NEW YORK ( TheGoldAndOilGuy.com) -- Gold and silver have taken more of a back seat over the past 12 months because of their lack of performance after topping out in 2011.
Since then prices have been trading sideways or lower with declining volume. The price action is actually very bullish from a technical standpoint. My chart analysis and forward-looking forecasts show $3,000ish for gold and $90ish for silver in the next 18-24 months.
But don't get too excited yet. There is another point of view to ponder.
My non-technical outlook is more of a contrarian thought and worth thinking about as it may unfold and catch many gold bugs and investors off guard, costing them a good chunk of their life savings. While I could write a detailed report with my thinking, analysis and possible outcomes, I decided to keep it simple and to the point for you.Bullish case: Euro-land starts to crumble and stocks fall sharply, sending money into gold and silver, which are trading at major support levels that have triggered multi-month rallies in the past. Bearish case: Greece, Spain and Italy work through their issues over the next few months while metals bounce around or drift higher because of uncertainty. But once things have been sorted out and financial stability (of some sort) has been created, money will no longer want to be in precious metals but move into risk-on. Take a look at the gold and silver charts below for an idea of what may happen and where support levels are if we do see money start to rotate out of metals in the next three to six months.
Over the next few months things will slowly start to unfold and shed some light on what the next big move is likely going to be for gold and silver.