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Video: Silver Bubble 2011 Bursting

May 6, 2011 at 11:59 by Andriy Moraru

In this commodity trading video you’ll see the silver bubble of 2011 dissected. The author of the video explains different stages of the bubble — from the very beginning (so called Stealth Phase) till the end of the bubble (Blow off Phase). Another topic if this video is a Bull Trap — a special sub-phase of a bubble, where it looks like the commodity is going to return to its super-rally but eventually ends up falling farther. Silver was (and probably still is) a favorite public investment asset, second maybe only to gold. Despite the bubble burst, silver is still trading well above its initial pre-bubble levels ($15-$17 per troy ounce).



Video by Option Alpha.

If you found this video useful and want to see more videos like this one or if you want to see a commodity trading video on some other topic, please, leave your response using the form below.

17 Responses to “Video: Silver Bubble 2011 Bursting”

  1. tom

    How much do you want to bet with me that silver is never going down to $19.00?

    [Reply]

    enivid Reply:

    I won’t bet anything, but I’d say that chances of going to $19 are quite close to 50% now. But even if the bubble trend is gone, silver still needs to break below a rather strong support level of $20 to go to $19.

    [Reply]

  2. Fonestar

    You’re an idiot. There was no bubble, there was a concentrated attack on silver, as always orchestrated by the central banksters. Silver has since risen another 7% since then and will continue to rise to $100/oz++. Gold will rise to $2000/oz++. If you want to talk about “bubbles” and “herd mentality” look at all the idiots who will still accept WORTHLESS US Federal Reserve Notes!

    I was buying silver at $18, at $30 and I will still be buying at $100/oz. I will not sell my physical silver or gold for anything short of a family emergency. Oh yeah, a few billion Asians would agree with me. Buy physical, dump the dollar!

    [Reply]

    enivid Reply:

    US Treasury notes are trading rather stably, there is no bubble in their price. The US debt may be in a bubble, but not the treasury notes themselves.

    Did you avoid an opportunity to buy silver at $48/oz back in 1979?

    [Reply]

    Fonestar Reply:

    Yes, I did miss that oppertunity as I was one year old in 1979. In the 98 years of the Federal Reserve the dollar has lost 97% of its value. I am sure as you are that it is over now. It will just flatline right? Same with the Euro too I am sure.

    [Reply]

    enivid Reply:

    Don’t know where did you get the 97% value loss figure (I’ve read only about 95% since 1913), but it’s still kind of interesting:

    $100 invested in saving account at an average 5% annual rate 98 years ago would become $11,927.55 today. With 97% value loss that’s still $357.83 or about 258% gain.

    Buying an ounce of silver for $0.58 in 1913 would get it to $49.73 at its highest point, which with 97% value loss is $1.49, which is about 157% gain. And we didn’t count the storage costs here.

    Historical interest rate data source:
    http://measuringworth.com/interestrates/
    Historical silver price data source:
    http://www.kitco.com/charts/historicalsilver.html

    Fonestar Reply:

    95% or 97% but I am sure it is just about to stop and flatline right? I am sure the politicos are going to destroy the welfare state and balance the budget before an election right? What savings account gives you 5% interest these days? I would dare them to hike up to 5%, I would seriously dare them with already 40 cents on the dollar going to interest!

    But yes, I am sure all will stabilize as inflation is only “transient” as are human lives. Before long your nickel-plated steel Washington quarter will buy you a gallon of gas again. This I am sure of.

    enivid Reply:

    Of course, you won’t find 5% saving accounts today with the FOMC rate at 0%.

    Inflation won’t stop today but it barely has anything to do with the public debt and paying its interest. Countries with much lower public debt also have inflation that can be higher than the one in US.

  3. Fonestar

    Yes, and small wonder that these other countries also have worthless currencies, failed economic policies based on central planning and a manipulative upper crust of vultures that feed on the real economy (people who offer products and services). I am not some anti-american predicting the death of USD, I am predicting the end of a manipulative system that essentially robs the real economy. The cat is out of the bag, the front-running has begun and I can’t say I feel alot of remorse for those that do not heed these warnings and want to invest in a tyrannous system. Gold and Silver are sending a warning to those who are listening and it has nothing to do with a “bubble”.

    [Reply]

    enivid Reply:

    Hmmm… Then why buy gold or silver? After all they also can be manipulated and have almost no real value. Why not to switch to stockpiling coal, canned beans and gunpowder instead?

    [Reply]

  4. Fonestar

    Because Gold and Silver are money, real money. And again Billions of people on Earth would agree. BRICs will be releasing a new gold-backed currency. Don’t take my word for it, watch what people of Earth will flock to.

    [Reply]

    enivid Reply:

    Unfortunately, gold and silver isn’t money and cannot be used as money anymore. Gold- or silver-backed currency will kill the economy of a the host country, unless it’s some very small country with very low GDP and huge state-held gold reserves.

    [Reply]

  5. Fonestar

    …well it is making a big comeback tour and that is exactly what I am talking about. Gold is accepted as money throughout much of Asia. We live in an Asian century.

    [Reply]

    enivid Reply:

    Do they have specially minted coins for that or what? What Asian country is that?

    [Reply]

  6. Fonestar

    No, there is currently no circulating gold or silver currency in Asia or any other country on Earth. Part of the reason is that countries that try and un-peg their currencies from USD find themselves invaded shortly after. As global hegemony subsides that too shall subside. The question people need to ask themselves is whether they want to be left holding worthless paper or be left holding Gold and Silver.

    And if Gold is worthless why did China amass 600 tons of it recently? Why is Russia stockpiling it? Why not beanie babies or baseball cards? Seriously, North Americans better wake the hell up before they are literally crushed in this new economy.

    [Reply]

    enivid Reply:

    Very few countries still have their currencies pegged to USD (Hong Kong dollar is the only fully pegged currency that comes to mind). More than that, the US is pressing rather hard on China to make them un-peg the yuan from USD completely. And they don’t want to do it not because they are afraid of the US invasion…

    And they amass USD and other currencies too. BTW, while some countries increase their gold reserves, others sell them. http://www.gold.org/government_affairs/gold_reserves/ shows that the net change in global central banks’ gold reserves switched from negative to positive only recently and is still very small.

    [Reply]

  7. Alan

    Another 1980 crash on the way, goldbugs never learn, they’re so obsessed with banksters, the USD, and imaginary manipulation they miss the obvious. Look out below.

    [Reply]

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