Friday, November 30, 2012

Of Bubbles

"Eye of newt, and toe of frog,
Wool of bat, and tongue of dog,
Adder's fork, and blind-worm's sting,
Lizard's leg, and howlet's wing,--
For a charm of powerful trouble,
Like a hell-broth boil and bubble"

Second Witch, Macbeth

The following is the classic timeline of all financial bubbles. I have added where I currently think Gold and Silver are placed. Whilst some might point out the lack of a dip in the silver price in the 2008 and 2011 period I believe that come the mania phase the drop in those periods will be seen as a slight dents when plotted on a axis with considerably larger numbers than silver charts currently possess. Of course these are just my opinions and no one can compute the myriad of variables and unknowns of the future but if you believe we are in for a bubble in Gold and Silver one day then this a good a guide as any to the possible price action.

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