The current surge in bids to buy silver might seem dramatic, but it’s more measured by far – to date, at least – than the true silver bubble of September 1979 to January 1980.
Even so, you may as well call this a record price. In real terms, as Matt Turner at Mitsubishi told me this week, one ounce of silver briefly rose above 40 of today’s US dollars per ounce in 1864, when the American Civil War neared its climax. In nominal dollars, the Hunt brothers’ multi-billion-dollar corner only saw it more highly priced on 5 trading days in January 1980. And while US investors waiting to buy silver are also still waiting for it to record a new intra-day high, it’s already broken new ground against the British pound and for most of the Eurozone, too.
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Silver Goes Up, Down and All Around!
Well… Yesterday’s price action was something…really something… The currencies backed off their assault on the dollar for a day, but the slippage was minimal… The real rodeo for the prices was in gold and silver, with silver riding the bull till the horn sounded! As I mentioned yesterday, silver had traded to $49, which represented a $9 rally in less than two weeks. Well, it was as if silver stepped on the trap door and it sprung, with silver falling $3, then gaining it back, only to see it lose $2 on the day… Up, down, all around…
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