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

@Lars

Yea I been noticing some great deals across the board on like proof silver and gold coins.

I saw on ebay a set of 2013 proof eagles I forget the frac sizes now but when I totaled the final auction versus what the Mint wanted was like 15% less so not too shabby.

SO yes, I think you nibble and plug wholes in your collection. Bullion, if you own some already, I would say don't add because you safety net.

Take a look folks, gold going into the 6/20 gap.

more later

Good morning Miggs and happy Monday to all.

Well, I really dont pay attention to COMEX reports for the following reasons that I know to be truth.

1- the data is not presented as it should be by those disseminating it. 2- Every time I hear talk about how much "physical buying" there is and it isn't reflected in the price, I know that someone is simply talking it up. 3- which I again circle back to price, price is truth, price is king, price doesn't lie, price is always right. Price is saying gold and silver are in still in strong downtrends.

To me I just see this as a trading bounce, a squeeze and nothing more. Furthermore, getting prices to get stable never happen fast and certainly not in the manner we are seeing. Therefore, this is nothing more but a bounce that many traders are making money on. If you had gold and silver and you wanted to sell a bit more, this is the week to do it.

Remember, tops and bottoms, no one can call them. Also, its a process in getting some sort of floor or top in place, it just doesn't happen 1-2-3.

more later

Lets take a look at how things are going here. First off, lets rewind and go to Friday as I believe I left off looking at what happened that day.

GLD- higher high, higher low

SLV- higher high, higher low

So we see both held their gains from the previous day and slowly been ramping higher.

Look at today, both silver and gold experienced a gap up. Furthermore, we are seeing them push higher into that 6/20 gap.

GLD- gap up, higher high, higher low

SLV- gap up, higher high, higher low.

Now, lets see how it handles filling this gap. It is possible it can close it. Its possible it closes the gap and holds above it. So the bottom is in right?

My friends, despite this rally that is happening, which many traders are making coin on, it still doesn't change the fact that gold and silver continue to be in downtrends. Nothing has changed. Allow me to review key points here-

A- the volume as this has run up is very small and is not the type exhibited by funds coming in. For the technical picture to change it would be good to see some very heavy volume days, that would indicate strong hands are buying, IE funds, banks, institutional investors.

B. In a downtrend, sharp snap back rallies happen, many times blowing the accounts or inflicting losses on those who either have been selling short as latecomers or have yet to cover their positions. These short sellers need to buy back their positions, pushing up the price. That I believe is what we are seeing right now.

C- Again, I repeat, this is a process, it will take time. A couple of weeks is NOT going to reverse a downtrend over night. Furthermore, even IF gold and silver were to stop hitting yearly lows, they are still broken assets that will have to prove that they are ready to climb in value.

D- all that selling that has happened will now be resistance in terms of price. What am I saying? That price has memory and those levels in price that were crashed on the way below now become "walls" to prevent the price from going higher and that will take time and heavy, steady buying to overcome. Again, this sort of thing takes time.

So becareful in thinking that the worst is over and that now prices are ready to climb higher. Be selective in what you buy coin wise and stick to high quality coins. Finally, do NOT be in a hurry to rush out and buy silver and gold. The train is NOT leaving the station, avoid the pressure from dealers that insist prices will never be this low or that you will not be able to buy at these prices ever again.

I have been receiving and flooded with emails from the online dealers I have purchased from and they all smack of hype, APMEX, Goldmart, Silvertowne, etc. You name it, they are all pushing hard to get folks to buy. I scoff at their sales hype because NO ONE should feel they have to go out and buy. Instead, everyone should be dragging their feet in their purchases. Use the lower prices to YOUR advantage.

In fact most quietly and inconspicuously silver has clawed back from
$18.50 say at bottom to close to $20.50 now today....

And platinum gold and palladium are looking rather strong again....

I am already back on shelf for gold buying glad I got about 2 oz when it was lower.....

Hope your right Baseball as I would like to see a fall back to where itr was and a bit below to buy some more.....

Yea there is a lot going on.

1- a short squeeze is in effect

2- the effect from the japanese elections, currency implications (you;ll notice the gap up happened the same night that Abe won)

3- on/off QE expectations. Tho it is clear QE is going to be limited going forward. Furthermore, gold and silver have been sliding backwards since 2011, so I think QE really won't help gold and silver going forward.