{"id":88726,"date":"2025-12-30T07:30:09","date_gmt":"2025-12-30T07:30:09","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=88726"},"modified":"2025-12-30T07:30:27","modified_gmt":"2025-12-30T07:30:27","slug":"the-correction-begins","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2025\/12\/30\/the-correction-begins\/","title":{"rendered":"The correction begins"},"content":{"rendered":"

I wrote a reminder of the danger of the end of December in financial markets yesterday<\/a>. In it, I highlighted the rise in the price of precious metals, including silver. And yesterday, as the FT reports<\/a>, the silver price fell by nine per cent. Gikld fell by four per cent.<\/p>\n

The silver price looks to be especially erratic and irrational, as this chart shows<\/a>:<\/p>\n

 <\/p>\n

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The month chart highlights the volatility:<\/p>\n

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This is what happens when hubris and speculation defeat any fundamentals in investing logic, and bubbles occur.<\/p>\n

I am aware that China is making changes to its silver trading, and this may have driven some activity, but the reality is that this is trading disconnected from the real value of silver.<\/p>\n

This might be more apparent in the case of silver, a commodity, than in trades in AI shares. The overvaluation still exists in both, though. Corrections are still required. This one began just a little sooner than I expected, though.<\/p>\n

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I wrote a reminder of the danger of the end of December in financial markets yesterday. In it, I highlighted the rise in the price
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