Today's silver smack has intensified, with silver trading as low as $30.96. We warned earlier this morning that once the $33 level was taken out to the downside, prepare for stops to be taken out and a substantial move.
While we think further downside is possible with a likely target of $30-$30.50 as support, The Doc has personally locked in a physical silver purchase and Stacked the Smack just now near $31.40.
We repeatedly emphasize the importance of RESPONDING to price action when accumulating physical gold and silver, rather than holding out for some hoped for target which may or may not ever arrive.
Could silver take out $30, and rechallenge the lows near $26? Sure, and in fact, there is a good possibility silver will continue this sell-off tomorrow, but if it does, we will respond to the further price weakness by purchasing more.
However any sell-off much below $30 should find inventory again becoming scarce, and find premiums rocketing.
Currently premiums are extremely low, Maples can be found at several sources for around $2 over spot (reportedly $1.75 over spot at Gainsville!)- a phenomenal deal.