How do you spell bubble?…S I L V E R

The Silver market is within months, or even weeks, or even days of a major top.

The Silver market has entered a classic blow-off top. There is no question but that Silver is a bubble in the making…and will soon be a bubble in the breaking.

The similarities between the current exponential spike in Silver and the Nasdaq in the late 1990s are striking. While Silver could surge significantly higher before the top (driven by investor mania and CFTC-sanctioned cornering /short squeeze maneuvering), perhaps even to $60 or $70 per oz., the odds are very high that Silver will be back in low teens within the next five years.

Silver currently is right in the blow-off sweet spot that drove the Nasdaq from October 1999 to the March 2000 high. Once again the individual investor will be burned badly.

Millions of investors have bought into the idea that the Silver is the best thing going – that between global supply and demand factors and a hedge against paper currency, Silver actually deserves to be priced at current levels. There are actually web sites touting $200 and even $1,000 Silver prices.

The Silver market reminds me of the mania surrounding the Nasdaq – just prior to the start of its 81% decline into 2002. Do I think Silver could experience an 80% decline? Absolutely! Of course, the shorts could go broke before Silver finally tops, so I have no desire to step in front of this run-away train.

Many of the investors in the raw material markets today are unfamiliar with the boom-to-bust-to-boom-to-bust nature of the commodity markets. So, if this is you, enjoy your profits now, because if you are a long-term bull on Silver, your definition of “long term” is likely to be redefined in the decades ahead.

I am also including a chart of the last grand bull move in Silver. A picture is worth a thousand words.

In the commodity markets, what goes up will eventually come down.


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Trackbacks & Pingbacks

  1. […] another very interesting perspective on the silver price came last week in this item from the blog of trader Peter Brandt in which he asserted that silver has already entered the last […]

  2. […] to a strong human interest, I have a had a moderate financial stake in silver during its potential parabolic blow off top. One can read Mania’s, Panics and Crashes until his eyes glaze over, but until you are […]

  3. […] to the people on Stocktwits that nailed the top. I am out of that game. Best timing for a blog post on our network was Peter Brandt. READ the last 6 or 7 posts after that. GREAT lessons and insights. I link to Peter because he is […]

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