While silver could bounce back to the $19.28 level or even to $20.
Second, following any decent bounce, expect gold to move down to the $920 to $970 level early next year, and silver down to the $15 area, perhaps even a bit lower.
Third, use the upcoming bounce to hedge any precious metals holdings you do not want to shed, for whatever reason, by purchasing an inverse ETF, such as …
ProShares Ultra Gold (GLL) or PowerShares DB Gold Double Short ETN (DZZ) for gold.
ProShares UltraShort Silver (ZSL) for silver.
For any mining shares you do not want to exit on a bounce, for whatever reason, I would hedge the holdings by purchasing shares in Direxion Daily Gold Miners Bear 3X ETF (DUST).
I can’t give you more specific hedge instructions. But suffice it to say that I think it would be foolish not to hedge any holdings you don’t want to exit.
So watch the market closely and use any upcoming bounce to get some hedges in place via the above referenced inverse ETFs.
And most of all, don’t fret. Don’t worry. The long-term precious metals bull market is not in danger of going way. It’s intact. Gold is going to head well above $5,000 an ounce … silver to over $125 — my minimum targets …
And select good quality mining shares are going to double, then double again, and then double again, spinning off hundreds and even thousands of percentage gains in the years to come.
It’s virtually guaranteed. The world is a complete mess. Washington is bankrupt. Europe is even worse than bankrupt.
The rising war cycles are painting a very bleak picture going forward. Civil disobedience and war in Europe. Civil and international war in the Middle East.
War between Russia and Eastern Europe and the U.S.
War between China and Japan, also dragging the U.S. military into conflict in the Far East.
Rising civil discontent in virtually every form in our own United States.
All of these forces are etched in stone. They are coming. Revolutions. Rebellions. Social chaos within country borders and between country borders.
Between the rich and the poor. Between religions. Between capitalism and socialism. Between the public sector (government) and the private sector (citizens and private business).
Some astute observers, like Pope Francis, already know it’s here. He said that much in a speech in Italy a week and a half ago. “A piecemeal World War III,” he called it.
Thing is, right now it may seem piecemeal. In a year or two, max, it won’t be so piecemeal.
It will engulf every corner of the globe, every country, every market.
The world will be aflame.
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