Is silver in a bubble?

Is silver in a bubble? That's the question everyone wants answered now, especially because it recently took out the 1980 high set when the Hunt brothers were attempting to corner the market. At that time, silver shot up in price in a matter of months only to collapse in an even shorter amount of time. Again, silver has shot up, more than doubling in price in a matter of less than nine months.

Wrapped-up in the whole issue are questions of manipulation and fundamentals. CFTC Commissioner Bart Chilton has said he thinks there is manipulation occuring, but nothing formal has come about. For the moment, focusing on the fundamentals may be the best way to examine the market.

Below is a video we found produced by one silver advocate that says, even discounting any sort of manipulation, silver still has a ways to go. He outlines four fundamental reasons for that conclusion. What are your thoughts? Are the recent calls for $500 an ounce in silver realistic? Is silver in a bubble?

About the Author
Michael McFarlin

Michael McFarlin joined Futures in 2010 after graduating summa cum laude from Trinity International University, where he majored in English/Communication. With the launch of the new web platform, Michael serves as web editor for the site and will continue to work on the magazine, where he focuses on the Markets and Trading 101 features. He also served as a member of the Wisconsin National Guard from 2007 to 2010.

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