Chris Weber writes: The last time I was able to identify a period when a precious metals correction was about over happened two years ago...
At that time, gold hit a low of $693 and silver $9.63. Since then, gold has risen about 100%, but silver has soared 206%. This is an extraordinary occurrence in just two years.
Back in October, I thought both metals, and especially silver, were due for a rest, and perhaps a correction.
Silver reached $24.75 on October 14. I expected a back-off to begin. Silver briefly touched as low as $23. That is a 7% fall. In the universe of silver, this is nothing. And then the rise resumed. In December, silver reached a new high of $30.50.
This all feels unprecedented to me. Gold has not been giving people an advantageous entry point for a long time now. But silver is supposed to crash at certain times... It can almost be relied upon to do this.
Not this time. At least, not so far. Given an opportunity to correct or even consolidate its prior gains, silver barely takes a breath and then reaches new highs.
Why? Some say silver shorts are covering. But why now? Why this time? Silver prices refused to fall, and then rose... Of course under these circumstances shorts will cover. (more)
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