Remember my last article on my silver position? I mentioned that silver would probably fall back to the $33 – $34 range. But little did I know that it would happen so quickly. I fully expected it to resume and go forward towards $40, then make a correction. Oh well. I guess we can’t catch all the small moves (especially with such a volatile market like silver). Smart thing I only put 1/3 of my total capital into silver.
Short term trading is very dangerous. The medium – long term is that silver is in a bull market. I will buy every 2.5 dollars that silver falls. Here’s why there is still a lot of people looking for a good position to buy into silver.
If you look at the SLV chart, around 3:38 p.m. there was a drastic fall in prices, but the volume also spiked. What does this imply? It implies that a lot of people that were once waiting on the sidelines, looking to buy in on the correction, bought in at that point. If there was no buying pressure then prices would have fell a lot on little volume.
What are your thoughts on this decline in silver prices (SLV silver ETF)?