I'm long silver with a ag:au ratio of 3:1....I don't think silver will crash, I think it will continue it's severe volatility, circa: 2008- 52% Decline, 2011-38% correction. Does anyone agree that silver entered a bear market on a fibonacci predictable decline 2008 as ST states? I don't....Look at EdeGroots longterm chart, it goes back to 1929, here:
I don't see a break in the uptrend, though there were bear markets in silver along the way (over the extreme longterm)....but my point is....does silver crash permanently or is he simply stating another mini bear along the way....oh, and how do you justify ST's statements given that silver is MORE RARE THAN GOLD right now?
>>>>>Begin Stewart Thompsons latest snippet:
- Many investors in the gold community have tried to leverage what gold could do, using silver and gold stocks. Because we are in a crisis, assets will be violently bought and sold in size by institutional players using computer algo trading systems. Silver, for example, has already experienced a major bear market within this crisis, when price crashed from about $21 to under $9. That type of price action is not a “correction”. It is a bear market.
- A new bull market was since reborn for both silver and gold stocks, but don’t think you can outperform gold with silver or gold stocks in this OTC derivatives-based crisis….without taking some serious kicks in the financial head on the downside. Focus on enduring those kicks in the head, because you are not going to avoid them, despite what the timers are telling you. At some point, I think silver disconnects from gold and implodes, while gold sits there watching the action with a smile. I think it happens at prices far above $50 an ounce, but I think it happens.
