A Massive Move is Coming in Silver: Will it Be a Waterfall Or Blastoff to Triple Digits?

launch rocket verticalAs you will see below, there is a great deal of ‘misplaced inflation’ sitting in the stock market just waiting to find a home in silver.
The key number for silver to get back through at the moment is $23, which is the 62.8% retracement from $50 denoted on the long-term weekly plot. Once firmly back into the Fibonacci grid, market observers should watch for two important potential developments: First, a fall back through $23, and then the large round number at $20, would signal a potential waterfall decline in price, which is of course what the Western banking cartel would love to see.  They are attempting to engineer this via their faulty and fraudulent Anglo / American paper pricing mechanisms that are still referred to as markets (think COMEX, ETF’s, etc.), but so far have failed in this regard.   The second important thing to watch for is a lasting break above key Fibonacci resonance related resistance at $33. Once this is history, then it’s a forgone conclusion $50 will offer limited resistance as silver blasts off through $100 into triple digit territory. 


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Submitted by Captain Hook:

The premise behind the movie (and book) Silver Linings Playbook is certainly a noble one, but not as profound as that of silver itself, which will have quite a playbook of its own in the not too distant future. In the story, the heroes, Pat and Tiffany, overcome adversity by maintaining a positive attitude in attempting to see a ‘silver lining’ in their uncertain circumstances, ironically, much like silver investors today. And in the end the two lovers find themselves in a ‘happy ending’, which in the full measure of time, will undoubtedly be the fate for silver (and gold) bulls as well.

 

Because as you will see below, there’s a great deal of ‘misplaced inflation’ sitting in the stock market just waiting to find a home in silver. Why would this happen? And why silver? At some point in the not too distant future, Americans are going to discover that unlike their favorite movie, or any other dream in which they may exist, there is no silver lining for both the economy and the stock market, as their stories are false and flawed, and they will be looking for a new home for their savings, where silver will ‘fit this bill’ for many.

 

 

Why silver? Two reasons: First, it’s affordable for the public, still in the $20 area. As the price of gold continues higher with sovereigns and institutions finally panicking (once knocked out of their own denial), silver, the poor man’s gold, will become the ‘safe haven’ of choice for the common man. And second, people are greedy, especially today, which is largely why they remain in overvalued stocks, and is why increasing numbers will eventually switch to both gold (for those who can afford it) and silver as they see the money made.

 

 

That’s silver’s playbook – so try to wrap your head around the storyline before it’s too late. If you can do this, and get over your fear (and ignorance) of investing in silver, you may be one of the relatively few (because even when silver runs the public participation rates will likely remain low [ex. 5%]) who achieve ‘financial salvation’ – a happy ending in your own playbook. Seeing the silver lining in silver’s still low price and positive fundamentals is the key to finding this happy ending for you, where like Pat and Tiffany, brave true-hearts prevail.

 

 

In circling back up to explain further the term ‘misplaced inflation’, we discover the reasons why increasing numbers will eventually see both the financial and moral imperatives associated with owning silver bullion, and for the gamblers, silver stocks. For most, physical silver bullion is the way to go given systemic risks today, and possible vulgarities associated with these growing risks (think market suspension / closure, bifurcation between physical and paper markets, ease of bureaucratic confiscation of electronic assets, etc.), not that bullion will protect you under Armageddon like conditions the mismanagement of our economy(s) could bring. You will need a gun for this.

 

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But again, as far as the markets are concerned, based on the ever-important and fundamental observation the Dow / Gold Ratio (DGR) has turned lower once again, marked by the technical failure pointed out a few weeks back now in our commentary entitled ‘Signal Failure’, conditions are ripe for change, a change most market participants will not welcome. What’s more, and in spite of the possibility the ‘power’s-that-be’ maybe able to pull off a year 2000 look alike in terms of sequencing here, where tech stocks go bonkers into March, it’s important to understand that the tide has turned for stocks (in spite of a technical correction higher in the DGR currently underway, as seen below), and their ultimate antithesis (in terms of measuring confidence in ‘the system’), precious metals, where general market psychology should now swing back from a state of extreme moral hazard to one of fear – and loathing. (Figure 1)

 

Figure 1

Figure 1 - big
Process could be slow in this regard however, so one should have patience. And again, like the year 2000, where the Dow topped in January, but tech stocks need to blast-off into March before the larger mania was fully exhausted, even if this occurs, as unlikely as this might be from a true sentiment perspective (both open interest put / call ratios and short interest, updated here and here respectively, do not support such a move) it’s important to realize that with the exception of a relatively small number of highly speculative issues, orthodox highs for stocks are in place now. So even though the Nasdaq might be able to vex new highs for the move in coming days due to sheer liquidity in a fully mature mania, again, don’t be fooled by this, as the transition of money flows from stocks back to precious metals has already begun, which will be more fully reflected in prices once diminishing numbers of stock market ‘die-hards’ are fully exhausted. (See Figure 2)

 

Figure 2 – Click Chart For Sharper Image

 Figure 2 - big

 

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And again, as alluded to in our opening, much of the latent and misplaced inflation that has been poured into stocks over the past five-years will be looking for a new home as increasing numbers come to realize this, which will do wonderful things for the bullish case of the Silver / S&P 500 (SPX) Ratio, pictured above. Moreover, and in looking at the updated open interest put / call ratios and short interest above, one can see that from a sentiment related perspective, which is apparently all that matter these days with high frequency trading (HFT) and status quo sympathetic algos still in firm control of the tape, the tide will necessarily need to turn here eventually no matter how much skullduggery is applied to the formula. With overseas cash only markets likely to have an increasing effect on price discovery soon, one should look for a break higher in the sector, led by silver. (See Figure 3)

 

Figure 3 – Click Chart For Sharper Image

 Figure 3 - big

The key number for silver to get back through at the moment is $23, which is the 62.8% retracement from $50 denoted on the long-term weekly plot below. Once firmly back into the Fibonacci grid, market observers should watch for two important potential developments. First, a fall back through $23, and then the large round number at $20, would signal a potential waterfall decline in price, which is of course what the Western banking cartel would love to see. They are attempting to engineer this via their faulty and fraudulent Anglo / American paper pricing mechanisms that are still referred to as markets (think COMEX, ETF’s, etc.), but so far have failed in this regard. And the second important thing to watch for is a lasting break above key Fibonacci resonance related resistance at $33. Once this is history, then it’s a forgone conclusion $50 will offer limited resistance as silver blasts off through $100 into triple digit territory.

 

And silver has been outperforming lately, giving us a clue a bullish impulse might be just around the corner. Both the open interest put / call ratio and short position on SLV support such a move, along with the short position on AGQ, seen in the attached above. Unfortunately however, the ratios and short interest(s) for gold and the shares are not as constructive, giving back much of recent gains, with the exception of NUGT, which is a much smaller contract than GDX, that appears to be holding up the entire sector at the moment. Your guess is as good as mine just how long this can last, however it’s safe to say the shares are already getting a little ahead of themselves, so new buying here would be dangerous.

 

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What’s more, this cautious sentiment should also be applied to the juniors right now as well, with the open interest put / call ratio for GDXJ also back below unity, and heading lower apparently as greedy speculators become all lathered up once again. Therein, you could see the recklessness in the trade yesterday as unsuspecting speculators were bidding up shares while the bureaucracy’s price managers were stepping on silver all day in Chicago. How all this resolves by options expiry next Friday is of course unknown, as silver paper markets are set up for a rally; but again, the shares are already extended based on present circumstances in the paper gambling parlors, so be careful. Buying bullion for long-term wealth preservation (or speculating in gold and / or silver futures or ETF’s) definitely appear better buys than the shares at the moment.

 

 

In order for any such concerns to be removed, both the open interest put / call ratio and short interest for GDX would need to rise considerably, more than doubling for the former back above unity (1), before one could count on a broad squeeze in the sector developing, as has been the case with the broad stock markets. And while in relative terms this is now a thing of the past for stocks, with for example the open interest put / call ratio for the QQQ now below 1 (making present outperformance into options expiry unlikely), one does need wonder just what lengths the bureaucracy’s price managers will go to keep stocks supported considering the degree the economy is now financialized. But again, in spite of any such efforts, it’s important to realize stocks are ready to roll over, the Dow / Gold Ratio is essentially ‘crashing, and just about nobody sees things clearly at the moment.

 

 

Therein, like B of AML in the attached, just about nobody sees the SPX falling through 1700 when / if it gets there, where it will be instructive at such a juncture to watch speculator betting practices (think in options and shorting) to see if bearishness has returned in the trade, or speculators are in fact ‘buying the dip’ schooled by reckless fluffers. Because if 1700 fails, this is when you can expect precious metals to really take off, which again, is not in most speculators playbooks, but would obviously be a dream come true for that of silver investors. As again, although silver is low right now, which is its’ silver lining, it should lead the sector as the Gold / Silver Ratio heads back down to historically significant values, values that reflect how silver actually occurs in nature relative to gold, bottoming somewhere between 10 to 15. This of course means silver, which again is ‘poor man’s gold’ (because it’s much lower in price than gold), will likely outperform gold by a factor of five running into a mania peak in and around 2021 (Fibonacci 21-years from the bottom in 2000).

 

 

So, let silver add a silver lining to your portfolio too. And the magic of the situation is it’s so cheap at $20 right now, one need not employ risky strategies to make outsized profits eventually, where just buying the bullion will likely prove the most intelligent strategy in the end, buy existing increasingly fragile (faulty and fraudulent) Western paper pricing mechanisms (they are not markets).

 

 

Make silver bullion is the silver lining of your portfolio.

 

 

Captain Hook

 

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Comments

  1. The center of attention right now is the US Dollar clinging to the edge of the cliff at USDX 80.  When (not if) they lose that 80 level with a solid down spike is when you will see these metals start to break out of the manipulation-suppressed trading range.  And this won’t be because it’s worth less in dollars, (we need to be thinking in ounces anyway) but because the focus will change on the optics for TPTB.  However, until that breakdown occurs, I think you can expect Gold and Silver to be range-bound, however with a slight upward drift as the manipulations are becoming less effective in the face of an increasing demand out of the increasing awareness that there is trouble ahead.  Perhaps the USD chart is a better indicator of the stacking future…

    • SE…I was contemplating “What would be Bob Chapman’s take on this question?”   I think Bob would say the dollar and gold/silver are still connected about 30%.  TPTB can still do what ever they want; hit the price or let it run.  They remain in control.  And you’re an idiot or a moron if you are still in paper.
       
      You knew him best, SE.  How would Bob answer this question?

    • @Sovereign Economist
       
      “The center of attention right now is the US Dollar clinging to the edge of the cliff at USDX 80.”
       
      Agreed.  This is the primary reason for all the fooling around with the metals markets in the first place… to defend the value of the fiat dollar at all costs… sadly, including emptying all of the Western vaults of any and all hard money treasure they contain.  :-(
       
      “I think you can expect Gold and Silver to be range-bound, however with a slight upward drift as the manipulations are becoming less effective in the face of an increasing demand out of the increasing awareness that there is trouble ahead.”
       
      That would be my assessment as well.  I have noted a few times that the cartel has to dump more paper in less time to achieve a weaker price smash that recovers sooner than ever before.  When they first started this maneuver, they could small prices severely via dumping a relatively small number of contracts into the paper gold market.  The new price would be stable for weeks if not months.  Gradually, over time, the contracts required have increased, the price declines became smaller, and the price recovered after just a few days.  This is clearly a diminishing returns process that is trending to virtually no change in price after a very large smash that recovers its small losses quickly.  At some point this will become more trouble than it is worth and some new tactic will be employed in an effort to be more effective at controlling PM prices… OR… they will give up on the idea entirely.  I believe that the latter is quite possible because once enough metal flows from West to East, it will be those in the East who decide what the prices will be.  As VERY large holders of gold and perhaps silver as well, they will benefit from high prices, not low ones.  We can therefore expect to see not only higher prices for these metals but perhaps MUCH higher prices.
       

    • @UglyDog
      “…You knew him (Chapman) best, SE.  How would Bob answer this question?…”
       
      Bob had a few thoughts on this stuff:
      1. ” Things won’t collapse as quickly as everyone is expecting.”
      2.  “The only place to put your money is in gold and silver coins and shares.”  “And you can’t trade manipulated markets, that’s for the Pros.”  He’d further say, don’t use margin with the shares and don’t trade them and, if you didn’t have the temperament to stick with them through all the volatility, then sell them and get coins and shares instead.   Buy them and forget about them for a few years.  His was a buy and hold strategy and he would tell us that when it hurt the most, buy more and one day you’ll be rewarded.  His view was that the shares were where the leverage was and that TPTB would do their best to drive the prices down on the weaker companies with the intent of killing their businesses.   But, as long as you had good companies, you’d be fine.  He was very particular about company managements.  He knew them all and wasn’t shy about panning those he considered “crooks.”
      3.  The final thing he would say came when we’d hear of some outlandish criminal act on the part of the bankers or the government or some world event and I’d ask him, “Bob, in all your years and in all your experience, could you have ever imagined that these guys would go to such outrageous lengths to do what they are doing?”

      “Absolutely NOT!” Yes, he was that emphatic about this…

      As to your comment about the connection between the dollar and Gold and Silver, his view was that all fiat currencies would fall against gold over time but not to expect a linear relationship between them, at least until all the physical was gone from western vaults.  Even then, he was clear that the intent was to strip every ounce of gold from western vaults and THEN gold would go to $2500, as the USDX would eventually find itself around 56 USDX.  He would not give a timeline other than to say that this would happen when ‘they were ready for it to go there.” He made these comments circa late 2011, early 2012.

      He also felt the historical Gold/Silver ratio was a meaningless item.

    • SE…Thanks, Bob was a great man.  Miss that guy.

  2. “Once this is history, then it’s a forgone conclusion $50 will offer limited resistance as silver blasts off through $100 into triple digit territory.”
     
    IMO, there are no foregone conclusions in the commodities markets in general and in the gold and silver markets in particular.  If silver were to go to triple digit prices AND the world as we know it not turn to complete crapola, that would be a good thing.  It would also be an historic event.  Yes, $50 silver in 1980 was equivalent to about $130 in today’s inflated money but silver has struggled mightily a number of times even to break through the $50 price, let alone more than double that.  So, no conclusions can be made in this regard, foregone or not.
     
    “…much of the latent and misplaced inflation that has been poured into stocks over the past five-years will be looking for a new home as increasing numbers come to realize this, which will do wonderful things for the bullish case of the Silver / S&P 500 (SPX) Ratio, pictured above.”
     
    Yes, it very well could but this does not guarantee that gold or silver will be the beneficiary of such an occurrence.  There are a LOT of places out there where money can be invested, so PMs are not the only place where it can go.  Currently, there is a LOT of money sitting on the sidelines, as investors watch this crazy market and try to make some sense out of it.  Typically, those looking for a safe haven only stay in that safe haven until the problems in the stock market subside and they can return to it.  When this occurs, we may well see very short term spikes in gold and silver prices when what we really want are longer term sustained higher prices.
     
    “But again, in spite of any such efforts, it’s important to realize stocks are ready to roll over, the Dow / Gold Ratio is essentially ‘crashing, and just about nobody sees things clearly at the moment.”
     
    Actually, quite a few people are seeing that there are significant problems in the US stock market at the moment.  This is why so many small investors are either out of the market completely or have only a small part of their money invested at the moment.  The bulk of their holdings is sitting in cash in money market accounts.  Not that this pays them anything but it is a relatively safe holding area where they will not lose much as they wait out events that will eventually provide the market with a clear direction.  Their vision may not be clear but they do know that something is up and that it does not bode well for investors.  I agree that the market is currently looking very “toppy”.  It has entered a time when share prices are bouncing in a fairly narrow range after a significant pullback from the 16,500 Dow area and a recovery to around 16,200.  
     
    “So, let silver add a silver lining to your portfolio too. And the magic of the situation is it’s so cheap at $20 right now, one need not employ risky strategies to make outsized profits eventually, where just buying the bullion will likely prove the most intelligent strategy in the end, buy existing increasingly fragile (faulty and fraudulent) Western paper pricing mechanisms (they are not markets).”
     
    I can agree with the use of silver and gold as significant portions of one’s investment holdings and that silver is historically cheap in the current investing environment.  But it is rather curious that anyone who knows that these markets are not free, that we do not have true price discovery, and that manipulation continues to occur still trots out the charts as support for their explanations.  How is it possible that charted manipulation data has any validity at all?
     

  3. as the largest ETF holders of PM’s (supposedly), GLD has just under 800 tons and SLV has like 10,150 tons…

    There’s something like a 170k tons of gold sitting out there in vaults of CB’s, investors, etc. and annual demand is something like 4500 tons. Supply of mining + scrap is like 3700 tons…the rest has been coming from ETF outflows. Absent ETF outflows w/ continued growing demand, the supply of 170k tons can be tapped to keep a lid on prices…until it can’t.

    For silver, I’m guessing the dynamics are quite different. There really is little to no supply of CB silver and no longer government stockpiles to be tapped if demand exceeds supply. There is only mining, scrap, ETF flows…and some amount set aside by manufacturers plus investors. If this is correct, the upside in Silver is far greater than in Gold!?!

    Just curious if anybody has a clearer picture of these dynamics for Silver?

    • Hambone, there are a lot of “ifs” when it comes to outperforming gold.  Some of them seem logically sound, but all require a buy in of some kind from either the general populace, CBs, or industry.  So far it has not materialized.  I am not holding my breath for too much on silver, but as my posts the last week or so have indicated, i do think we’re in for higher prices in the short term.

    • Global inventory of Silver 500k oz or less ??? = 1.5yr supply
      (500,000 tons / 350,000 tons/yr demand)
      (btw – 1950 = 9 billion oz inventory)
      Global inventory of gold of 170k tons = 38yrs supply
      (inventory 170k tons / 4500 tons/yr demand)

    • Just a 100 to 1 buying physical versus your bullshit paper mikey. No problem at all.

  4. The dollar index has been dipping below 80 a handful of times this year.  It is a matter of time.
    Good post Ed_B

    • Thanks @Sheep Dog and @MaxSilver.  :-)
       
      It would not distress me much to have silver prices drop one more time before they do anything crazy.  I still have some fiat that can be converted into hard money and both silver and gold are great ways to do just that.

  5. @ Ed_B ; sovereign economist
     
    Agreed with your balanced comments
    Personally i hope silver will stay on the $20-23 range for this year, i just started stacking…

  6. Slowly…..more and more people in more and more corners of the USA are starting to figure it out…
    http://www.newswithviews.com/McGuire/paul204.htm

    • The media control is a key piece, if not the key piece in their game. Now they have agents at the studios screening what’s “acceptable”……….what’s next?!!!!!!!
       
      They understand fully the level of control garnered through the propa-tainment media who 9 out of 10 people get their info from. Ten percent and growing of course…..after all, it will be a vocal minority who will win in the end.

    • @SilverSlicker
       
      “Now they have agents at the studios screening what’s “acceptable”……….what’s next?!!!!!!!”
       
      What I heard was that they do not have any agents at the studios but the previous head of the FCC wanted them.  This has been proposed but not enacted.  The MSM is going predictably nuts over this and the current FCC head seems to be less enthused about it than the previous one.  Obviously, this is something that would appeal to the Marxists now in control of the US Senate and the White House.  They WILL have to get this past the US House, however, and the chance of that happening is probably somewhere south of “ain’t happening!”.
       
      The US House has a HUGE club that it can use to prevent stupid crap like this from being enacted and it is their budget power.  Everything that happens in DC HAS to be funded and if the House refuses to fund it, nothing happens.  This is what should happen when idiotic things are proposed.  All they need do is work up the guts to use it… and mean it.  This is difficult for a sissy-crybaby like Boehner but if someone who had a pair was to become Speaker, then a lot of the current problems would be stuffed right back into the orifice whence they came and would not become law in the US.

  7. AHHHH  DAMMIT  
    THE CENTER OF ATTENTION RIGHT NOW IS THE DINGLEBERRIES CIRCLING THE DRAIN, HOLDING ON TO THEIR RIDICULOUS BITCOINS.  
    With a value of $27,000,000,000 a month ago, these numbnutz now see values off by 50-75% depending on which TOO BIG TO FAIL  shitcoin bank into which they deposited this pixie dust POS cryptocurrency.  They might as well make their deposits at a sperm bank.  Wank off Bitcoinian dipshirts.
    I can’t stand these predictions based on CAUSTIC OSCULATORS,  STOCHASTIC PAY-U-LATORS and FIBBONACHI PICK YOUR SNATCHI BULLSHITISMO CRAPOLA INDICES   WHISKEY TANGO FOXTROT   CHUT THE FUSK UP
    If these dumbass wingnutz got their money into something of value—like silver—with $5,000,000,000 of their couch cushion stink finger DIGI-FIAT we might see some action in silver.
    Until then Captain Hook, take Tinkerbell and stuff her up your gumstump, right along with Pan’s Peter
    Now I’m going to the gym and crush some heavy weights   Call me when silver hits 40 an ounce.

    • Been watching bite coin since the bubble popped, just to see if my instinct was correct. I do feel bad for those who are at the wrong end but the bit trading events as of recent, are no surprise. At some point, these “virtual” investors will wake up to real assets. I am confident the we the stackers are already wide awake…………truth will out.

    • @SilverSlicker
       
      “ I do feel bad for those who are at the wrong end but the bit trading events as of recent, are no surprise.”
       
      Agreed.  But on the other hand, isn’t it nice not to hear them squawking all the time about how great BITchCOINS are? :-)
       

  8. If more economies are hit with brutal currency devaluation, we’ll see a USD deflation after all. It must inflate/devalue now.
    I hope we’ll step back to $20 for a while. But what i hope is rarely what I get.
    I am thankful for the 2013 smackdowns, but wish I had not just gotten all-in months earlier. Still, 2013 was good to me.

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  10. 1 Chronicles 22:14 ESV / 5 helpful votes
    With great pains I have provided for the house of the Lord 100,000 talents of gold, a million talents of silver, and bronze and iron beyond weighing, for there is so much of it; timber and stone, too, I have provided. To these you must add.
     
    Silver at 10 – 1 ratio with Gold then and will be again,nothing new under the Sun

  11. LMAO $23 is the resistance. LMAO So why are we stuck on $22 the past few weeks? Give me a break. $22 IS the resistance and it’s being proved right now and when it passes that then it will be $25,50 or $26.00 resistance.
    “Process could be slow in this regard however, so one should have patience.”
    Boy these guys always have an out on their calls, hell I see it breaking through $22 and $23 in the next couple of days. Lol Keep Stacking
     

  12. Right now the prices of both silver and gold are pretty much level with their respective break even mining costs. Some mines may be profiting at the levels, many lose money.
    What is a fair price-to-cost ratio for a precious metal? Or a base metal?
    $100 near term would mean miner invest $25 and get $75 in profit, right away. After all costs were deducted.
    Which metal is currently seeing such typical profits? And why am I not buying those mining stocks right now?
    I’m afraid we can theorize all day long, but silver will only go triple digits through very intensive (hyper) inflation, which doesn’t make us rich, OR a physical shortage developing, and getting very serious. That the general public gets in on it, buys their few ounces for $100 each, and totally sucks the last gram out of all cetrlaly controlled stock piles. When the rise ends, you’ll need to be really quick selling or you’ll see only 50% of that peak back in your pocket. 1980 may be an example, or palladium and platinum peaks we’ve seen.
    When I got in physical silver, it was to ride this bull from $30 to $300, hoping for $500. I managed to add under $30 obviously, but getting a 10-bagger in the projected 10-15 years, is looking less likely somehow. But I hope I won’t back out before we actually get a peak. I might be shaken out at $140 and then miss out on $230.
    If in my lifetime $110 of heavily inflated and devaled dollars is all I’ll see, I better get a move on and adjust my stack to THAT bleak reality. My average may well be below $25 now (impossible to calculate since I’ve done flips), and holding greater, but even a 5-bagger will take a lot of patience. And then, my prejection (hopium) for real estate in places I like (vineyards by snowy mountains) to bottom just about when silver peaks…may not happen at all. Means I’ll need even more PM to get the kind of property I want.
    Right now the manipulation is working out A-OK for me. Let’s shut up about it and accumulate? If you’re (almost literally) dying to see higher prices ASAP…you might better spend the stack and live a better life.

    • $6 maybe $7 dollar an ounce to mine Silver right  now.   maybe    overvalued as it sits    how gold cost $1200 to mine an ounce I don’t know.

    • it is interesting to me that despite the supposed parity to mining costs, a small move higher in metals was met with heavy hedge pressure from producers indicating they are wanting to lock in prices for at least some forward period of time (one could study OI and make some guesses about how long, but my gut tells me it is short term, next 90 days kind of stuff.  

    • @mikeyj80
       
      I suspect that a lot of producers were pretty shook up by the Scotia Mocatta conference where that shill (can’t remember his name at the moment) told them they were going to take gold down to $800.  The bankers were trying to get these guys to forward hedge so the bankers would have some phyzz to use to cover their short contracts.  Then, LOL, I remember hearing a conference call with management for one of my portfolio miner prospects talking about forward hedging in anticipation of further anticipated declines in the market price of gold.
       
      Scratch ONE MINER prospect…  

    • Hedging in front of anticipated declines can make some sense, but hedging and locking in small margins while they are available is much preferred.  That response sounds more like trading than hedging.

  13. just a suggestion….instead of boring graphs and trying to sound like you know something, try using cartoon characters like the silver bears or draw zombies. your readers might make it through the article.. 

  14. Before getting all Giddy about Gold and Silver going to the stars, I would damn sure stay in tune with London Futures.
     
      http://www.investing.com/commodities/real-time-futures

  15. I believe it will be surpressed at least another 6-8 months. I believe the economy will stumble along for at least that long. We have had alot of Snow to slow down sales but Spring is a month and a half away and many US citizens are getting their Tax Refunds which will help keep the cash registers ringing. Unless something dramatic happens GeoPolitically of course.
    The Stock Markets IMO wont drop till probably the fall and if it does I believe the Fed will intervene after at least a 10% drop. I could see the Fed taper another 10% in the next FOMC to keep the Dollar above 80. In the April FOMC meeting they will pause tapering. The Dollar will probably be near 85. In the summer their isn’t  much investor activity so Tapering will still be paused. Then either October 29th or December 17th the FOMC doubles QE. They will wait to announce Quantative Ataraxia 1 (better euphemism for Easing) after or just before US elections on November 4th 2014. (Notice how I said announce and not Begin). After that, the Stock Market in my opinion will continue to rise for 2-3 more years. Then it drops 90%. It drops 90% when their is a geopolitical event involving China or Russia or Both. The Dow, S&P and precious metals will rise from 2014-16 because the dollar will desend lower when the Fed intervenes in the stock market in the fall of 2014. I believe the Dollar will fall just shy of its all time low(low 70s) then its new trading range for the next two years will be in the mid 70s. Of course during this time we will be in a recession. It will break below 70 after May 2016 after New Chinese President is sworn in IMO. 
     

  16. Oh Oh Oh   did I just read that Mt Gox went tits up?
     Oh gee   what a surprise.
    Got silver

  17. *Yawn* I went brain dead at charts and quit reading. The cartel has UNLIMITED paper silver, they can be 1,000 to one or more by now and idiot would keep buying paper.

    • @MaryB
      1000 to 1???   Wow, I’d relish another crack at a few more of these 930 oz Handy and Harman doorstops I’ve got here at $9 again!!!! (actually, it was $9.35 according to the receipt!)

    • @Sovereign Economist
       
      “Wow, I’d relish another crack at a few more of these 930 oz Handy and Harman doorstops I’ve got here …”
       
      Those make terrific catapult ammo as well.  :-D
       

    • HA HA!   And probably a little safer to handle than DU…  Still, I think I’d prefer to use a tungsten filled bar….  it’s still cheaper and won’t deform on impact.  But this is good planning because if they ever do take our guns we may be reduced to fighting in the streets with trebuchets and catapults!!!!

    • We might at that, SE, but the real value of the silver missile is that after it has done its damage, the survivors grab them up, forget all about attacking, head off to the nearest grog shop to spend their newly found booty, and are easily cleaned up once they are falling down drunk.  ;-)

  18. Who’s going to Bite the Silver Bullet? PV Solar Farming

  19. Solar power in India

    From Wikipedia, the free encyclopedia
     
     


    National Solar Mission in India

    India is densely populated and has high solar insolation, an ideal combination for using solar power in India.. In the solar energy sector, some large projects have been proposed, and a 35,000 km2 (8,600,000 acres) area of the Thar Desert has been set aside for solar power projects, sufficient to generate 700 GW to 2,100 GW. Also India’s Ministry of New and Renewable Energy has released the JNNSM Phase 2 Draft Policy,[1] by which the Government aims to install 10 GW of Solar Power and of this 10 GW target, 4 GW would fall under the central scheme and the remaining 6 GW under various State specific schemes.
    In July 2009, India unveiled a US$19 billion plan to produce 20 GW of solar power by 2020.[2] Under the plan, the use of solar-powered equipment and applications would be made compulsory in all government buildings, as well as hospitals and hotels.[3] On 18 November 2009, it was reported that India was ready to launch its National Solar Mission under the National Action Plan on Climate Change, with plans to generate 1,000 MW of power by 2013.[4]From August 2011 to July 2012, India went from 2.5 MW of grid connected photovoltaics to over 1,000 MW.
    According to a 2011 report by BRIDGE TO INDIA and GTM Research, India is facing a perfect storm of factors that will drive solar photovoltaic (PV) adoption at a “furious pace over the next five years and beyond”. The falling prices of PV panels, mostly from China but also from the U.S., has coincided with the growing cost of grid power in India. Government support and ample solar resources have also helped to increase solar adoption, but perhaps the biggest factor has been need. India, “as a growing economy with a surging middle class, is now facing a severe electricity deficit that often runs between 10% and 13% of daily need”.[5] India is planning to install the World’s largest Solar Power Plant with 4,000 MW Capacity near Sambhar Lake in Rajasthan.[6]
    On 16 May 2011, India’s first 5 MW of installed capacity solar power project was registered under the Clean Development Mechanism. The project is in Sivagangai Village, Sivagangadistrict, Tamil Nadu.[7]

  20. Sovereign Economist   Mt Gox as a banker  Nope. But if Karpeles, Shrem or Dread Pirate Roberts shuffle off the mortal coil they are absolutely counted.  The Walgreen dude in the next post up missed the market by 2 months   Dec 15 was his call to glory.

  21. Waterfall, right on time…..

  22. Jccjktj   Nope   Endthefed2012 lives in a different part of the UK Commonwealth
    Edb  Boehner stones are in a tea cup on KLUMMAC’s nightstand.  right next to his coke spoon and roach clip

    • @AGXIIK :) I’m guessing Canada. Very nice.
      So the smash has picked up pace. Could we have a $20 handle … please ;)
      JC

    • “Edb  Boehner stones are in a tea cup on KLUMMAC’s nightstand.  right next to his coke spoon and roach clip”
       
      Yep… and the 8″ diameter magnifying glass so he can get a look at them from time to time.
       

  23. Water fall or triple digit? Hmm… look out below.

  24. your wish is my command Jccjktj  
    I am in direc communication wit silver monkey central.    $20—here it comes.  
    I do have to contend with Charlie  though.  
     his predictions are pretty strong and hard to counter in a volatile market
    But I will do my best to get it down to $20, maybe $19  
    Sorry  I have to run  Janet and Jamie are on lines 2 and 3.  Persistent people they are
     
    Coming,  my  lords and masters   

    • “Sorry  I have to run  Janet and Jamie are on lines 2 and 3.  Persistent people they are”
       
      Yep, and Blythe is coming down the chimney, leading some ninjas from Hell.  Just for practice, ya know?
       

  25. It’s comex futures and options expiration… they can’t have anyone winning physical they can’t deliver…  Blythe had a bad night at the tables… besides, the consolidation is good for the continued base-building…

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