17 silver

I have written several times previously my absolute BUY signal is $18 and below…
We now have a $17 handle in silver.
If you have the ability to buy with all your cash then I fully recommend buying physical now and not waiting a minute more for a lower price. 
I highly recommend liquidating all equities, bonds, anything of paper value to buy physical silver right now.

JP Morgan
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With silver smashed to a new bear low breaking long term support at $18/oz Friday, Alasdair Macleod joined the show to break down the trading action in precious metals, discussing: 

  • Friday’s silver slaughter- is the bottom finally in, or are we looking at a silver bloodbath on the Globex open Sunday night and a drop to $15? 
  • SGE international gold trading platform goes live- Alasdair discusses the long term implications, stating that the Gold market is being wrested from the West
  • September COMEX silver futures set to break new all-time volume record, shattering May 2013′s previous record- Alasdair’s explanation for record volumes in Sept COMEX silver may surprise you
  • Physical silver demand EXPLODES as SDBullion records highest single day sales total ever Friday, & physical silver shortages return to US wholesale & retail markets- is a silver premium spike next? (Industry contacts warn the answer is YES)
  • A classic example of Madness of the Crowds: Alibaba US IPO overtakes Walmart market cap- legendary gold trader Jim Sinclair on why Friday “is a day that should be memorized

The SD Weekly Metals & Markets With The Doc, Eric Dubin, & Alasdair Macleod is below:

letter jul 27 silver candlesI don’t typically emphasize price charts in analyzing the market, however something unusual has been happening in the spot (physical) silver market.
It did not happen in the silver futures market, nor in the gold market. 

Notice the “icicles” (chartists often call them hammers or hanging men) dripping all over the place?
They occur at different times of the day, including normal market hours in New York, Europe, and Asia, and they aren’t mere artifacts of market open or close, or illiquidity. I have not noticed them with such frequency before in silver.
What are they?

india silverFollowing 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.

 macleodFollowing 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.

A storm approaches like no other financial storm ever seen on the face of the earth.
A derivatives contagion capable of wiping out the entire financial system in an hour, is coming. 

LegendaryIn 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. 

monthlysilverEveryone 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:

dynamiteIt is said that history doesn’t repeat itself, but in the case of silver, I don’t see how that can be avoided. In more ways than not, silver today reminds me of the time when it traded under $5 per ounce.
As was the case back then, the thought that it might eventually climb more than ten times in value was widely disbelieved and openly scoffed at. That’s because silver was the most undervalued asset in the world, both then and now. If you didn’t catch the first run, you’ve just been given a second chance.
And it is also interesting that silver is registering as the most undervalued investment asset precisely at the same time when there is more total investment net worth and buying power in the world than ever before
. The assets in hedge funds alone are now at a record $2.7 trillion; 1 percent of which ($27 billion) is more than the value of all the silver bullion in the world (if it could be bought).
The 100 million oz of new silver available for investment annually would take only one-tenth of one percent ($2.7 billion) of hedge fund assets. Unless hedge funds have stopped looking for undervalued assets, I can’t help but feel that’s a set up akin to a lit match and a barrel of dynamite.

beach ballSilver dipped to $19.10/oz overnight and remains under pressure this morning . With the gold: silver ratio at just over 66 ($1,290/$19.38/oz), silver remains a compelling buy at these levels.
The stealth phenomenon that is silver stackers or long term store of value buyers of silver coins and bars continues and is seen in the record levels of demand for silver eagles from the U.S. Mint.   The US Mint sold 13,879,000 ounces of me in Q1, 2014.  This is just over 2% less than the 14,223,000 sold in the first quarter last year.   March sales were the fourth-biggest month ever and the US Mint is now on pace to exceed 2013 totals.
Silver stackers remain the smart, informed buyers.  They realize that silver is undervalued versus gold with the gold silver ratio at 66:1.  This is particularly the case on a long term historical basis. The long term historical average, gold to silver ratio is 15:1.
Silver industrial and investment demand is increasing very significantly and meanwhile supply is falling. The fact that the huge majority of the investment public and financial services industry remains unaware of the fundamentals in silver means that the bull market in silver likely remains in its intermediate stage.

 

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 ounceonly at much higher prices.
Silver Will Be The King Precious Metal Performer.

gold & silver sold outBitcoin 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.

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!

sprottIt 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.