On January 9th 2012, I wrote an article called “Did the Silver bubble burst?” (Click HERE). I then wrote an update in December 2012 (Click HERE). Then exactly one month ago, I wrote yet another update (Click HERE) saying:
If the pattern holds (as it has done quite well), we could expect a rally into the $23-$24-area, followed by a plunge into the low $10-area by year end/early next year…
Well, with Silver now trading at $23, my target has been reached. It could go up another $1 or so, but if the Nasdaq History is any guide, the potential is minimal compared to the risk.
A 50% drop from now until early 2014 sounds impossible, but don’t underestimate market forces. That actually fits with my price and time targets for gold to bottom in early 2014 around $978. If gold drops about $400 from the current levels (being about 30%), then silver could definitely fall 40-50%. Suddenly everyone is calling for a bottom in Gold & Silver again. Please note that all those people have been completely wrong the last 2-3 years, so even though silver has come down to 18.50$, it doesn’t necessarily mean that this is the long term bottom.
In my opinion, we will only reach a LONG TERM bottom when the last so called “Experts” throw in the towel.
