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What The Recent Volatility In Gold and Silver Means

user profile picture Adam Taggart May 03, 2011
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Following several months of remarkable price appreciation, precious metals (PMs) have been experiencing whipsaw volatility over the past 48 hours. Quite understandably, PM investors (and those thinking about becoming ones) are trying to make sense of what’s next for gold, silver, and the miners. Many of you have written in to us with the questions you’re most interested in getting insight into.

This morning, I spoke with three respected experts in the precious metals field. According to their expertise, I put a brief question to each: 

  • What’s behind the current downdraft in bullion prices? (Ted Butler)
  • Having lagged the increases seen in the metals, are the miners attractive here? (Frank Barbera) 
  • For money looking to enter the PM market, is now a good time to enter? (John Doody)

Here is the summary of their responses:

What’s behind the current downdraft in bullion prices?

Ted Butler, Butler Research

As should come as no surprise for those familiar with Ted’s work, he sees the recent action in silver as further evidence of how manipulated this market is by entrenched financial interests. In his opinion, the $6+ knock-down that silver experienced over ten short minutes on Sunday night was a purposefully-orchestrated maneuver carried out through the same high-frequency trading (HFT) bots responsible for last year’s flash crash. In this case, they’re being deployed to create violent downdrafts designed to shake out as many leveraged silver longs as possible.

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Top Comment

sometimes i step back and think how much a sign of the times that we KNOW markets are being manipulated, that our government does nothing...
Anonymous Author by estatesavr
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