Just need to ask yourself if you think inflation is going to get worse, if the Fed is going to print more money, if our debt is going to keep going up, if the dollar will buy more by the end of the year.
The current administration is trying to get commodity prices down so the economy recovers. That reduces inflationary pressure and with unemployment this high that puts less inflationary pressure on the market since wage inflation has a bigger impact on overall inflation.
The Fed is not going to print more money since QE2 is ending. The program they talked about yesterday they talked about months ago and has been referred to as QE3 light. That is the $300 billion over the next 12 months with cash from QE1. The whole QE2 is what pushed up commodity prices not this huge increase in demand for silver.
Our debt will go up and be increased before Aug. But the most likely option is an increase in taxes.
Our dollar will buy more at the end of the year as the Euro weakens as more problems persist across Europe. This bailout of Greece a structural defalut since French banks are restructuring. Spain will have more problems as will Italy. The dollar will be higher between now and the end of the year. Silver is a bubble that is popping.
Seems it was driven to unrealistic levels by fear and speculation. Even in the face of rising equities, rise of the euro and a drop in the USD, like yesterday, it still dropped. Seems the fear is coming off and it will eventually settle down where it should be more in line with industrial supply and demand.
Seems, seeems, seeeeeemmmms, But the reality is that silver is more than industrial. It is also money like gold. and with the Fed destroying our money "real money" will reflect that.
Silver @ $34. is like silver @ $12. in 1980. Use any inflation calculator to trust but verify.
So many ignorant Americans will get crushed because they do not comprehend adjusting for inflation.
You mostly live in your nominal little world.
who knows but certainly correcting.
U can listen to the technicians with all their wonderful charts, you can find anything u wish to see.
1) macroeconomics...dollar not that low but if believe gonna sink stay in, as rule of thumb
2) psychology- mad rush to get into Silver for "easy money"
3) sentiment- too many bulls or was.
4) Fed easing policy- more malarkey as these proponents underestimate the power of the Fed (and regulations) to retain inflation and speculation.
5) BS about new gold standard?
6) ratios? must be 15:1 gold/ silver? really says who?
7) under supply?
8) inflation? perhaps but not in wages, and if not in wages will not burgeon.
9) new world economy? sure is...people fail to see those lost cost goods from China come with a price, i.e.- jobs and deflation for now.
Everyone on same page just like in 1990 or so when PMs at all time lows...where were they then?
I can't predict but I at least admit vs wanna-bees and self-interested writers and brokers.
You can analyze all u want but in the end roll the dice.
I would say consolidating with bias to downside barring some geo-political event.
Maybe Fed will do anything to regain what we had from 1980 to 2008 but that was ALL PHONEY built on DEBT...if you don't think so look at debt chart vs stocks. The politicians got da people addicted to equities and homes rising with promises, the can;t keep and we da people will pay for, or your children.
Very simple: fix versus blame each new president.
I say silver going to 21-25 by year's end.
You say but you don't know nothing. Silver is not going down to $25. in dollars ever again!
The reason "they" were able to bring gold/silver down in 1980, etc. is because they could raise interest rates. Today they cannot do so and with ZIRP intact they simply cannot reel in gold/silver anymore than what they've already done.
1% on C.D.'s should offer you a clue.
It was 15%+ in 1980's when they raised rates.
Silver to at least $60. by years end but trades sideways until late July early August.
I'm gonna dance on you short's grave.