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

Just wanted to make a note here-

Depending on where this falls today, I think we continue to see more selling into tomorrow.

On gold, our next target is 1200. IF that doesn't hold we will continue to test all the way down in levels all the way to 1150.

Another scenario we could see is overnight futures extending it into 1200s and a bounce into tomorrows open. Stay tuned and regardless of what happens, one should not be buying gold and silver, this is NOT the time to be buying.

Unless you are selling short, you should be on the sidelines. If you have any doubts of how it feels to have been a buyer of other dips, just search on the Internet and you can see how people are feeling right now.

I just wanted to give a shout out to yup7676 to thank you for all the information you post on this thread. As a complete noob' in the PM world I find that your forum entries are:
1) easy to understand
2) very polite in tone (not condesending)
3) thus far have been right on the money (no pun intended)
I'll keep reading this daily and keep doing my own due diligence waiting for the right time to buy me some silver but in the meantime, thanks for the info and please keep it up!
Cheers.

I think it was only a few months ago yup was going off about how the markets are gonna crash, this and that when everybody was talking about $50 silver still. Ahh.. I thought he was nuts.

This maybe a silly question but....

With the rush of folks buying silver now, waiting weeks sometimes to receive there order, when the time comes that silver begins a climb back up in value and another mad rush starts to stack some, will there be any silver left to buy?

Thanks guys for the kind comments, just doing my little bit to help everyone out, I am glad to hear folks find it easy and simple to follow. I am really trying to keep it as simple as I can, I have taken a ton of technical jargon out to keep everything uncluttered so that one can see price is really the ultimate decider of where this asset goes.

Ok lets get into what we have now-

First let me state that at this junction, I would not be surprised in a scenario where we see gold, as an example, hit 1200, perhaps over night and A- bounce hard in the morning or B- have more selling into 1200 tomorrow and then bounce later in the day.

Many times, the strength of the selling, the momentum can push an asset much much much farther down than thought and breach levels that were thought as good support. This often also works in reverse with an uptrend.

So the bottom line is- expect anything right now. What is true and confirmed however, is both silver and gold are in strong downtrends. Even if they retrace, gold and silver are still in a downtrend. Remember also as I have repeated many times, TIME is very key and important here. Time will allow this move to play out and give us the clues as to where this is all going.

Before I get into the proxies, I want to point out an example of momentum and price history. If you can, pull up a 20+ chart of ABX. This gold miner has been an a strong downtrend since 2011. Prices continue to drop. The stock has repeatedly hit 52 lows and continues to hit fresh 52 lows. There is NO BUYING at all. The heavy volume has been done by the funds and institutions. This is their foot print that they have been leaving.

Now I want to illustrate to you the price action. This chart was brought to my attention by fellow traders and I wanted to share it with everyone, it illustrates the real danger in how far prices can retrace when they hit 52 lows and are looking for areas of support. ABX is now hitting multi-decade lows, these prices hadn't been seen since 92 and 01. Furthermore, we don't know yet if that's the end. IT could very well continue to run lower as it is not showing any signs of finding any sort of footing yet.

The same will happen with gold and silver. It is possible we hit support at and finally level off at 1000. However, there is nothing to say that gold returns to say 500. There is nothing to say that silver doesn't hit 4 dollars.

All of this will be determined by TIME. Time will allow things to run their course and find the bottom. IF the selling continues, it could very well be a slow dribble to a low point.

This is why it is so key to be patient. We could very well be waiting months or years to finally find where gold and silver finally find a floor and hold that price area. So it is not wise to be buying all the dips. In fact, even if prices dropped, and then ran ahead and gave confirmation from much higher levels that prices were done moving lower, even if you missed say a 5 pt move in silver, you would be much safer because at least you would know prices were moving up.

So for now, if you can be patient, stay patient and don't lose focus. Again, this will be a process. It will be long, dull and boring to a certain extent.

Our proxies-

GLD- lower high, lower low and again another 52 low

SLV - lower high, lower low, again another 52 low

One final note- notice that on our proxies, prices ended the day closer to the lows of the day. In many cases this carries into the next day, so we have the increased probabilities of more selling tomorrow versus a bounce.

You probably didnt misunderstand anything. A lot of sources will try and use the production shortage as evidence of a supply shortage because they have a personal financial interest in getting people to buy or to keep reading their material which people lose interest in seeing the price falling or settle flat for years.

If there was a real supply shortage you would see mint prices skyrocketing and products being condensed to the biggest money makers. Weve been getting it for thousands of years though and theres really no reason why we should see one in our lifetime sort of natural global catastrophes that change life as we know it

But like your point Yup, I may just wait for more fall as I got more leverage when I toss an offer on it, if I eveer chose to....