Watch For Corrections

Welcome Geardaddy, and glad you chimed in....

I am new to pm collecting as well, and this could be way off, but this what I read into it to mean....

I think you can view a price correction two ways....

1. The bubble swells up, then comes the correction a plain off if you will back down a bit....

2.But others, are looking for a price correction for silver into the other direction, meaning it has long since been suppressed by JP Morgan an other factors, and many believe it is heading back toward that 16 to 1 ratio in value to gold, the figure it had been for eons, up until about fifty years back. That 16 to 1 is based on 16 oz of silver taken from the Earth for every 1 oz of gold, hence gold being 16 times more rare than silver, hence it being priced much higher, gold that is....

If you figure in inflation, the 50 bucks silver hit in 1980 today would be worth like 125 to 130 an oz, so just because it got within 2 cents of fifty early this morning (before falling 6 bucks, then going back up 3, crazy flux for silver today), means it may be correcting much more in the upward direction, or at least that is the belief an speculation of myself anyway....

And to try an answer your question, yes I think the correction most expect would be several dollars, not cents, like back to around 40 most would say I suspect, would be the correction they are looking for, then it plaining off an remaining at that figure for a while. I personally do not bleieve it is gonna set at any figure an plain off any time soon....

geardaddy.

A technical correction would be a 10% drop or more from the highest recent closing price. With silver we're looking at about $47 for it's high close. That would put a "correction" at $42.30 and is very possible in the short run.

Even a correction back to $40 wouldn't surprise me. Those of you new to the PM game,unless you are looking to buy on every dip,don't look at the price of silver every hour of the day,you will make yourself crazy. This market is going to get volatile and it will be hard to stay in some days. It is very important to have a plan,including an exit plan,such as getting out a certain percent at a time,or converting silver to gold or getting in and out by cost averaging to minimize losses. Don't get caught up in the casino mentality and try to make a quick fortune in PM's,you will get burned. Don't invest money you can't afford to lose,this is not a sure thing. Try to understand what is causing moves up and down and how those factors will affect the next move. Don't think you need to know everything right away,but don't get lazy when it comes to the learning part. Most of all,everything you read is opinion,nobody really can see what the future holds so be wary of folks who tell you they have it figured out.I started investing in gold and silver about 8 years ago and have learned to be cynical more than anything else. Make your own decisions because you will have to live with the consequences. There are many on this forum with a lot of experience and you can learn a lot from them but their investment goals and pain tolerance may be different than yours and there really are no right or wrong answers so do what you can comfortably live with. It is nearly impossible(unless you are incredibly lucky)to hit the tops and bottoms of markets so don't feel like you have to. We are in for some interesting times ahead I fear so do your best,do your studying,and we will all be alright at the end of it.

with this. Typically, in investing in general and not just in the PM market, a correction is a market price move of 8-10% to the downside. Any more than that is not usually seen as a correction but as a genuine market move. Corrections tend to be temporary periods of lower prices as a market digests news and reflects upon its recent price structure and whether or not it was justified. In most cases, a market is laying a new foundation via a correction before moving on to higher highs.

Typically, a market move to the downside of 15-20% or more is called a "bear market" and is usually of fairly long duration. While a correction usually only lasts a few days or weeks, a bear market can last for several months... or even a year or two.

Even bigger downside moves are called "severe" bear markets or recessions and they can cut 25-50% from the value of a market, sector, or individual holding.

5% drop in silver today...what goes up must come down..........

At least temporarily!