Silver undervalued or gold overvalued?

[foggyb]

What if the opposite happens this time, since everyone is expecting it? Silver is a small market, and can be easily influenced in both directions.

[1713493551]

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[The_JMiner]

When I look at the metals and oil charts I am struck by the huge correction in 2008. Whether crude, platinum, or silver, they all drop by about half their previous price. Except gold.

Industry is turning down production in response to recession. Less people driving, thus demand for all the industry commodities go down (crude, platinum, and silver)

[S3052]

When I look at the metals and oil charts I am struck by the huge correction in 2008. Whether crude, platinum, or silver, they all drop by about half their previous price. Except gold.

This is a good comparison, with the exception that this time the metal drop will be more severe. Probably down -80% to -90%, except for Gold, which may only drop -20 to -50% in dollar terms.

[netrin]

I don't get your logic (unless you are purely and stubbornly contrarian). It is precisely for this lack of correction that I am bearish gold and bullish everything else heavy.

When I look at the metals and oil charts I am struck by the huge correction in 2008. Whether crude, platinum, or silver, they all drop by about half their previous price. Except gold.

This is a good comparison, with the exception that this time the metal drop will be more severe. Probably down -80% to -90%, except for Gold, which may only drop -20 to -50% in dollar terms.

[S3052]

We do not have to agree. I am short stocks since DJI 12,600, silver since 43$, EURUSD since 1.47 and those trades run well, and I will stay midterm in those positions (probably until 2014-2016); and additionally do some hedging and playing short term bounces.

[CurbsideProphet]

Silver Wheaton (NYSE: SLW) is my silver play.  It was down 8.6% today so I opened a position.  I have some physical bullion but I'm not a big end of the world type person so I'm content with owning the miners.  Maybe I'm trying to catch a falling knife, we'll see.

[S3052]

Silver Wheaton (NYSE: SLW) is my silver play.  It was down 8.6% today so I opened a position.  I have some physical bullion but I'm not a big end of the world type person so I'm content with owning the miners.  Maybe I'm trying to catch a falling knife, we'll see.

Let's see how it plays out. I shorted Majestic Silver (NYSE: AG) two days ago at 24$. Now down -12 %.