Everyone is scared of a correction but the factors driving silver up are the same as those driving the AUD up. Should the USofA come good and silver drops, then the AUD will drop as well, somewhat protecting our position. There is over a $3 differential for an ounce of silver between USD and AUD. Should silver drop by over $3, I would expect parity between the dollars.
I hope it drops to 30... boy oh boy would I be going out of my way to buy. What is the opposite of a bubble, a negative bubble where prices fall more than they should as people rush out? Maybe that will happen, making the price further lower than it already ought to be!
I don't think anyone can appreciate this upside move in silver if they have not heard of the massive short position held by JP Morgan Chase in particular. Personally i don't see any correction downward but a sharp up trend sometimes soon. There are so many factors supporting the fundamental of silver. One think we are certain is that we will continue to face a more and more serious of debasement of our currency supply. More Heart breathing things will take place which we cannot accept it at the present stage psychologically, just like we cannot accept a $44.6 AUD when we are at $4.07 sometimes back in 2002. There is a very high chance we will see USD plummet in the coming months.The current move of putting a USD government's AAA rating on negative credit watch is nothing comparable to what is going to happen. Imagine a waterfall like decline in USD sometimes soon, $50USD will sounds too good to be true.
My humble prediction is that sometime in the not so distant future we will have a second liquidity collapse, possibly emanating from Europe. Silver will get crushed, the USD will rally like it did in 2008, but gold won't do too badly.
if what Laurence Kotlikoff was talking about yesterday comes to fruition, we could be saying we hadn't seen anything yet! Laurence Kotlikoff is a Professor of Economics at Boston University, and when asked about the bond market, he told Bloomberg that a "bond market crash" would occur in the next few days"
Upper Left corner is Silver in USD and upper right is Gold in USD on my comp - i check the charts and compare all the curves that other currencies make once a day.
The U.S Dollar is becoming more or less irrelevant as time goes on, I have both charts listed in $AU as that is the fiat I make and spend , It also helps me to get a grip on the crappy exchange rate I get from Paypal when buying Silver from O.S as well.
I have Silver in AUD top left and AUD-USD in top right. Think I might change it to show aud to be honest... its getting silly at 1.07!
I don't see the US recovering anytime soon. Their proposed budget drafts see their debt in the order of 10 trillion dollars, with revenue in the order of low single digit trillions. Two years back I think the AUD was 0.73 USD says it all.
