The action in Gold and Silver is starting the trade from a couple of weeks ago, big down move followed by consolidation. The last time Gold and Silver were in this pattern after 3 or 4 days came another big sell off. Patterns do repeat and based on recent price action our expectations are that this will have a similar ending.
We all believe that Gold, Silver and Platinum will be much higher someday. However, many things happen along the way, including huge sell offs and ugly periods. All markets eventually go higher, the Dow has averaged an 8% gain year over year in history but not without major heartburn for many investors.
The real key for all is to determine your objectives, are you trading or investing? They are two separate types of trades, I do both. The physical Gold and Silver I own is never sold just accumulated. However, when trading you trade the path of least resistance and stay there until that pattern changes.
In other words, a trade is short term with determined exits based on price action, investments are long term and based on history. The strategies should never be mixed, that is usually where most traders/investors fail.