For bubble enthusiasts, I offer this chart of silver in today's dollars. Chartists would note that silver is going hyperbolic, and that's quite something since the y-axis is also logarithmic. Caveat emptor big-time. As with gold, speculators may make a quick 70% or so as prices soar to prior highs in real terms (bear in mind however that those previous highs for silver were quite artificial, since the Hunt brothers had managed to briefly corner the market), but the reversal that could follow in its wake promises to be breath-taking. This is heady stuff and only for the most steeled of professionals.
Investor confidence in real estate and equities markets remains shaken--and some investors are turning to financial alchemy, or gold and silver.
ReplyDeletePoor leadership in the USA, and a house-of-cards financial system make shiney metals attractive.
Still, I suspect there will be gathering investor confidence for conventional investments for years and years from the current low point.
As conventional investments gain steam, gold and silver will lose their lustre--and not just for a season, but possibly for decades.
I like risky bets. I go to the racetrack sometimes. I am over 55 and I have never had a physical examination (I like to taunt my wife with that).
But I would not buy gold now.
Some are calling silver at $150 parabolic. This could be nothing more than silver catching up...
ReplyDeleteIt could be a wild ride with gold and silver options expiring April 26.
ReplyDeleteThis comment has been removed by the author.
ReplyDeletex
ReplyDelete