Pray for a Pullback. My Targets on Silver: $20 and $25.50

I think precious metals put in a short-term top on Friday. The good news, it was great to grab remaining gains on Barrick calls. The better news; if this IS a short-term top, we'll see a correction. And that will be a buying opportunity.

Why? Because ...

• Precious metals have just come out of a 4 1/2-year long bear market. The bull market could last 3 to 5 to 7 years.
• There is a global supply/demand squeeze, especially for silver. By that I mean mine production has peaked, and demand is rising. For gold, it is primarily investment demand. For silver, it is investment and industrial demand.
• The zero- and negative-interest rate policies of the world's central banks lift a huge weight off gold and silver. There is little to no carrying cost of holding physical metal.

Here's what the technical analysis "voodoo" I use gives as targets on silver now.



(Updated chart)

Your time frame may vary.

We'll see what happens. Good luck to us all.

Oh, and for your viewing pleasure, here is molten silver being poured into dore bars at a mine I just visited in Mexico.