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

Getting a little off track here.

Anyone else notice silver is heading to $22 ($21.76 tonight). It's on a pretty good run.

Id bet money you have some years on me. I dont disagree with your sentiment. Theres been better days for sure, theres been worse though too. Weve without a doubt been given up more and more freedoms, every generation has less freedom then the one before. At some point that could be a problem but were a long way from that point and the following generations may not even care as much.

Were certainly doing things that will bring much more harm than good and be long term problems. Some of those things are getting walked back already and we will have a new leader in three years which means the path isn't set in stone.

I dont disagree that things arent great and we arent steering towards a long term decline at the moment. My point is more that were not teetering on the edge and the decline will be gradual not an over night thing like an invading army would bring. Things are often more resilient then we give them credit for. We havent done or started anything yet that cant be undone.

If 3 or 4 presidents from now were still on the same path then thats when Id say its time to just throw in the towel move to the countryside and just enjoy whats left of life as the writings on the wall. No need to stress yourself out if everyone else is content driving towards a cliff.

That's the healthy long term growth you want. None of this 2-3$ swings in a day.

Nice to see that prices are on a slight, steady climb. I very welcomed scene.

I hope most of you good people bought a fair amount when Silver prices were $18-$19. When it hovered at those prices for a month or so we pulled the trigger. Now we are knocking on wood but I think it was a good bet. A fair amount of circulated Morgans and a box of Eagles.

Lets take a look at whats happened with gold and silver prices-

The first thing to note of importance is the gap for 6.20 has been filled and closed by silver. Gold on the other hand, while in the gap, hast filled and closed it yet.

So that's it then? No more lower prices? All is good? Prices are going to rise from here on out? Downtrend broken?

A retracement in price as we are seeing is very normal and to be fully expected. Gold and silver are still in a strong downtrend. I expect in the coming days and weeks for the exhausted and depressed PM bugs to hit the financial media and start talking about "how bullish they are" and "the worst is over".

The thing is, we don't know yet. After all the heavy selling in gold and silver, for t hem to just turn around and act like everything is back to normal would be very abnormal. Bottom line, while it is interesting to see the gaps get filled and seeing it grind upwards, realize that there is a LOT of resistance ahead. As always, watch the levels and see how each area is dealth with. There lies the clues where this is going.

A look closer to the action for today-

GLD- higher high, higher low. Look for it to close the gap, the target on GLD we are looking for is 130.38

SLV- higher high, higher low. Gap filled and closed from 6/20. Now how much higher can this be pressed? Hard to say as this is going to run into a lot of resistance.

What should we expect in the coming days? I think either tow things happen-

a- silver and gold roll away from the gaps and turn lower

or

b- silver and gold hold, gold follows the same pattern of silver and fills its gap. Then they churn once again, bouncing around doing nada. Just chop for a while while they attempt to crash into the next set of gaps back in April.

In any case, those salivating at selling short should step aside. In fact, for weeks now there have been no signals to sell short gold and silver.

Does this mean tho, its time to buy silver and gold, expecting higher prices? Depends on your time frame. There will certainly be traders who will step on the gas here and find the range. But this is not the area to be buying. if you aren't trading this.

So remember, take each level by level and do not forget, the downtrend is FAR from being broken. The element of time is what will help give us an idea where this is going.

The fact that pmz in general have been in downtrend for last two years still is strong evidence that indeed very well may be true Yup.....

But is it not possible that TWO year fall has come to end and things are change direction....

I will not be one bit shocked if you are right and it loses steam in a few weeks at 24 or 25 maybe and starts the slow Christmas fall we often see as much pm sells drop around X-mas, with stackers anyhow as they got other fish to fry at time, even though China and India still buy HEAVY in this time seems like, perhaps the wedding season in India seems like, and what do they covet most esp at wedding dress up events, gold eh.....

Man I hope you are right Yup its getting to high for me to buy and I don't like being sidelined....

I wish my none-sense 4 dollar silver theory would come to pass for just ONE MONTH, like many here I would back up the truck and trailer and load up on silver lol.....

yup7676, I wanted to take a moment and say thanks for the daily commentary I enjoy it very much and find it to be extremely educational and useful.

I also like that daily volume in Silver seems to be increasing (for the moment anyway) have to admit I have not been following open interest as I should but I made my purchases past and recent so I am waiting for the downtrend to continue or good deals before I add more on.

basebal21



Thanks for bringing me back from the cliff now and again these words are a refreshing reminder.