Searchlight Innovations Inc T.SLX

perspective

[bruchaw]

Past major Silver corrections.

August 2008 - November 2009 down 60% and back up took 15 months

December 2009 - May 2010 down 25% and back up took 5 months

December 2010 - Feb 2011 down 15% and back up took 1.5 months

May 2011 -                down 34%

Best case scenario is back up to $50 in 3 months

Worst case scenario is back up to $50 in 12 months

Just my guess.... we could be up much sooner.

This has happened before.  The fundementals have not changed from 2 weeks ago for gold, silver or the companies who mine them (the same companies reporting record earning from Q1 2011 when metal prices were below what they are today); so you can stop reading when you realize that this correction is temporary unlike the facts I am about to list.   The world is still swimming in debt and fiat currency.  The US economy is not recovering (even though every headline reads "suprisingly" housing worsed, trade deficit worsened, national increased, etc, etc. Why are they still suprised?).  The Chinese have not stopped buying.  The Indians have not stopped buying.  The Russians have not stopped buying in fact all the BRICS (Brazil, Russia, India, China, South Africa) are still accumulating precious metals.  The Comex has not increased reserves (they are steadily declining).  The LBMA is still data dark and admittedly leveraged 100:1 .  The 5000 year average Silver to Gold ratio of 16 to 1 is still at 43 to 1.  Industry is still using silver at an increasing rate. Sprott is still accumulating.  Paulson is still holding.  Less than 1% of the population holds precious metals.  Previous average of investment holding of precious metals was between 5 and 15% and currently is under 1%.  Strategic stock piles are still a big fat ZERO. The inflation adjusted price of silver to reach it's high is still $145 per ounce and that is with doctored and fudged cpi numbers.  The real numberis closer to $350.  No fiat currency has lasted  longer than 40 years; as of August 15, 2011 the whole world will have been on a fiat currency for; you guessed it, 40 years.  The multi trillion dollar derivatives blackhole still exists.  Zero interest rate policy must continue indefinitely, central banks only weapons are printing unbacked money and selling unbacked paper promises for precious metals.  Europe is still in trouble, and printing away their debts.  Japan is still in facing a extinction physically and economically... I guess you get my point.  

Gold is still the money of Kings,  Silver is still the money of Gentlemen, and Debt is still the money of slaves.