After the most recent low volume rise and reversal – by all appearances we have setup the decline I have been patiently waiting to arrive.
All the elements were there – choppy trading with little conviction. A long term downtrend that failed on the Daily Chart and did not materialize on the Weekly & Monthly charts – time is as important as price.
The Precious Metals Media Mafia – true to form – began yet another campaign of hype, BS, fear mongering and “this is it” moments. Where those selling you Precious Metals and Subscriptions – fucked the pooch once again. Their track record remains one of repeated, dismal failures for six straight years.
They have something to sell and it’s clear panic is setting in within the bonfires of Goldburg & the Silver Suicide Cultists.
While the usual suspects were touting a Gold breakout – Congress was busy choking the exits with expansive proposals to impede protection of wealth in any form.
CAF’s cast net is growing, the exits are being strangled with severe penalties and incentives for American to spy on their fellow citizens.
No good deed will go unpunished.
There is more work to be done, for clarity’s sake – our 10 day window closed and we now have the formation of opportunity over the coming weeks on into August.
Price will remain the arbiter, as always – irregardless of “Manipulation(s).”
The real issue will be availability of physical metals in the not too distant future. Supply and Premium spreads will further serve to discourage investment. As inventories are whittled down with each successive decline in price, Primary Dealers will resort to wider spreads on the Metals. This will take time, but it is as certain as the Sunrise.
I believe we will see a quick retest of the December 2015 low @ $1045. A rapid descent in price would surprise and disgust even the most ardent cultists – a waterfall event would perform the necessary flushing of sentiment.
A further decline will swing the remaining sentiment to the point whereby the pendulum had swung enough to store potential for a dramatic reversal. Exhaustion will have occurred and an entirely new paradigm will have arrived.
This is needed for a true, Long Term Bull Market.
Opportunity is ahead, patience and a well defined IF/THEN matrix should be clearly defined and obeyed well in advance.
Plan your Purchases and Purchase your Plan.
August should remain a pivotal month, serving to provide adjustments to how far the pendulum will swing.
Further adjustments can be made during this timeframe. Change remains the only constant and being able to mentally tack when needed is the very foundation of Precious Metals Investing.
Patience will serve to insure we arrive at a reasonable entry point.