https://www.curzioresearch.com/stay-away-from-these-trading-sardines/
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In 1896, the discovery of gold in Canada’s Yukon territory launched an era now known as the Yukon-Klondike gold rush.
Over the next two years, 100,000 miners flooded into the area in search of the next big gold strike.
But it was far from easy…
The trek was treacherous… The competition was fierce… And the weather was glacial.
During the winter of 1896–1897, the water around Alaska’s ports froze solid, which forced shipping to shut down completely.
The result was a major food shortage—and skyrocketing prices for the little amount of available supplies.
In the most isolated regions of Alaska, a single can of sardines—which cost $0.10 in New York—sold for many times that amount. And thanks to the demand from starving miners, the price kept rising.
Legend has it that one miner, desperate for a meal, bought a can for $100.
But when he went to open it, the fish was rotten.
He tracked down the seller, demanding his money back.
The seller was confused—asking the buyer why he would open the can in the first place.
He told the miner, “Those are trading sardines, not eating sardines.”
This piece of market lore is a commonly cited metaphor for speculative trading, where an asset can keep rising… and traders—suffering from FOMO (fear of missing out)—keep bidding the price higher. Meanwhile, the asset is—from a practical standpoint—worthless.
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