This page has been archived and commenting is disabled.
Silver Craters: Exhaustion, Capitulation ... Or Opportunity Ahead?
It was a painful day for silver bulls. We have higlighted the possibility in the last weeks that precious metals markets could be on the verge of a breakdown. Our thesis has been to prepare by picking out the strongest plays. In case precious metals would continue their decline, our subscribers will see which of our recommendations will hold up. Those companies will be the big winners as soon as the selling is over.
The price of silver was down 4.5% today. The worrisome fact for silver bulls is the high volume associated with the price decline. The chart below shows the nasty sell off with the high volume in the blue rectangle.
The key question is whether this is exhaustion selling, or the start of capitulation.
Capitulation is still in the cards. It could end the 4-year bear market in precious metals.
Let us spend a minute here to emphasize what capitulation would mean. Most investors would experience such a situation as "totally bearish." We would not agree with that view.
Capitulation, in a secular uptrend, after a correction of 70%, implies that the last phase of a cyclical bear market is about to be accomplished.
Alternatively, exhaustion selling is a plausible option because silver has reached the last key retracement levels of the monstrous rally which started in 2004. The next chart shows the critical price level at which silver has arrived.
We would argue that lower silver prices would offer an almost once-in-a-decade buying opportunity!
We will continue to monitor markets for our readers, and report our view accordingly.
>>> Check Out Our Latest Gold Report!
Secular Investor offers a fresh look at investing. We analyze long lasting cycles, coupled with a collection of strategic investments and concrete tips for different types of assets. The methods and strategies are transformed into the Gold & Silver Report and the Commodity Report.
Follow us on Facebook @SecularInvestor [NEW] and Twitter @SecularInvest
- advertisements -
We have already been through this exercise, and it was capped in 2011... The U.S. is 'all-in' now - forget about barometers of value and canaries in coal mines... It's full-on 'recovery' or, something you don't want to contemplate. Gold and silver are nothing more than insurance at this late stage. Then again, that is their primary station.
not a painful day. LCS had everything I wanted at a price I couldnt refuse!
I dont reitre for another 24 years. Keep manipulatin bitchez!
More Dana Carvey, Isn't-That-Special Economics in Gold & Silver:
http://winteractionables.com/?p=22600
Everyone is still looking for 'profit' in terms of fiat money. Only when true deflation is actepted will gold and silver become popular. As for the rel consumable commonities, CME has shown a pleasent raly this summer and the wise investor should start looking at getting out their profits, that is unless they expect the Donbass to burn in late summer.
Single digits incoming.
I've taken such a fucking bath on PMs....
No loss. Not until you sell. I'm thinking about this lately. That run-up a couple of years back, a lot of physical holders sold their metal, then prices dropped. What a great way to shake out a new supply of metal for the market, because I still believe inventory is thin. Then you beat the metal down to keep people out of it. Only the very smart folks are stockpiling. The more the metal gets beat down, the more you should suspect that it's better to hold than sell. That's my feeling. They just can't keep it down forever, although they will try. They know that once they lose control, the boat will capsize. Up will be down, down will be up. So my advice: You've got real money there. Hold onto it. Don't treat it like a stock, the manipulators are counting on that.
A lot if not most of the selling is China's deleveraging. Same with Cu. If you believe, you do nothing. If inclined to speculate, try to figure when the China stock market selling will exhaust itself. We are below all-in costs for most mines.
I tend to agree and expect more in the next two weeks with little upward movement.
More TA.
Tits and ass would be more worthwhile at a time like this.
It Is Time, Texas!...Operation Texas: www.OpTexas.org ... Associate with awakened Texans, and help in awakening others ... Read our Mission Statement on our Homepage ... Our site is fully secure with all the latest encryption ... Operation Texas has a plethora of information ... Most important, we have our own totally secure Operation Texas Forum where members can interact with like-minded and preparing Texans ... Join us, Texan!
I must say, I am intrigued.