Precious metals trading - the community vote per metal - Money Matters

Yes, it's very likely that we are in a "precious metal bubble", and prices never proceed in one direction in an orderly fashion.

In fact, after rising super quickly, prices are just as likely to fall super quickly as continue rising super quickly. Look at wheat: price is up super far so far this year, but fluctuated in a 20%!!! range in one day last week.

I think we are in a long term commodity bull market, but that the present rise in commodities is a bubble caused by uncertainty - banks are unloading risk, which is causing major disruptions in the fixed income markets; equity is not cheap and we're probably in a possibly very serious recession; and the Fed is likely to continue chopping interest rates, dollar be damned. At some point, the situation will change and prices will turn. The shift could be as simple as an unexpected price fluctuation causing a margin call on a major hedge fund which leads to rapid contagion through the market - such an event could easily shave 20% or more off the price of any or all PMs in a very short period of time (hours).

I think prices for all commodities, precious metals included, will be high and volatile for some time, but I think at this particular moment there's too much hysteria in the market for safety. If you buy in, don't use leverage and be prepared to sustain significant losses - you might make a ton of money.