Silver Linings in the Panic Selling and Madness

Source:

...gut-wrenching volatility will be with us for awhile longer. The silver lining is that, for instance, if silver is going to fall 14% one day and today be up 5 or 6%, there is money to be made...

...This madness goes to show that the herd has totally lost its mind. If history is any guide, such panic selling is usually seen close to major bottoms in the markets. Now, it may well be that 'things are different this time' but I doubt that the supply and demand dynamics for commodities have changed so much in the past 3 months.

These are the words of internationally renowned analst and advisor Puru Saxena.

In the world of precious metals, Silver got walloped from the New York open all the way through the Globex, in a nearly continuous down line, failing to hold even $11 and closing at $10.85/oz., down a whopping $1.74. That is a shocking 14% decline in just one session....

Nothing was spared, as equities were hit almost as hard as commodities. Fear of everything seems to be spreading, as investors retreat into cash en masse. The cash-to-equities ratio vs. the S&P Thursday rose to 31%, eclipsing even its high point during the last recession, when it hit 30% as the tech bubble burst...

Looking short term, Senate passage of the proposal “has forced gold lower,” said Peter Grant, of USAGOLD-Centennial Precious Metals. But, “The long-term implications of the proposal, if it is passed, are extremely negative for the dollar and therefore extremely positive for gold.”...

Whether the House passes the big-bucks rescue plan or not, the gut-wrenching volatility will be with us for awhile longer. The silver lining is that, for instance, if silver is going to fall 14% one day and today be up 5 or 6%, there is money to be made...

Related Articles

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe