But corrections happen and silver’s vertical drive to target ripens it for just that, a correction coming either sooner or later.
A vertical move like this, no matter the fundamentals, is not sustainable.
To wrap, in the midst of this metals’ mania mayhem, we ought not be put off by some degree of price retrenchment, especially with 5546 for our forecast high as the year goes by.
Faith, at present, is in short supply. Faith in central banks to deliver stability without inflation. Faith in governments to manage obligations without dilution. Faith in global cooperation to endure in a more fragmented world. Against that backdrop, it would be more surprising if assets such as silver moved smoothly than if they did not.
Technical stock chart updates on $FNV, $SRUUF, $FCX, $UEC, $GORO and more...
There are a lot of companies deep in debt for the same reasons. Many loaded up on cheap debt during the decade following the Great Recession. Others took on debt during the low-interest rate period during the pandemic. When this debt comes due..
Except now, the actual users of silver that use futures to manage their cost are concerned they won’t be able to get it in the future so they are doing something quite rare: they are rolling “backwards” and taking delivery because they can’t take the risk of not having the actual silver for their business. That’s the mechanical explanation.
