In terms of silver’s relative valuation to the Dow over the last century, Don Harrold brought in a graph suggesting silver was “a great buy” years ago, but that what was an apparent mis-pricing then has been corrected and then some.
“Look at the Nasdaq chart,” he says. “Exactly the same chart, and they called the Nasdaq a bubble in 2000. Seems like a bubble to me now.”
Like many silver cynics, Harrold has been looking for about $50 as a price target — $50 being approximately the peak price for silver during the Hunt Brothers unsuccessful effort to corner the market three decades ago.
Those quick to dismiss our guest as just another crank who missed silver’s rally should note that Harrold is no dyed in the wool silver bear. He’s been long silver for years but has been selling “in very small increments” since $22 an ounce. “I’ll always own precious metals,” he says, “but I’m not a new buyer (of silver) at $50.”
Silver bulls will tell you this time is different, says the day trader, but he’s not betting that way. He says to take gains, and he’s walking his talk by taking some off the position.
Is Don Harrold crazy like a fox or just plain crazy? We want to know what you think, email at breakoutcrew@yahoo.com.
