So the metals markets are no different in that aspect. What we saw in the silver market was over the last two months' time frame, we peaked out in the spot month around the $20.50 area a couple times, and now we've dropped as far as about $18.50, so we've had about a $2 drop over the last couple of months. Specifically, the most recent drop's really over a one month period. I want to be correct on that.
The idea that I've had is similar to many others, and we're kind of overdue for correction as you stated, Mike. So this is actually a healthy thing. The metals stocks certainly have leveraged both directions, so anybody that's invested in the resource sector, particularly gold and silver stocks, is going to see a multiple percentage-wise on the drop. And some of these stocks actually gave us a clue that the consolidation or the correction was coming, because some of these sold off before the metals actually had started to sell off. What's interesting, Mike, is that the
So let me restate that. The $2 drop in silver and a correspondingly percentage-wise drop in gold, normally, you would see a pretty good sell off in the open interest. In other words, the shorts would be winning the battle. That is not what I'm seeing at this point in time. We could see something different after the Labor Day holiday. I'm not sure, but right now, these metals for the whole year, and even during this correction, are acting extremely strong.
- Source, David Morgan via Silver Seek