Silver to Crater into the $13s Soon; Likely Even to $10
While Silver was looking promising for quite a while, the reality is (shockingly to all investors, 'experts' and traders), that the virus has essentially pushed the entire global economy into a recession (if not already, then imminently).
While people can have a discussion about the 'severity' of the virus, the reality is, the severity of the virus has little to do with the market bubble popping. This represents the first current environment in about 11-12 years that warrants total profit taking over dip buying. With the absurd amount of debt from consumers and governments and massive QE, this will only get worse before it gets better.
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The near-term highs in Gold (1705ish) and Silver (19.5ish) are confirmed temporary highs. While Gold will make a new high likely sometime in May, Silver will likely not make a new high (past 19.5) until late 2020 or into 2021.
Due to a bear market in equities, this makes Gold stocks bearish, Silver bearish, and Gold-spot temporarily bearish. Gold stocks always fall with equities; and Gold-spot holds up better, however it also falls on and off in bear markets (like now) for people to use as a liquid asset to cover margin calls in leveraged accounts.
The next Gold cycle will begin in late April to early May and that is the next buying opportunity. Traders should NOT long Gold here.
The next buying opportunity for Silver won't be until it likely stabilizes at the $10.00 level.
- zSplit
**Note: Yellow lines represent key levels that may warrant a bounce, however, bounces will be temporary and short-lived likely until the equity market totally stabilizes.
While people can have a discussion about the 'severity' of the virus, the reality is, the severity of the virus has little to do with the market bubble popping. This represents the first current environment in about 11-12 years that warrants total profit taking over dip buying. With the absurd amount of debt from consumers and governments and massive QE, this will only get worse before it gets better.
--
The near-term highs in Gold (1705ish) and Silver (19.5ish) are confirmed temporary highs. While Gold will make a new high likely sometime in May, Silver will likely not make a new high (past 19.5) until late 2020 or into 2021.
Due to a bear market in equities, this makes Gold stocks bearish, Silver bearish, and Gold-spot temporarily bearish. Gold stocks always fall with equities; and Gold-spot holds up better, however it also falls on and off in bear markets (like now) for people to use as a liquid asset to cover margin calls in leveraged accounts.
The next Gold cycle will begin in late April to early May and that is the next buying opportunity. Traders should NOT long Gold here.
The next buying opportunity for Silver won't be until it likely stabilizes at the $10.00 level.
- zSplit
**Note: Yellow lines represent key levels that may warrant a bounce, however, bounces will be temporary and short-lived likely until the equity market totally stabilizes.
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