There's good reason to believe the silver rally is not going to end any time soon... the premium above NAV of the silver ETF's are only about 2.8%, which is not as high as the mark up for silver bullion itself... this means there's no panic buying, just orderly buying but just no selling, otherwise the premium would be 10% or higher, probably as high as 20%, the current 2.8% is nothing but a healthy sustainable rally... this means this rally has healthy legs and will continue to run for a great distance... the pull back, when it eventually happens, will be just as sharp, but it will only be temporary, I'll just ride it out because the rally will continue and make new highs for some time...
Not only is the silver market not entering a bubble, it is in fact coming out of a bubble, a long term depressed and reversed bubble which it has been in for many years and that the market is now correcting itself upwards... we have reverse head and shoulder patterns, why not reversed bubbles? Prices were held down and manipulated to such a low level for so long and now the bubble finally burst, so silver is now correcting itself back up to its rightful higher level and proper gold/silver ratio... yes, silver is indeed already in a correction, a correction upwards to where it should have been had it not been suppressed and manipulated for so many years by firms and dealers...
GZ |
