Silver could yet set new highs despite last year’s downtrend

IT IS A FACT commonly known that Silver Prices are more volatile than those for gold, writes Andrey Dashkov at Casey Research.

Already over the last 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. Take a look at the three biggest for Silver Prices, along with how long it’s taken to recover and establish new highs.

The three biggest silver corrections in the current bull market average to 42.1%.

Our recent correction is the second biggest on record since 2001, but what really makes it stand out is the duration. The 2004 and 2006 declines took only five and four weeks respectively to reach their low points. And it was 31 weeks after the crash of 2008 that silver bottomed. Our current decline, measured from the peak reached on April 28, 2011 to its December 29, 2011 low, spans 35 weeks… quite the determined downtrend.

It also takes Silver Prices longer to recover than gold: gold’s three biggest corrections required an average of 57 weeks and 6 days to regain their old highs, while it’s taken silver’s three biggest falls an average of 98 weeks and 4 days to catch up.

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Posted by Silver Guru on Jan 25 2012. Filed under Silver Analysis. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry