Following public statements is a way to lose not gain money.
What would be interesting to me might be learning that the local coin shop did a brisk business buying from retail back into stock.
If I were to buy at the same price and time I would be on the other side from retail, and more optimistic. In matter of fact, my optimism for a good trade would be pretty much inversely correlated to the pessimism of the small traders as a group.
But that, while a step forwards, is still not enough.
This really is a tough business, and every newcomer has to learn that the same expensive way.
Following on from last week when Iraq hit the headlines and the price of oil firmed up, gold was steady for the first three trading days. It seemed the shorts just held their breath and hoped Iraq would go away. But with oil prices up yet again Thursday a vicious bear squeeze followed after someone bought over 3,500 gold contracts, driving the price up to just under $1300. Once this level broke at 13.40 New York time, gold jumped a further $15 as stops were triggered.
Silver also responded dramatically, rising through the $20 level to $20.90 for a gain Thursday of 5%.
The price action and open interest this so far month is shown in the following charts and illustrates how record bear positions are being squeezed in both metals. [Read more...]
In his latest video update, Chris Duane explains why the most oversold markets make for the largest returns.
Duane makes the case for the fact that silver is poised to place LEGENDARY GAINS once the current correction is completed, and that now is the time to accumulate physical silver while the metal is out of favor by nearly everyone.
People marvel at the returns silver made from 2008-2010, but it is obvious that the next rally will blow that silver move away.
Everyone in the precious metals community is scratching their heads over the recent behavior of the price of silver. At the end of the day, the severely depressed price level can only be attributed to the extreme degree of manipulation and price containment activities of the Federal Reserve and the U.S. Treasury’s Exchange Stabilization Fund team (which is officed in the same building as the NY Fed).
Besides containing the upward price movement of gold and silver in order to support its effort to prop up the dying U.S. dollar, the question is, why is silver being hammered like this with Comex futures? Ultimately, I believe a severe shortage of unencumbered physical bars for delivery into India and Asia has developed. More on this in the next few days.
In the meantime, you can see from the 20-yr graph of silver that silver is, by far, more oversold than at any time in the last 20 years: [Read more...]
BrotherJohnF discusses his own picks and silver purchases in his latest Silver Update:
Picks & Pans [Read more...]
While gold is the king monetary metal, silver will turn out to be the king precious metal performer. Currently, gold is stealing the show as the East (China) continues to consume more than total world gold production.
However, silver will surprise the markets in the future as overwhelming demand will outstrip supply in a big way.
The key factor that will drive up the price (value) of silver much higher than gold in percentage terms, will be its affordability. As the price of gold heads back above $1,500 and silver to $30, an individual can buy a heck of a lot more silver than gold.
As the public and market are lulled back to sleep (presently) on the value of silver, there will come a time in the future when it will be impossible to acquire a single ounce… only at much higher prices.
Silver Will Be The King Precious Metal Performer.
Bitcoin has dropped from the $1240 level to $455 on government threats, recovering somewhat since.
Bitcoin still serves as an example of what can happen to silver once the central banker constraints lose their grip. The crypto-currency has no history as does silver and gold, yet it captured the world’s willingness and hunger to use something other than existing fiat as a means of escaping from the elitist-controlled tentacles of Western central bankers.
Buy the physical, buy the physical, buy the physical- regardless of price.
Owning silver is a form of insurance, if you will. You buy life insurance, health and home insurance, car insurance, etc. You buy it for the unexpected. For silver, there
is no unexpected, only the inevitable, and it is among the best forms of insurance you can own for protection from imploding paper currency. [Read more...]
Are such low silver prices ever possible again? Technically, yes.
Unless one was fortunate to have acquired the bulk of their physical silver allocation circa 2005 at an FRN price of under $6.00 per ounce, silver’s fall from grace since its 2011 peak has been nothing short of a hellish nightmare for most.
The current bear market in precious metals has had no mercy for those too anxious in backing up their trucks to load up on these highly valued and much sought after monetary components.
NEWSFLASH: Gold & Silver (REAL-MONEY) remains ON-SALE! [Read more...]
It has been a difficult year for silver investors with the metal falling by 36% year-to-date. While the Federal Reserve balance sheet continues to expand, ‘taper’ discussions by the Federal Open Market Committee have weighed heavily on the price performance of all the precious metals this year. By our calculations, over the last five years silver has a beta to the gold price of 1.5. This implies that price changes in gold are magnified in silver. Combine this with an 80% correlation in the price action between gold and silver over the same time frame and it’s easy to see that where the price of gold goes, the price of silver goes faster. As we break down the fundamentals for silver, market developments this year give rise to a curious conundrum – how can the case for silver be stronger while the price continues to languish? We begin with investor sentiment. [Read more...]
The precious metals have seen dramatic sell-offs before, although the primary difference between previous precious metal declines and the recent drop is the current shortage of physical metal.
Major dealers in North America and the EU seem to be out of physical precious metal stock almost across the board. This physical shortage had been developing for some time, in contrast to the 2008 drop.
In terms of the supply fundamentals, the loss of Kennecott’s Bingham Canyon mine last week, in addition to further postponements for Barrick Gold’s big Pascua Lama Project were as bullish as can be.
Numerous questions have been raised about Sprott’s recent sales of Sprott Physical Silver Trust (PSLV). SilverDoctors.com has never had any reason to doubt the integrity of Eric Sprott. We’d like to put the speculation to rest.
On Tuesday, April 16th Eric Sprott held a conference call with institutional investors. We tuned into the call. He made a point of commenting about the sales: [Read more...]
Gold and silver have been greeted to yet another waterfall plunge as the first trading since the CME hiked margins in both metals by 18% after today’s COMEX close. Silver has plunged nearly another dollar to $22.50, and gold another $25 to $1350.
*Update: Both metals have already retraced nearly all of their latest losses, as silver has quickly spiked back to $23.15, and gold to $1365