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The Bubble in the ‘Precious Metals Bubble’
With prices of gold and especially silver going wild lately, we were amazed to hear the word ‘bubble’ so many times when talking metals with investors over the weekend.
When we returned to our desks on Monday, the same déjà vu feelings overwhelmed us when researching the news outlets on the precious metals topic.
Here’s a screenshot of what we are talking about…
The news and message boards are overloaded with precious metal bubble talk!
To confirm our observations, we always double check the Google bots.
Here’s an overview of some keyword Google results:
That’s a huge difference in returning results in silver, but it’s even more confronting for gold:
We went to Google Trends to visualize what a bubble in ‘precious metals bubble talk’ looks like:
So there you have it, it’s bubble-time for the bubble-talk in
precious metals! And we all know what that means: we are far from the
ultimate top in gold and silver.
Of course, it’s true that both metals are currently in correction
mode. We hope that gold corrects to $1,300/ounce and that silver falls
below $40 per oz. Investors should avail themselves of the opportunity
to accumulate physical gold and silver at these levels.
Finally, it may be surprising to see that silver equities, especially
the juniors, have not participated in the frenetic rise of the white
metal. It reflects the scepticism on the part of equity
traders/investors about the sustainability of silver’s rapid price
increase, which once again underscores the fact that there is no bubble
in precious metals.
If there really would be a bubble in silver, the stocks of the
miners, and especially the explorers, would be going ballastic around
this time!
On the contrary, silver mining stocks have lost about one-third of
their value relative to silver bullion since early December of last
year. This is shown by the graph below. Indeed, the stocks have crashed
relative to the underlying metal.
This creates many opportunities for investors in silver equities. We
believe the market scepticism is not warranted and that silver equities,
especially quality juniors, will eventually catch up. There are always
opportunities in these markets!
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VOLATILITY BITCHEZ!
Learn it, Love it, Ride it
Or just own physical, and unplug all the idiot boxes.
Gold:
The ultimate unbubble:
http://fofoa.blogspot.com/2009/12/gold-ultimate-un-bubble.html
Selling something you don't have, you must buy back later to meet the contract, no exceptions..
When Short sellers can't get their hands on the commodity, known as a ''squeeze'' in the trade and the price consequently rockets temporarily.
De Facto there is a Bank Run on (paper) Silver
Osama is alive : 0 results. But then I don't google or yahoo, I just type, avoid hype and don't smoke a pipe; never given a dick van dyke a peep up his/her hosiery. It wouldn't be cricket.
Moved out of GDX and into SIL yesterday afternoon. Glad to have Sprott and this article supporting my decision.
we will see how much money the fed has really created once this collapses. it won't matter for your carry trades if $ yields zero when your long is 20% down. sure they will bail some players out (banks) but they don't give a f*ck about hedge funds or small fish. and by the way, go back to 2008 - silver and gold had a big correction about 3 months before the rest of commodities/EM/anything-but-dollar assets collapsed.
Bank debt is king.
BTFD on gold and silver!
Google Results
Dollar Crash - About 93,100 results
http://www.google.com/#hl=en&sugexp=ldymls&xhr=t&q=dollar+crash&cp=4&qe=... Silver Crash - About 41,200,000 results http://www.google.com/#sclient=psy&hl=en&source=hp&q=silver+crash&aq=f&a... Conclusion: You're safer holding dollars. Naaaaah , I'll keep my silver :)There are 7 stages to a bubble. The bubble heads on CNBS couldn't name any of them!
Link to Minsky's http://www.pacificviews.org/weblog/archives/003679.html
Right now here is how many people are in gold:
http://2.bp.blogspot.com/_jmjpa05iMeQ/TLTSSUeWiCI/AAAAAAAAAHs/QhfT6XC7Kc...
Lastly, COMEX IMO will default.
http://4.bp.blogspot.com/-eXdAKtzlGZQ/Tb9OuWOyMfI/AAAAAAAAQoo/Dq4N7UlARg...
If you type:
Smart Money Europe Gay = 751.000 results
http://www.google.nl/#hl=nl&biw=1388&bih=768&q=Smart+Money+Europe+gay&aq=f&aqi=&aql=&oq=&bav=on.2,or.r_gc.r_pw.&fp=d1f2ce7f01a76470
Smart Money Europe stupid = 683.000 results
Smart Money Europe fraud = 748.000 results
and more scarry:
Smart Money Europe incest = 41.000 results...
Smart Money Europe beastiality = 19500 results...
would you like to elaborate on these last 2 searches or do we just need to call the cops on you?
Also, people seem to care more about stuff like this:
Parot on a stick = 8.650.000 results
http://www.google.nl/#hl=nl&source=hp&biw=1405&bih=768&q=parot+on+a+stick&aq=f&aqi=&aql=&oq=&bav=on.2,or.r_gc.r_pw.&fp=d1f2ce7f01a76470
Talking cat = 973.000 results
http://www.google.nl/#hl=nl&biw=1388&bih=768&q=talking+cat&aq=f&aqi=g10&aql=&oq=&bav=on.2,or.r_gc.r_pw.&fp=d1f2ce7f01a76470
Obama is a muslim = 109.000.000 results!!
http://www.google.nl/#hl=nl&biw=1388&bih=768&q=Obama+is+a+muslim&aq=f&aqi=g1&aql=&oq=&bav=on.2,or.r_gc.r_pw.&fp=d1f2ce7f01a76470
IDOL 2011 = 148.000.000 results!!
http://www.google.nl/#hl=nl&biw=1388&bih=768&q=Idol+2011&aq=f&aqi=g-s8&aql=&oq=&bav=on.2,or.r_gc.r_pw.&fp=d1f2ce7f01a76470
CONCLUSION:
YOU ARE A IDIOT!!
You need a Bayesian filter so you can better use those inferences.
Apple up 800% yet you never hear the word Bubble from CNBSABC. Where is Roto touting this load of Apple tripe? Did he fall asleep at the wheel or has his Mother finally beaten him to his senses?
If you type "Bubble Apple" in Safari, the system crashes :)
Once they print the Jolly Roger on the hyperinflated dollar bills and morality is at par with the US productivity, people will understand the truth!
The junk was for SHOUTING
YOU LITTLE!!!!!! AAAARRRHHHH!!!!
FRNs are in a bubble. That is why all of this is happening. It is called "destabilization".
.
I can almost see the sweat-drops of levered desperation that went into writing this crap.
Sub forty would be legit. Every extra ounce of physical counts.
running the same google test i'm getting the same results for the "bull market" but only 200k each for the "bubble". plus "bull market" is a very specific wording, try "buy silver" and you will get >300m results. also, try just "silver" on google trends and you will see a bubble. now it's only natural that every bubble attracts so many opinions, of which yours is just one in a million.
Like they say:
If you think your opinion is one out of 1 million
you should realize...
That in China there are 1.300 people who have the same to say and 7000 people worldwide.
Waiting for sub forty.
Gold Bubblicious - "It's the ultimate bubble"