Sunday, April 24, 2011

The Silver and Gold bubble

After sitting down with a colleague today discussing PM's, the economy and where this is all going, I came to a conclusion: other than him, I know of two other people who own physical (outside the silver world I live in). TWO!

Folks, we are at 5000 years highs in both metals. I look back to the tech bubble to try and compare this. My colleague said, "Shit man, on any given day anyone I talked to knew the closing price of nortel."

I ask you this: if I was to go downtown right now and ask 100 random people, how many would know the closing price of silver for friday?


Then we got talking about banks, hedge funds, etc. Are they buying? No.

So if banks, sheep, hedge funds, and JP Morgan are not buying...who the fuck is sending this into "bubble" territory?

Will we have some sort of gay, psychological, algo black box selling at $50 and $1500. Sure. Does this mean its over. Fat fucking chance. Bottom of the 4th tops.

I'll stick to my $75 silver by New Years Eve. And guess what? Thats still lights years away from its inflation adjusted 1980 price. We are getting fucked here people so bad we dont even know it. I mean, do you know how easy it was for a stock to go from $1-$200 in the tech boom? Did you know that Amazom was a Billion $ company before they even had there first quarter report?

Stick with the guys that know whats going on. Look at it this way; those that know whats up will be praying for a selloff to buy more physical, NOT waiting for it to go up to buy more. This is clearly NOT a bubble or anything anywhere near it. The only bubble remaining to be pooped is the $US as, that, in my humble opinion is still overvalued by 100% of its current value.

Keep stacking, and keep praying for a selloff to buy more. $50 will look like pocket change a year from now.


  1. Owning physical is no longer a luxury's necessity.

    When the Chinese openly declare they are selling off 2 trillion in paper and PIMCO has already sold all of its US treasuries...why do we seen the think we know better?

    These folks will be taking their TRILLIONS and buying hedges with the money they get back and silver are already announced...expect them to invest in source companies so they own the commodites from the ground up... all across the commodity spectrum.

    The only move that is a loser is sitting on paper money or heaven forbid locking it into a fixed return instrument of any kind!!!!

  2. SGS - Keep stacking, and keep praying for a selloff to buy more. $50 will look like pocket change a year from now.

    I have been waiting for someone to say this. I'm buyin more physical and prayin for a pullback at the same time. I'm selling everything thats been schlepin along in my IRA and increasing my PM exposure to about 70% and the rest is going to Ultra short QQQ. Ride the waves !

  3. Hey the TV talking heads are claiming its a bubble and to sell. George Soros says its a bubble too, but he quietly has been buying it up lately.

    I don't know anyone who owns silver, and when you suggest it they look at you like your waving your penis at them.

    Everyone is buying mutual funds and RRSP's, I know one who is buying Treasury bonds haha.

    Listen to Lindsey Williams, he says buy every bit you can get your hands on, you would be wise to do it.

  4. I wonder if the Fed is going to bump us the US$ because of the news/warning from China. Hmm...?

  5. Soooo, got a 0% APR until April 2012 credit card coming in the mail. Is it a no brainer to load up on silver on this CC with a year to go before having to pay any interest or is that insanity buying physical on credit...kicker is the bank is JPM

  6. SGS, as always I appreciate your rough, but coherent analysis. Bravo sir.

  7. I was asked by people who's driving silver price this high while they could not find a source in COT or sth. Well big guns no longer shop at CRIMEX no more knowing it's all fraud. They do deals under the table directly with the mining companies so they choke Morgue off right at the source, which is why there's tightness everywhere.

  8. OT ---
    I recall reading a comment on a top science web site a couple months ago and they asked how will we communicate to aliens when they finally land, presumably they will be a million years more advance than us. What will be some of our cultural, philosophical, technological and artistic accomplishments and who will represent human civilization when they land. Some bright very, very, very bright light said Lady Gaga should be our ambassador because she represents the human race and all our accomplishments! I said I am not worthy to unstrap her sandals! Please let me clip her toe nails and paint her nails in preparation and let me lie down so she can step on my head as she leans forward to greet them. This is the society we live in, so don't be disappointed when the dollar rises tomorrow when the world finds out China is Selling $2 Trillion in Treasuries. This should be followed by a record triple digit jump on the NY Stock Exchange. Welcome to the Wonderful World of free FED money. A world where all your dreams come true!

  9. I've been buying physical since $14 and made my last purchase at $41. It has been a fun ride so far and always nice to be on the right side of what should be the best investment this decade. Unfortunetly, I still have to go into my shot job tomorrow because I don't know how to maximize my silver trade with options etc. Any advice from anyone?

  10. I've made a total of 3 converts in 10 years in the "outside" world. One of them took 3 years of persuading to convince to buy gold and silver.
    I've always said I'll know a top is finally near when the guys at the gym start telling me to invest in gold and silver. They're all still talking about football and watching Cramer now.

  11. Did anyone ever get their Canada Box of Bears? How long did it take?

  12. Irrational exuberance? I think not. Over bought? Over owned? Over speculated? Right.

    In celebration of Easter, the wife and I watched Passion of the Christ. How fitting is it that Judas sold Jesus out for bag of 30 silver coins? Amazing timing I must say.

    Max said $47 would be Morgue's Achilles heel and Bob Chapman said $55-60. Fourth inning? We're still in warm ups.

  13. Well, history is littered with the corpses of dead currencies, so...

  14. dude, it makes me sooo sad that the V A S T majority of Americans & Canadians are clueless as to what is really up with the currencies. I use to spend time trying to explain what is up with the currency devaluations and it got to a point I was staring at goats... I have now simplified it to; "read your bible". I am now keenly aware of the fact that the "ordained" are bringing forward the 1WO for ol' Beelzebub to rule... yawn. If the "rapture" don't happen first, we're going to witness an utter collapse of the system and 99.9% of folks will be totally unprepared.... tragic! Thanks for the continued insight and I look forward to reading more...rock on!

  15. I was reading an article ( ofcourse i can't remember who wrote it) mabey about a month ago and it said only about 10,000 people in all of north america have physical silver.... so yes we are a very small group of people.

  16. I've only managed to convert 1 out of 3 my best buddies.

    Within my family, I managed to convert my Mom, my sister but not my younger brother.

    Luckly, my mom still remembered vaguely her parents(my granma) struggling for basic necessities in the hyper inflation back in 1945-1950. This is in Hiroshima, Japan.

    I carry full presentation kit (Japan budget, US budget, Old silver coins (both from Japan and US), Future market facts (backwardation) to explain how government kept stealing people's wealth by diluting value of fiat paper.

    Over the weekend, I saw 2011 Canadian Maple being sold at more than 5,000 yen (US$60.97) on Yahoo Japan auction site. Physical will dissapear very soon no matter how much price.

  17. Don't know one pal who has bought metals ... Live in seattle, asked all of my pals in last week if they know anyone or if they even bring it up or hear about it, and they say NO.

    Kinda funny i got into this after figuring out that muslims had nothing to do with 9/11, neocons and mossad fingerprints all over it, so sadly via those rogues I was waken up enough to delve into PMs ...

    ironic where twists lead us

    red pill addicts with grip their "seeing eye" spondulix even falling off a cliff ...

    if 5% wake up the metals will go to moon.

  18. the line shoulda read:

    red pill addicts will grip their "seeing eye" pyramid spondulix even falling off a cliff

  19. By the way, in Japanese (and in Chinese), how we write money and bank is:-

    Bank--->Silver House

    I mention this in my presentation to my close friends but still doesn't work...

  20. With what we know about JPM and their machinations can you fathom them being the custodian of record and holding SLV's metal in their vaults. Common sense tells me there is no silver in SLV. Just IOU's by JPM. Typical bank fraud or Ponzi scheme and I think that goes for GLD as well. In Roman times 20 pieces of silver was a lot of money. The way it should still be today. Let's see what Bernie has to say at the first press conference to be held in the history of the Fed. Maybe he is going announce printing $2 trillion to purchase the bonds held by the Chinese that they propose to divest. Another $1.2 trillion for the Japanese to be used to rebuild their country. An what else....

  21. Jesus had to take a Whip to the Bankster of his day, to drive them out of His Fathers Temple.. We need to look at the Trash they Call Money and Trade it for REAL MONEY ! And Use it as Our WHIP! Fit these Banksters for Orange Jump Suits.. All my adult kids are buying.. Have talked many into buying.. I keep spreading the word.. North America needs to keep all it can.. Don't give up on Family and Friends.. And don't beat them over the head either.. Be Humble.. Our Governments have been dumbing us down for Years ! And of course treating our water supply with Fluoride and such ! Give them a Break ! The Nazis used it on the Jews to keep them Dull! Feel Privileged to be on the in crowd !

  22. $48.18


    Moon shoot spike went up $0.30 cent in like 15 seconds.

    Excellent post SGS, very valid points.

    I ask one question to people now:

    Can you name one reason, one fundamental for silver not being priced over $50?

    I have never got a response.

  23. Can you name one reason, one fundamental for silver not being priced over $50?

    I have never got a response.


    Nope. And once it gets over it's all time high, it's game over.

  24. JPDG:

    ONE fundamental reason, and the ONLY reason(is obvious)is JPM, GS,HSBC,etc...have carte-blanche to write more shorts without a deposit like regular investors.

    I agree, after all-time high is taken out, there is no ceiling.

    One guy I respect just gave his case for silver at $750. I thought Keiser was crazy calling for $500 eventually.NOW, it looks rather obvious as all the TRUE information has been finally out in public domain this last year.

  25. Man, I love these posts! I am a new to buying physical. It's about a month since I purchased my first few ounces. I am so into it now and trying to learn everything I can. My therapist warned me to speak to my AA sponsor as it might be an addiction! Ha! She doesn't understand. :) But anyway. Thanks for the comments and the blog because it helps us newbies stay focused and not sweat the dips. I bought two more times after the first buy and both were on dips. Love Silver! I even bought an Ag T-shirt:,194535115