Back in February and March GPL sharply ran up to $5.00. Now it appears to be trading close to $2.30. Spot silver is stuck at just over $32 and doesn't appear to be ready to leap upward. However, bullion is becoming more difficult to find at a reasonable price. IMO rising bullion prices will soon drive up the spot price. The sharp selloff of silver from $49 down to as low as $27 gave us a great opportunity to load up on silver bullion cheaply. So rather than complain about the low price, load up your truck while you can. The growing shortage of silver bullion should soon move silver prices much higher. Be patient! SS
With all the financial uncertainty in Europe over a solution to the sovereign debt problems of the PIIGS nations, I'd expect gold and silver prices to be heading higher, not lower. Many European banks and the IMF are going to be hit hard, which should trigger a flight to the safe havens of gold and silver. Now that the US dollar is again selling off, we should expect gold and silver prices to rise. Yet, the suppression of silver prices continues. Obviously this is the time to buy more bullion. Is GPL still the best source for silver rounds? SS
Silver has been trading as an industrial metal, not as a hedge against inflation or recession. So, GPL is bound to go lower, possibly below $2 as silver retests recent lows.
The question is, will EU address its debt issues and backstop their banking system with a TARP, or will they flounder in the face of crisis and cause a world-wide economic retrenchment? History seems to indicate they will "rescue defeat out of the jaws of victory" once again. In fact, Cummins CEO stated this am that he believes EU and US may already be back in recession.
VIX will move back around 40 shortly, indicating severe volatility in the market. Traders may be able to secure some tidy profits, but don't bet on it. Better to stand well clear until things become much clearer.
SS, long term the euro crisis will drive PM prices much higher and at some point news of the ECB stumbling over measures to resolve their sovereign debt problems will drive silver and gold upward. But during the last couple of months, the opposite has been true regarding negative news coming out of Europe. Last night, during the wee hours, Germany announced there would be no easy, short term solutions coming from the weekend G20 proposals. Most had hoped a massive bailout would be announced by 10/23. Most realize that Germany has it right. There are no easy solutions for long term problems. Thus, the euro takes a hit on the overnight news from Germany, the dollar bolts upward, and commodities (silver and gold included) plus equities are driven lower. We've seen this broken record play out like this for months. Soon...it will change, at least for "hard" currencies.
I sold more of my silver miners this morning at the open and have purchased them back at lower prices. I don't consider myself a trader but this morning's projected decline was just too obvious. If silver hits $30 again (doubtful) I'll load up on a lot more physical. Nobody can "read" the future but I predict silver will be well north of $35 by Thanksgiving. Who knows, maybe we just hit the bottom. GLTA