Precious Metals Discover Gravity

It’s a fast-moving market, and gold is currently down 13%, while silver has fallen a whopping 35% today—erasing more than half of its year-to-date gains of 60%. I don’t think anyone has seen anything on this scale before in terms of a price correction. It’s brutal, but investors are learning that when everyone points to the same lifeboats, things get choppy

And yes, we are re-discovering gravity, as it were. A correction seemed likely, but the current decline appears to be feeding on itself, suggesting that sell stops are being triggered and there’s still no sign of a price floor. It’s a classic case of not trying to catch a falling knife.

I don’t have any special insight to add at this juncture—let’s save that for when the market finally finds its feet. On the one-year chart, the drop looks relatively benign, which is small comfort for those who joined this bull run more recently.

Ross Norman

www.MetalsDaily.com

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www.MetalsDaily.com