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Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk
SOXL 57.94-4.6%Jan 20 4:00 PM EST

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To: catflu2™ who wrote (19637)4/14/2005 1:30:53 PM
From: ahhaha  Read Replies (2) of 207974
 
ok Nostradamus. Name one thing the world will use LESS of in the next ten years. Hint:Its not toilet paper.

Silver. Hint: The major silver producers are contemplating re-introducing substantial hedging programs. They won't reveal this publicly because they're only contemplating it at this time, and they know they have to beat the rush to hedge by their competitors. The challenge will be to out short sell your opponent.

Silver has major alternative materials problems. A low price for silver prevents these alternatives from being used in scale. That's the only thing that has prevented macro scale displacement, but a rising POS undermines that protection.

Indeed, that game has its equivalent in oil and all basic materials. What game? During a deflation, that is, a macro material goods deflation in contrast to a monetary deflation, any marginal synthetically induced increase in price accelerates the effects of added supply. The concept is simple enough: bear market rally in a major down trend. Upside price creates a circumstance where the ensuing downside is even more intense than would be the case had the rally not occurred. Therefore, the move back up in silver for the last year is a bear market rally that will take silver below the levels seen before the previous bull phase.
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