A while back I was long on Silver (Symbol: SLV) for many reasons. Inflation scares, shaky markets, and diversity to name a few. Then suddenly I took a look at it versus the current market and thought “where can this even go from here?”
Are we going into a massive depression? Are we going back to a metal based pegged currency? I was bull on the market, so how could I continue to be bull on it’s counterpart indefinitely?
Already up a solid 55.0%, I decided it was time to sell. This might have been one of the luckiest sells. Not only did I sell before a downward movement, but I sold literally at the short-term peak.
And sure enough when Silver is falling, its usually because the indices are climbing.
I view silver as a semi-hedge against the market, and I’ll consider getting involved again if the market continues to rally and silver remains relatively stagnant.
Overall though, I’m very happy I got a little of the metal action, but I’m pretty bearish on the whole for gold and silver. I believe we are going through a lot of things with the economy which causes a bubble short-term, but I feel like we are more likely to see $1500 gold than $1900 gold (Currently $1700). One of the major reasons I decided silver over gold in the first place was that silver didn’t quite have the bubble that gold did at the time.
For now I’ll take it off the table and look for better investments.