With silver, we are starting to see a contraction in supply, but the main thing driving prices up is the general public trend towards precious metals. When silver goes above $26, concurrent with gold above $1,550- and they stay there for a few weeks, we will see an acceleration up to the old highs. We should at least come close to this by the end of the year, and certainly by sometime next year.
One of the main reasons silver has been trading so
David thinks that precious metals stocks will eventually go down with the general market, but gold is the most negatively correlated commodity to the general market. Precious metals will be the first thing to come back up in a meltdown, followed by mining shares. Also, people will exceedingly flock to mining shares if the physical market becomes so tight that people aren't selling much.