Silver and gold — traps for capital


Gold and silver are in extended downtrends.  Worse for gold it has just broken to new lows on a gap down.  Being long is an invitation to a diagnosis of masochism.  Buying these issues before they form bottoms and show strength is a good way to dispose of capital.

We have been short silver for quite some time and the chart encourages us to add on to our position:


The PnF chart has a startling target for silver.  We don’t know whether we believe it or not, but if realized it would be a spectacular trade.


(no link)  A target of 2.  Two.


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