• 366 days Will The ECB Continue To Hike Rates?
  • 366 days Forbes: Aramco Remains Largest Company In The Middle East
  • 368 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 768 days Could Crypto Overtake Traditional Investment?
  • 773 days Americans Still Quitting Jobs At Record Pace
  • 775 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 778 days Is The Dollar Too Strong?
  • 778 days Big Tech Disappoints Investors on Earnings Calls
  • 779 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 781 days China Is Quietly Trying To Distance Itself From Russia
  • 781 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 785 days Crypto Investors Won Big In 2021
  • 785 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 786 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 788 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 789 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 792 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 793 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 793 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 795 days Are NFTs About To Take Over Gaming?
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Damn the Torpedoes

After more than a 35% haircut in the price of silver since last October, silver investors are refusing to give up the fight. Damn the torpedoes and damn their own dogma - they're still enlisting and willing to go down with the ship.

This is another example of why we have tended to qualify the extremes in sentiment and COT reports in gold and silver as less actionable; i.e. - they're still buying.

SLV Holdings Chart

Denial Article - November 21, 2012

This stoicism in the face of reality is nothing new, and a dynamic we have highlighted and exploited from a purely contrarian perspective since last November (see Here) and this past January (see Here).

The Insatiable's Article - January 19, 2013

"The Insatiable's"

What should be less than comforting for those still waiting for a rejuvenation of the bull, and leads us to believe that price erosion will continue even after the inevitable retracement bounce - is that the insatiable demand for precious metals, despite at this point very legible damages to the market - is spread throughout the world, most notably in Asia.

"Asian Bargain Hunters Pile Into Gold" - FT

Although hanging on to an investment trend longer than one should is par for the course and readily expressed in the congruency of momentum between silver and our comparative with the post 1990 Nikkei bubble - we would argue that the particular fevered enthusiasm that precious metals investors share is likely much stronger than the average investors own dogma. For many, it became a religion of sorts and tragically a safe haven that has become anything but safe.

Larger Image

As always - Stay Frosty.


Back to homepage

Leave a comment

Leave a comment