Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
How to Capitalise on the Robots - 20th June 24
Bitcoin, Gold, and Copper Paint a Coherent Picture - 20th June 24
Why a Dow Stock Market Peak Will Boost Silver - 20th June 24
QI Group: Leading With Integrity and Impactful Initiatives - 20th June 24
Tesla Robo Taxis are Coming THIS YEAR! - 16th June 24
Will NVDA Crash the Market? - 16th June 24
Inflation Is Dead! Or Is It? - 16th June 24
Investors Are Forever Blowing Bubbles - 16th June 24
Stock Market Investor Sentiment - 8th June 24
S&P 494 Stocks Then & Now - 8th June 24
As Stocks Bears Begin To Hibernate, It's Now Time To Worry About A Bear Market - 8th June 24
Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown - 8th June 24
Gold & Silver Get Slammed on Positive Economic Reports - 8th June 24
Gold Summer Doldrums - 8th June 24
S&P USD Correction - 7th June 24
Israel's Smoke and Mirrors Fake War on Gaza - 7th June 24
US Banking Crisis 2024 That No One Is Paying Attention To - 7th June 24
The Fed Leads and the Market Follows? It's a Big Fat MYTH - 7th June 24
How Much Gold Is There In the World? - 7th June 24
Is There a Financial Crisis Bubbling Under the Surface? - 7th June 24
Bitcoin Trend Forecast, Crypto's Exit Strategy - 31st May 24
Zimbabwe Officials Already Looking to Inflate New Gold-Backed Currency - 31st May 24
India Silver Imports Have Already Topped 2023 Total - 31st May 24
Gold Has Done Its Job – Isn’t That Enough? - 31st May 24
Gold Stocks Catching Up - 31st May 24
Time to take the RED Pill - 28th May 24
US Economy Slowing Slipping into Recession, But Not There Yet - 28th May 24
Gold vs. Silver – Very Important Medium-term Signal - 28th May 24
Is Gold Price Heading to $2,275 - 2,280? - 28th May 24
Stocks Bull Market Smoking Gun - 25th May 24
Congress Moves against Totalitarian Central Bank Digital Currency Schemes - 25th May 24
Government Tinkering With Prices Is Like Hiding All of the Street Signs - 25th May 24
Gold Mid Tier Mining Stocks Fundamentals - 25th May 24
Why US Interest Rates are a Nothing Burger - 24th May 24
Big Banks Are Pressuring The Fed To Losen Protection For Depositors - 24th May 24
Another Bank Failure: How to Tell if Your Bank is At Risk - 24th May 24
AI Stocks Portfolio and Tesla - 23rd May 24
All That Glitters Isn't Gold: Silver Has Outperformed Gold During This Gold Bull Run - 23rd May 24
Gold and Silver Expose Stock Market’s Phony Gains - 23rd May 24
S&P 500 Cyclical Relative Performance: Stocks Nearing Fully Valued - 23rd May 24
Nvidia NVDA Stock Earnings Rumble After Hours - 22nd May 24
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Silver Bipolar Roller Coaster

Commodities / Gold and Silver 2013 Apr 15, 2013 - 01:41 PM GMT

By: DeviantInvestor

Commodities

You bought silver with high expectations! Then it crashed while endless news reports informed you that silver would drop even further. Frustration! Misery! Despair! Depression! You have lived it all. There was no light at the end of the tunnel.

Darkness and despair covered the land of silver. There was no joy in silver-ville.


But, then from the depths of despair and ugly bearish sentiment, a rally materialized. But, not just a small rally, a HUGE RALLY - TOTALLY AWESOME! The price doubled in a few months. Then it paused, scared some of us out, and rallied even further. You heard that silver was going to $100 or maybe $200 per ounce. Analysts outdid each other with higher and higher projections. You congratulated yourself on your foresight and financial acuity by investing in silver - sheer genius - forgetting that you almost sold out for a loss at the bottom. The manic phase is great while it lasts...

Silver rallied, and you waited for even higher prices before you sold. If you were rational or just lucky, you sold out before it crashed 25% in a week. If you did not sell out, you screamed to anyone who would listen, "they crashed it," and "I should have sold out before the crash," and "it's not fair."

Silver investing felt like a bipolar roller coaster ride - manic up followed by depressing down. You began to self-medicate with alcohol and wishful thinking. You sought out others who agreed with you, told you what you wanted to hear, and...

... it goes on and on.

STOP!

I repeat. STOP with the bipolar behavior, the delusional thinking, the self-medicating, and the emotionally debilitating ups and downs. It is not good for your physical, emotional, or financial health. Just stop, hit the silver reset button, and reassess.

  • Silver is heavily manipulated by the big players (JP Morgan, etc.) - what else would you expect? They are in the business to make profits, and their profit at YOUR expense is just fine with them. No need to worry about the DOJ, congress, or any regulators ... for obvious reasons. So just admit it, the price is managed and manipulated, the "fix is in," and that is exactly what we should expect. But, it is still a better investment than most paper.

  • Silver has gone up, from January 1, 2000 (a good place to start) to the LOW in April 2013 about 14% per year. One more time, what is wrong with 14% per year?

  • Silver rallied from under $9 in October 2008 to a high of nearly $49 on April 29, 2011. The next week it crashed to a low of about $35, briefly bounced, and then fell again to a low of about $26 in June of 2012, rallied to about $35 in October, and fell again to about $27 in early April 2013. That was a wild ride on the bipolar silver roller coaster.

  • Since 1971 when Nixon severed the already tenuous link between the dollar and gold and encouraged money creation to accelerate, silver has risen, on average. about 7% per year, compounded annually, for 42 years. It will go higher because the value of paper currency is almost certain to continue its decades' long decline.

  • Central banks around the world are printing money, expanding the money supply, and doing what they can to suppress the price of gold and silver. Given the financial mess they have created, what choice do they have? So expect money printing and erratic silver rallies to continue.

For your emotional and financial sanity and physical health, get off the bipolar silver roller coaster, buy physical silver, relax, and watch the spectacle as the central banks of the world drive the value of paper currency toward zero and the value of silver to $100 or $200 or $300 per ounce. You own it for insurance and to preserve purchasing power, so there is no need to fixate on the daily or weekly price, except to buy more at bargain prices - like now.

Again: Why do we own silver?

GE Christenson
aka Deviant Investor

If you would like to be updated on new blog posts, please subscribe to my RSS Feed or e-mail

© 2013 Copyright Deviant Investor - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in