When people think of insane pumps and bubbles in markets, they tend to think of bitcoin, but everything that crypto ever did was just a pale shadow of the metals markets. Even some of the terminology is the same: digital gold/silver, mining etc. What we're witnessing in silver right now is the daddy of crypto finally waking up again, and the great thing is we can here apply lessons learned in microcosm in other markets which move in much more rapid cycles.
Silver is now in a much anticipated breakout of a 45 year holding pattern, and it's only really about 3 months into the major move. After 45 years of suppression, this move could last a lot longer, and go way beyond what people expect. It seems like even the most die-hard precious metal bugs are getting nervous now, thinking it's too much too fast, and it looks like they are underestimating it. We may soon be looking at $300/oz+ silver prices as a daily reality.
Still if that happens, the ride there will be extremely wild, with real potential of -30% moves in a single week. I'd expect there to be some FUD story at some point they use to trigger, like "somebody found a way to make electronics with zero silver", or to borrow a joke from Francis Hunt, "oh look there's a million ton asteroid of pure 99.999 silver, and it's on course to crash right through the front gate of Fort Knox!"
Those will be opportunities IMO, if they show up at this stage at least. It could even crash to $58 tomorrow and still look super healthy.
Another thing still not well understood is how much inflation we've actually had in the past decades. They're crude methods to get the picture, but if you chart silver over even the official CPI, it's nowhere near the 1980 peak. If you chart it over M2 it hasn't even surpassed the 2011 high.
www.zerohedge.com
