Tuesday, January 17, 2012

When Will Silver Make a New High?

Casey Research has released an excellent analysis of the average corrections for gold and silver during the past decade. 
CR concludes that silver's current correction from peak to trough spans 35 weeks, close to the average of the three previous corrections in the bull market to date. 
Is silver's correction nearing and end, and will the volatile metal soon begin the next phase of its bull run?

In last week’s Metals, Mining, and Money, Jeff Clark estimated that given the magnitude of the correction that started last September, it may take until May 2012 for gold to reach a new high. This week let’s take a look at how long it may take for silver to rebound.
It’s a commonly known fact that silver is more volatile than gold. Already in this decade, silver has risen by a factor of 12 from its ten-year low ($48.70 vs. $4.07), while gold has seen about a sevenfold climb ($255.95 vs. $1,895).
This volatility – as you’ll see in a minute – holds for corrections as well. On average, silver’s retreats have been deeper and longer than gold’s. The three big gold corrections we looked at last week averaged 22.8%. Take a look at the three biggest for silver, along with how long it’s taken to recover and establish new highs.

Read more at Casey Research