In the short run, silver appears to be topping. The iShares Silver Trust (NYSE:SLV) traded as high as $32.68 before pulling back to its current level at $32.20. Silver opened sharply higher on global worries along with gold. The SPDR Gold Trust (NYSE:GLD) opened at $136.92 and has since pulled back as well. The key to the silver trade being ready to correct is that it is an industrial metal as much as it is a store for safety.
As instability jumps and oil prices rise, GDP all over the globe will take a hit. The higher oil and gas prices go, the bigger hit to growth across the globe. Think of oil prices as a tax on companies and people. This limits their spending thus slowing global growth. The slower global growth, the weaker demand for silver as an industrial metal. In addition, many silver company charts have surged into major double tops. A great example would be Silver Wheaton Corp. (NYSE:SLW). The double top level hit today was $41.85 - $42.35. Silver may not pull back much but could see a fall on the SLV back to $30.00 in the short term.