Silver set for wild, but profitable ride

While gold gets all the headlines, smart investors should start looking at silver for 2012 and beyond, writesAndrey Dashkov of Big Gold.

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:

The three biggest silver corrections in the current bull market average 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 to its December 29 low, spans 35 weeks…quite the determined downtrend.

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Posted by Silver Guru on Jan 31 2012. Filed under Silver prices. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry