Silver, like many of other commodities has been bubbling quite a bit for the past 12 months, and sentiment is extreme. Here's a chart I found on ZeroHedge:
Well to me vertical rises are very suspicious in nature, and the fact that this chart showing the bubble-bust of the late 70s near the current bubble-not-bust-yet makes me wonder how much longer this can be going, and if doesn't go much longer, and looking at the collapse of the early 80s, how bad and rapid the drop can be.
Ironically, the post from where I got the chart is stating: While silver is up 22 percent this year and is heading for a ninth straight quarterly advance, its fundamentals remain very sound.
This sentence is the exact same thing we were hearing about the economy back in 2007 and 2008 when the mortgage market was melting down: "Do not worry about the subprime, the fundamentals of the economy remain very sound." or "Do not worry about the failure of many mortgage lenders, our banking system is very sound".
Disclosure: As of today, I am short medium term out-of-the-money puts on Silver.