Almost a year ago I wrote a piece titled “There is a high probability of an irrational bubble in gold”. In it, I described the various reasons why gold was likely to continue surging.
But it looks like I was focusing my time and energy on the wrong metal. While gold prices have surged since then, silver prices have absolutely exploded. Silver is up over 100% in the last seven months!
Is there an irrational bubble forming in silver? I certainly believe so. And as of yesterday, I am putting (a very small amount of) my money where my mouth is. Remember, bubbles are highly unpredictable and dangerous environments. Play in this pool at your own risk – on both the long side and the short side. For most investors, the wise move is to simply steer clear of what is clearly a very unstable environment.
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