m22au's journal

Any idea why silver is up 15c?

This is still 48% of assets for me, Have been long all year, huge winner for me. Just wondering why the move. No complaints.
 
Nothing that isn't new to you Harris, all I can do is suggest one possible "reason" - that it is breaking out to levels not seen since the Warren Buffett highs of 1997-1998.
 
I bought a good sized chunk in a few nanotech names (just for a daytrade). I hear that a few hedge funds will mark these positions up into year end. Charts make that believable.

Funny offsetting positions of beta and bearish hedges.
 
Well $6.24 looks a bit frothy in the short-term, but then again that's what I thought back at $6.00 last week.

Again, I'm not selling, and I'm waiting for lower levels to add.
 
I've just seen this - very interesting.

I am going to nibble at some silver pretty soon, as it has almost come back to its recent low at 6.16. I think it may break below 6, but I want to get back at least a moderate position. If it moves lower I can then put on more size.

One factor is that silver has so little physical supply relative to gold. Silver also started its bull run much later than gold and is now playing catch up.

I think there may be an attractive spread trade here - buy silver, short gold. If precious metals continue their bull market, silver should gain much more in % terms. Whereas if you get a correction, silver appears to correct less in % terms than it moves up on rallies.

Examples: selloffs - 3rd Oct 2003, Gold down about 3.5%, silver down just over 5%; today gold down 3%, silver down 3.5%.

Rallies - 12th Nov silver up 5.1%, Gold up 1.8%; 5th Jan Silver up 4.7%, gold up 2.2%.
 
The way the NASDAQ, S&P etc are blowing past resistance
makes me think the US began a new bull market in March as
opposed to a bear market rally.
 
The way the NASDAQ, S&P etc are blowing past resistence makes me think people didn't really learn much from the 2000 to 2002.

It also makes me think we are in the middle of a big credit bubble - for more info see Doug Noland's brilliant weekly column at prudentbear.com

Quote from Chipdude:

The way the NASDAQ, S&P etc are blowing past resistance
makes me think the US began a new bull market in March as
opposed to a bear market rally.
More...
 
Update:

Still long silver and I bought a small amount more yesterday in the 6.70s

Reasoning: The short version is that I agree with p2's rationale on a gold thread - the Fed will not raise rates as high as they need to be in order to attract capital inflows to finance the twin deficits.

I could write thousands more words, but that will do for now.
 
You must log in or register to reply here.
Back
Top