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

And of course, dont forget to keep an eye on spot price vs actual sale price as premiums may jump.

Just give them a week or two to die down if they do unless of course you want to sell then take advantage of it

Gonna be interesting to see if there's another big or even bigger drop this Friday, the same way it dropped back in April over two days,a although granted that one was over the weekend.

Its kind of cheating now that the other markets are opened, but I was going to say my guess is it will keep falling through the weekend like last time since the move was fairly significant

We got our fireworks finally and at long last, snapped out of the range and without question all the confirmation we were getting, such as gold and silver not being able to fill the gap from 4/15, failing repeatedly and the many times that gold and silver probed their yearly lows, was validated with a move lower today.

Did you notice also- there were repeated attempts to probe the lower yearly range and they seemed to hold. There was a lot of talk about how the COT was saying a major squeeze was on its way. There was talk that a "double bottom" was in place. However, in the end, the price action was the ultimate decision maker, and it was saying gold and silver were not done going down yet. Sure enough, gold and silver continued their move lower.

So are we done going down? Is it all clear? What if we get a rebound tomorrow does that mean we got our flush?

At this stage, as I always stress, we need to take everything by levels. The levels remain the same for now, gold looking for a range after 1300 is breached (which it was) to a move on the lower end to 1250. Silver with the breach of 20, lower end towards 15.

These are targets for the short term. It will have to be seen if these hold. They could hold, they may not hold. Only time will tell. However, with a strong trend, as I have noted before, there is nothing to say that gold and silver hit their previous all time lows. We just don't know that for now.

What we do know is for gold and silver to reverse course, it will take a lot of buying, buying, and buying and it will have to be done with authority, and that authority is represented by volume. That's going to be very difficult as gold and silver have suffered a lot of technical damage and all these ranges of price and gaps will have to be filled before they advance.

Also going forward there should be no surprise if we see retracements. That happens all the time. Again, filling the gap is key. Not only does gold and silver have recorded in its price memory the gap from 4/15, it now has the gap from today to deal with.

Looking at our proxies

GLD- a gap lower

SLV- a gap lower

One interesting thing to note is the heavier volume on SLV compared to GLD. In fact GLD had much less volume than before so we'll see how that impacts things.

Remember, there is no rush at all to go and buy silver and gold right here, right now. Continue to hold off.if you can, remember you don't want to run out and buy and then find out days later you are underwater.

Finally, should we bounce tomorrow, it will only prolong the downtrend and will only help to make the moves lower even more vicious and faster, so be very careful out there.

I have stocked up on some cheap vintage JM ten ouncers, and a nice 1/10th Gold JM as well. I knew when I bought them that the PM value could drop, but since JM vintage bars are collectable, and the price tends to disregard the spot trends, I thought it was a safe "nibble". They store easier in the safety deposit box than coins also.

$20 per oz is only cheap compared to prices we saw during the bubble. It is still expensive compared to historical averages.