Demand for silver far outpaces supply. But that didn’t stop a 6.1% decline this past week. Like gold, silver’s price rise has been dramatic and in need of a correction.
Despite their well-earned reputations as stable assets and safe havens, gold and silver have become highly volatile in recent weeks, with sharp moves in both directions.
Gold is recovering after one of its hardest drops in years. At the time of writing, prices are up $62 to about $4,126/oz, while silver has climbed $1.25 to $48.93/oz.
The current fundamental and technical dynamics indicate that the silver bull run isn't over. So, while silver is overbought, you shouldn't panic sell at the first sign of a downturn.
