Prepare for Silver Corrections
From The Silver Stock Investor | Mid-month Update November 2023
Silver is volatile, there’s no denying it. But that’s also part of its appeal.
I’ve seen it time and time again. Silver will go through an extended period of sideways price action, then explode higher or sell off hard before recuperating, then go back to trading in a limited range.
Knowing that silver acts this way is key to taking advantage of its behaviour. As investors it helps us to remain patient, build a position gradually, take profits after a runup, or cut our losses early when a correction starts.
I’m going to examine how silver has behaved in previous bull markets to help you better prepare for what may lie ahead. I’ve presented this analysis in one of my very first issues of Silver Stock Investor. But given the long period we’ve endured with silver in a range between roughly $20 and $28, I thought it worth reviewing.
Consider that between 2002 and 2006, silver dropped 10% or more 4 separate times.
Then, between 2006 and 2011, short but sometimes deep corrections came, with silver dropping 13% or more three times.
