Gold News: Will Silver Crash the Market?

In the wake of the US stock market drop and a sudden realization of the size of the national debt, people are starting to look carefully at numbers.  As in: What numbers might be important, and what do we need to watch out for? 

While it can be nerve-wracking thinking about the dark side of things, it can also be very informative.  Today let’s try to view things as informative, and look at one opinion on silver.  I know, it’s not our usual gold news, but the principles carry over to the gold market rather well.  

Gold sector writer Bill Holter says he’s done the math and believes the silver market is very highly over-leveraged.  As in, there’s no way it can end well. And he believes what could come next would be very, very bad.  As in taking down large chunks of the world economy. That would indeed be bad. Your Gold Enthusiast has an opinion too, which we’ll discuss at a later date.  

Today you can get the basics of Bill Holter’s view in today’s featured article.  Then let us know in the comments below what you think – Is the world economy heading for a train wreck?

 Related: Indian Gold Imports Are Down – And Here’s Why

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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    • True enough, especially at the beginning of a real crisis. Trading is typically suspended for a short time, then the markets are re-opened, sometimes for limited times. Today of course there are the so-called circuit-breaker rules where trading suspends or is stopped when specific limits are reached. In the meantime though there’s a lot of money to be made. Thanks for the comment!