Monday, February 28, 2011

CNBC's "Case" for $130 Silver (SLV)

Via Zero Hedge.

I'll spoil it for you: silver rose 3500% to the Hunt Bros peak in 1980 and if it rose 3500% again it would hit $130.

"What goes up must go up."


CP said...

P.S. Making fun of the silver bubble feels just like making fun of real estate in 2006.

Kid Dynamite said...

what's especially ironic is that the % gain quoted was marked to a super-spike. By that, I mean that none of the guys holding trunk fulls of silver coins were able to sell there... and if it spikes briefly to $130, the current crop of silver crazies won't be able to sell there either...

I am long SLV, by the way... and terrified - because I see the craziness on the same side of the trade as me.

getyourselfconnected said...

KD an all, the metals are a barbarous relic, trust me they are not owned in size.

CP said...

Huh? You think the little guys are the only people long precious metals? YOu know there are funds with 5-10% positions, right?

Stagflationary Mark said...

Kid Dynamite,

That super-spike was also fueled by gold being kept below market prices for so many years. True gold bugs seem to think it is still being held down and manipulated. If anything I would argue the opposite.

Where are the aluminum speculators?

That said, if everyone shared your level of nervousness it would certainly make for a good wall of worry. I owned silver from 2004 to 2006. I was nervous the entire time!


At today's prices there's roughly $7.5 trillion in gold floating around in the world right now.

Taylor Conant said...

"Well it's all just a little bit of history repeating..."

I was going to quote some Latin for y'all but I didn't want to be a totally pretentious douche. So I decided to stick with a lyrical fragment from a song that has since been co-opted by the homosexual community. (Not bashing members of that community here, just trying to describe the song I am thinking of, whose name I do not know.)