I am not quite sure what’s going on with silver prices in early Sunday trade, but prices are absolutely cratering with the July contract down 12.5% as I type. The price is volatile and I am not able to find a reasonable explanation for the decline so far. And there might not be one….This is the sort of action you get in a market that looks bubbly. As I’ve said on many occasions, bubbles are highly unstable market environments. And yes, silver is in a bubble. The question silver longs now have to ask themselves – did the silver just go “pop”?
* Mr. Roche is short silver via puts.