Silver Volatility
News
|
Posted 16/04/2014
|
4417
The main thing for investors to understand is that pullbacks represented excellent buying opportunities. Those who bought the first decline in 2004 saw the price rise a massive four fold, and those who bought the decline in 2008 saw the price advance a staggering six fold.
Assuming this bull market is not over, the next move in silver should total somewhere between four and six times. If we split it down the middle, the next gain from the current level would be roughly five fold. If $18 was in fact the bottom for silver, that would translate into an astonishing price of $90!
Note the pattern with the silver price highlighted by circles on this 14 year chart, after each new up leg high, silver will pull back to its previous high before starting the next up leg. This is where we are now. Silver has limited downside and unbelievable upside potential. This is when you buy.