Some of you have surely noticed that silver took a BIG hit this past week. So did gold. Dropping from nearly $8.00 down to $6.70 makes ya wonder. After all it took three months to climb from one to the other, yet only two days to fall.
My theory is it was a confidence upswing in the stock market due to Micro$oft announcing its $32 Billion dollar dividend. M$'s press release was on the 8th, Silver was at 7.80 the day before and 6.50 the day after. It is reasonable to assume that this upswing in confidence is due entirely to this one item.
Metals and commodities are somewhat 'fear' based. When people see the economy going down, they get into tangibles. When things are looking up for paper assets, well... go with those. After all, that is how you make money. I, however, am rather pessimistic about the economy and dont have enough money to play with stocks or commodities, so I will still be putting my money in metals. Now I just get some more bang for my buck.