Gold And Silver In A Bubble?
April 8, 2011 by Bob Livingston
At this writing, silver is $39.57 and gold is $1,459.86. Silver and gold are not in a bubble and should be bought. Before this market is topped out, precious metals will be much higher.
Paper money and all fiat currencies are in a bubble. The people who are saying that silver and gold are in a bubble are talking their book.
They are betting against gold and silver by shorting the market, or either not buying it.
As we have cautioned many times, do not invest in any kind of proxy for gold and silver, meaning any kind of scheme, exchange traded fund (ETF) or any type of “storage or security” system. Keep your metals in your possession at all times, the same as you would your firearm.
In my wide reading of the metals market I am reading about silver being in backwardation.
This means that many forms of silver are not available at the retail price.
The U.S. Commodity Futures Trading Commission (CFTC) is considering rule changes that would set limits on the amount of shorts that can be bought. This would limit the manipulation of the gold and silver market by the big bullion banks like J.P. Morgan and Goldman Sachs. Many writers believe that this will make the price of silver and gold explosive.
Normally speaking, silver and gold are due for a correction and I believe it will substantially correct. Just always keep in mind how much and how fast it has gone up.