Silver is launching because the fed is printing so much. If they do actually stop QE in June as they claim, silver as well as most commodities and equities will have sharp corrections. But right now the Fed is monetizing the debt. I think they have cornered themselves so the system would suffer serious problems if they didn't continue some form of dollar printing/easing. So I think if they do stop at all it will only be for a short amount of time, maybe 6 months before they resume.
All psychological. Just like support/resistance levels for stocks used to gravitate toward whole numbers, and still do, to a lesser degree. $40 and $50 levels for silver have been promoted for years, so expect them to be key points.
The two posts about $40 silver are right. These price levels have been promoted to the public for so long, expect a move through them, then back down. Gold is the same way, anything from 1200 to 2000 has been 90% of the predictions. Oil, people said 200 due to peak oil. Low and behold 150 was the high while the economy went down in flames. Then the screws were put down on the banks to squeeze them and the hot money out of oil and all commodities. This sets up psychological price levels where we can expect "crisis" moves to come up. We will see commodities running out of control upward forcing an emergency style rate increase. Volatility on the top of the mountain will provide various exit points. In the event of an emergency, put your own oxygen mask on first.
We had a little irrational exuberance this A.M on the PM's and now we're correcting a tad. I doubt that we've seen the high - not quite frenzied enough. Right now silver is the poor man's gold but when the bubble bursts it will return to being the rich man's copper. IMO
Margins raised again, another bubble deflated... LOL Print some more and see where the next one inflates!
Silver trading up another .83% tonight after a ridiculous runup Friday. Momentum nuts chasing an instrument until it collapses on them. I love it when "pundits" base an argument on a 31-yr-old $50 high and estimate current value on inflation adjustment for a completely, insanely inflated top that was soon followed by a crash and eventual multi-year languishing in the $4-$5 range. Silver is a speculator-driven bubble that may go to the Moon but will inevitably crash back to Earth when the lunatics move their hot money on to the next focus of gambling frenzy.
"markets can stay irrational a lot longer than u can stay solvent." will ET traders be solvent at the end of the ride?
See you in 10 years time when me and all the other 'lunatics' are selling our gold and silver to 'sane' people like you buying the top..