Hello friends,
First, I'd like to address the question JdA raised last week: Is silver a bubble that has already burst? She believes it will stagnate and/or trend downwards for a very long time. I disagree, mainly for the same "fundamentals" based reasons I continue to be long gold. (Certainly it's possible that gold outperforms silver in a major way going forwards, but I think there's a very heavy burden of proof on anyone who thinks gold will eventually blast past $2000, while silver won't even make another sally at its 1980 high. They're basically making the old "this time, things are different" argument.)
Aside from fundamentals, I think the technical analysis picture also argues against the idea that silver is a bubble that has burst. For one thing, the rapid ascent to $50 last April only took silver to the top of its long term price channel. There was nothing "blow-off" about it in the long term picture. Gold didn't hit the top of its post-2001 price channel until August, but apart from that has behaved very similarly.
