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.
If oil falls even further, the silver could fall as low as $12.
Silver was at $8.xx just 2+ years ago, so $12.00 isn't as low as you think.
Bet many silver holders never saw it coming!
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)?
Some one has gone insane!
The purpose of selling is not to sell to raise cash. But rather to fiercely knock down silver price at all cost.
The shorties have gone insane. It won't last long. The bounce back will be even more fierce.