Silver passed $24/oz. today.
Proceed with caution silver bugs. Silver continued it’s parabolic rise today reaching levels it has not seen again since the 80’s. The precious metal remains extremely overbought at the current level, and shows all the signs of a correction.
Back in the 80’s when Herbert and Nelson Bunker Hunt caused silver to jump up to the record high of over $50/oz. by attempting to corner the silver market. The government stepped in and stopped the manipulation. Known as silver Thursday, the day that silver began it’s descent losing over %50 of its value in four days. This was helped by the CFTC’s enforcement of “silver rule 7” that brought about new regulations on leverage purchases in the precious metals market. The correction that silver had on the 27th day of March in 1980, caused a panic on commodity and futures exchanges around the globe, and a margin call for the Hunt brothers to the tune of $100,000 million dollars that they could not cover. Silver was back at $10/oz. in no time.
What’s our point?
people lie, numbers don’t
What’s the reason that silver is being primed for a correction that could bring back the memories of the Hunt brothers?
More QE from the fed.?
The financial reform bill and the volcker rule forcing the closure of major banks proprietary trading desks?
China refusing to allow the value of their currency to increase, and the global currency war?
Central banks stocking up on precious metals?
Although it may be in hieroglyphs, the writing is on the wall for those that can decipher, and make sense of it.
As half the camp yells $30 to $50 silver, the other half is shouting back correction. Although they agree on the numbers in the long term, a good number of high powered metals traders feel that the higher silver goes without a correction, the more it’s going to hurt the retail buyers that have come in on the recent highs when it does correct sharply.