Wow, this is really getting ugly. Metals down. Miners down. Yuck. Can it get worse? You bet it can. How much? I guess that depends upon whether or not this is "IT".
Gold 1596. Silver 28 and change. ABX 43. EXK 7.60. SLW 25.97. YIKES! DOUBLE YIKES!! But there is currently a pretty significant rally taking place in the stock market so maybe all is well. OK, probably not. It's more likely just The Fed painting the tape through the intercession of their primary dealers.
Here are your updated PM charts. This latest selloff has made their nascent recoveries look tenuous, at best. Both appear poised for a mid-week test of last weeks lows.
Having fallen this far, it's hard for me to believe that the metals won't test their respective long-term trendlines before they are done. Here are re-prints of the weekly charts I posted back on Sunday.
And here is a 5-year chart of the HUI. The 480 area has often acted as support but it wouldn't surprise me to see this index fall all the way to 450. Of course, if the U.S. stock market collapses this month like it did 3 years ago, it ain't gonna stop there so, if you own the miners, you should stay very cautious.
And this, from ZH, offers about the best advice available right now:
Now, go forth and prepare. We may be on the verge of the great collapse that so many of us have been expecting. We might also not be. Maybe the proverbial "can" can get kicked a bit further down the road once again.
Who can say for sure?
If we aren't on the verge, we should consider ourselves blessed for having additional time to prepare.
If we are on the verge, God help us all. TF