Probably not, maybe a small dip but overall increasing. Just had a chat with with my Collgeaues at morning tea. We were discussing the Pacific Ring of Fire. So I googled to http://en.wikipedia.org/wiki/Pacific_Ring_of_Fire. Interesting that we had an Earthquake in Chile, NZ and recently Japan. So, the next speculation is an Earthquake in the Middle American Trench. So, the value Silver should be increasing?
i think it's more realistic to view a pullback as a % than a $ amount. $4 dip at $26 is 15%, $4 at $36 is only 11%. Same amount in $ but 4% is significant.
ultimately silver is an industrial metal, unlike gold which is seen as a store of wealth the people often flock to in hard times. With all these natural disasters we can probably expect to see the economies of the countries affected take a hit, and thus industrial demand take a hit as well, especially the demand for consumer good and electronics. Recently though silver has seen physical metal investors soak up a lot of physical metal, so rather than a drop I can see people buying for investment purposes will prop up the demand until industrial demand recovers... so ultimately I personally think we can expect sideways movement for a while.
Good point about the physical demand. I agree, silver is going to have lateral movement for a while, seems like there is a lot of resistance at $36 but who know it might just rally out of the blue.
C_Heath - sorry but I have no bloody idea which way it will go? it's puzzling to see the small increases up and down over the past day, nothing eratic like normal. As I said it's only a hunch. For example, when the Japanese authorities said the day of the nuclear reactor 1 exploded " oh, trust me everything safe and yes a little radio active escaped but nothing to be concerned with???????" my hunch was saying if I was Japanese I would be running like mad to get the bloody hell as far away from that facility and low and behold the next day reactor No. 3 explodes and they are now saying "oh, we have it under control"...once again it's only a hunch but I say BS! they do. So, getting back to your question - it's only a hunch but my money is on a upward trend. Don't come blaming me if you buy today and it falls tomorrow though I've purchased yesterday and committed. In the long run if you believe in the fundamentals you'll be fine.
Is there a large dip coming? No. It's hard to define a 'major pullback' in silver - but 10% (or $4) is not really a major dip. These are normal and healthy movements and should be expected and ignored. The 'problem' is that some new investors tend to have a perspective that 'locks onto' short-term peak prices - only to be devastated when that 'new' price naturally collapses. However silver's real 'value', is actually the weighted average of all investor interest over time. At USD$36.50 you saw a short term spike in the price - based on declining volumes. Yes, the price WAS USD$36.50 but it was a 'WEAK' price and was not sustainable; it was mainly driven by algo traders who ride the wave up but FLEE at the slightest negativity. When you see those day-long "super-rallies", step back and mentally lock in a lower price - not the PEAK price. (Never 'trust' a new peak price after a quick run up). Those exciting nights that we see sometimes are JPM deliberately 'stepping bac'k to let the 'silver suckers' pour back in. JPM know that the rising price will be quickly sniffed out by the algo traders - and the price will quickly rise higher as they pile in - BUT - trading volumes (and price) will soon become weaker and choppy. This makes it very easy for JPM to step in and crush the silver price for several days in a row. Sometimes, as a nice touch, they will even insert something 'positive' about gold or silver in the WSJ - just before the go to work! (When the revolution comes....) The speed with which these pull downs are done means that the longs don't have ANY time to cover their margin calls - so the exchange simply liquidates their positions - they are forced out at a loss. These 'forced' sales serve to amplify the JPM dirty work via a positive feedback loop. Those of you who are worrying about a serious silver correction need to consider this: * Metal stocks are almost gone - less that a year's supply is left. * Investment volume is screaming to the upside. * Industrial use is growing. * The 'biggest' bank in the world (supported by the bottomless Federal Reserve) is working around the clock to suppress silver -- yet CANNOT restrain the price growth for more than a few days to a few weeks at a time! And people worry that Silver might CORRECT! In fact, I believe the opposite is going to happen; I'm expecting both silver and gold to begin a dramatic jump up within the next 20-30 days. During this move silver will hit 38-40 and might even get into the low forties. There WILL be a 'correction' (as per above) but over time the new price will consolidate - as usual. ----- When silver eventually reaches USD $50 (in September) we can expect a MUCH more serious pullback (perhaps 16-20%) followed by perhaps 6-10 weeks of re-consolidation. (Part of the reason for this is that there are *still* investors out there waiting to recover their losses from the Hunt Spike collapse. Gotta feel for them!) But buying in the dips? *Every day is a dip*
"investors out there waiting to recover their losses from the Hunt Spike collapse"? are they still alive
C_Heath! you just gave me the kiss of death! the price is dropping aaaaaaaaaaaaahhhhhhhhhhhhhhh! I knew I shouldn't have tempted fate!
ABC does but for bigger bars, not coins, if your looking for changes on the 1oz coin level, you aint gonna get it
since when did the SMH have anything to say about silver eh! http://www.smh.com.au/business/mark...tors-rush-to-cover-losses-20110315-1bvmr.html
