The CFTC is currently debating position limits to the tune of 1,500 per holder. This requirement could take years to go into effect, and Streible believes that once that happens banks will have already repositioned themselves to account for the slow unwinding. Mihir Dange of Arbitrage says that if silver makes new 30-year highs again that might scare the bears into short-covering, but he thinks "the interim the range of $31.27 to $34.33 will stay in place."
Lind-Waldock's Streible also believes that silver could see a 10% correction in the near term. Despite safe-haven buyers, "I think silver will end up getting hit on the industrial side," he says. Industrial demand accounts for 60% of silver's usage, and construction and auto demand are slowing to a crawl in the Middle East and North Africa. As oil prices in the U.S. surge past $100 a barrel and in Europe to $120, and consumers see a meteoric rise at the pump, global auto demand also will be hurt.