david morgan says silver is in a consolidation phase:

Everybody is asking the question recently and it’s a question I’ve heard a lot and it’s a question I know that the people are asking. Silver seems to be stuck in a little bit of a range here. What do you see as having needed to happen to get silver back up to that maybe $20.00 area? Everybody was real ecstatic when it got up to $20.00. What’s it going take to get it back up there?

David Morgan: Well as trite as this may sound, it is a very good answer and it’s also the truth. What it takes in any market, whether it’s silver or a stock or commodity or whatever, is buying pressure. I mean the reason any stock or commodity goes up is because there are more buyers than sellers and of course the converse is true.

What happens is it is a consolidation period that is pretty high level right now but not at the old high, yet gold is over $1,000.00 per ounce.

In silver right now you have about an equal number of buyers and sellers between the range we have seen recently. And this is very typical of all markets. A bull market is named bull for a reason. All bull markets shake off as many participants as possible, on the way up.

For example, say you were an ardent gold bug or maybe a recent one, and you were smart enough to buy gold under $400.00 and you watched it go up past the $1,000.00 level. Or with silver, maybe you bought it under $5.00 and watched it go all the way to $21.00 and now it’s sitting at $17.00. You might think, “I’ve always got a triple, I don’t think it’s going any higher. I should have sold it at above $20.00, but I didn’t; I’m selling now.” And so you’re out of the market. Once they enter a market and make a sale for profit, very few people will reenter the same market.

Now of course, it does happen. I’m not talking about professional traders or people on the floor of the COMEX. Those are not people I’m speaking about. I’m talking about your average individual investor, who gets left on the sidelines. Once that person is in this consolidation period and sells out, then the market takes off again.

http://news.silverseek.com/SilverInvestor/1256270204.php