The current rally in gold & silver is but one of many steps in a bottoming formation. Each successive step confirms the one that came before. The next step will be to watch the next downward reaction to see how it unfolds in order to assess the significance of the rally over the past two weeks.

More and more experts and non-experts are calling for the bottom in gold & silver but none can confirm it is a proven fact. Few realize how important it is to have confirmation that one’s position is correct and will be profitable. It is confirmation that gives validity to a prior market move/event. This is the theme of our analysis, today.

[As outlined in this article,] there are no reasons to buy paper gold or silver. [That being said,] the reasons for buying and holding physical gold & silver are more compelling than ever, and we expect those reasons to become even more compelling.

Each of the following charts on gold and silver contain their own message related to price volume behavior that has a convincing element of reason... See if you agree.

For all the information the following charts convey, it is not unfair to suggest price is likely to go lower, nor it is unfair to expect anyone armed with this knowledge to be disappointed that gold and silver are not going higher, for now.

The following comments may not be what one wants to hear, but charts tell what the reality is behind any market, and we are just the messenger delivering the chart-driven message so let's take a look at the most recent charts for gold and silver are conveying.

Because we know the trend is down, there is no guesswork about trading from the long side in paper gold. There is no need to “predict” the price direction. Just wait for more information that buyers are beginning to increase (which they are not, so far), and then have a strategy for buying in a changing up trend. Presently, there is no evidence of a change to an up trend, so wait for confirmation and keep one’s powder dry.

There are two things we know for certain about gold and silver: 1. fundamentals do not apply currently, and 2. there are no signs to indicate an end to this half-decade old bear market.

If you have no gold or silver, you will be “Greeced,” “Cyprused,” or otherwise financially screwed for not taking responsibility for your own economic future. Those who already own either or both gold and silver know this although they still foolishly complain about the paper price continuing to decline - and that focus is grossly misplaced. Here's why.

There is so much hype and cheer-leading out there amongst supposed gold & silver analysts that you probably wonder just who is worth your time to follow, if anyone. Having read and analyzed hundreds and hundreds of articles on the subject I have concluded that there is ONLY one such person.