Gold and Silver Stocks Apocalypse Now, Bear Market Review

By: Rambus_Chartology



In part I, Phase III-Dead Ahead, we established the macro case for the final phase of the gold stock bear market. As the bear market progresses the economies key constraint remains the level of debt, specifically the size and composition of the national balance sheet which has baked in the cake a deflationary outcome. It is this wave of deflation that will drive the final phase of this bear market to unimagined lows. The good news, however is when it's finally over the precious metals will transition into the next bull market. We will examine this process and the sign posts along the way as we complete phase III of the bear market and transition into the beginning of the next bull market in the precious metals.
 Bear Market review

This precious metals bear market is following the classic bear market sequence. After breaking down out of its phase I top it entered into a long protracted decline. This decline, over time, established doubt that we were simply in a pull back in an ongoing bull market. This phase II price erosion lasting 17 months, diminished investors conviction sufficiently so to make them ripe for a psychological change. This change event was triggered with the April 2013 Goldman bear raid of the gold market. This raid collectively triggered the point of recognition (POR) among investors that the precious metals sector was in a bear market. It took 20 months from the Sept 2011 top to reach this point. Prior to this point the prevailing belief was we were still in a bull market. The PM market then underwent dual crashes in April and June 2013 which was the process of pricing in the recent shift in investor psychology. Since this period the market has taken 16 months to consolidate these crashes by undergoing a complex diamond consolidation pattern all within the context of phase II. It now appears this process is complete and is now entering into the final phase III of the bear market. This is the classic pattern of a bear market as I outlined in a previous essay:http://www.marketoracle.co.uk/Article47664.html

MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet