Warren Buffett
Billionaire Warren Buffett expressed concern over stock market exuberance during the fourth quarter of 1998. In particular, he openly became uncomfortable about extreme overvaluation in the technical sector that was primarily represented by the Nasdaq. Berkshire Hathaway stock was not keeping pace with roaring high techs and the world famous money manager/investor was losing some of his luster.
To regain his shine, Warren Buffett announced he was heavily accumulating silver towards the end of January, 1998. By February, his alleged investment amounted to an impressive $700,000,000.00. Silver prices rocketed to $7.50 an ounce from just under $6.00 in less than a month. However, it was discovered that Mr. Buffett was taking delivery of March silver while allegedly selling (hedging) in July. As quickly as prices soared, they plunged. All told, analysts estimated that Mr. Buffett cleared approximately 10% in about two weeks for an amazing $70 million gain!
Of course, the Nasdaq �bubble� did eventually burst in the second quarter of 2000. A continuous slide coupled with the tragic terrorist attack on New York City�s World Trade Center and the Pentagon took the Nasdaq to new lows. In the meantime, Warren Buffet�s alleged silver stash held its value remarkably well since he was thought to have accumulated the bulk of the silver at prices under $5.00 per ounce.