When it comes to gold and silver markets, be aware that there is more potential downside in May. The good news is a decline in May will likely create a great buying opportunity at the end of the month and in June.
Though Silver has broken below its December 2013 low and is inches from a new bear market low, the silver stocks remain (at the moment) comfortably above their bear market lows. The relative strength of the silver stocks amid a breakdown in Silver is a signal that a major trend change is developing.
Unlike the silver stocks, the gold stocks haven’t had a chance to prove their relative mettle as Gold is a good $100 above its bear market lows.
Conclusion:
Keep an eye on the silver complex as it could bottom ahead of Gold. In any case, be patient and let this potential selloff run its course which it could by early June.
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