Silver went up too high in relation to other commodities. Other commodities (especially oil and copper) have been crashing to summer 2010 prices because demand is crashing to summer 2010 levels because consumers are out of cash in this jobless economy. Oil was in the high $70's in summer 2010 and that's where it is tonight.
Silver and gold are returning to summer 2010 prices. Silver was $18 in summer 2010, and gold was $1200. That's where we are heading.
Started last Thursday 9/22 and Friday 9/23; part of the reason is the margin requirement increase, just like 4/29/11 causing the 5/2-5/5 <30%+> silver collapse. Hedge funds had to sell creating more silver selling? Oil collapse just part of the reason.
This time it could be worse - why? More people got sucked into buying silver; just 3 weeks ago on 9/2 SLV was at 42; sell at all cost makes silver more oversold; just like overbought.
SLV to teens? Let's see if it holds at 25-26 as many SLV experts predicted. Any clue how they arrive at that (chart analysis)?
The flaw with that argument is that the late January silver bounce at $25-$26ish was caused by the Egyptian riots and rising oil prices. Otherwise oil and silver would have continued falling and we would have been back in the $teens much sooner.