Cart
My Account
Silver Explosion Ahead? Gold Pullback & Stock Market Melt-Up
Craig Hemke for Sprott Money is joined by technical analyst Chris Vermeulen of The Technical Traders to break down the latest moves in the gold price, silver price, mining stocks, and the broader stock market.
Stock Market Rally And AI-Fueled Momentum
As June begins, Craig Hemke and Chris Vermeulen discussed a market environment that appears increasingly driven by volatility, headlines, and powerful sector trends. While precious metals remain an important topic for investors, much of the attention has shifted toward the remarkable strength of U.S. equities, particularly technology stocks. According to Vermeulen, the market continues to display characteristics of a strong bullish trend, with technology doing most of the heavy lifting. He explained that “Technology is just screaming higher today,” highlighting how the Nasdaq has continued to advance even while many other sectors have struggled. Utilities, consumer staples, and several traditionally defensive areas of the market have lagged, yet the influence of large-cap technology companies has been enough to keep major indices moving higher. Vermeulen pointed out that the market has repeatedly become short-term oversold before attracting buyers who quickly step in and push prices higher. This behavior, he noted, is typical of a bull market. However, he also warned that heavy dependence on a single sector can become a risk if sentiment suddenly changes. Even so, he emphasized that investors should not fight a strong trend. The discussion also touched on equal-weighted indices, which remove much of the technology concentration found in traditional benchmarks. Vermeulen observed improving participation from a broader range of stocks, including small-cap and micro-cap companies. This development was viewed as a constructive signal because it suggested that the rally was expanding beyond a handful of technology giants. As speculative enthusiasm increases, traders continue searching for opportunities throughout the market, creating conditions that often accompany the later stages of powerful advances.
AI Stocks, Speculation, And Market Psychology
A significant portion of the discussion focused on the extraordinary gains being generated by companies connected to artificial intelligence. Micron became a prime example of the enthusiasm surrounding the AI sector. Vermeulen described the move as “an unbelievable move,” noting that investors have aggressively chased companies that provide the infrastructure necessary to support AI development. While many investors focus on software and AI applications, he emphasized that the suppliers of memory and hardware have become critical beneficiaries of the trend. The conversation highlighted an important lesson about speculation and market psychology. Vermeulen compared parabolic stock advances to a rocket ship, explaining that investors often do not know when the fuel will run out. He cautioned that dramatic gains can reverse quickly and unexpectedly. “You just don’t know when it’s going to run out of fuel,” he said, warning that a large red candle can appear at any moment. The speakers also referenced examples of speculative excess, including companies that added “AI” to their names and experienced massive stock surges despite having little direct involvement in artificial intelligence. These stories illustrated how investor excitement can sometimes overpower rational analysis. Despite his caution, Vermeulen acknowledged that the AI trend remains powerful and that demand for memory and computing resources is likely to continue growing. The challenge for traders is determining whether they are participating in a sustainable trend or simply chasing momentum near a peak. He stressed that trying to identify the exact top is nearly impossible and suggested that disciplined investors focus on trend-following rather than prediction. The broader lesson was that markets frequently reward patience and risk management while punishing emotional decision-making.
Silver Price Outlook And Technical Targets
The discussion then shifted toward silver, one of the most closely watched assets among precious metals investors. Vermeulen described the silver chart as presenting mixed signals. On one hand, the longer-term trend remains constructive, with moving averages still pointing higher. On the other hand, short-term price action has weakened considerably following a powerful advance. According to his analysis, silver currently sits at an important technical crossroads. He explained that if silver can regain upward momentum, the longer-term chart pattern suggests substantial upside potential. In fact, he stated that “the next stop for silver, technically, based on this chart is actually $175 per ounce.” Such a target reflects the possibility that silver is forming a large bullish continuation pattern. However, he also outlined a bearish scenario based on Fibonacci analysis. Using measured-move projections, Vermeulen identified a potential downside target near $40 per ounce. This possibility surprised many listeners because silver remains well above historical support levels. Nevertheless, he emphasized that technical analysis requires traders to consider both bullish and bearish outcomes. Importantly, he did not view a decline as the end of the precious metals story. Instead, he described it as a possible cleansing process that could remove speculative excess and create a healthier foundation for future gains. Craig Hemke noted that silver’s current behavior differs significantly from previous episodes when the metal reached major highs and then collapsed dramatically. Silver remains substantially above earlier breakout levels, suggesting that long-term conditions may be different this time. Vermeulen agreed that investors should closely monitor key support zones because a breakdown could signal additional weakness, while renewed strength could confirm the continuation of a much larger bull market.
Gold Market Analysis And Long-Term Precious Metals Trends
Gold was the final major topic of the discussion, and Vermeulen offered a similarly balanced assessment. He noted that gold has already completed one important measured move on the downside and is now attempting to establish a new direction. Updated Fibonacci projections suggest possible downside targets near $4,100 and even $3,600 if selling pressure intensifies. While those levels may appear alarming, Vermeulen repeatedly emphasized that pullbacks are a normal and healthy part of long-term bull markets. In his view, strong advances often need periods of consolidation to remain sustainable. He explained that many investors who purchased gold near recent highs are now being tested emotionally. “Everybody who got in late is now getting put to the test,” he said, describing how markets often pressure late buyers into selling before the next major advance begins. Despite his short-term caution, Vermeulen remains constructive on the long-term outlook for precious metals. He argued that a significant correction could actually create one of the best buying opportunities for long-term investors. Rather than viewing lower prices as a failure of the bullish thesis, he sees them as a potential reset within a larger secular trend. He also warned that uninterrupted parabolic rallies can ultimately lead to deeper and more prolonged declines. Sustainable bull markets tend to advance in stages, with corrections helping to maintain long-term momentum. As a result, investors should pay close attention to whether gold and silver begin forming higher highs and higher lows or continue breaking support levels. Those signals will likely determine whether the next major move is toward substantially higher prices or a deeper corrective phase. The overall message was clear: long-term precious metals investors may benefit from patience, discipline, and a willingness to take advantage of future opportunities rather than reacting emotionally to short-term volatility.
Conclusion
The conversation between Craig Hemke and Chris Vermeulen highlighted the importance of understanding both market psychology and technical analysis. Technology and AI-related stocks continue to dominate investor attention, while gold and silver remain caught between strong long-term bullish trends and short-term corrective pressures. Vermeulen’s analysis suggests that investors should avoid emotional reactions and instead focus on objective price levels and trend confirmation. Whether the next major move occurs in stocks, gold, or silver, the coming months may provide important clues about the direction of the broader investment landscape. For investors seeking long-term wealth preservation and portfolio diversification, periods of weakness in precious metals may ultimately provide opportunities to accumulate positions before the next major cycle unfolds.
Craig (00:16.098)
Hello again from your friends at SprottMoney, SprottMoney.com. We are now into the month of June. And it promises to be a rather volatile, headline-driven month. At least that's how it's starting. Who knows how it's going to end? We're going to be here for you all month with all sorts of content on this channel, wherever you're watching it. So keep an eye on it as we make our way through the month. As we begin the month, though, we started out how we always started out.
with our good friend Chris Vermulin of the Technical Traders to walk us through the technicals of the market. I'm Craig Hemke to kind of facilitate the discussion. Chris, good to see ya.
Chris Vermeulen (00:57.442)
Hey, good to see you, Craig. Always a pleasure.
Craig (00:59.476)
It is always a pleasure. And boy, it's gonna be an interesting month. As we get things started, just make sure you make a metal note. If there are some dips and you plan on buying the dip, be sure to visit sprottmoney.com. Always the best deals you're gonna find on precious metals, storing safely and securely that precious metal. They can help you with that too. They're always just a click or a phone call away 888-861.
Zero seven seven five. There's my friend Chris picking up the ball and running with it, showing you what that site looks like and that phone number right up there in the upper right. all right, so we do try to do this every month to start the month. The month, like I said, is probably going to be pretty volatile, be driven by headlines, geopolitics. We've got Kevin Warsh's first FOMC meeting in two weeks. It'll be the first FOMC meeting in eight years.
That wasn't run by Jerry Powell. So we'll see how that fits in as the month goes along. But we're not here to talk fundamentals or headlines or anything like that. This is always a discussion of just purely the technicals. What do we see? What are the charts telling us? And that's where Chris excels again at thetechnicaltraders.com. Chris, you're watching this stuff every day for yourself and for all your customers.
I think on top of most everyone's mind is not necessarily the precious metals at this point. They're still slightly green on the on the year, but what is a dark flashing green is the stock market here in the US. Why don't we begin there? It's been a just a ferocious rally from the lows back around the first of April. You've got the chart right there, I think what's that, the NASDAQ? Tell us what you see.
Chris Vermeulen (02:44.12)
Yeah.
Yeah, well, I mean, I think it's pretty obvious we're in a bullish market. We're in a strong uptrend. Technology is just screaming higher today, as you and I are talking, which is the first of the month. We've got you know, the Nasdaq and the S P five hundred are sl are positive. The Nasdaq specifically, the rest of the market is down very sharply. And this just goes to show how strong the tech and how big the tech space is. It is dragging the stock indices higher.
We have got small caps and utilities and consumer stables. All the other sectors are down actually pretty sharply. Some of them, most of them 1% or more. But one sector tech is doing pretty much all the heavy lifting. So there's no doubt it's a it's a bit of a warning sign when one sector is doing all the heavy lifting, but it is such a big group. I mean, it's going to keep dragging the market. You can't fight this. And when we look at this trend, we can look at it from
A 30-minute chart here on the left hand side, all the way down to this line, these lime green lows here on this chart. This was back right at the beginning of of May. We kind of had this, or not the beginning of May, but on May 19th, we had this pivot low. Market got short-term oversold and it has just screamed higher ever since. And and that low, if we were to carry that over on the on the daily chart, just to see, it's this low right here. So we've seen this very strong move up.
The market is doing exactly what it does when it's when it's in a bull market. It gets short-term oversold, creates these lime green oversold market conditions. And then bargain hunters step back in, accumulate shares, and drive it higher. And so, I mean, we're just riding this market higher, that NASDAQ and the SP 500. And we just have to be aware that at any point there could be some bad piece of news in the the tech space and it's going to hit the Nasdaq fairly hard. But overall,
Chris Vermeulen (04:38.488)
Market just continues to ramp higher. And we are starting to see, Craig, when we look at the RSP ETF. Now, this is the equal weighted SP 500. So if I zoom out, it doesn't quite look the same as the Nasdaq and the SP 500 because it's, you know, it's taken out a lot of that technology waiting in there. And what's interesting is we had this pullback, it put in a little bull flag or a or a handle, and it broke out over the past week. So we are seeing.
Craig (04:53.579)
Yeah.
Craig (05:03.818)
Uh-huh.
Chris Vermeulen (05:07.074)
A little bit more broad market movement, meaning there's it's not just tech. We are starting to see some other stocks, the majority of stocks just starting to come to life. And so that is a that is a bullish sign that it's not just one sector doing it all. It's the rest of the market is now starting to move higher with excitement. And we can see this. Money's piling into has been moving into small caps, it's been moving into micro caps, like IWC. This is the micro cap ETF. You can see a
There's a big wave of volume of a lot of people got very excited in microcaps. And I can see this in those stocks. A lot of these companies are the shares have been popping and taking off. And that's speculative. People are getting excited.
Craig (05:37.727)
Yeah.
Craig (05:50.394)
back to that maybe the NASDAQ chart or that equal weighted chart, maybe that'd be a good one to go back to, Chris. you know, I look at that as, you know, just a regular guy, and I see that breaking out, right? A couple of attempts to go up to that level there. Would you if if someone to like just kind of follow this on their own, would you expect that to kind of pull back and test that old area of support?
Chris Vermeulen (05:55.758)
Sure. Yeah.
Craig (06:16.779)
And then if it goes higher, that's something to be excited about. If it breaks back down, that might be a warning sign. How would how would you look at that?
Chris Vermeulen (06:24.578)
I I would rather like I yeah, you if it pulls back to test it, I mean that pullback could be bought. Ideally, it really just wants to keep running. Like if we were to look at this momentum, like when you look at the previous leg, you kind of want whatever this previous run-up was, you kind of want that to be mirrored on the second leg. If it does pull back, it means actually it's not as strong as as a move. So, like as a technical trader, when you look at this.
This rally up and then price flags sideways. This creates a a bull flag. The next leg starting up should try to mirror this. So I would kind of like to think this little this this breakout and pause, this first run, is kind of like this one here and right here. So ideally, you know, this is broken out. This is a big bull flag chart pattern, and we should hopefully see this actually just continue to pop and run higher. And if we use a Fibonacci extension.
Craig (06:57.314)
Mm-hmm.
Chris Vermeulen (07:21.186)
We can actually gauge where those resistance levels are going to be based on the move. So this this here is telling us we should see RSP, the equal weighted stock market, based on the current price at 208. It should actually run up to about 217. It's about a 4% move. It's not huge. This is a a bit slower moving of an index, but that's where it should run. So ideally,
This should just be a pause and it should continue to pop. So if it pulls back, I'll be a little more nervous that the overall market isn't as strong as it should be. And and right now we've got the Nasdaq breaking out and really starting to run. Again, if we go back to the Nasdaq, it just broke out from this high and it is showing signs that it wants to keep melting up. Like we were in a crazy melt up. Like look at like Micron, right? Like the the memory sector, like it's up sixteen hundred percent almost in
Craig (07:54.487)
Okay.
Craig (08:10.475)
Well I I was gonna ask you about that. Please pull it up. Yeah. Well let's
Chris Vermeulen (08:16.206)
From last year's lows.
Craig (08:19.799)
Please, please go to that pull up micron, because that was the next thing I was going to ask you about, Chris. You know, we get something like silver last year, goes up 3x, and everybody loses their mind and talks about, it's this huge, massive bubble, and it has to go down and all this stuff. And of course, we know what happens since the end of January. But what about that? And what would I mean, I don't know. Maybe you have to be some kind of like addicted gambler to want to trade that.
But how do you trade something like that? That's crazy what it's done.
Chris Vermeulen (08:51.502)
I I know. And th th this is this is what makes trading investing so difficult is like something this big naturally lures you in. It's like, how do you trade it? Because we want to trade it, right? I mean, it's really difficult. Getting in on something like this is you're you're literally just riding like, you know, rocket ship, you know, those you know, you know when you're a kid, maybe there's those rocket ships with those little fuel cells that shoot straight up and their little parachute pops out and they come back down. That's kind of like what you gotta be aware, like when something goes like this parabolic.
Craig (08:57.013)
Yeah.
Craig (09:16.03)
Yeah. Yeah.
That's this.
Chris Vermeulen (09:21.996)
You're you're you just don't know when it's going to run out of fuel. And when it does, it's going to be a big red bar. And so, I mean, I I always like to kind of zoom out, go to like a maybe a weekly chart and get a bigger view. I mean, this move, there's no doubt. Let's just go way back in time and see if there's what like what out of curiosity, what was this?
Craig (09:35.692)
No.
Craig (09:42.493)
Stock dude, I was a stockbroker 30 years ago. I remember Micron. I mean it's just the thing is crazy.
Chris Vermeulen (09:49.539)
Yes,
Chris Vermeulen (09:53.401)
Yeah, I mean, these are these are all huge moves, thousands of percent. So there's there's no doubt it could it could keep going, right? And I think I mean that's the nice thing about owning the broad market, like the NASDAQ and the SP 500, is you you don't get this type of return, but at least you you're like, you know, I got a piece of this. And I think a lot of people who are trying to get in and chase this, I mean, it's scary. This this could reverse at any point. I I feel like there's so much good news and things going on in the AI space.
Craig (10:05.922)
Yeah.
Chris Vermeulen (10:22.018)
That we're just waiting for like one something to break, something to buckle in the AI space. And we're gonna see a very quick unwinding and a lot of positions reset. But I mean, we're still the memory is gonna be needed more and more. The the better the AIs get, the more memory they need, and the faster they're gonna need it. So, you know, Micron, this still could be like the infant stage for it, but it's just it really is really an unbelievable move almost of just how powerful like
Craig (10:28.257)
Yeah.
Yeah.
Chris Vermeulen (10:51.886)
all these companies are that support AI, you know, everybody's b buying into the AI companies, but it's the the little parts needed to create the the memories, you know, all all the stuff to make AI work is where they're really the bottlenecks, those those are the ones taking off.
Craig (10:53.527)
Yeah, yeah.
Craig (11:08.833)
think I'm about changing the name of my website to tfmetal report dot ai. Do you think that would help drive some business? Really remarkable stuff.
Chris Vermeulen (11:13.732)
Yeah. Well, did you I I don't know if you and I talked about there was a a company called Bird Company or something. It it was traded, it was traded on the NASDAQ. This only happened a couple months ago. It was a shoe company, Bird, and anyways, it it went from it went all the way down and it ended up going to like almost zero dollars. It was like at twenty dollars at some point. Then they changed the name to
Craig (11:24.917)
Yeah. Yeah.
Yeah. Yeah.
Craig (11:36.075)
Yeah.
Chris Vermeulen (11:41.945)
Bird AI. They threw AI on it and it shot up like eight hundred percent in four or five days because everybody thought it was an AI s like they're getting into AI, but they have no computers, no technologists or anything. They just switched the name. And I don't remember exactly what the
Craig (11:46.252)
Yeah.
Craig (11:51.497)
Right, right. Right.
Craig (11:59.266)
Something like I I remember the Long Island I Iced T dot blockchain or something like that. Remember that one? That was a couple of years ago when blockchain was all the rage. Anyway, I I I digress, but you can see what's happened since. my god.
Chris Vermeulen (12:06.101)
I don't remember that one.
Chris Vermeulen (12:10.98)
But Yeah.
Yeah, from two bucks to twenty-four bucks because they changed to AI, right? Like it's it just goes to show like we're in a feeding frenzy. This just comes back to the AI, the memory space. you know, we're in a phase here where eventually we're gonna run out of momentum. But the question is like where where's the top? And you can't pick it. You gotta just ride this and and wait for it to happen.
Craig (12:18.509)
Mm.
Craig (12:23.989)
Right. Right. Right.
Craig (12:34.05)
Right.
Craig (12:39.243)
So I'm gonna segue that into silver. because that's what everybody, you know, that's what we're gonna hear talk about now next. again, yeah, that was a great run in silver, right? With a lot of interesting fundamental things going on in the background, everybody piling in, blah, blah, blah. And yeah, way it went. Then you got the big red candle that you're talking about with Micron that he is probably an eventuality. It's just a matter of when, and then what happens after that. Now I look at that chart, Chris. Again, I'm just, you know, a dope with a MacBook.
and I see it's still above its 200-day moving average. I mean it's below many of the others. But maybe more importantly on the long-term chart, Chris, in my lifetime it's gone to 50 three times. The previous two times it immediately went back to 20 or lower. this time it went to 50 in October, and we're still 50% above that. It's 75. So what do you think? You look at that that chart, is this well? I'll just be quiet. That's the end of my question. What do you think?
Chris Vermeulen (13:37.143)
Yeah, I mean it's it's difficult because it has mixed signals. So this this is the weekly chart. I'll just go back to the daily. So when something has mixed signals, you really just have to like let the asset mature, let it work itself out. Time will will kind of work that out. So when we look at this, we got the green moving average. That's 150 day moving average, which you know, most people use the 200 day. I like the 150.
Craig (13:42.155)
Yeah, yeah.
Chris Vermeulen (14:04.428)
It's sloping up. So it has long term, the trend is going up. Short term, though, the trend is actually more so coming down or or trading relatively flat. So it, you know, when you zoom out on the chart, you could say, hey, this is a huge bull flag. Next move, next stop for silver, technically, based on this chart is actually $175 per ounce. So there's a lot of potential. If silver hooks up and gets traction here over the next couple of weeks or months, as long as it doesn't break this low.
Craig (14:15.117)
Mm-hmm.
Chris Vermeulen (14:34.57)
Silver next target is 175. So that's really exciting. The short-term chart points to kind of a bit of a dramatic opposite direction, which which is actually all the way down to about 40. That it actually is $39 per ounce, is is the the next wave down, which would be to me would be a final. Yeah. So if we take a look, it sure, yeah. Fibonacci extension gives us this. So we have this initial.
Craig (14:53.655)
What what hold Mac why why? Why does it where how'd you come up with forty?
Chris Vermeulen (15:04.3)
Ride down, and then we have the the bounce, and then we just carry this forward. And so the way Fibonacci works, I only use two levels. I use the 618 extension, which is the golden ratio, and I use the 100% measured move. So based on this drop, and then based on the reaction bounce, the way this particular setup works, and what how I teach it and use it is usually you're going to come down, and if you hit the six one eight and you take a pause.
Craig (15:05.314)
Yeah.
Craig (15:22.156)
Mm-hmm.
Chris Vermeulen (15:32.344)
You almost always come down and hit the hundred percent measured move. And so that is the downward momentum is pointing to forty dollars per ounce, which will obviously cleanse the market. A lot of people will bail out. It'll create Yeah. and so that's what the downside, but I mean, you know, we can go and look at the upside for for silver, depending on how far we want to go back here. Sure.
Craig (15:43.149)
Cleanse more than that, let me tell you. Go ahead.
Craig (15:56.248)
Well, hold on, let me let me stop you again. because I remember on the way up, we were always talking about that six one eight line, and it'd be like, Well, if it gets through there, it's gonna make that hundred percent measure move. And you were repeatedly correct. Like, well, this now signals this level. Now this and bang, bang, bang, and it worked almost every time. So that six one eight to me looks like it's right there at the early February and mid March lows. Is that about right? So would that be
Chris Vermeulen (16:22.734)
Yeah. Yeah. Yeah.
Craig (16:25.661)
We start taking those out and trading down, you know, to sixty, that's when it's like, okay, here comes forty. Okay.
Chris Vermeulen (16:31.968)
Yeah, yeah. And it'll it'll I mean this isn't what you want to hear or most people, but I think this is an amazing opportunity. Like, I mean, keep in mind, I I did sell my silver at 111. I sold my gold at like 5100. I I mean, I do want metals to fall because I want to pick it up at one of these reactionary measured move lows. And I think this is only a temporary if you're a long term gold investor, who gives a hoot? Like this is the best thing that could happen because
Craig (16:37.4)
Right.
Craig (16:59.137)
Yeah, but buy more.
Chris Vermeulen (17:01.984)
If if if we hit our fib Fibonacci targets on the way up and then it falls and creates a retracement pullback, this is like a very good, this is an A B C correction within a huge super cycle in gold. This level here is a measured move. If it gets back down here, this is like back the truck up and pick up a ton of physical metals because this should go higher for probably the next 10 years after that, right? And so that's that's the way I see it.
My only concern is we see metals trade sideways for several years. For some reason it just doesn't get traction. And I just don't want my money stuck in a metal that's not that's costing money to store versus something generating dividends and returns and interest and all that stuff. So I think this is a great opportunity. I think if you're a long term investor, you just turn a blind eye like you always do, right? If you do the buy and hold, you turn a blind eye. Let this thing do what it's gonna do. You still have faith. I mean, silver's had a big correction.
Craig (17:34.605)
Yeah.
Chris Vermeulen (18:00.185)
But it still doesn't change the underlying, you know, story for metals. I mean, the story for metals is they should be they should keep going higher and and take off and become the dominant, you know, currency, I think, right? So there's still good stuff. I think just short term wise, we just need to be aware that, hey, there could be a flush down, which is actually just an opportunity. It's like to to add more because I think it'll rebound and and take off for a long time.
Craig (18:28.737)
So Chris, that six one eight level, for people to watch, yeah, what we want to call that sixty three, sixty-five, something like that.
Chris Vermeulen (18:35.83)
Yeah, six yeah, sixty two or sixty area. It's just a it's just a area, right? There's no pre precision numbers.
Craig (18:38.753)
Okay. Yeah. Right. Let's all right. for our last chart, let's do that with gold. which is flirting with its it that 200 day. It's probably below its one fifty. what are we looking at there?
Chris Vermeulen (18:56.152)
Yeah, so gold gold has a slightly different chart pattern. Silver initially had the Fibonacci drawn from this drop and the bounce, which actually we we had done once we saw this bounce take place. We actually have that move and it tells us where price was supposed to go. So we did see gold complete its first move. It it sold all the way off. It then had the bounce, and then it came all the way down to this hundred percent measured move. And of course it pierced through it because it
Craig (19:18.605)
Mm-hmm.
Chris Vermeulen (19:25.058)
These aren't specific levels, it's just the zone. So gold hit that move. But now it has, because it's hit that move and it's at a bounce, we can now actually redraw the more current price action. So if we were to take a look at where gold is, the new move is actually this high based on this sell-off and then this bounce. And we'll just drag that forward and it tells us where gold should roughly go. And it's saying gold should drop to about 4100 and then potentially plumb it down to about 3600.
Craig (19:27.105)
Yes. It was intraday.
Craig (19:37.229)
Okay.
Chris Vermeulen (19:55.135)
And both of these prices for this price for gold at 3600 and that forty dollar gold or price for silver are both like in the same spot. Both metals had paused and it's right where they started these parabolic moves. And so the parabolic moves, the way the market is very efficient. What it does is once we get into a parabolic move like in Micron, where everybody's just piling in.
Craig (20:07.404)
Yeah.
Craig (20:21.889)
Mm-hmm.
Chris Vermeulen (20:22.008)
The if there's easy money to be made, if you make a lot of money fast, you better be aware because it can get taken away very quickly. The market loves to punish people who chase money, who are just going for pure returns or pure excitement, whatever the reasons are, it's usually a blend of both. And so both of these charts are saying: hey, if you got in late and you you just bought near these highs, and when it was screaming higher, we're gonna put you under some pressure. We're gonna see if we can break you and get you out of this asset.
Before we stabilize and start the next run up. And so that's what that's what is happening here. Everybody who got in late is now getting put to the test. And they're going to realize, man, I bought high and they're going to eventually panic and sell out low. And then, you know, they're going to hate the commodity for a long time and it's going to take off without them. This is what happens across the board over and over again with emotional traders who don't have a strategy, who don't understand these cycles and how the market works, right? So
Craig (20:58.061)
Mm-hmm.
Craig (21:08.012)
Yeah.
Yeah.
Craig (21:17.953)
Yeah. Well I tell you what, go ahead.
Chris Vermeulen (21:19.544)
So short term, I short, short term, I'm I'm I'm neutral with and I have a bearish bias. I'd love to see metals go down. But because we have a long-term uptrend in both gold and silver, and the short term trends are both down, we have this like mixed signal, right? So they're they're neutral. And all I'm pointing to you and to everybody watching this is just saying these are the two directions and the price levels to watch. If gold and silver start to turn higher and start to make higher highs, higher lows.
Craig (21:35.82)
Yeah.
Craig (21:44.077)
Mm-hmm.
Chris Vermeulen (21:50.029)
I mean, we're gonna see gold go to about eighty f eighty eight hundred. We're gonna see silver go to one hundred and seventy-five. If they start to break down, I mean, we're gonna see forty dollar silver and probably thirty-six hundred dollar gold. And until it gives us a direction, you know, there's no point in th I don't I don't want to throw money in the market here because we're it's really just a coin toss, right? I wanna let it let the train start moving and then jump on it when I know it's going in the direction I want.
And so that's the space with precious metals. A long-term investor should love this chart. It is a very strong bullish chart over the long run. Even this these big pullbacks I'm talking about are actually really good, healthy patterns for the the big, longer picture of gold. It's actually one of the best things that could happen. We don't really want gold and silver to just turn turn around here and and scream even higher because it means there'll be a lot more pain later. And that pain could last not only be a sharp pullback, but it could actually last.
a decade or two again. And and so that's the problem with big mi big moves is eventually they get wiped out or they take like a decade to like stabilize. But something that stair steps its way up with these types of corrections are actually much more sustainable. And we could see it happen or continue for many years.
Craig (23:04.297)
Always good stuff, my friend. And I think this has been extraordinarily helpful because I just made a mental note. You know, I'm gonna watch sixty sixty four whatever those lows are sixty three, sixty-five in silver and maybe forty one hundred, which was that intraday low back on about March the twenty third. Gonna watch those babies like a hawk. We start breaking down and closing below there. It's gonna give me like a Yeah. Yeah.
Chris Vermeulen (23:24.994)
Yeah, you better start dr you'll be drooling for for picking up medals and minors, right? They'll all be beat up. There'll be it'll be a great opportunity.
Craig (23:31.479)
For sure. that's great stuff. And you provide great stuff every day at the technical traders. Please tell everybody what they'll find when they hit that site.
Chris Vermeulen (23:39.769)
Yeah, if you go to my website, the technical traders, I I manage my own portfolio. That's what I've done since about two thousand and eight. I share my exact portfolio, my allocations, when I'm getting in and out of gold. I trade just ETFs other than physical metals, and I help you navigate the markets. More or less, if I don't think it's good for my money, I don't issue it. So everything I do is what I share with you. And we actually navigate, learn these markets together.
Craig (24:05.493)
I mean, we talk about navigate. I mean by the time we stalk again in in July, we might be off the edge of the map into the where, you know, beyond there be dragons. So we'll just have to see how this month goes. but anyway, again, we'll just wrap it up there. And again, I'll just remind everybody, yeah, please keep an eye on this channel. Hit the like or subscribe button so you don't miss any of the content here in this month of June. Cause it's gonna be a crazy one. we'll have Ask the Expert.
Chris Vermeulen (24:12.163)
Yeah.
Chris Vermeulen (24:17.176)
Yeah.
Craig (24:35.785)
And then we'll see if we can't track down Santa Claus, who lives up there in the North Pole. He's got that big gray beard, you know. I've been able to talk him in to about every these semi annual updates. So I'm gonna see if maybe I can drag him in here by the end of the month too, and let him know. We'll find out what he thinks about all this. in the meantime, though, keep an eye the channel. We'll see if we can get that done. And it'll be more great content to come from the the great folks at Sprott Money. Chris, thank you for your time today. We sure appreciate it.
Chris Vermeulen (25:05.134)
Thanks, Craig. Pleasure.
Craig (25:06.668)
And from all of us, Sprott Money, SprottMoney.com, thanks for watching. But again, keep an eye on that channel as the volatile month of June begins to unfold.
Don’t miss a precious opportunity.
Now that you’ve gained a deeper understanding of the market, explore our selection of gold, silver and platinum bars, coins, and exclusive Sprott products.
About Sprott Money
Specializing in the sale of bullion, bullion storage and precious metals registered investments, there’s a reason Sprott Money is called “The Most Trusted Name in Precious Metals”.
Since 2008, our customers have trusted us to provide guidance, education, and superior customer service as we help build their holdings in precious metals—no matter the size of the portfolio. Chairman, Eric Sprott, and President, Larisa Sprott, are proud to head up one of the most well-known and reputable precious metal firms in North America. Learn more about Sprott Money.
Learn More
You Might Also Like:
Looks like there are no comments yet.