The recent dive in precious metals is in direct response to the recent disaster in Japan.
Japan seems to be dumping their precious metals holdings to raise cash so they can pay for the rebuilding. This will be an expensive recovery for the worlds third largest economy, and gold and silver will be used to pay for it.
This is creating an opportunity that may not have come were it not for the natural disaster recently taking place.
Keep in mind, this is not just a large investor taking profits off of the table, this is a country liquidating physical holdings of precious metals. It will have a condsiderable effect on the thinly traded precious metals market.
Stay strong and buy more if you can, the downturn will be short lived in precious metals as all the underlying factors are still in place.
Japan is not an emerging market, they are the worlds 3rd largest economy, an economy which has proved it’s resilience throughout time. The emerging markets, where a lot of the automotive demand has been coming out of, have not gone anywhere. India and China still want cars, so they will have to be built. The factories which are on a temporary break in Japan were not destroyed and do not have to be rebuilt. As soon as the electricity problems are solved there, production will be back to normal for Toyota, Nissan and Honda, and the demand for platinum and palladium will be at levels higher than before the crisis.