EXCLUSIVE: Diversified Assets VP Comments on Silver Outlook (SLV)

We are all noticing the rally in silver right now. With silver increasing over 100% in less than eight months, many have started to wonder when investors will start taking profits. The beginning of the rally began in August of 2010, and the metal has extended its price rally for every subsequent month. This commodity has seen a large amount of volatility lately, which has raised red flags for some analysts who believe that silver could see a correction before continuing its rally. "I think that we need to see a very fast and sharp decline in the near future before this market can continue its rally. When you have a market at levels like this you get a lot of nervous people, especially people that are long." Dan Faretta, VP of Trading at Diversified Assets, tells Benzinga. Faretta continued to explain his short-term and long-term outlook. "Longer term I think silver will continue higher and the dollar lower, but we need to see both of these markets take a breather and pullback a little before the trends can continue." So it seems that some investors are waiting to see a little correction in the silver markets. If you agree with Faretta, now might be a good time to take some profits or look for a better short-term investment. One ETF correlated to the price of silver is the iShares Silver Trust SLV. The eight-month performance of the ETF is over 150%.