Silver down 50 cents!

Silver is going through a severe correction today, which started in Hong Kong, then London and now a follow through in New York where silver is down around 50 cents as we write.

We decided to hold on to our silver stocks through this correction although we did remover the ‘buy’ signals and replaced them with HOLD or SELL in our portfolio update posted on the 23rd September 2007. We also suggested that it could be time to take some profits off the table if you are the fast trader type on the 25th September 2007. We are sitting tight with our silver stocks but did reduce our exposure to gold stocks as stated in our article ‘Is the HUI about to correct’ which we posted on the 27th September 2007, on the gold-prices site. The cash generated will be re-invested but with possibly more of a weighting in silver stocks than in gold stocks.

This correction will need to run its course but we will be monitoring it on a daily basis and will post as soon as we are ready to start buying stocks again.

Corrections are healthy so we now need to keep calm, be patient, and try and anticipate a suitable re-entry point.

Stay cool.