He spoke about how it's difficult to value commodities at times, as unlike stocks, there is not cash flow to measure. Compared to the money supply and gold, silver looks "more expensive than you'd like." Silver's movement in the last few months is being caused more by speculation than demand. There is little evidence that we have seen a significant spike in demand or contraction of supply. Silver still looks about 20% higher than you'd expect, based on the supply of money. Russ also liked the gold/silver ratio metric. It's still expensive historically at a 40/1 ratio. Silver's momentum is broken right now, gold appears to be the better bet.
Blackrock ought a know , they manage the SLV . just can't imagine everyone piling back on the silver express quite yet. Furthermore , they've eliminated all of the "speculators" Oh yeah , has anyone seen all the put open interest in the slv ,WOW.....
Take your profits and be gald you have profits at all. Assets that fall such a huge percentage over a very short time frame do rally or retrace some of the loss. This retracement may happen from the 20s or may be just getting started. Sell now and buy again after the rally.
I know that it is dangerous to think this time is differnet, but still there are differences between now and 1980. Do not get too carried away with your bearish trade.
Most of the time you are right. The time a stock or commodity doesn't retrace normally is after a bubble. Silver was a bubble asset and got popped. A bubble doesn't inflate after it is popped for a long time. I have taken nice profits and am using the house's money now. I just think the downward trend in silver was not broken today. No conviction buying at all. Oil is my favorite short right now but silver is a close second.