Gold And Silver: It’s Ugly, And There’s More Pain Ahead

3d rendering of eight common precious metal bars arranged into prism on black background

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I took a lesson from Orpheus and Lot’s wife: when investing, never look back. Profits are in the future. As regular readers will recall, I called gold and silver all the way up and sold out near the top. It’s all here on Forbes, as well as on my YouTube channel, so you can check the veracity of those calls. In this fake world of predicting the past, I hope you will DYOR and review the record for yourself.

As such, I have not been keeping a close eye on gold or silver, because that was yesterday’s meal. However, people have been asking me about them, so I’ve taken a peek.

Yikes, it looks ugly!

Here is the chart of gold:

You trade what you see, and until there is a pause in the decline, a classic bubble chart like this can fall a long way. That is, if this is a bubble chart – so that is the call. Did something major change, and where is the new equilibrium?

For me, I want to see several months of calm before calling a bottom. Unless we start seeing chariots of fire, gold is not going straight back up again.

Let’s look at silver, the fast horse:

I like to keep it Crayola-simple. Unless something weird happens, $40-$50 is a cinch. Silver remains the wild, retail-driven precious metal, and again, it will take a period of calm to define a bottom. That doesn’t seem on the cards in the near future.

Here is gold and silver together:

Want to be bullish? Stare at that chart and imaging what a bullish scenario would look like. To me, it would look like a freakish chart. Conversely, a fall to $40 in silver and a reconnect from there would look very “normal” indeed.

Charts are not fate, but as trillions in liquidity heads into popping AI IPOs and a potential mad Nasdaq bubble, the hot money may drain away from assets such as bitcoin and precious metals.

Of course, that could create buying opportunities in the future, so we will just have to wait until the chart says, in no uncertain terms, that the trend is up.

I’ll be waiting till then.