Silver

What Happened to Silver?

It seems like ages ago that silver was the talk of the town. As silver spiked towards $50, the expectation was for the outright collapse of our entire monetary system. That didn’t occur as planned; as usual, before a bull market make its biggest move, the believers need to disappear. That’s the process occurring as we speak. If an asset is trading within it’s normal range, it is generally not interesting…

Fakeout Moves Before the Gold Rally

I look for fakeout moves. For example, following the “fat finger” waterfall crash last year, there was a major rally. The spike rally in silver earlier in the year was a fakeout move in reverse. Sustained rallies and sell-offs tend to last longer than people expect, but eventually the opposite trend emerges. The market gets just enough people bulled or beared up before a suckerpunch move. This is what makes…

Rising Volatility Ahead

I think we’re entering a period where it will be very hard to make a return. This is not necessarily because asset prices won’t go up, because they will. It’s just that volatility is going to be substantial as the big money unloads their inventory of government bonds. Just as in the recent spike rally in silver, a lot of people will find themselves buying when they should be selling,…

Market Boredom and QE3

The markets are officially boring me to death. Gold and silver have stemmed their dramatic declines to an extent, and this is giving people the courage to buy. I still think it’s a little early, but buying here is not the worst thing in the world. I personally would love to see another month or so of consolidation. I get the sense that the next important period for the markets will…

How Low Can Silver Go?

The volatility in silver is something that a lot of people can’t handle. When I first invested in silver, I was focused on hour-to-hour and day-to-day movements.  As such, the volatility in silver was the cause of a ton of stress, even if I traded the moves well. Now, with a little more experience, I am less concerned with day-to-day movements in silver. Believe me, there is logic to my change in…