What the Peak of a Gold and Silver Mania might be like

[beauanderos]

http://www.kitco.com/ind/Clark/sep302010.html

[Rodebaugh]

kitco will publish anything

[beauanderos]

I don't think it's farfetched at all, on a smaller scale this is happening to me now... up 52% in my brokerage accounts last year, 43% so far this year, to this point based mostly upon bullion gains, but if the mining equities ever kick into high gear

[fb101]

Maybe, maybe not. Depends on a lot. Obviously a worst case scenario.

[theo]

Some variation of this is definately possible. Most people are subject to the herd mantality. Some aspects of this article were present during the dot.com bubble in 98 and 99. Some stocks doubling and tripling in weeks, unlikely millionaires, and daytraders searching for the next hot tech stock.

One thing the article might be leaving out is the potential for mass fraud that PM mania would undoubtedly unleash. In addition to fake coins many mining companies that claim to be flush with gold would actually be closer to Mark Twain's famous description, "A hole in the ground surrounded by liars."

The most stressful thing about this PM fever for me will be when to sell. Although I believe physical gold and silver will hold much of their peak value, it is very possible that even the shares of legitimate mining companies may trade at several times their actual value. For a sell signal I think it is sensible to follow Joseph Kennedy's advice. When you start getting stock tips from the shoe shine boy (or Jim Cramer), it is time to sell.

[beauanderos]

when precious metals peak, it may very well coincide with a decade's low stock market . If so, I will buy lots and lots of Berkshire Hathaway A stock and then go relax on my private island and sip some intoxicating beverage while being fanned by an exotic native girl adorned with a puka shell necklace, a skimpy grass skirt, and wearing a big eager smile (ok, so I'll admit... she's probably a cannibal)

[HoardCopperByTheTon]

when precious metals peak, it may very well coincide with a decade's low stock market . If so, I will buy lots and lots of Berkshire Hathaway A stock and then go relax on my private island and sip some intoxicating beverage while being fanned by an exotic native girl adorned with a puka shell necklace, a skimpy grass skirt, and wearing a big eager smile (ok, so I'll admit... she's probably a cannibal)

Sounds like a great plan for this weekend.. with the possible exception of the stock purchase. Why wait?