Gold and Silver. Its ugly.
I took a lesson from Orpheus and Lot’s wife. When investing never look back. Profits are in the future. As regular readers will recall I call Gold and Silver all the way up, and sold out near the top. Its all here and on my YouTube channel to check the veracity. In this fake world of predicting the past, I hope you will DYOR on the record.
As such I have not been keeping a close track of Gold or Silver because that was yesterdays meal. However people have been asking me to, so I’ve taken a peek.
Yikes it looks Ugly!
Here is the chart of Gold.
You trade what you see and untill there is a pause in the drop and classic bubble chart like this falls a long way. That is if this is a bubble chart, so that is the call. Did something major change and where is the new equilibrium.
To me I want to see some months of calm before calling a bottom and unless we start seeing chariots of fire, Gold is not going straight back up again.
Lets look at silver, the fast horse.
I like to keep it Crayola-simple. Unless something weird happens $40-$50 is a cinch. Silver remains the wild b2c precious metal and again is will take a period of calm to define a bottom. That doesn’t seem on the cards in the near future.
Here is Gold and Silver together.
Want to be bullish? Stare at that chart and imaging what a bullish scenario would look like. To me it would look like a freekish chart. Conversely a fall to $40 on silver and a reconnect there would look very ‘normal’ indeed.
Charts are not fate but as trillions of liquidity head into popping AI IPOs and a potential mad Nasdaq bubble, the hot money will drain away from the likes of Bitcoin and precious metals.
Of course that means buying opportunities in the future, so we will just have to wait till the chart say in no uncertain terms, the trend is up.
I’ll be waiting till then.