Last week's brutal implosion of silver prices was truly breathtaking to witness. A strong rally in the U.S. dollar against the Euro was precipitated by rumors that Greece was set to tell the E.U. to pound grape leaves and issue its own currency. By issuing a new currency, the Greek government would be free to attempt to devalue itself out of its current economic train wreck.
My best guess is that the Greeks are merely playing economic chicken with the E.U. (in a friendlier version of North Korean nuclear chicken) and will not abandon the Euro. The short term news will pass and the underlying problems of the U.S. economy, among them weak employment numbers, no consensus on cutting spending and the continuing expansion of the money supply will set up silver for another move higher. Short term selling pressure could drive silver as low as $ 32.50 an ounce, which would signal a buy in my opinion. As always, don't rely on anything I say and do your own analysis.