RE: RE: Next WeekThis is why I generally prefer to stick to shorter term time horizons with the charts I show. It is hard to imagine Silver at $6.50 I realize, and as the chart shows I am generally bullish on Silver now for the next few months.
The way I see it Silver demand as a safe haven plunges now. That is mainly why Silver is falling now.
The fear trade topped and is unwinding. On July 18th Silver was trading at $40.50 roughly. On that day "Silver" was the number one search word on Google. This was a good confirmation that the average retail investor is fearful, and interested in chasing Silver (and Gold) as a safe haven.
It went up slowly for another month, and topped a few dollars higher. Now Silver is just above $30 after falling $10 in 2 days. When a trade is crowded it will go that way for a while longer, but then it does collapse. The bulls are trapped and the trap door opened.
Silver is going to be hit with a double whammy. First, the fear trade unwinds, then the next phase (next year) is a severe deflationary collapse of all markets. People will be forced to sell Silver holdings at the bottom to pay for necessities.
After that severe deflation comes a massive bull market for Silver and Gold lasting decades. It is all in the cycles that I work with!
Timing is everything. Always!
SC