Silver died an untimely death this week.
Retribution was swift and merciless. As soon as the Chicago Mercantile Exchange raised margin requirements (meaning you have to provide more of your own money to speculate), skittish traders headed for the hills. Silver lost a quarter of its value in just 3 trading days.
On of the big winners of the silver bonanza was billionaire George Soros. In weeks past, Soros noted that although gold prices kept rising higher and higher, the price of silver hardly moved. Realizing that at some point people would opt to buy the grey metal instead of gold, Soros loaded up. He was quickly proven correct as silver rose in a parabolic chart.
Soros reportedly sold heavily early this week: a beautiful trade - and the reason why he is a billionaire.
As for me...I'm not a big fan of jumping on any fast-moving investment train. I can't babysit my investments on a minute-to-minute basis, so I don't like investing in anything that I know will end in a major crash.
As Soros was busy making his latest millions, I received my first silver-related injury. While generously helping a client unload a large quantity of silver ingots, I somehow managed to hit myself in the face. Handling a 120-pound safety deposit box is not as easy as you might think.
Even as the blood streamed off my nose, I recognized that owning a horde of physical silver must be gratifying.
Will silver rise from the dead, and achieve its previous highs? Who knows. But, I sincerely hope that the volatility lasts for a few days more. I have been busy entering lowball orders for great mining companies, just in case the chaos continues. It would be nice if they all fill.
Silver is dead! Long live silver!
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"I feel like a virgin on prom night."
"Uncle Red," in the Stephen King movie, Silver Bullet.
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