Silver To Settle In The $28.00 Range?

If silver ever does hit $50 you can expect the mania phase to begin, and you can bet that the 4 companies holding 2/3's of all silver shorts don't want that to happen.

 

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Keep in mind that Desert Gem is a much better trader than I am.

 

Silver will push back towards and probably over $50 later this year ... remember that the Sep-Nov time period is always the best for PM price appreciation. I wouldnt be surprised to see silver slowly climb back into the low 40's over the next few months. Many speculators and margin investors were shaken out in this recent correction, which bodes well for a slow climb.

 

A slow climb is fine with me. And we only have a couple of dollars or so to go before we're back at $40.

 

Thank you for the comment, although I doubt very much it is true. I did not figure on the collapse ( or correction if one prefers) of silver to affect gold and gold mining stocks as badly. I had figured, a decrease would only be related to their exposure to silver, but I think psychology of the movement was overdone. I used some of the silver profits to pay my taxes on IRA->Roth conversions and some mining stocks.

I think trading in silver is going to be tough for a while. I don't have any idea where it will end up this year. My guess for my coin club's Christmas meeting PM prize was 32.50 back in Feb. It may go uch higher, but I think $40 , and $45 will face certain psychological barriers, and see a lot of selling zig-zag. If 45 is reached, many who missed the first peak this year, may decide to take profit this time. meanwhile, I have 600+ pages of mining reports on 2 companies, I must sludge through if I want to keep up my image IMO.

Jim
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I like seeing a little research behind spculation. Thank you desertgem, I was hoping someone was thinking on my terms. I am hoping to sell some silver later this year.

 

As I understand it silver is forming a "base" right now- that is what happens before an upward move (correct me if I am wrong)

 

I guess technically it is a consolidation. Most of the time, the next big move will be in the same direction as the general trend, which in this case is up. Keep in mind that technical analysis doesn't predict the future. It is only a tool to advise you about what to do today. So I believe some of the masters of technical analysis would tell you to wait until the price breaks out from the base in either direction and then put on a trade in that direction. My personal opinion, which is worth exactly what you paid for it, is that it appears the price is breaking out to the upside, but it is still pretty early to tell for sure.

 

I don't consider it a base. It is trading too wildly - big price moves, gaps in the chart.

 

You may turn out to be correct. There was a lot of technical damage caused by the drop and it could take a few months of trading to repair the damage before it can move up. I tend to give more weight to weekly closing prices.

 

Some excellent comments in this thread, including very good predictions given hindsight. I'd really like to hear some of the group comment on the current situation as related to their previous comments.

 

I still think silver will move higher and make a new high. But it went up so far so fast that it would be natural for prices to take a breather, especially with the tighter margin requirements. Next year may be the next big move up. Sometimes it's easier to know what will happen than when.

 

Sage advice - thanks!

 

It isn't "sage" until it is correct.

 

Silver is up over $30 an oz today. Makes me feel good about the stash I do have but I was kind of hoping it might drop a little lower so I could buy for cheap money. Who sells what they have at $50 and feels good about it, then rebuys when it drops lower? I'd be all in on that. The silver i recover from rolls is worth $50 an oz to me.
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