Decline of Silver — Bubble or Violent Correction?
The recent impressive surge of silver price and the
The current trend of silver doesn’t look like a real bubble. Yes, the drop was huge, but the rally before it was even greater. A strong correction is completely normal after a long
The decline has stopped and the price has found its floor, it seems. The question is where silver will go now? Fundamentals favor a move to the upside as the global uncertainty and economic instability continue to draw investors to precious metals. It can be easily demonstrated by looking at gold.
But is it a right time to buy silver? Not necessarily. Just remember that summer is not the best season for precious metals. As the saying goes: “Sell in May and go away”. Will this summer be the same? Analysts have different opinions on this point, but most remain bullish. John Embry, the chief investment strategist at Sprott Asset Management, said in his interview to Mineweb that the investment demand for precious metals isn’t seasonal and that the correction of silver prices is largely over. He predicts that silver may even post a new record this year:
Now you are
re-establishing a new base and I would be surprised if we don’t take out that high that we saw recently before the end of the year.
In summary, the talks about “silver bubble” look unfounded. Yes, it’s hard to tell when it is better to buy silver – now or in the middle or the end of summer. But what can be said for sure: to be bearish on silver under the current economic conditions is mostly unwise, to say the least.
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