Carnage is the word on the street when it comes to the precious metals and believe me when I feel badly for anyone left holding the back on silver and gold, especially those that bought at the extreme prices in May of 2011 for Silver and October of that year for Gold, I am filled with anger at the charlatans that continued to tell investors to keep buying any dips and called for extreme price movements because of their manipulation claims.
The reality is as plain as day in the metals markets.
Silver has been in a bear market since its crash of May of 2011. The following chart illustrates this clearly. Any bounce since that time have merely been countertrend bounces.
The same holds for gold after making an all-time top in October of 2011 it has failed to hold steady gains and has continued to be sold off.
I made a very controversial post asking my readers to take into consideration the very real fact that we might have been witnessing the start of the end of the bull markets in those precious metals. I got eaten up, spit out, chewed and called about every name you can imagine on my blog and oh the various sites that used that post. I won’t even get into the emails that I received. I’ve kept quiet more so because life has simply gotten very hectic for me at the moment as my family deals with some tragedy and as I concentrate on my business. However, I have continued to play the markets and continued to wait for an opportunity. I didn’t play this silver and gold move but I do believe there is room for lower prices despite the fact that we may see an oversold bounce in the upcoming sessions.
Anyone trying to argue that silver and gold are simply correcting need a reality check. In silver’s case, corrections don’t last 2 years. With the FED divided, unemployment declining and the price of the metal failing to rise to new highs despite the calls from all those charlatans that I have written about because of endless quantitative easing would send the metals to historic highs you need to really examine those people and ask yourself why they never give the other side of the picture. Folks, be very very careful in the metals markets. The charts say it all. My post of two years ago says it clearer when I asked people to take a hard look at whether or not the metals had ended their decade long bull market (in the case of gold at least).
Anyone following these markets over the last 3 years should by now know that the likes of Eric King and most of his guests are full of shit and have kept average investors in these markets far longer than they needed to be. Not once as he, or his guests given out responsible advice like it might be time to sell and sit on the sidelines. That is about as irresponsible as it comes. If you haven't learned that by now, you never will. Gold has a very real chance of falling to $1475 while silver, short term can test $26.00 again and I maintain my calls made many times on this site that state that we could very well see $22.00. Remember, the miners breaking down was the omen that foreshadowed all of this …. nothing has changed. There is value in junior stocks. I am not talking about those… I am talking about the metals. What I am angered about the most is that friends of mine continued to hold metal they bought near the highs and never once heeded my advice instead only listened to the bullshit permeating the airwaves about gold ownership. There is a piece for gold and silver in very portfolio. To stack away until your heart’s content is not the way to do it. To listen to the lopsided tin foil hat bullshit spewed by GATA, Eric King, his guests, Zero Hedge and others was perhaps the most irresponsible thing any investor in metals could have done. Their story never changed. Mine hasn’t either. Notwithstanding corrective bounces, my sentiment remains bearish on the metals. Yes, they will rally… be be weary of my head and shoulder pattern warning made months ago … that is, a major head and shoulders pattern foretelling a massive drop in silver comes into play if the metal takes out it’s $26.15 low.
Please feel free to revisit my post made on December 13, 2011: It Might Be Time To Acknowledge That The Gold Bull Market Has Ended