Thursday, December 19, 2013

Silver: There's a Reason It's Called The Devil's Metal

It was looking so good, so promising. It was as much of a lock as Joe Kennedy betting on the Nazis in May 1940.

Following up on Tuesday's "Dear Santa: If Deutsche Bank's Taper Analysis Is Correct Should I Buy Options on Silver Futures?". At the time the futures were at $19.87.

Wednesday morning, tiny upticks, $19.95;  crossing $20.00; $20.10; $20.20 and its "Hurrah, boys, we've got them! We'll finish them up and then go home."

Unfortunately the provenance of that quote was some guy named George Custer as he rode into the valley of the Little Big Horn river.

And the silver, after looking so propitious did this:

Never even got to 2% up and although not a loss it sure felt like one.
"Still humping the American Dream, that vision of the Big Winner somehow emerging from the last minute pre—dawn chaos of a stale Vegas casino. Big strike in Silver City. Beat the dealer and go home rich. Why not? I stopped at the Money Wheel and dropped a dollar on Thomas Jefferson—a $2 bill, the straight Freak ticket, thinking as always that some idle instinct bet might carry the whole thing off. But no. Just another two bucks down the tube. You bastards! No. Calm down. Learn to enjoy losing.... 
-Hunter S Thompson
Fear and Loathing in Las Vegas