Silver Rally

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Our newest batch of silver cheerleaders just had their heads handed to them. I’m not surprised; they were selling washing machines at Wal-Mart three months ago and only appointed to "GURU" status lately. They got everything wrong. Thanks to them, the silver bulls have lost over $2 billion in 10 days.

So as I said on April 25, 2011,

  1. Parabolic charts mark tops and brutal declines
  2. A record high bullish consensus marks tops
  3. This time is never different, silver "GURUS" or not

For those buying the Sprott Silver trust on April 25, you are down 44% in ten days. Silver is the most dangerous commodity to invest in and if you love the climbs, you will hate the waterfall declines. Silver is the best short in commodities again.

For those who think buying silver is an act of patriotism, you are down a mere 30% in a week from the top at $50. Wasn’t it Samuel Johnson that said, "Patriotism is the last refuge of a scoundrel?" He got it exactly right. I know of only one valid reason to buy gold or silver and that’s to make a profit. But what do I know; I was just the guy warning 6 weeks ago that silver was getting frothy?

Of course, if you were buying silver to take down JP Morgan, you had another silly reason to own something. Did you really think you could outspend Jamie Dimon? A good friend of mine, Puru Saxena was mocked by someone having a cartoon made with his name on it showing he had his head up his ass for daring to predict a bloodbath in silver. I guess we all know just who it was that had their heads up their asses.

Silver is a commodity. It shares some monetary aspects with gold but like gold, it is not money for now. Maybe it will be someday. But when all the cheerleader idiots out there try to turn it into some kind of weird cult or religion like the Nasdaq in March of 2000 or Real Estate in 2006, you know it’s time for money to move from weak hands into strong hands. When the bozos writing about silver start talking about how silver is moving into strong hands at $50, you know it has to be a full moon and either the world has lost its mind or they have. If buying silver at $50 is the act of strong hands, doesn’t that make buying silver at $4 the act of weak hands. Sorry guys but you have life in a blender.

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