The Gold Report: Last month saw the biggest single gain in silver since the 1980s. Why did this happen when it did? And what should we expect in the months to come?
David Morgan: I don't know if anyone can really answer why it happened in May. This sounds trite, but it's true: Any market, commodity or stock, is based on buying or selling pressure. A lot of buying pressure in silver from all angles—the exchange traded funds, the mining equities, and the physical market itself—combined to really push the market higher.
Normally you see good seasonality in precious metals, with peaks sometime in the first quarter every year. We've seen the May peak a couple of times before, the big peak in 2008 also came in May. Here we are again actually in early June and we're still near a peak. I do believe, unfortunately, that we will see the top of this on an intermediate-term basis. (more)
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