I quote, "The price moves in silver have been dramatic. Volatility looks to be increasing. It is something we must adjust to. After all, prices are 4 to 5 times greater than the lows of several years ago. Volatility should be greater. I’m convinced that one day we will look back to the current volatility as being contained. Everything is relative.
I wish I could tell you the near-term price movements in silver, but you know that is impossible. Could we suffer a sharp sell-off? Yes. Could we truly explode in price from here? Yes. Could we chop around current levels? I suppose.
If we do get a sharp sell-off, it will only take place because the big shorts are finally able to rig it. It will not come as a result of any free market cause. This should be obvious to any alert market observer. The regulators at the NYMEX and the CFTC should be ashamed of themselves for allowing such market manipulation to exist.
Since the short term is (always) iffy, what can we say with confidence about the long term in silver? Silver is still undervalued. Silver is cheap relative to other precious and base metals, despite its dramatic price advance. In fact, because so many commodities have also advanced, silver is still historically undervalued when compared to the broad array of commodities.
Someday, I am convinced that silver will vastly outperform just about every other commodity. When that occurs, it will probably indicate that silver is blowing off, or even in a bubble. Then I will not be able to make the case for silver’s relative undervaluation and the sale of long-term positions will have to be considered. For now, however, silver is not overvalued compared to almost everything else."
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