“It will be interesting to see if the sell off continues this afternoon, and or into next week, or whether the structural issues in the market , and end user demand, support the silver price. For now as we can see in the chart below the path of least resistance remains to the downside.”
And though we had a bearish bias I didn’t anticipate such a dramatic change in fortune.
However, as a warren Buffet said ” When the tide goes out you get to see who is swimming naked ”
A combination of margin calls, forced selling and possibly blind panic, sent precious metals plunging and the blood letting may not be over yet,
Commentators like myself, often talk about markets being driven by Greed and Fear it also true that sentiment changes at the margin and in this case that’s true in every sense.
Despite the precipitous plunge in Silver, it’s still up +149.00% over 12 months .
Of course caution must be our watch word here, and though it may be tempting to think about going long of Silver, and or related assets once more, in conditions like this, we need to wait for a very very clear signal from the market before doing so.
