Thursday , 25 July 2024

7 Indications That Gold & Silver Bearishness Most Likely Will Continue

This article looks at 7 reasons why gold and silver should experience further weakness over the days/weeks ahead. (Words: 206; Charts: 5)

So says Katchum ( in edited excerpts from his original article* entitled The Current Status on Precious Metals.

Lorimer Wilson, editor of (A site for sore eyes and inquisitive minds) and (Your Key to Making Money!), may have further edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) the article below for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

Katchum goes on to say, in part:

1. Paulson has sold almost half of his gold ETF GLD. This may be bearish for gold going forward.

2. China lost interest in gold during the past months.

3. LCNS positions have gone back up, so that means there are still a lot of people with interest to get the silver price down.

4. The declining lease rates are indicating that weaker prices are still to come.
5. The silver stock at the COMEX has been rising, which indicates to me a further decline in prices is probable.
6. Premiums for Sprott PSLV have dropped indicating a disinterest in silver.
7. Since September 2012, the gold and silver miners have been greatly underperforming the gold and silver price, which indicates further weakness in precious metals to come.


With all the above indicators going downwards I’m not that bullish on precious metals at this moment.

Sign up HERE to receive’s unique newsletter, Your Daily Intelligence Report

  1. FREE
  2. Contains the “best of the best” financial, economic and investment articles to be found
  3. Presented in an “edited excerpts” format to provide brevity & clarity to ensure a fast & easy read
  4. Don’t waste time searching for articles worth reading. We do it for you!
  5. Sign up HERE and begin receiving your newsletter starting tomorrow


Related Articles:

1. It’s Time to Seriously Consider SHORTING Gold – Here’s Why


I view the current market weakness in gold, coupled with the pullback in trader positions, as a shorting opportunity which is strong in terms of reward vs. risk. I have come to that conclusion by questioning the assumptions that many make about it, isolating its fundamental drivers and providing a trading recommendation as to where I believe the price is headed in the future. Let me share my analyses with you. (Words: 1440; Charts: 4; Tables: 1)

2. Friday Update: Whew! Gold Continues to Bounce Off Its 11-year Channel Support Line


Gold again dropped below its key support line of $1,690 during intraday trading on Friday, December 7th (going as low as $1,684.10 vs. a low of $1,687.10 on Thursday and $1,686.00 on Wednesday) but closed out the day at $1,705.20 ( vs. a $1,700.50 close on Thursday and $1,697.70 Wednesday. At first glance it looks like we may have seen the worst of this correction but only time will tell so we will continue to watch it closely here in the days ahead.

3. The Preferred Way to Explain Gold Price Behaviour + 13 Alternatives


There is a substantial debate about what asset, if any, gold price relates to or responds to….We think the most logical factor in its price as a form of money would be the ratio of the currency in circulation versus the amount of gold that could be associated with that currency…We have heard some strong opinions to the contrary…that perhaps some other assets other than currency in circulation could be used to explain gold price behavior, and therefore provide some gauge of over and under valuation in the market price. [We look at  14 different assets below.] Words: 586

 4. Sell Some of Your Gold If and When Any 1 of These 10 Events Occur


Most of us will sell our gold sometime between now and never so what events will probably indicate that the time has come to sell at least some of your gold? Words: 910

5. Why Is the Price of Gold So Very Weak? Here’s Why


As I see it, worsening financial crises lead initially to lower gold prices which are followed by some form of government intervention to alleviate the crises and that action, in turn, eventually results in renewed appreciation in the price of gold. The basic steps in such a transition are really quite straightforward. (Words: 477; Charts: 2)

6. Update: Gold & Silver to Drop to $1,675 & $30.50 by End of 2012 Before Going to $3,950 & $117 by End of 2013!


My previous article on gold & silver went viral with almost 30,000 reads on alone and continues to be read by hundreds of goldbugs daily. Below is an updated chart and analysis suggesting that gold & silver have further to drop before they go parabolic. Take a look and share it with friends.

7. Dr. Nu Yu’s Latest Analysis Shows Why Current Gold, Silver and HUI Levels Are No Surprise


Gold & silver have pulled back over the past two weeks after both faced strong resistance from the upper horizontal line of their respective trading ranges [and continue to flucuate within their] 12-month Trading Ranges of $1,540 – $1,800 and $26.50 – $36 respectively.   HUI and XAU levels have pulled back and are testing the lower boundary of their rising wedges [but look likely to move upwards within their respective wedges (530 – 570 for the HUI and 200 – 215 for the XAU) before moving higher]. Check out my technical analysis below for details.

8. Here Are Links to 5 of the “Best-of-the-Best” Articles on Gold You Might Have Missed Reading


Have you been too busy to stay informed about the unusual developments in gold this week? Not to worry! Here are 5 of the “best of the best” articles selected from 100s posted on the internet this week. Each article has been edited for the sake of clarity and brevity to ensure you a fast and easy read. Enjoy!

9. Been Busy This Past Week? Here Are 10 Gold Articles You Might Have Missed


We live very busy lives these days and, as such, often don’t have the time to stay informed about developments on the financial, economic and investment scenes as they develop each day. Here are just 10 of the “best of the best” articles that were selected from the 100s posted on the internet this past week. Each article has been edited for the sake of clarity and brevity to ensure you a fast and easy read. Enjoy!

10. Rising Deflation Concerns Could Cause Gold to Plummet Dramatically – Here’s Why


The arguments for gold to rise dramatically are well known and highly publicized. The arguments for gold to remain flat or to decline are minimally discussed and generally attacked vigorously when raised. [I do just that in this article and the conclusions will not be liked by the goldbugs.] Words: 285

11. My Case Against the Case Against The Case Against Gold


All thing considered, it seems clear that the long-term real returns of gold have been poor (compared to stocks and bonds), and I see no reason to expect long-term price appreciation for gold to be above inflation. In fact, as with any non-income producing asset, it would be unreasonable to expect gold to provide significant positive real returns over an indefinite period of time…I would argue that buying gold is a short-term gamble that is completely dependent on the unpredictable vagaries of perception, market psychology and the “greater fool” theory…While it is true that gold can be a good short-term trade and offer superior returns over shorter periods (as has been the case in recent years) I believe that stocks will continue to substantially outperform gold over time.  [Let me explain these less than popular conclusions further.] Words: 1258