I do not mean to be curt with you, but you should short silver with all of the muster you can bear–immediately. When is a good time to short silver?
Anytime.
Consider this: silver sucks. Even more so, silver miners are the very worst investments over the past 12 months, save fraudulent education scams.
Do I have proof?
Of course!
One of the many things creative people do when they are bored is build things. Unfortunately, my creativity has been stymied over the past year due to the never-ending, tedious, development of PPT 2, which I am told is no more than 50 years away from completion. Nevertheless, before iBankCoin became moribund, stuck in amber, I developed a tool (still in BETA aka not for public use) that tracks correlation between individual stocks/industries to the S&P 500.
Observe silver.
Look at the last column and you will see that silver has underperformed the SPY by more than 40% over the past 12 months.
The raw commodity itself faired better, but still sucks.
The underperformance is 14% less than what the dastardly miners have ccomplished, which proves my points exactly.
What are my points?
- If you must own silver, buy silver and not a miner.
- Silver sucks.
- The trend is your friend.
Disclosure: I am short AG
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I must disagree with you. Silver may dip a little more but it’s going to begin to move up hard very soon.
Everything bounced, even Chinese burrito stocks.
The point I eloquently made was two fold.
1. Silver the commodity is better than stocks.
2. Silver has been a serial underperformer over the past year, regardless of bounces.
I never question your eloquence. That is truly unparalleled in these parts.
I agree with point 1. Silver stocks have been turds and may continue to be. I was speaking solely of the metal.
With respect to point 2, I also agree that silver has been shit for the past year but after the huge run up and blow off in 2011, that can be expected but I think the physical market will start driving it higher soon.
kicking senator cement head when he’s down
As you know, my kicks will have no effect on the good Senator.
naturally
Refer, rather, to the inelegant yet effective Buster Keaton films of the late teens and twenties.
Wherein, Mr. Keaton aims a kick and ends up kicking his own underpants.
And of course, Mr. Keaton pioneered the art of stepping down into an open manhole.
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Immediate term, who knows. The tell is SLW. SLW leads on the way down, and spiked to a low around 22-23 when silver traded down to 26 in 5/2012. Then it led on the way back up, and had continued to trade above the silver price since. It’s telling is the silver lows are good lows, and that the next large move is up, not down to new lows. That said, we may see a 27 handle on silver before we move back up.
Ben will not allow commodities to rise again, ever. As we speak oil is tops on his Action Item list.
A $B bribe to OPEC to bring the Bbl to 80 is not out of the question. And throw in a some F-4D parts to Iran to sweeten the pot.
Watch out for newly minted, non-Ben controlled Petro-Bux, coming to a non-US based national capital account near you soon!
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Silver is stupid. Buy BRK and WM; godfather plays.
Such a sandwich eating kind of day
Art and Tim are busy unraveling Steve’s company. Let’s see how low it can go. 350?
I surely know that when I buy commodities, I always want to enter short at the nadir of an 18 month bear cycle within a 15 year bull trend.
When I’m done with that, I also enjoy having my hands amputated by bearded mullahs.
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