Silver prices for immediate delivery fell by 1.4% in London today, while platinum fell 3.9% and palladium dropped by 2%.  Gold also fell for the second day running. This from Bloomberg.

Silver for immediate delivery fell 24 cents, or 1.4 percent, to $17.19 an ounce in London. The metal will trade at $17.20 in one month and $16 in three months, UBS forecast.

“Rising supplies are forecasting a sizable silver correction,” says Eric Roseman in The Offshore A-Letter.

“Thus far in 2008, gold prices have risen just 8% while silver has rallied 15%. The fundamentals, however, don’t support silver’s higher returns this year. Silver remains a viable long-term speculation. But it’s not primarily a monetary metal and worse, supplies are no longer in deficit.”

However, the outlook for platinum is much brighter, says Roseman: “Platinum is by far the only precious metal threatened by a severe shortfall in production in 2008. Prices could double over the next 12-24 months.

“South Africa, where most of the word’s total platinum supply is mined, continues to suffer from severe production bottlenecks. Strikes, power outages, a plunging rand and soaring input costs have hammered platinum production since 2007.”

Silver investors shouldn’t panic, however, says Doug Casey in Casey Research.

“The beginning of another correction? No, says Mark O’Byrne, of Gold and Silver Investments Ltd., who wrote that, ‘Gold was up 3% last week and silver surged nearly 8%, and thus profit-taking would be expected in the early part of this week.’”