Silver at least had the decency to give us much more warning than gold that
it was going to cave in. It marked out a rather fine Head-and-Shoulders top,
although the "Right Shoulder" was deceptive as it was very stunted - we had
been been looking for a larger one, but remained aware throughout that a break
of the neckline of the formation at $11.50 would lead to a rout. Despite being
now at strong support, we could see more downside in silver before the decline
is over. Another warning was the number of commentators touting the "wonderful
fundamentals" of silver.
The above represents the opinion and analysis of Mr. Maund,
based on data available to him, at the time of writing. Mr. Maunds opinions
are his own, and are not a recommendation or an offer to buy or sell securities.
No responsibility can be accepted for losses that may result as a consequence
of trading on the basis of this analysis.
Mr. Maund is an independent analyst who receives no compensation
of any kind from any groups, individuals or corporations mentioned in his reports.
As trading and investing in any financial markets may involve serious risk
of loss, Mr. Maund recommends that you consult with a qualified investment
advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction
and do your own due diligence and research when making any kind of a transaction
with financial ramifications.
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