The one thing this trip back up to $40 proves is that we are not repeating the pattern of 1980 again. Back them Silver hit its high in January and had a severe sell-off in January but the "Silver Thursday" implosion that people remember didn't actually happen until almost three months later, in the middle of March. Silver tanked from $50 to almost $30 in January but spent the next two and a half months bouncing between there and the mid $30's much like we have again in 2011. If we had followed that pattern again we should be having our own "Silver Thursday" again right about now.
Take a peek at the chart below for '78-'82 and you'll see we didn't really diverge from that path until the beginning of July.