This entry concludes my historical silver game. As I write this, silver trades at $20.36, having already met my target for 2008, and then some. It is one thing to reference history events, but no, my crystal ball will not try to predict events 28 years in the future. Predicting the Giants to upset the Pats in Super Bowl 42 was the absolute limit of my forecasting power.
As silver continues its parabolic rise, one has to think about the possibility of a short squeeze. With platinum above $2200 and palladium pushing $600, and most of the base metals near all-time highs, it is clear that silver and gold are still undervalued, even at these levels.
The analysts and pundits who say silver has gone parabolic, and this uptrend is unsustainable are correct. At some point there will be a sharp decline. It could start tomorrow, or when silver reaches $25, or perhaps silver will run all they way to $30 before we see a significant sell off. But in the long run, demand for physical metal will overwhelm the games being played on the COMEX. I think the danger of being out of the market and missing the rest of the bull market is much worse than the potential of even a waterfall decline in the short term.
As they say, get in, sit down, shut up, and hang on!
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