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. 5 months in a row, 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:
