I'm not sure what to think about this whole mess, but its clear that Silver has collapsed. We are well below the 200 dma and when that happens its time to believe we could be entering a bear market. Year after Year Silver has been in a bull market for the last 10 years. This year might be entirely different. Its very possible that Silver falls to $25.00 or slightly below during this time of trouble.
I believe Gold is going to plummet to at least $1500.00 per ounce. Its been nearly 8 months since Gold has touched its 200dma. So I think we should all at least expect that much. Thats nearly a 200 dollar fall in Gold prices from this level. So I think we should all expect Silver to at least make it there, before we start looking for a Silver bottom.
We might be entering a year or two of turmoil in the PM market. I think Mike Maloney made a good case for a Depression, then Hyper Inflation. So this could be another 3 or 4 years in the making.
My belief is Silver did not come this far to stop at $50.00 an ounce again. I believe it will eventually surpass $50.00 and go to $100.00 an ounce. Everything comes in time. When the faith in US dollar is lost but it appears that the dollar is benefiting, once again from the Euro. When will people learn?
Short term, The Euro is going to fail first and money will temporarily pour out of Europe into US bonds. The value of the dollar will soar. The US will appear to be sitting pretty but that will be an illusion. What happens to G&S during this time, I don't know.
A depression will/is settting in, US tax revenues will fall at the very same time it wants to spend even more. At some point interest rates will rise, putting the final nail in Washington's coffin.
I'm not going to try and catch this falling knife, I think we have a ways to go here, perhaps another week or two before we see a temporary bottom.
JMHO Al.
AYN Price at posting:
5.7¢ Sentiment: Hold Disclosure: Held
