The gold and silver stocks have put in a bullish weekly reversal but Gold and Silver have not confirmed it.

Relative strength in Gold has preceded important bottoms in the Gold price during 2001, 2005 and 2008. That relative strength is starting to show.

Today wasn’t that bad for precious metals but it was a Black Friday given the severe sell-off and the particular day and time of year.

The selloff in precious metals intensified over the past week.

Last week we argued that the underperformance of the gold miners during Gold’s rebound was a bad sign.

It’s safe for the time being but we believe that Gold will ultimately break back below $1200 and below $1100 before the end of the already long in the tooth bear market.

There is more downside ahead and bulls should continue to stand aside before a favorable buying opportunity emerges.

Precious metals miners have successfully digested their sharp gains from early summer. The miners have continued to hold above key retracements as well as 200-day moving averages that are now sloping up.

We need to remember that gold is an anti-conventional type of investment or speculation.

No pain, no gain. That is one comment regarding this seemingly terminal bottoming process in the precious metals complex.

The miners have begun another leg higher because the evidence strongly supports the view that they have formed a higher low. Only time will tell for sure but the evidence is quite strong. It seems that every analyst was calling for a July low.

Barry Ritholtz is out with another article spelling more doom for the precious metals sector and the gold bugs.