I have a true story to tell you, this whole episode about the silver market reminded me about what happened with me just over 10 years ago... I had already forgotten about it, but thinking about you and silver reminded me just moments ago, so I thought I would tell you what happened...
During the Internet dot com hey day but before the Internet bubble burst, I bought a stock called CMGI for about a dollar a share, I bought 5,000 shares... it went to two dollars a share, so I decided to sell it out for the quick profit with hopes of buying it back when it retraced back down to $1.50... well, it never happened, it continued to rally while I waited for it to come back, it exploded up to 825 a share, my 5,000 shares would have been worth more that $4 million at that price, but I didn't hold it for the full run... I was sick about it for the longest time... finally, the bubble peaked and CMGI crashed, it's now off the board and is under new management...
Not that silver and gold will do the same, but I think these markets are now poised for that same kind of soaring explosion... I can see silver reach 80 and higher, the silver to gold ratio has been 1 to 15 historically, but it widened to 50 to 1 in recent years, it's now back down to 44 to 1, I don't see why it can return to 15 to 1, or even 25 to 1 would be very nice...
Anyhow, I wanted to relate that story to you, it's a true story and therefore today I don't try to shave a few points on a runaway market, runaway markets are too few and far between to mess around with for a few ticks... that was when I learned my lesson, so this kind of thing happens to everyone at some point, and sometimes more than once...
Here's the chart:
charts.insidestocks.com
GZ |
