Gold and Silver Update

Classic cartel action in gold and silver this morning. Blythe's absolutely most classic footprint in the silver chart is an escalator down, culminated by a vertical ride down an elevator shaft- after which silver shoots back up.

Silver is in danger of retesting the lows for this correction near $32 if it cannot retake the $34 level today.
Technically, it looks like silver could still test the $28-$30 support level we have mentioned previously if $32 does not hold, with a possible brief final capitulation as low as $25.
Again, we repeat technically, as psychologically silver feels to be nearing its low.


Nearly every comment, and email received in the past week, as well as comments on other silver sites and forums are about how the smart move is to hold off on buying silver- "its going lower!!". 
When everyone is this convinced and beating the table that silver is headed lower, a bottom is near.

This is why we constantly encourage our readers to RESPOND TO PRICE ACTION rather than attempting to predict it.  This is how a professional trades. Mom and Pop price chaser were buying hand over fist at $48 because they didnt want to miss the move to $60.  Now they're holding off at $33 because they're sure silver is headed to $25 or $30.
If you can predict price action better than the pros, you would be making $75 million a year working for JP Morgue or The Squid.
Quit attempting to hold out for and perfectly time silver's ultimate bottom, AIN'T GONNA HAPPEN!
Whats going to happen is greed will take hold, and while you wait to place your buy orders until silver goes just a little lower, the train will leave the station and you'll be standing there without a boarding pass or any physical!

Accumulate as price corrects!  You should be BUYING into today's $1+ cliff dive.  IF price declines further to the $28-$30 support range, RESPOND BY ACCUMULATING MORE!



Now that gold has convincingly broken below $1500 dipping into the $1470's today, a move down to test the 50DMA near $1400 becomes likely technically, unless the yellow metal can make a herculean effort to regain $1500 by today's weekly close.
Gold has solidly pierced its uptrend line that has supported gold since roughly April 2010.
Again, while a move down to $1400 looks likely, that does not mean those looking to buy the metal should hold out for this level. Continue to accumulate the dips in gold in a pyramid fashion (buy more as price drops lower).
Who knows what morning all the hedgies will come to their senses and completely call the Fed's bluff on ending QE? That day can't be too far away, especially with the horrendous T-bond auctions completed this week. 
QE to Infinity...AND BEYOND will soon become crystal clear to the entire market, at which point gold and silver will begin their next journey to new highs.
Don't be left behind with handfuls of cotton fiat.