It always surprises me (it shouldn't by now) that whenever there is a correction in PMs, you start reading or hearing how this is it and the bull market is over. It is difficult sometimes to remain bullish when the price keeps getting knocked down due to manipulation or whatever forces are out there that seem to short sell huge amounts of paper silver that drive down the price. But I have my PMs not to flip like some penny stock, but instead as "insurance" for what I believe is most likely coming in the months or years ahead. While buying silver in the 30s seems like a high price considering when I got into PMs it was around 10 dollars, the amount of debt in the world has exploded in that same time period so I guess it is all relative. The national debt went from around 10 Trillion to near 16 Trillion in the last 4 years.
I have said before and I still believe that we will not see super high PM prices (silver 70-100+ per ounce) unless and until the physical market splits from the paper market. While paper contracts for PMs can be bought and sold all day in whatever amounts they want, physical metals have to be mined to exist. Right now the physical market price is dictated by the paper price, but that is good because I believe once such a split occurs, the physical price is going much higher and will be out of reach for me to buy anymore. Right now the PM market is being tossed around by "investors" who want to make a quick buck or have a nice annual return for their hedge funds, etc. As soon as they get scared or believe another paper market will give better results (like bonds or the stock market, etc), they will flee to it and dump their PMs.
I do find it hard to believe that there are still people in the investment world (like you see on cable financial channels) that really believe all the excessive debt, printing and QE, etc, will have no bad effects on the dollar or world economies over the long haul. Some even say we are having an economic recovery nowadays to some extent. With our national debt growing by the trillions, I don't see how that is possible. That would be like an individual with unlimited access to credit cards running up countless debt and never paying it off, yet proclaiming they are in good financial condition or even "wealthy" because they can keep tapping new credit cards. Having cash to spend and being in good financial condition are not the same thing in my opinion (assuming that said debt will have to be repaid someday). If, and this is a big IF, said gov debt has to ever be repaid, how will it be done? Will there be a time when all of the sudden we have huge economic surpluses in our country that are used to pay down the debt? We cannot even have a balanced budget let alone a surplus.
Until all the above gets fixed somehow, I fail to see how PMs are a bad "investment" for the long haul (that is the next 1 to 5 years, or maybe more). Maybe I will be proved wrong over time but I don't think so.
PS I do think it is highly possible that the stock market will keep rising as long as they keep up the QE and such. Although I am out of the stock market for now it could bring good returns for the near to mid term for those who are in the right stocks. But the risk is always there that we revisit 2008 if some big bank bites the dust, etc. and the market tanks. They recently did some bank stress tests there that tested what would happen if certain things occurred, one being a 50% drop in stock prices. The fact they are "testing" for such a calamity makes me think. Too much risk for me to take.
Just my opinion.
Jim
Didn't go below $30.00 I'm buying as I see it's gonna head back up on Monday. 
but be ready just in case. Charlie
