Silver has begun the largest leg down now, and has resumed the collapse that started in April.
My theory has been confirmed as explained earlier this summer, and the recent collapse in Silver and Gold was indicated by the symmetrical patterns. Fundamentally, the European crisis is nearing an end, and this is clearly reflected by the recent price behaviour of Gold and Silver. Notice that I did not say "solved", but rather the current "crisis" is nearing an end due to the cycles. Without a crisis on the near term horizon, there simply is no reason for Gold or Silver to act as a safe haven.
In coming days many will say that the reason Gold and Silver are collapsing is because deflationary pressures are building similar to the Summer of 2008. Gold fell in the Summer prior to the Sept. 2008 market crash.
This view is simply incorrect. Without a crisis there is no use for a safe haven. It is just that simple.
Silver target for 2012 is $6.50.
The completed symmetrical pattern is shown below. Silver flirted with the main red trendline several times, and then collapsed out of exhaustion. Notice that the pattern on the Right side of the Cycle Line is stretched out time wise compared to the Left side.
Price will now "catch up" for that time with a severe plunge down to the 2012 target of $6.50. The implication of the symmetry is that the entire bull run in Silver will be retraced.