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Every bull market in precious metals has to have at least one year in which it corrects by 30 percent or more. This very well could be the necessary correction before metals can again challenge new highs. The underlying fundamentals that has created this bull market has not changed. So of those being; high consumer and government debt, high inflation, increases in unemployment, trouble in financial institutions including the recent problems with Feddy and Fanny. Look for more problems to arise out of this current environment. Including more bank failures and higher unemployment figures along with both more government and more personal spending and the continuation of little to no personal saving. I expect to see both gold and silver to continue their downward spiral until the ETFs (electronic traded funds) finish their sell offs. The funds have grown to massive size since their inception. This selloff could be very rapid and could have already contributed to this decline. Look for a rapid decline with a equally rapid recovery.

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16y ago

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