Given the huge up move in silver once it broke that the long-time high of $50, we could see a retest of the $50 zone. Naturally, new highs would end any discussion of a test lower.
We’re seeing a rebound in the precious metals, as the gold price is once again back over the $5,000 per ounce mark, while the silver futures are up $2.21 to $77.89.
Silver just crashed, suffering two of its biggest daily drops ever. Those erupted right out of a popular-speculative-mania topping, where silver way more than doubled in just a few months.
What started off as a relatively benign day in the gold and silver markets has turned into another bloodbath, which we’re also seeing in the other markets as well.
The question is not “will COMEX collapse?” The more serious question is what happens to pricing when paper leverage and physical access stop behaving as though they are interchangeable.
In a world of 2 percent inflation targets and expanding debt, gold and silver remain tools for preserving purchasing power, not assets to abandon at the first sign of a price surge.
Gary argues that $250 silver is realistic once previous highs are exceeded, noting that a move from $120 to $250 represents a 100 percent advance, something that is far from unusual...
