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It's Ugly For Gold And Silver

Commentaries & Views

There have been some ugly periods in history for gold and silver, but this is one of the ugliest. Neither goldnor silver can catch a bid as they both continue to take the elevator down, making new lows almost every day.

Sellers meet every rally attempt, whether it’s the commercials or the banks; there is a 1,000-pound gorilla sitting on top of the market. The situation is starting to appear hopeless, and frustration from the bulls is becoming more evident.

However, there is hope and like all great sell-offs in markets, this too shall end. We can’t say when, but we know with certainty that it will. As the elevator moves down, the next stop should be $1,240. Will that be the bottom?

There is no way to predict the exact bottom. One day the metals will stop going down and because markets don’t announce themselves, there will be a new bull market. For now, the best trade is patience and observation.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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