Silver and Gold Have Gone Up Without Much Pause Over Past Six Months

Morgan Report/Silver Investor
"Silver and gold have risen without much pause over these past six months or so. It would not surprise me to see a correction beginning now that may be long and have wild swings. That in fact would be in the normal behavior, because the people getting in right now are somewhat “late” to the party, and any significant weakness might just shake them out of the market. In other words, the people who waited to buy until just recently will panic and sell. That's normal too.

The precious metals markets need to have a rest, and after this final flurry of activity, we might see more downside pressure due to less buying and perhaps the U.S. Mint catching up with the demand for Silver Eagles. Let's be realistic and see how the market develops over the next few months. There may be some good opportunities to come, and remaining calm may be a good strategy. I'm still focusing on the metals markets to see how far down this correction goes and how long it takes. It could well take the
market down by 25% and endure for six months. As subscribers know, the “sell the first of May and go away” adage might apply However, we need to be clear that this correction could be very short. If the gold and silver prices start to go back and then go above $1,000 and $20, then it would be a testament to just how astoundingly strong the metals bull market is." (4/08)

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