Silver correction is a good thing

Silver correction is a very good thing for all consumers around the world.

While speculators suffer huge loss when silver price dropped from $50 per Troy ounce to the current $35 per Troy ounce, others benefit.

For one thing, silver correction leads to a price correction in many commodities, such as sugar, wheat, palm oil and other food commodities.

The current price of silver and food commodities is a better reflection of the actual demand and supply.
Silver is an industrial commodity.

It is used in nearly all electronic devices.

It is not always a speculator’s tool.

We should thank the executives in CME who see the need to burst the bubble in silver price.  They are the ones who take steps to change margin requirements several times in a week.

Without their foresight, the speculators will push up the price of commodities higher, and lead directly to higher food price around the world.

Imagine the plight of the poor families who work 12 hours a day just to eat one meal a day.

The world is a really small place.

It is hard for the poor people in Africa, Asia and other parts of the world to understand how the silver correction benefits them.

The link from silver correction to cheaper food is not apparent until it happens.

What about the investors?

Is silver correction a good thing?

Yes, it is.

The speculators are fools who dare to buy when silver price was $50 per Troy ounce.  In fact, they borrow money to make huge purchases.

Investors, especially experienced investors, stayed on the side line, and watch.

They were waiting for silver correction which was due.

It did not matter whether you used technical analysis method or plain commonsense, the wise ones know that what goes up must come down.

Is silver a good buy at $35?

It is good enough, if the price could drop to $30, that will be better.

The world of speculators never learn from mistakes.

They will return to send the price of silver higher and higher, until the next bubble burst.