This article was originally printed in Numismatic News.
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“Hit and run” might be the most appropriate description of precious metals. Gold is down about 2 percent since last time but silver has declined approximately 20 percent, or roughly $10 from the highs.
There is little change in the monetary issues behind higher commodities prices, but the market got whacked. Overspeculation is apparent.
The rumor mills and conspiracy theories are abundant. Bin Laden was killed, George Soros sold his pile, John Paulson got squeamish, tons of scrap silver are being dumped and on and on. COMEX raised margin requirements by over 80 percent in two steps in as many weeks. It is widely believed that major banks including two that are direct agents of the Fed have been in a short silver squeeze and they simply engineered a bailout as silver approached the all-time high. A classic move and after 45 years I should have seen it coming. So what now? Build a better position for the next move upward It will come.
Circulated silver dollar premiums went up as silver came down. Mint State dollars remain strong with many buyers actively seeking them at the Central States Show in Chicago. There is especially strong movement in gem quality grades recently, which have been lagging slightly. Proof and mint sets are steady.