What is undeniable that precious metals, over the long-term, are an under-performing asset relative to the stock market. I'm not a catastrophist - not with the weather, and not with the global economy. I think over the long-term, precious metals will continue to be an under-performing asset.
But it seems the fundamentals of silver (industrial uses, supply/demand, explosion of the monetary base) quite positive. therefore a break in prices would be only temporary.
The Internet or Dot.com bubble was due almost exclusively to emotion as opposed to fundamentals, wasn't it?
Bubble? Gold and Silver Freak Out Index.
I think it is representative of global expectations of the destructive force sitting in the White House. Once those expectations are relaxed, then the wealth commodities will normalize.
I was in an antique mall in Kentucky last week. They had silver half dollars priced at between $12 and $15 and quarters at $6. I bought it all for $450. Not a lot, but I’ve been doing this sort of thing for a year now. It is adding up.
I don’t think these sorts of outlets are set up to handle the rapid changes in price.
No, it’s not a bubble. Gold and silver have been making new highs regularly (silver still 30-year highs), but you hardly see much excitement yet. Small headlines on the financial pages, small notices on Drudge (who is aware of the damage that Obama is doing to the economy).
Nothing like wild excitement yet, of the kind you saw going into the last highs in 1980.
I’m heavily into gold, silver, and a few rare earth stocks, and some uranium (which took a hit with the Japanese disaster, but now seems to be coming back). I figure we’re only about half way to the top, timewise.
Of course the media is unwilling to do anything to make Obama look bad, so they don’t like publicize this—or the price of gas at the pump, which is pretty much ignored—except when people drive in to fill up their cars and can’t help noticing it!
Silver is temporarily overbought. If you bought low and are in it for the long term, no big deal.
What this guy is missing is, Gold Shot up and Silver stayed flat, It was only a matter of time till Silver had to sync back up with Gold.
On my charts, Silver is still behind relative to Gold’s Increase over the last 6 years.