silver correction coming?

You know what? I like 321 Gold, I will have to bookmark their page.

Thank you Cloud for an informed, concise article. I have some quibbles with it, (I actually think he downplays silver consumption too much), but it was much more balanced than I would have expected from a President of a PM firm.

 

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No one is on the sidelines. You may not have a PM position, but you are currently long DXY. Here's a chart that I'd be running away from:

http://www.bloomberg.com/apps/quote?ticker=DXY:IND

 

I have a question for everyone, what pay price are you seeing from dealers? I just called a few in Minneapolis area and all of them were around 30, with one less. Sounds like a pretty steep discount from the 34.5x face coinflation shows.

 

A great counter-balance to all the "silver super bulls" out there in the blogosphere.

 

I had great luck with provident for selling when I did a little in Dec. I'd tell you to call them, I'm sure the $3.50 diff will more than make up for the shipping.

http://www.providentmetals.com/sell-to-us.html

 

What I meant to say was that I have no intention of trying to sell at the top, but am in it for the long haul. I got heavily invested into silver just prior to QE1. The only move I may potentially make (besides buying small amounts here and there) is putting more of my savings into silver if and when the price drops back to around 30. I am actually short DXY, and long gold. Not sure what to think about silver right now.

 

The price of silver was flat for 2 years after the beginning of QE1. In fact, silver pricing did not break out until 3-4 months after QE2 started. And almost all of it's gain has been since October 2010. An asset that rises more than 100% in just a few months isn't something that can predicted by any means.

 

Profit taking has showed the base is continually lifting. I am looking back at the $34 floor after 3 days of profit taking a few weeks ago. Resistance at $50 ? Possibly from $46........maybe not from the $47 base level where it reversed direction again.

Silver correction ? I am thinking miore likely a "currency" correction.

Last year the peak was predicted at Gold $1500 Silver $25. We've seen what happened with that.

gary

 

It's probably one of the better sites for news that impacts gold and silver. There is a related site 321energy.com but I don't consider it to be as good for what it tries to do.

One thing to be aware of is that I believe the management of 321gold is paid by the companies which advertise for many of the speicific company recommendations you read, so I don't know how independent the viewpoints are. So it is best to stick with their news and analyst opinions. I never use the site for stock recommendations.

 

I would guess that the dealers don't feel that the price is accurate and are trying to insulate themselves from major losses if silver tanks. Even the best priced dealer around here (normally pays 96% of spot for junk) has pulled back his prices. Too many sellers and not enough buyers maybe? Wish I had waited a few weeks to sell instead of selling between $30 and $40, but I would not be holding still. I'm glad for the profit I made.