drop baby, while bad for the stuff I already bought ( Cant cry over spilled milk) , its good for buying more whenever it bottoms out again .

The worst part is giving Yup a pat of the back...

Looks like we are going to see a test of these areas in gold and silver. Lets first see today what happens, how far they get pushed. I also wouldn't be surprised that tomorrow brings more selling as well.

SO for now please be patient. I agree with those of you looking for higher end gold and silver, please just stay away from bullion coins for now its not worth it.

Finally, I have no crystal ball, and no blind guess work either. I have seen these type patterns before. I have explained the logical progression of these patterns and how they act over time. Trends are very powerful and profitable, hence why I trade them. I can be wrong and have been wrong over the years. But when you get confirmation and a trend, the probabilities stack up and you can identify them, such as the weakness in gold and silver.

BTW, please stay away from platinum also, its on its death march also.

I'm glad I was patient and waited all this time, NOW I'm ready to buy :D

@Demarco

ehhhhhh it all depends. Ultimately, if price action trumps whats supposedly expected, it is always best to follow price action.

What we are seeing is a very very very strong downtrend in progress.

At this stage, losses can be had even by purchasing at these levels.

I personally closed out my long term GLD position this AM after being in it since its inception. It was a great great great trend to the upside but it has run its course for now. I will be back to long gold when it shows it is ready to run higher. I would be a buyer of it at all time highs in fact. For now, I will be selling it short.