By Dominique de Kevelioc de Bailleul
Right now silver bugs need to view the following scene from The Godfather (1972) when Johnny (Frank Sinatra?) goes to see the Godfather for help breaking into the entertainment business.
Johnny: Oh godfather, I don’t know what to do. I don’t know what to do.
Godfather: You can act like a man! <slaps Johnny in the face> What’s the matter with you? Is this how you turn out? A Hollywood finocchio that cries like a woman? <imitating Johnny> What can I do? What can I do?
So “toughen up” as Jim Sinclair of JSMineset.com said to wimpy precious metals investors who were calling him and crying about the precious metals market earlier this year.
Act like a man! Need a slap to the face, too?!
At the time of the making of the movie, silver had dropped to $1.37 per ounce in November 1971, after falling from a high of $2.57 per ounce in 1968, a drop of nearly 50 percent in more than two years. But by December of 1972, the silver price cracked $2.00 once again, on its way to $50 eight years later in Jan. 1980.
Today, after only half the time of the 1968 to 1971 fall in the price of silver, silver bugs are crying like women—like a finocchio (gay). After 13 months, the silver price has dropped from nearly $50 in late April to $26.20. Big deal. That’s typical silver market action.
Look at the chart, above, and see the 40-times move in the price of silver through the next eight years. The 1968-71 price decline looks tame within the overall picture in the year 1980.
Today’s chart, below, shows the silver price forming a head and shoulders pattern, with the Slow STO looking as oversold as the price of silver was back in October 2008. So far, nothing looks out of the ordinary for the silver price as it works off excess speculators money. For the long-term holder, the silver price trades at a nearly 50 percent discount from late April 2011 runaway move.
Be patient. The fireworks have yet to begin.