Loading ...The Three Phases of The Precious Metals Explosion
The recent upside move in gold and silver is only the first of three phases. This first phase is the controlled, methodical phase. It will morph into the second phase when gold closes and holds above $2000 and silver closes and holds above $25. The second phase which I expect to begin either later this week or next, is the aggressive, hectic phase. This phase should see gold trade up and thru $2100-$2200 and silver trade up and thru $30. Depending on news events and the status of the banking and economic situations, will determine how long it takes for the second phase to move into the third phase. When gold has stayed above $2200 and silver moves from $30 to attack its ATH at $50, the third phase will kick in. That phase is the chaotic and insane phase. Prices will rocket higher and targets are only guesses, as they will be in ATH territory with nothing but supply and demand, driven by fear, to determine them. That phase will represent the first time in over 50 years that prices haven’t been controlled by the paper futures contracts used to suppress them. The dollar will be collapsing, so why would anyone want to exchange their metal(actual money) for anything else?
Hi Sir Chartmaster,
Very Interesting pattern. For my edification….
Q. When you say closes, do you mean on a daily, weekly or Mthly basis?
Q. When you say holds, do you have a period in mind… a day, a week, ect.? how long should it hold?
I believe the Great Jim Sinclair used to say a break-out was 3% above the line of resistance, held for 3 consecutive days.
Lastly wondering if you have any thoughts on the speculative miners, you posted a year ago.
GCN, FRE, SKP, VML, WRR, BRC, FG, PHNM, RDG (I think I am missing one).
Do you still like them, and do you think they may fair well in the upcoming breakout.
Cheers R
I just found the last miner: OLA. 🙂
Hey Rob, Good questions. If one were talking specific breakouts such as your reference to Jim Sinclair, specifics such as you asked are important. In this post I am referring to more general phases and not drilling down into any specific breakouts. The phases I describe and the prices I used aren’t meant for timing specific trades but to provide context. In other words while still in this first phase standard buy support and or those who buy breakouts are still useful. When we move to the second phase price advances should become more aggressive and hopefully one has pretty much established one’s positions and just sit back and wait for the third phase. As far as all the juniors, I am still holding but haven’t traded any of them since. They are lottery tickets to supplement physical and majors. If two or three turn into winners from either takeovers and or major developments and higher prices it will cover for any that do nothing or go bust. I will look to see how they act when we have moved from phase 2 into phase 3. The one you might be thinking of was GSV which got bought by ORLA, which is performing quite well since. Best wishes. CM
Thank you for the perspective.
I am holding very small speculative positions in your Chartmaster top 10 🙂
Watching them for fun!
Cheers
R