Ohhhh. I meant that the current general market sentiment is that the price woud go higher.
A correction won’t take it down more than 30%, I say buy.
I like that kind of correction.
Liquidity has been driving everything upwards - metals, commodities, oil, and stocks. I’ll be a contrarian here and say we will have a big nasty correction sometimes soon. Silver’s price has been historically volatile. So I would not be surprised at a 40-50 percent correction. Many (particulary libertarians) thought the world would end back in 1980 when gold and silver were going parabolic. They were screaming imminent hyperinflation, worthless dollar, Great Depression II, etc. Nasty surprise for those banking on doomsday. Those who invested in silver at the Jan 80 top, lost 90 percent of their money just a few short years later. And adjusted for inflation, they would still be down more than 50 percent.
Silver has gone up around 145% over the past year. A 40-50 percent drop wouldn’t be a big deal.
While you can invest in gold and silver, and maybe make some money, it’s still a risky proposition. These commodities are most useful if the value of fiat currencies decline and people end up losing confidence in the system, which could cause them to want gold or silver. In this sense, gold and silver have become insurance against financial collapse rather than investments. So those who bought gold and silver, at reasonable prices in the 70’s and 80’s, should continue to hold onto these long term insurance items until there’s a real need to cash in. I would expect them to pass these assets down to the children and grandchildren over time. This isn’t a gloom and doom thing, it’s a long term strategy of protecting yourself from disaster down the road. Having 50% of your wealth tied into these assets is not very smart given the lost opportunity cost associated with holding them. Somewhere in the 10% range would be more reasonable.
This might very well be the correction we’ve been waiting for. I wonder if 20$/ounce silver is too optimistic for a drop.
Pardon the double post.
Anyone else laughing at seeing the prices for precious metals surging up and down for the past few hours?
The swings are ridiculous.
Considering that the price of silver 10 years ago was about $5 (according to goldprice.org), I think one can ride the wave a little longer. I’m no expert, but it seems that the easing will continue and the commodity prices will keep climbing.
The marginal sellers are a bunch of liberal wimps
I been reading news about it all day. Commodity markets were effed up today. Thanks Osama!
Osama bin shortin’
None of y’all are buying this dip?
The market is trolling. The only way the market’s reaction could be reasonable is if they think we’re going to end the war and cut a bunch of spending. More likely, this will help Obama get re-elected in 2012. Anyone with a brain knows that’s BAD for the dollar, so we’ll just have to wait.
Like I said, the marginal sellers are just a bunch of chic liberals.
So, you’re buying?
I held a position in SLV from about $ all the way up to monday, i sold it all at 44.50, i waiting for a pull back to about about 33-35 before i get back in.
$16*
Hmm… I’d forecast it can go as low as $30. $35 is my P10, $48 is my P90. I think buying now is a positive NPV prospect- I just can’t handle the risk.
I sold 70% of my silver holdings on April 28th. I almost held out for another week hoping it would hit $50 before the correction, but I decided to err on the side of caution. I had purchased the majority of my silver early 2008, so I made out quite nicely. I’ll probably be buying silver again in about a month or so because I am optimistic for the return of $30 silver in the next several weeks; however, my realistic side will probably be buying the moment it hits $35.
It must be nice to have cash right now.