The bull-run in silver has been quite extraordinary of late. After trading in the $15-$20/ounce range during the second half of 2009 and the first half of 2010, it has exploded higher to almost $50/ounce.

 

After a decade of popping bubbles, a great number of commentators have succumbed to the temptation of calling silver a ‘bubble’. Although I empathize with this skepticism of the recent drastic price rise, I beg to differ on the terminology. I contend that such widespread ‘bubble-watching’ is a symptom of an embarrassed investment community. Collectively (and definitionally), they missed out on TMT in 2000, Real Estate in 2006 and just about everything in 2008. Here, in defiance of the contention that ‘Silver is a Bubble’, I contrast the characteristics of the famous Tulipomania with the recent bull market in Silver.

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