Posted on 05/12/2011 5:48:12 AM PDT by Heuristic Hiker
LONDON—Precious metals are under pressure in Europe amid another broad commodities sell-off as concerns over further Chinese monetary tightening, a weaker euro and further commodity-margin increases weighed on prices.
Thursday morning, spot gold traded at $1,484.08 a troy ounce, compared with bids of $1500.90 late in New York on Wednesday, while spot silver was at $33.115 per ounce, from $35.07.
(Excerpt) Read more at online.wsj.com ...
It’d be nice if silver gets back into the low 20s so I buy some more Eagles and Maple leafs.
i’ll jump in at 20
perhaps 20 at a time.
t
Buy gold & silver with both hands if you can find it.
If it gets below 31, I’ll be buying more.
I don’t think we’ll see below 30 until it becomes apparent that the GOP congress will actually reign in spending, or Palin/Christie announce.
I’ve read several articles about the nature of bubbles and how they often develop in 3 phases. The reverse of a bubble is also the same.
I don’t remember the exact phrases used, but I believe the first phase is the accumulation phase where the early investors get in.
The second phase is where the momentum players have noticed the first phase and they start piling in.
The third phase is the manic or acceleration phase where the last investors see what’s going on and pile in, propelling the investment into a parabolic rise, that ends in a “blow-off” top.
The same happens in reverse. In silver’s case we completed the 3 phases up, and have now begun the same 3 phases in reverse.
We’ve completed the first, the smart money has sold into the parabolic, blow-off top and booked their profits.
The second phase has begun where the die-hard silver bulls, buy-in again, hoping for the next big run-up, seeking the excitement of the last parabolic move up.
As silver continues to graually decline to it’s intrinsic value, the 2nd phase people will eventually give and begin the third or capitulation phase, where you get a massive sell-off.
Good luck all.
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