Chart 1: Silver Comparison to 1998-2001
Silver is following a similar path to 1998-2001. It recently "backtested" resistance after its breakdown and now it has resumed its decline. It could be a final decline.
Chart 1: Gold & Gold CoT
At the bottom we plot Gold's CoT. When Gold was at $1295, the CoT was at 26.4%. That's relatively high given Gold's technical position which is looking more precarious now.
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The technical outlook for the sector is not good. The dollar is breaking out and Silver is falling towards its lows. The above chart on Gold is worrisome. Miners are holding up okay for now.
When will it end? When is it time to buy and what should we buy?
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