Thursday, April 20, 2006
I just checked the price of silver and was shocked to see that it fell over 14% today, from $14.53 per ounce all the way down to $12.41 per ounce. Presumably, speculators are locking in gains from silver's YTD 63% gain as of yesterday. I don't know what will happen to silver in the short-term, but it would not surprise me to see its ascent continue later in 2006. The silver market kind of reminds me of the Nasdaq in the late 90s when the Nasdaq Composite Index experienced tremendous volatility and shot up in value to levels that could not be justified by the underlying fundamentals.