Gold And Silver Bullion: Top Predicted Accurately In 2011

Introduction: The Glitter of Gold, the Tug of Trends

Dec 31, 2024

Gold and silver have long been heralded as symbols of wealth and stability, their allure spanning centuries as safe havens in times of economic turbulence. But as history has shown, even these stalwarts are not immune to the forces of speculation, overconfidence, and shifting perceptions. In 2011, we called the peak of the precious metals bull market, urging our subscribers to cash out before the inevitable decline. This decision, grounded in a disciplined analysis of technical and psychological factors, allowed those who listened to lock in gains north of 800% and sidestep years of stagnation.

The story of gold and silver’s meteoric rise and subsequent fall is not just a tale of market dynamics—it’s a vivid reflection of human behaviour, mass psychology, and the power of perceptions in shaping financial trends. While this introduction frames the modern narrative of precious metals, the following analysis dives deeper into the historical trends that shaped the sector and the lessons investors can draw from them.

Gold And Silver Bullion Top 2011

We issued several warnings in 2011 and strongly advised our subscribers to profit from Gold and silver bullion. We officially closed all our positions in Palladium and 75% of our positions in Gold and Silver. In doing so, we got out at the top and can now buy Gold at rock-bottom prices. Effectively, we will be able to double our holdings.

Gold has still not issued a strong sell signal on the daily or weekly charts, but it’s getting dangerously close to doing so. Regarding our indicators, Gold is now trading in the extremely overbought ranges. We have never in our trading lives come across a market, no matter how strong it appears to be, that did not experience several strong corrections during its bullish run-up. Gold will not be the exception to this rule; at the very least, it will experience a medium to strong correction and or an extended period of consolidation.

The Gold Bull is not over, but there are strong signs that it’s getting ready to take a break. Potentially, gold could surge to the 2000 range before being put at the top. We suspect that a surge to the 1950-2000 ranges will generate a series of massive negative divergence signals and potentially a very strong sell signal in the process. Market Update Sept 3, 2011

Gold And Silver Bullion Trends

Now is not a good time to buy any precious metal. Silver could trade down to the $25-$30 range before a bottom takes hold. At those prices, Silver will make for a good buy; if, by some chance, it should dip to 20 or below, it will become a screaming buy. Aug 26, 2011

The strong reaction from the commodities sector, in general, clearly suggests that some sort of top is in place. A rebound should be expected over the next 1-2 weeks, and investors should use this to close out half of their positions in gold, palladium, and silver bullion. Continue trying to eliminate your silver in the $40-45 range. Market Update May 24, 2011

We are already witnessing signs of a blow-up top in the precious metal sector. Nobody buys silver worth more than 40 dollars because they fear inflation. Forget it; they are only jumping in because they want to speculate. They are mad they missed the ride so far, and they are determined that they are going to get a piece of the action.

Another sign of a blow-off top is a market mounting a mediocre pullback and rallying very strongly. This is precisely what happened in the silver and gold markets; they experienced a tiny pull back and then raced upwards. Market update May 4, 2011

New comments on Gold Crash, Sept 30, 2016

What we stated came to pass, those that listened to us were able to bank gains north of 800% and then redeploy those gains into the most hated bull market of all time. We also stated at the same time that the Dollar would take off and that the Euro would crash, and that has come to pass. Until Gold can close above 1365 on a monthly basis, it has no chance in hell of breaking out to new highs. One could state the gold crash has come to pass when one considers that it dropped all the way from above 1850 to below 1200, and for years after that, it has done absolutely nothing. From a long-term perspective, though, long bases eventually lead to strong breakouts.

Gold Crash Top Update Dec 2017

Gold bottomed in 2002, and it took nine years for its trade to a high of roughly $1900 (September 2011). In contrast that to, Bitcoin, in less than 1/3^rd of the amount of time, is showing gains of more than 11,000%. It took nine years for Gold to show gains of roughly 700%, and it has given up a substantial portion of those gains.

We bailed out of Gold in 2011 for two reasons:

Gold was trading in the extremely overbought ranges, and the Gold Bug Camp could not contain their glee; they thought the sky was the limit. Instead, they found out that the Ground was a lot closer.
The masses did not embrace gold and refused to treat it or view it as a currency.

Only those from the hard money camp continued to believe that gold was a currency, but sadly, their numbers dwindled with the passage of each day. The masses view Bitcoin as cool and secure, a feat Gold has struggled to achieve and is not likely to accomplish in the foreseeable future. Whether this is true or not hardly matters, for when it comes to investing, perceptions are all that matter.

Does this mean the precious metals sector is dead?

Well, that depends on what one means by dead. Gold has performed abysmally since (it topped out) in 2011. The money supply soared, and Gold tanked, not exactly a good sign. In doing the opposite of what was expected, Gold cemented the view that it was an ancient relic with no place in today’s monetary system. We are speaking in terms of Mass Perception. What we think matters not; we follow trends and don’t waste time looking at things from a personal vantage point.

There are many reasons for Gold’s underperformance after 2011; one of them was the “velocity of the money supply, ” which stalled after 2011. However, the masses don’t waste time on details like this. They look for simple cause-and-effect answers. The money supply soared, and gold did nothing; hence, gold was a waste of time. A bit simplistic but that’s the mass mindset for you. However, looking forward, some factors could limit Gold’s lustre. BitCoin Has Done What Precious Metals Never Could

Gold Market Update Aug 2019

The Gold bugs and Gold experts must be going through hell; almost seven years later, the Gold Bull Market refuses to follow these individuals’ paths. Proclamation after proclamation has failed, and the detested dollar, much to their angst and surprise, has continued to trend higher. Inflation has not taken off as they expected, at least based on the government’s distorted figures. The masses believe this data is real, and that is all that matters.

Truth or a lie is based on perception, and perceptions are driven by emotions, meaning everything is up for debate. What holds today might not hold tomorrow, or what is deemed valid today might be considered to be rubbish tomorrow. The same principle applies to the Gold Bull Market; when the majority embrace this concept, the market will start to run again. Until then,, it will most likely remain within a tight trading range of 1100-1280. Gold Bull: Sheer Fantasy Or Is It Ready To Breakout

Conclusion: Gold, Perception, and the Power of the Masses

The fate of gold and silver since their 2011 peaks has been a masterclass in the dynamics of mass psychology. Despite surging money supply, gold failed to meet expectations, tarnishing its reputation as a hedge against inflation. Instead, the masses turned their attention to the meteoric rise of Bitcoin, a modern-day competitor that captured their imagination in ways gold never could. For gold, the battle is not just against market forces but against its perception as an “ancient relic” in a world enamoured with innovation.

Gold’s underperformance is not a death knell but a stark reminder that markets are driven not by fundamentals alone but by emotions and perceptions. Trends change when the masses shift their beliefs, and until the collective psyche embraces gold anew, its trajectory is likely to remain subdued.

Yet, history teaches us that long periods of consolidation often pave the way for explosive breakouts. While the masses may dismiss gold now, the discerning investor understands that perception, like trends, is ever-changing. As we look forward, those who remain vigilant and open to evolving narratives will be well-positioned to capitalize on the next chapter of the precious metals saga. After all, markets thrive on change—and gold’s story is far from over.