Relax, a pull back is necessary when testing new thresholds. As stated before and shown to be true, a pull back is a sign of strength. Don't sell your position in silver just because the price dropped slightly. A lot of times pull backs are due to exit strategies for investors and their confidence in the investment.
Basically speaking, as an investment strengthens or the price goes up rapidly, some investors who may have bought early on and set their exit on a fixed price or percentage that once hit will the sell their position. Also, those who were planning on getting in tend to wait as the new cost may seem a little to high for them until they see it hold and then will buy-in causing prices to go up again due to new demand. Remember, fear and greed are the predominant market movers seconded by supply and demand. As the fears of the economy continue to loom so will safe havens such as silver and gold tend to strengthen. As greed for investors to make his wealth or store it for that matter heightens so does the cost via lesser supply of a commodity due to higher demand. Thus, the cycle of wealth and market moving continue.
Since silver has been testing a new threshold of $30 lately, and has doubled it's low in February of this year (just over $15.00), a pull back is expected. It ran up 27% in the last 3 months alone so a pull back and reemergence and then hold above $30 for at least a week or two before year's end will show significant strength. However, due to the holiday season we may see a bit of decline as the press and Wall Street will undoubtedly report a come back of the American consumer due to holiday shopping. However, that consumer is likely buying on borrowed money and will likely add to the economic burden. Once again raising silver again in the first quarter of 2011 once those reports die off.
I am no expert but that is my own prediction of what will happen over the next few months.
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