RE: OversoldWhen silver got over 40$ i had posted that i expected a pullback, nothing goes straight up, and that is really true with silver, it is generally more volatile being such a small, easily manipulated market.
What i didnt see was the selloff in the good silver plays. When SLX was finished the merger and had just announced the PP silver was still trading under 30$ US an oz, i never dreamed that we would be trading at a new 52 week low, with silver at 35$.
In a normal and rational market when you improve production , show development and have higher gold and silver prices , the company as a gold/silver producer with huge resources SHOULD see the shares go up in price.
SVM as was mentioned here , getting knocked back huge , from over 15$ down to around 10$ and this current Q will have the highest average silver sales price in their history.
The whining by the media seems to be working, and its creating one of those great buying opportunities that present themselves from time to time.
LAst timr was in the fall of 2008, and i recall GCE having the same market cap as their cash in the bank. They dropped to .60 low despite having a record Q of coal prices. However the market was very bearish towards coal and commodities in general , BUT THAT DID CHANGE. GCE was a 20 bagger for those who held for 2 years from the low to the high.
Silver may indeed drop back under 30$ here , who knows as we could see another 5 margin hikes from the corrupted comex.
But rest assured silver will see new highs above 50$ this year. US $ will visit new lows. But jmho, and others of course have a different view of where these are going. We shall see again who is correct and who will continue to be wrong. July approaches with new contracts open to collect physical silver, we will see what the comex really holds and just how much of that silver supply that is supposedly out there is readily available. There is plenty of paper silver sold, i am not so sure how many have lined up to unload their bullion. Industrial users certainly will be selling theirs , of course in products containing silver. AND that will add to surface supply , at least according to these experts.
But that stuff will be hard for JPM to use to cover their shorts.