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Pragmatic Capitalism

Capital for Living a More Practical Life

DID THE SILVER BUBBLE JUST GO “POP”?

I am not quite sure what’s going on with silver prices in early Sunday trade, but prices are absolutely cratering with the July contract down 12.5% as I type.  The price is volatile and I am not able to find a reasonable explanation for the decline so far.  And there might not be one….This is the sort of action you get in a market that looks bubbly.  As I’ve said on many occasions, bubbles are highly unstable market environments.  And yes, silver is in a bubble.  The question silver longs now have to ask themselves – did the silver just go “pop”?

* Mr. Roche is short silver via puts.

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