By some measures, it’s already as bad as 2008 was, just not as quickly. Silver has been cut in half again, every moving average has been busted again, HUI-to-gold ratio is even worse, etc.
The old saying, “markets can be irrational longer than you can remain solvent” is even more true when they aren’t even markets any more but just a sequence of obvious and even admitted central bank interventions and manipulations.
“The old saying, “markets can be irrational longer than you can remain solvent” is even more true when they aren’t even markets any more but just a sequence of obvious and even admitted central bank interventions and manipulations.”
There are no free markets anymore. Currencies are manipulated, stock markets are manipulated, commodities are manipulated and real estate is manipulated. Either governments, multinational organizations, or megabucks/securities firms are moving markets to the benefit of insiders. The average citizen will be fleeced no matter what. Unfortunately investing is a fools game and holding cash is a fools game.
As a very long time silver owner, I don’t really consider silver to have been “cut in half”, because the almost $50 mark set a few years back was so transitory it in essence “never happened”. Of course, it DID happen and in no way am I implying you or anyone else is delusional. I saw it, you saw it, the world saw it. But it was so transitory, it was uncatchable...except for buyers/chasers. I was super lucky to have sold some when the price was well over $40, but because the form factor of the silver I sold then was sterling flatware I had gathered over many years, by the time the refiner got it and settled me out, I “only” got about $39.50. This happened in the 1980 spike as well. The refiners knew that the price would not last and with lines of folks around the block trying to sell candlesticks, etc; they got overloaded. Very, very, very few folks rec’d over $35 at that point. Just trying to supply some context. I am not a “never sell an ounce” guy. I’ve sold silver at $8, $18, $28, and $39.5. I’ve also bought it back, but again, not much over $30. My own delusion is that I don’t believe silver ever got over $35 this last time. As such, I would encourage the dismayed among us to measure the whack from $35. Still big, let there be no doubt.
I’ve been a tad concerned over the price of Ag for a while. The chart even before Friday looked just horrible.
I remind people of two things: Silver did not leave $10 decisively behind until 2009 and it spent about 1/3rd of 2008 well under $10.
I am expressing no opinion as to the future price or direction. I have bought silver at every price between $5 and $35 but I really really slowed down above $28 and I suspect what I own, I own at about $15-17. That does not help recent buyers much, and don’t get me wrong, I’d be plenty pissed to see prices much lower than here. But I absolutely know the proper reaction is NOT to sell out. Nobody ever made money panicking. Silver is a fiendishly volatile item and always has been. We live in a world of floating currencies and the USD is at present the worst bad one. If you want to buy and sell silver as a trading matter, it’s crazy to do so with the physical because the spreads will kill you. That’s what SLV is for. This implies that he/she who wants the physical in their possession is not a flipper. If the reasons you/they/I bot silver in the first place are still in place, then that’s what should be kept in mind.