Just as gold surged to over $1575 on the open, Silver has fallen from above $48 to under $43 Source: Kitco That's a $5 move in silver in minutes. Is that a temporal marker, if you know what I'm talking about? I hope not.
The volatility in silver is shaking out some potential buyers and leading to people selling. Ironically, gold has shot up, which leads me to believe that the historical gold:silver ratio is about to explode outwards again, which is why people are now getting a little wary and thus exchanging their silver for gold. It all makes sense. Equities are forming topping patterns, US bank stocks are steadily declining, there will be NO QE3, and bond yields, especially long dated ones, are stabilizing. This leads me to believe that commodities are either at or very close to their intermediate tops, and the next major movements will be to the downside - and that also includes silver. If you've got a lot of silver, you should have exchanged it for gold last week when silver was just a finger's distance away from the Hunt Bros high in 1980. I think that those who failed to do this will end up having missed out on the mother of all arbitrage opportunities. Sorry to be the bearer of bad news. This time, I think any future precious metal purchases will be gold and gold only. I think silver has just about run it's leg up, and now looks like it's on a key turning point to the downside. The volatility (along with the other reasons I mentioned above, like bond yields) should be taken as warning you in advance.
