There have been some unforseen events for silver recently.
As it was bee lining for $30, the CME seemed to have made an emergency change to the silver requirements before the market closed that day. After that, it corrected back down to $24. As another correction was likely yesterday, geo political turmoil out of Korea caused a spike in safehaven buying in gold that pulled silver along with it. How low silver could have gone yesterday without the Korean kat fight, no one will ever know.
The question is, has the metal gone through it’s corrective phase already with the drop from $29 to $24? In a normal market it needs to head lower for higher highs to be healthy levels. This market has been anything but normal and logical. With so many factors at play, bailouts, QE’s and currency wars, is it logical for the metals to have the large correction that the big banks shorts are waiting for?
Dave Bannister was spot on with his silver prediction in August, and his next forseen move is interesting as he does not see a lower correction than $24, while we head to new highs of $32 to $34. You can read his views here;
December is right around the corner, and although big commercials have been slowly lightning their short positions, they still have a considerable amount. We still have that little bird on our shoulder that keeps tweeting about the prop traders, which have been dismantled recently, will have one last pay day before it’s all over.
Keep an eye on precious metals news to aid decisions made regarding your silver and other precious metals holdings.
Happy Turkey Day everyone!