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Silver prices keep going up!
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<p>[QUOTE="GDJMSP, post: 5750, member: 112"]There is another side to the metals market just like any commodities or securities market that must be remembered. That is - for every person who thinks a given item will go up in price - a long - there is another person who thinks it will go down - a short. </p><p><br /></p><p>The person who thinks it's going up buys long - the person who thinks it's going down sells short. If either is wrong - they lose money. But here's the tricky part.</p><p><br /></p><p>When a short seller is wrong - the only way he can cover or stop his loss from getting worse is to buy. And when he does - the longs have him at their mercy for the short has no choice but to buy or lose even more. When this happens - it creates an artificial and usually short lived jump in price. </p><p><br /></p><p>This happened recently in the silver market and created the very quick run up from $7 to $8. If it happens again - silver will go up even more. But if it doesn't - it will come down.[/QUOTE]</p><p><br /></p>
[QUOTE="GDJMSP, post: 5750, member: 112"]There is another side to the metals market just like any commodities or securities market that must be remembered. That is - for every person who thinks a given item will go up in price - a long - there is another person who thinks it will go down - a short. The person who thinks it's going up buys long - the person who thinks it's going down sells short. If either is wrong - they lose money. But here's the tricky part. When a short seller is wrong - the only way he can cover or stop his loss from getting worse is to buy. And when he does - the longs have him at their mercy for the short has no choice but to buy or lose even more. When this happens - it creates an artificial and usually short lived jump in price. This happened recently in the silver market and created the very quick run up from $7 to $8. If it happens again - silver will go up even more. But if it doesn't - it will come down.[/QUOTE]
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Silver prices keep going up!
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