As the MSM, Wall Street and various so-called analysts waste time focusing on worthless and insignificant data, the price of silver is positioning itself for the coming TWO-STAGE RALLY.
The majority of the precious metals analysts discuss the revaluation of silver as it pertains to the amount of fiat currency in the system.
While this is a good determination (from past historical guidelines), it only deals with one part of the overall equation.
The second and maybe the more important factor… is the destruction of “PAPER CLAIM CHECKS” on physical assets. [Read more...]
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.
Is it possible that a substantial 2014 summer rally begins after the release of this Friday’s key jobs report? I think so.
I’ve outlined a rough scenario for summer rally enthusiasts on the daily silver chart below. I’ve suggested silver could move up to about $22.
Much higher prices are possible if Western world inflation and Indian buying increase significantly, and I think that’s exactly what’s going to occur.
Statistically, gold and silver prices closely follow each other.
But what is more important is the ratio between silver and gold and the trend of that ratio.
The 30 year gold/silver ratio chart reveals that the silver-to-gold ratio is currently priced at the low end of the range, long-term silver prices are gradually increasing relative to gold, and a price explosion could occur at any time! [Read more...]
We have well documented over the past few months the unprecedented flows of physical gold and silver being drained out of Western vaults and shipped East.
SD reader Ji Hai Shan, an American currently residing in China, has provided a boots-on-the-ground first-hand account which substantiates our recent claims that spiking silver premiums on the Shanghai Gold Exchange indicate a shortage of the physical metal in China.
“3 months ago, when I inquired about buying some more bars, they said that I would have to wait a month.
So, yesterday, I stopped by the shop and was told again that I would have to wait a month.
The affordable investment grade bars are in shortage.”
Ji Hai Shan’s first-hand account of the developing shortage of investment grade silver in China is below:
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...]
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.
Silver is on the verge of a massive short squeeze. Speculators’ silver-futures shorts surged to extreme bull-record levels less than a month ago. And they’ve barely started to mean revert, which means big buying to cover is still coming soon. While speculators’ silver-futures positions are always a great contrarian indicator at extremes, exceptional shorts are the most bullish portent of all.
Unlike new long-side buying, short covering isn’t optional. Silver futures’ hyper-leverage guarantees that speculators have to quickly buy to cover as silver’s price rises. This feeds on itself, igniting a buying frenzy as traders rush for the exits. The bigger their aggregate shorts, the greater the rally their covering sparks. So the recent bull-record shorts are a super-bullish harbinger for silver and its miners’ stocks. [Read more...]