The precious metals sector is up hundreds of percent over the past few years. The miners have had an explosive rally to lifetime highs, but I think they’ve topped out for weeks, if not months. I think the dashed blue line (below present price levels) is a decent minimal target for prices to sink.

The junior miners have had a nearly-identical run, and although I can easily see gold at $10,000 in a couple of years, some serious backing and filling is needed at this point.

As for gold itself, by way of its ETF, a retrace back to it ascending trendline would be a very appealing place to buy (and would be simultaneous with a public revulsion of the stuff).

I have no precious metals positions of any kind right now (I’m extremely light in any case!) but will completely pig out of palladium if it manages to drop severely enough.

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