Silver's crash is very rare. Historically long term bearish for gold and silver


Gold and silver have been absolutely hammered recently. Gold is now down 5 months in a row. Fortunately for gold bulls, gold recently made a strong reversal that usually causes gold to sustain a short term bounce.

However, silver is still exceptionally weak, having fallen 11 out of the past 12 weeks!

There are only 2 historical cases in which silver fell 11 out of the past 12 weeks. Here’s what silver did next.


With the caveat of an extremely small sample size, this isn’t particularly bullish for silver. The logic behind this is simple. Gold and silver are exhibiting bear market behavior when they crash like they have right now. This is not a correction in a bull market.
With that being said, gold is now officially down 5 months in a row. As you can see, gold’s future returns aren’t particularly bullish either.

Conclusion

Gold and silver have been absolutely crushed over the past few months. When this happens:

  1. Gold and silver might make a short term bounce. HOWEVER…
  2. The long term is not bullish. Gold and silver will either bounce around in a sideways range or continue to trend downwards.

3 comments add yours

  1. Thanks for the update on gold & silver.
    Do you believe Canada & Australia are both still in bull markets?
    RAY

  2. Sorry, Just noticed your 9/2/18 update answered my question on Canada & Australia.

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