Morning everyone....
I don’t know what it is with Mondays for the past several weeks now. The last time we started a week off in the green was when the supposed “silver squeeze” was going to happen from the Reddit crew. Since then every Monday has been a bloodbath.
And today is no different....
Before I get into the charts and share the grim news on today’s precious metals prices. While I am by no means a financial advisor or claim to be one, nor am I saying you take my word as certainty.
Historically April is a very bad month for precious metal pricing, and I don’t think this year will be any better. I have looked at the charts, I’ve compared trends, and I’ve analyzed them with the knowledge that I’ve acquired through the years.
In my opinion, anyone that is looking for a buying opportunity this year? This in my view is going to be the month that you will have your chance. I believe that gold will drop into the low $1600’s this month, and silver will drop to $22 or possibly lower. If the dealers don’t increase the current premiums, this will probably be the only rock solid month for a legitimate buying opportunity.
Metals have been traveling sideways for weeks now. We have a couple of days it gets beaten down, a couple that it goes up, and one it barely moves at all.
I personally don’t see gold falling as much as silver and here is why.
While both metals have been having lower highs. Gold has not had as drastic of lows as silver has. Gold has managed to regain its losses or come close to it.
I’ll use March 1st closing date for both to be consistent. Golds closing price was $1725. Which is less than $10 off from its current price. That’s less then half a percent down from where it currently stands. Silver on that day was $26.51, which is close to a $2 loss at it’s current price, that’s down 6.5%.
There is volatility in the air right now with metals. I don’t understand why, since you can’t find quantity of either metal physically anywhere for a reasonable price. Mining is down, even paper contracts are down.
We are going to see a drop...
How much? How soon?
I don’t have that answer. But in my opinion it is absolutely coming.
Silver has been hanging on by a thread. The highs that it has been having are minimal when they happen, and the beating keep getting worse and worse.
While silver has always been the more explosive metal in terms of gains. It’s also the most explosive going down as well. I could see a day or two coming this month where silver drops by more than $1. And if that happens and it doesn’t rebound and has a consecutive bad day with another big loss. Silver could plummet below the $20 level.
In my opinion I don’t see this drastic of a loss coming. But with the craziness of the world and markets, anything is possible now.
Here is a look at the current gold and silver charts from Kitco.....
