Honestly, how can this be? Gold closed up, and silver down, both only a little. The red in my account, and the % of losses I see had me thinking gold had ’bout fallen outta bed! Well, you know I said that Friday and Monday’s miner price action was looking all wrong, and making no sense. Today only adds to that. The best guess here is that prices are consolidating/correcting again. A look into the price chart of each one might make some sense of it. If it’s a correction, then with these price declines, volume ought to be a higher than average… is it?
Well, I guess something closed higher… SSRI closed up a bit on fairly large volume. AKG also closed a bit higher, but volume was huge! Even GLD closed up a bit, but only on little more than average volume.
We’ve got our decliners, but not on the large volume, as I had expected, like: AG, RIC, CDE, PVG, AUY, KGC, ABX, RGLD, PAAS, GDX, SGDM, SLW, SLV and SA.
And, there were some big volume decliners, as I did expect, but only 3: IAG, FSM and HL.
I can read this! The metals did not move as expected. The market wanted higher metals prices, and didn’t get them, so there was some selling… and no serious buying, no big deal. Price support isn’t even being threatened by the price action we’re looking at… not in the least! And, think of this: Gold’s risen the last 5 trading days in a row, and up 7, out of the last 8 trading days. Silver’s done just fine, too, but the mining shares have been acting poorly just lately. This would be justifiable, as they had been running ahead of the metals… things are just evening up at this point. If the metals should continue to climb, and the price support in the charts I’m looking at holds just fine, the next stage, or leg up, will come soon enough.
Here’s to your accumulation of real wealth!
Harold F Crowell