Silver has pulled back 30% as I have said it could! (It is not uncommon for silver, which is more volatile than gold, to experience 30% “corrections” after a huge run up in the price.) The spot price of silver today is just over $34 an ounce, down from almost $50. This is a super buying opportunity! This is probably related to the Bin Laden hoax. (Bin Laden has been dead since 2001.) There is also, no doubt, some market manipulation going on. But they won’t be able to hold it down long. They are trying to drive people out of the market (which will succeed in many cases) and this is no doubt a ploy to allow Morgan Stanley (who is the major manipulator of the silver market) to COVER THEIR SHORTS. After Morgan Stanley covers their shorts the price of silver will skyrocket! (It will skyrocket even if they don’t cover their shorts, but probably not as dramatically.) By the fall of the year I’m predicting that silver will be above $50 on the way to $100. To repeat: This is a buying opportunity of a lifetime! (Most people will be falling into the trap and selling during this time, the exact opposite of what they should be doing.)
Remember the old saying among precious metals traders, “Go away in May, come back after Labor Day.” This is the time of the year when the precious metals market is soft anyway. But this is much more than that. This is political manipulation to prop up the dollar and probably to allow Morgan Stanley to cover their short. This manipulation is coinciding, not coincidentally, with the soft period of the year for the precious metals market. Regardless of the reasons, it is a time to take advantage of. After Labor Day, and possibly much sooner, I’m predicting that the precious metals market will explode.
(If you have any doubt about this pullback, which will frighten many investors as it is designed to do, just ask yourself if the fundamentals for the precious metals have changed. The answer is no. Then ask yourself this question: What is the future of the dollar? The answer is clear. Gold and silver will go opposite of the dollar. This is as certain as the Law of Gravity.)