The first red flag of 2013 was undoubtedly the spectactular gold and silver price drop starting April 12th. The ferocity and speed of the price decline were beyond any measure of what could be described as “normal”; we all remember the calculations which showed 6 standard deviations of the price decline (an event that statistically would occur once every 2 million years).
We have written repeatedly that our core assumption was the precious metals crash was the first sign of a bigger economic or monetary event to come. In fact, in our co-authored piece “2013 – Start of Seismic Shifts in Money, Metals, Markets” we made the following statement: “At this point, we have enough confirmation to accept that the gold and silver crash was the first shot across the board of what is to come.”
Here we are, some three months later, with another huge red flag. Now it’s Dr. Copper who shows a striking similarity with gold on its long term price chart. The major support point is at 3 dollar, and it is about to give away. Support goes back to summer 2010. The chart pattern between its highs in 2011 and today shows a structural decline with lower lows. The triangle on the chart is almost identical as the one on gold’s chart in March of this year.
To read this article in full please clik here. By Gold Silver Worlds | July 30, 2013 |
With gold, silver and Uranium stocks being out of favor one must decide if this is a problem or an opportunity. We have steadfastly refused to buy gold and silver mining stocks for the last two years and as evidenced by the HUI we feel that our decision to hold back has been vindicated. The damage done to the mining sector may not be over yet but this demise is starting to offer up some exciting opportunities in my view.
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