Good work last night Errol43. Hope you are well rested!
(Does anyone have a bottle opener for the Vodka bottle?)
A lot of people are asking where the price might go next. We are currently consolidating (surprisingly quickly) around the $31 mark - but this price region is a bit of a no-man's land on the chart, so we should either expect a break higher to around $33-34 - or lower to $27-28 - within the next few days. I personally think we will be going higher. The $26 level was a strong bounce point, and silver is oversold at the current price. (The seasonal uptrend factors will be kicking in soon too).
This pullback has generated unprecedented physical buying all over the world - with long queues, and dealers running out of supplies, and some people even being offered higher prices for silver they just bought by buyers waiting in the carpark outside - with cash in hand! The level of Joe Public's knowledge about silver today is surprising.
The recent price drop has pulled a lot of in-the-future purchases forward though, so the price recovery might be slowed somewhat as "yesterday's" buyers digest their recent hauls.
I know some people believe they predicted this downturn using wave theories and cycles and so on, and these people believe the price might possibly drop further - even to around the low $20s. Whilst I highly respect these people and their theories, at this point I believe that the bigger picture of global market manipulation and margin hikes is the dominant influence.
People sold silver because it was dropping very fast - like everything else. These sales accelerated the price drop and so more people sold off - as usually happens. Some people sold because silver is their money and they needed cash quickly to cover margin calls. But the initial cause of the global panic lay in the manipulated response to Ben's deliberately 'disappointing' Twistie plan. Life was pretty straight before the Twist. As usual the long term goal in all this is simply to generate more debt, which the banks spend and the people need to pay back one day.
As I type this the price has again gravitated down to USD $31.01.
New York opens in a few minutes so we might get a bit of a "V" movement tonight.
Or maybe just the "\"
Time will tell.
SPOT: USD $31.01 and falling
