Gold and silver move up to incredible highs, and then today someone suddenly let the air out of the ballon, especially the silver balloon. Ouch!
I'm sorry that I don't have any deep insights. According to MarketWatch, it's just profit taking which began in silver and then spread to gold:
"This originated in the silver pits," said Jon Nadler, an investment products analyst at bullion dealers Kitco.com.
There's "major profit-taking by funds that had loaded up ... in anticipation of the silver ETF [exchange-traded fund]," he said, and since the ETF still has not seen the light of day, "funds decided not to be pigs and took some money off the table."
This in turn started a pullback in gold, he explained. Traders are "much more inclined to take profits in the metal that had already had the largest percentage run up to the moment," he said.
Let's hope that the bloodletting only lasts one day.