It is starting to look like there is great weakness in the silver and gold bubble that started nearly one decade ago. Recently, the price of silver has plummeted, which commentators have said is partly to do with the COMEX (CME Group’s) margin hikes. An increase in the cost to buy silver on the futures market means the most aggressive buyers and sellers alike have to unwind their positions.
Is the silver bubble bursting?
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Precious Metals
bubble, commodities, silver, SLV
Is it any surprise that gold and silver were rising as they were ignored, and have been falling when they become recommended? Not really.
In fact, the reasons for such a movement are generally pretty simple: institutions ride the wave up, and they exit by selling off to retail trend followers. We’ve seen this phenomenon happen time and time again, and commodities are no different than are any other investments.
Risk is Gone
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Investing, Precious Metals
CVX, GLD, gold, Precious Metals, silver, SLV
There is something to love about great business models. Two companies I love, Amazon and Netflix, have interesting businesses and great corporate executives.
But as for Silver Wheaton, I think I’m just in love with the execution of a high-risk, high-reward business that requires no physical effort. Read more…
Business
ACQ, DBS, SLV, SLW, ZSL
The FDICs call for a bad bank to wipe away all bad assets from bank balance sheets may sound great at first but creating a bad bank doesn’t end the problem. Instead it transfers the loss from private companies to the balance sheet of the government. Read more…
Round Up
FDIC, GLD, SLV
