Anyone who has read my posts on SVL, CCU or ARD, or on here will...

Anyone who has read my posts on SVL, CCU or ARD, or on here will know I'm very bullish on the long term prospects for silver. However, anyone telling you that anything (including silver) can't go down is obviously crazy.

Clearly there are plenty of reasons for silver to continue onwards, it's still in backwardation, the US and Europe keep printing money, the Chinese and Indians want to buy it, Industry has to use it, there are many more I'm sure.

BUT remember who controls the money flow on a day to day basis, sure over a year there's been a heck of a lot of physical going into peoples safety deposit boxes and under their beds, but that's not going to influence COMEX much intraday, the institutional traders and the deep pockets of banks behind them may have an interest and the means for short term downward price pressure, more importantly anyone who accepts the usual doctrine of how markets go up will look at silvers parabolic rise and "overbought" status and steer clear or even short it, even if fundamentally it will continue to justify current and higher prices. The traders just can't ignore the technical charts, and like sheep will put millions of dollars behind the received wisdom of how to play them, thus if a drop starts to happen they'll all pile in and a short term correction will likely occur.

I hope it doesn't drop and if it does, I think it'll recover pretty quickly. Maybe a slow drift and consolidation as gold appreciates will take the heat out of the market and attract investment again soon.

Personally I'm going to hold onto everything I've got and ride it out for a while yet. I won't be buying physical or silver mining stocks for a while, the small gains to be made by getting in early on upward moves currently are more than offset by the risks of a correction, no matter how inappropriate that correction might be.