Though precious metals are rallying on the day we penn this, we expect more downside before a final bottom or at least […]

Precious Metals continue to be in a long bottoming process that began last summer.

Regardless of the cause, the charts for the miners (and Gold) continue to urge caution as lower prices are likely ahead before the next major turn.

The bottoming process for gold and silver shares has been arduous as they’ve oscillated back and forth for almost a year.

Be on alert as the short-term trend for precious metals (especially the miners) could resume to the downside.

Silver has been in a bear market for almost three years and the recent lack of strength suggests the metal could be headed for new lows. New lows are always bearish until the last one. Our technical work suggests that we should watch for a final low and end to the bear market in the coming months.

Unless you’ve been living under a rock then you have witnessed the now false breakout in Gold and gold stocks.

The mainstream is entirely oblivious to the fact that gold stocks (and precious metals) can have rip-roaring bull markets when equities are in a bear market.

At the start of the year we asserted that the mining equities could lead the metals higher. Since then, the shares have roared higher while the metals have remained subdued.

The bottom line is the action in the stocks is very encouraging with respect to a recovery in the entire sector. In fact, most quality producers and juniors bottomed in June and have not made new lows

The worst is over for the mining stocks but we don’t know that to be the case with Gold.

This sector is headed for trouble in the near term but it is likely to be the end of the bear market. There will be a huge and fantastic rebound.