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EU Debt Restructuring Leads to Bailout Euphoria / Silver to Double to $100 Say Citigroup

Tyler Durden's picture


From GoldCore

EU Debt Restructuring Leads to Bailout Euphoria / Silver to Double to $100 Say Citigroup

Bailout euphoria has returned to markets with Asian and European stock indices rising on renewed risk appetite.

Gold has recovered from yesterday’s slight sell off (0.6% in USD) and the firm gold price in all currencies suggests that market euphoria is again misplaced. Gold is down only 20 euros per ounce in the last 24 hours. Gold is trading at USD 1,596.10, EUR 1,108.1, GBP 978.50 and CHF 1,310.10 per ounce.

Cross Currency Rates

Along with stocks, European bonds are being bought with gusto. Yields in Greece have plummeted while yields in Ireland and Portugal have fallen sharply. German bunds have been sold and the yield on the German 10 year has risen from 2.5% to 2.88% since last Tuesday (July 12th)

The failure to address the risk of insolvency in Greece, Portugal and Ireland means that the risk of contagion has been delayed but remains.

Real contagion risks remain as do currency risks. The dollar and the euro remain vulnerable to further debasement and depreciation.

With all eyes on Brussels, myopia has returned to markets particularly with regard to the serious fiscal and monetary challenges continuing in Washington.

Another sign of silver’s move from the fringe of hard money advocates and more risk averse investors and savers to the mainstream is seen in Citigroup technical analysis of the silver market which was picked up by Bloomberg.

Citigroup Global Markets Inc. have said that if silver follows similar patterns as seen in silver’s last bull market from 1971 to 1980 than silver could double to over $100 per ounce.

“If the final rally in the last bull market repeated then we can expect $100 over the long term,” Tom Fitzpatrick and two other analysts wrote. “While the high so far this year was at the same level as the peak in January 1980, we are not convinced that the long-term trend is over yet.”

Most institutional players and Wall Street banks have been bearish on silver and have called the silver market wrong for years.

Some have very large concentrated short positions which have been investigated by the CFTC and were likely “talking their book.”

Therefore, it is very unusual to see such a bullish call from a major bank and suggests that at least some of the major banks see the writing on the wall regarding much higher silver prices. They are likely positioning themselves accordingly.

This means that the banks with concentrated short positions, such as JP Morgan, may soon see their silver positions incur even greater losses  and we may see the much heralded short squeeze propel silver to much higher prices.

Our long held target for silver of $140 per ounce, the real inflation adjusted high from 1980, remains viable and becomes more likely by the day.


(Bloomberg) -- Gold May Gain on U.S., European Debt Concerns, Survey Shows

(MarketWatch) -- Gold, silver tick higher in electronic trading

(Bloomberg) -- Silver May Rebound to Test $100 Level, Citigroup Says: Technical Analysis

Silver May Rebound to Test $100 Level, Citigroup Says: Technical Analysis


(MarketWatch) -- Silver Will Continue to Win Investors’ Attention Along With Gold

(Financial Times) -- Financial Times - Moore, Wienberg and Jessop on the Outlook for Gold Prices

(ZeroHedge) -- Guest Post: David Morgan On Silver Price Manipulation, Delivery Default & Supply Shortage Risks

(24HGold) -- The Global Physical Gold & Silver Reserves Race is the New Nuclear Arms Race

(ZeroHedge) -- The Fatal Flaw In Europe's Second "Bazooka" Bailout: 82 Million Soon To Be Very Angry Germans, Or How Euro Bailout #2 Could Cost Up To 56% Of German GDP

(Mineweb) -- Jury rules US Govt. confiscation of rare double-eagle $20 gold coins legal

(Bloomberg) -- James Grant: Return to the Gold Standard - "This is not a threat, this is not a promise, this is going to happen"

Psychological Barriers In Gold Prices? ($1,600 Gold) - Brian Lucey and Raj Aggarwal


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Fri, 07/22/2011 - 08:03 | 1479944 Ancona
Ancona's picture

That's old news Daddy-O.

I've been long physical for years.

Fri, 07/22/2011 - 08:06 | 1479950 High Plains Drifter
High Plains Drifter's picture

i got on this bull early and its been mostly fun except for 2008. but i kept the faith, armed mainly with the knowledge that these criminals are going to do what it is they do and when they are done, then we have to do what we have to do.

Fri, 07/22/2011 - 08:12 | 1479957 narapoiddyslexia
narapoiddyslexia's picture

I didn't start buying physical silver until I stumbled across this site in the Spring of 2010. So I am a little in debt to this locale. Right now, I'm still buying although I try to pick short-term lows. Its hard for me to do this successfully, as it always seems to go down more after I add to my cache. Still, buying more silver coinage of one type or another is not a bad idea. Unlike fiat, it will always have some value, and for this reason alone its a good buy. All of the various analyses have little to add, it seems to me, and are of little value except to traders.

Fri, 07/22/2011 - 08:37 | 1480025 Ghordius
Ghordius's picture

I would meddle in silver if the CB's would, too.

Never forget how small silver is (compared to gold), yes, it makes it more volatile and exciting, still, it is "softer" money.

The Silverites, if I understood it correctly, where against gold because it was too "hard".

Fri, 07/22/2011 - 08:50 | 1480062 Cole Younger
Cole Younger's picture

TSilver and gold go hand in hand. you need both.

Fri, 07/22/2011 - 08:37 | 1480026 High Plains Drifter
High Plains Drifter's picture

they say that this bull may last 25 years. i say it will last forever. so my advice. keep buying what you can when you can. you will need it soon........

Fri, 07/22/2011 - 11:50 | 1480978 dark pools of soros
dark pools of soros's picture

nothing wrong with selling some on a recent spike..  since it jumped from 35 to 40 i sold a few this week..  keep your piles separate.  the big pile and the small pile you can move so you can make more for the big pile and anything else you need


it's a long journey, have fun along the way


Fri, 07/22/2011 - 08:41 | 1480038 New World Chaos
New World Chaos's picture

Ditto.  Thanks, ZH.

Fri, 07/22/2011 - 08:47 | 1480053 goldfish1
goldfish1's picture

Yeah, silver has been like that as tbtb work to supress the price. That alone lets you know something about the value of paper currency.

Fri, 07/22/2011 - 08:04 | 1479945 High Plains Drifter
High Plains Drifter's picture

why in the world would they talk about little old siver for?  hmmm?

Fri, 07/22/2011 - 08:36 | 1480023 sunnydays
sunnydays's picture

Whenever a big bank becomes bullish on metals, I get worried too.  Setting up for a huge push down to make some money?  No doubt silver will go to $100, should be there already if it was not for the manipulation.

Fri, 07/22/2011 - 09:27 | 1480166 gmrpeabody
gmrpeabody's picture

Maybe CITI sees they are being thrown under the bus, and have decided to fight a different style fight. A crack appears in the financial brotherhood?

Fri, 07/22/2011 - 08:04 | 1479946 KlausK
KlausK's picture

Silver $100 long term. No shit.

Fri, 07/22/2011 - 08:07 | 1479952 BeerWhisperer
BeerWhisperer's picture

That means it is a good time to sell if sources like that are saying buy.

Fri, 07/22/2011 - 08:49 | 1480061 goldfish1
goldfish1's picture

What are you selling yours for?

Fri, 07/22/2011 - 09:30 | 1480176 fuu
fuu's picture

I agree with Goldfish, I'll take whatever he leaves you with.

Fri, 07/22/2011 - 08:08 | 1479955 wsmith
wsmith's picture



Who gives a fuck?

We need ideas.

My idea?

Tune in, turn on, and drop out.

Fuck the corporate assholes.

But who fucking died and made me boss?

Anyway, so long.

And God Bless all you Marxist cocksuckers.

Fri, 07/22/2011 - 08:11 | 1479961 doomandbloom
doomandbloom's picture

agree...change of 'money' from paper to gold...will benefit a few..and we will still have our overlords...

no change.

Fri, 07/22/2011 - 08:15 | 1479973 wsmith
wsmith's picture

That's what I say, brother.

Fuck all the overlords--gold and paper--right in their assholes.

Perhaps I'm a Marxist.

But I'm fucking tired of bending over.

Fuck 'em all.

Anway, so long and God bless.

Fri, 07/22/2011 - 08:18 | 1479981 doomandbloom
doomandbloom's picture

do not identify yourself with marxist, or socialist or capitalist....these are definitions used by people who dont want to think differently..

u are thinking differently...maybe we need a new name for ur beliefs...

Fri, 07/22/2011 - 08:27 | 1480009 scratch_and_sniff
scratch_and_sniff's picture

"u are thinking differently...maybe we need a new name for ur beliefs..."


No, the name exists.

Fri, 07/22/2011 - 08:20 | 1479987 High Plains Drifter
High Plains Drifter's picture

yes any sort of gold standard will be more of the same because the same ones that own the FED also own most of the gold and the means of production. They figured that one out a long time ago. We can do what Lincoln did and do just fine......but any and all "debts" acrued during the fiat regime must be declared null and void. now doing this, there will be some anger in the world. but that is the way it is....this is why i don't trust ron paul with his jewish inspired austrian economic school and his gold standard nonsense.

Fri, 07/22/2011 - 08:23 | 1479998 doomandbloom
doomandbloom's picture

I view Ron Paul as an insider, who was put in place long time case people realised the charade...

In which case he would be seen as a champion. It took us nearly 30 years to realise this paper charade.

I dont trust him...mainly because he is still alive ( if the establishment really saw him as a threat...he would be taken out long time ago)

We need people to realise we no longer need leaders to tell us what to do...


Fri, 07/22/2011 - 08:42 | 1480042 High Plains Drifter
High Plains Drifter's picture

correct observation imho. anyone that gets off the reservation becomes obsolete. that is the way the game is played. anyone that continues to exist, means they are playing their parts. it is troubling to see so many well meaning people get duped and put their trust in a old man who has been inside or the beltway for almost 20 years now, without effect. do we hear fire breathing oratory from this man? no, we don't. for example, let us look at what happened to jim traficant. he kept trying to be mr independent who didn't care about what "they" wanted and vola, suddenly he is brought up on bogus charges, convicted by a kangaroo court and sentenced to 7 years in federal prison. out of sight, out of mind.  this is the way things work. people should know that by now. i hate to sound so cynical, but that is the way it is.....

Fri, 07/22/2011 - 08:57 | 1480076 SheepDog-One
SheepDog-One's picture

DHS and FEMA team up to call you, whitey, the problem.

?FEMA Partners with Homeland Security on Psyops Campaign?‏ - YouTube

Fri, 07/22/2011 - 09:46 | 1480242 DosZap
DosZap's picture


saw that, funny I did not see any crackers flying jets on 9-11, did you?.

Between these fools and the SPLC, we have quite a trio.

Everyone is always looking for a scapegoat, and a scare tactic, for job security and funding.

Fri, 07/22/2011 - 09:54 | 1480290 High Plains Drifter
High Plains Drifter's picture

strange acting white guys running around dropping off suspicious bags.......hmmm, maybe it is truel. maybe we will all be "terrorist" one day......

Fri, 07/22/2011 - 09:26 | 1480163 Silver Dreamer
Silver Dreamer's picture

How is Ron Paul a threat?  He's one statesman on a stage of nearly 500 bankster puppet politicians.

Fri, 07/22/2011 - 09:52 | 1480254 Hearst
Hearst's picture

I agree.  A lot of people want to associate Paul with the bad guys but that's just crazy talk.  Look at his track record of voting.  Look at what he stands for.  It's all against the status quo.  He is one of the only politicians that speak up and care for the people.  I know it's difficult to look at Washington and not group them all in as a den of thieves but Ron Paul's actions speak for themself.  

Fri, 07/22/2011 - 09:56 | 1480308 High Plains Drifter
High Plains Drifter's picture

that is the point. ron paul is not a threat.  then one may ask , why not?  why is he still alive?  listen man, you have  to understand the kind of people you are dealing with. the kind of people that will kill 3000 americans at the drop of a hat, on 911 and not think a thing about it, so they can affect american foreign policy and our mercenary actvities.......and make money at it all the while.....

Fri, 07/22/2011 - 09:33 | 1480184 DosZap
DosZap's picture

Marc Faber was interviewed a week or so ago, and he was asked if he had to choose only ONE asset/commodity to put all his eggs in,which would it be 100%.

He said GOLD.He said watch the Jewish people, they are super intelligent with regards to making money, and he had many friends that were Jewish.

He holds 20% of his total net worth in Gold and Gold stocks.

His Jewish friends, some held 20-25%,others 40-60%, and others 80%.

But the majority held more than 40%+ in Gold.He said doing what they do will pay off,ultimately.

Regardless of what you think or believe about them, they know how to make money, lots of it.

As for the Austrian Economics model.

I'll take it over the Keynes model that's FUBAR any day.

Fri, 07/22/2011 - 09:57 | 1480319 High Plains Drifter
High Plains Drifter's picture

watch the jewish people.........ha ha ha ha........

so true. so true....


guess what. my jewish friends are buying metals hand over fist..........kapiche?

Fri, 07/22/2011 - 09:35 | 1480190 DosZap
DosZap's picture


Fri, 07/22/2011 - 08:10 | 1479959 the not so migh...
the not so mighty maximiza's picture

We should annex the European Union as part of the greater US Republic.  Since we are paying or just printing for it anyway.

Fri, 07/22/2011 - 08:39 | 1480018 Ghordius
Ghordius's picture

Start with giving Puerto Rico full state status.

Ah, and annex Israel. Oh, I forgot Iraq & Afghanistan.

Wait, make it simpler: annex all countries which have a US military base.

Do you know the location of all US bases, doughboy? There are 700+ of them.

Fri, 07/22/2011 - 08:44 | 1480047 the not so migh...
the not so mighty maximiza's picture

sounds like a plan

Fri, 07/22/2011 - 09:52 | 1480282 DosZap
DosZap's picture

Yeah, make Puerto Rico a state, get that extra million votes for Oblameuh, and add another 500k to the welfare rolls......sounds like a great plan.

Fri, 07/22/2011 - 08:13 | 1479968 earnulf
earnulf's picture

Haven't you left yet?    You keep saying you are leaving, but you keep coming back.

Fri, 07/22/2011 - 08:16 | 1479977 Oh regional Indian
Oh regional Indian's picture

Silverrrrrrrrrrrrrr! One more swoon, then off to the races, never to return to these affordable levels.

But like many have pointed out, $100 silver, today, means a world in shambles. Or close to Shambolic anyways.


Fri, 07/22/2011 - 08:22 | 1479997 High Plains Drifter
High Plains Drifter's picture

normally i wouldn't trust a company that should not exist, but i believe they are mapping the future for anyone with a ear to hear. yes , it is true. with the "success" of silver bug's "investments" so goes the world...........i am sorry to say. it is bitter sweet.......

Fri, 07/22/2011 - 08:59 | 1480080 SheepDog-One
SheepDog-One's picture

Silver should already easily be $100, just imagine things when it gets to $500.

Fri, 07/22/2011 - 09:28 | 1480169 Silver Dreamer
Silver Dreamer's picture

The problem of course is that when it gets to $500, that $500 will still only buy you a gallon of gas.

Fri, 07/22/2011 - 09:47 | 1480245 High Plains Drifter
High Plains Drifter's picture

correct?  what does it mean to say that silver will be at 500. does it really mean that much to us as americans?  one has to ascertain such things when taking inflation into account.

Fri, 07/22/2011 - 08:18 | 1479982 Internet Tough Guy
Internet Tough Guy's picture

FOA (01/10/01)

Silver, you ask?

Same old song for a brand new generation, all ready to hear those wore out verses being sung once again. Perhaps, a poor man's gold, no?

Ha! Ha! The last thing a poor man (or woman) needs is silver. Actually, any metal could be a poor man's gold, even iron! One ounce of iron is more affordable than silver and has just as good a chance at outrunning gold,,, percentage wise of course.

The only real argument all the silver pushers have is based on it someday outperforming gold and holding that gain for good,,, again percentage wise. This is the same old worn out logic all the various paper gold substitute players also use. Throw it into the same waste basket with options, futures, leveraged gold contracts, delta hedging both long and short paper positions,,,,, even gold mines, silver mines and the like. All of it is pushed because of the same thought; "why own physical gold when these items will go up faster in the next move"!

Yea,,,, somebody forgot to mention that the next move in gold may be of a nature like "noone" has ever seen before. Oh, you didn't hear that this time the entire paper gold marketplace may crash and burn,,,, taking all those above leverage vehicles down with them? Exposing silver for the play it always truly was,,,,, just another leveraged metal being pushed to poor people standing next to gamblers?? Yea, poor people shouldn't use gold,,,, that's only reserved for rich people hedging their big wealth. Ha! If ever there was a way to increase the gap between have and have nots,,,,, just sell the nots silver while the haves keep gold.

Fri, 07/22/2011 - 08:52 | 1480065 goldfish1
goldfish1's picture

The last thing a poor man (or woman) needs is silver.

Silver is money. Paper money fails. Do your history homework.

Fri, 07/22/2011 - 09:01 | 1480087 EvlTheCat
EvlTheCat's picture

yawn.... Specious argument at best.

Fri, 07/22/2011 - 09:40 | 1480209 Internet Tough Guy
Internet Tough Guy's picture

But your argument was incisive. lulz

Fri, 07/22/2011 - 10:01 | 1480339 EvlTheCat
EvlTheCat's picture

Tough Guy with thin skin, oxymoron.

Fri, 07/22/2011 - 12:13 | 1481091 Oh regional Indian
Oh regional Indian's picture

Incisive arguments take time and space, not one line rebuttals.

Gold WILL Fold!



Fri, 07/22/2011 - 08:18 | 1479984 101 years and c...
101 years and counting's picture

so, the premise is that the hunt brother cornering the silver market was a normal function and due to repeat itself? i like silver, and will buy some more at $30.  but, come on ZH'ers.  what a dumb argument presented here.


Fri, 07/22/2011 - 08:22 | 1479993 ZeroPower
ZeroPower's picture

I think its as likely or as dumb an argument as you make it.

Would i be hoping for silver to $100? Perhaps, if positioned correctly. But if said 100s are reached, would i be buying or selling then? Selling, for sure.

Fri, 07/22/2011 - 08:23 | 1479999 BCTwelve
BCTwelve's picture



this type of tech. analysis is about as useful as a blindfolded momo money stockpicking by throwing darts at the business section

Fri, 07/22/2011 - 08:29 | 1480010 High Plains Drifter
High Plains Drifter's picture

playing the part of arm chair general, looking back, i would say their biggest mistake was attempting to move too fast and also leveraging..........they should have just moved slowly and used cash only and acquired physical........i mean how much money would we be talking about here?  as far as it goes, not that much really. instead of switching off the fiat way of thinking on it, they worried too much about the silly jewish notion of interest and time value of "money".   when they leveraged up , they opened themselves up to attack and being nice gentile white boys from texas, they were not looked upon as being worthy of any activities of this nature , especially by the yarmulke wearing persons in new york....when white boys try to swim in the new york investment rivers, they must come prepared for war. just ask ted turner.

Fri, 07/22/2011 - 09:47 | 1480246 moonstears
moonstears's picture

From a trusted source of mine who's intimately familliar with the Hunt story...they were buying physical. The amounts they wished to source HAD to be bought on markets, the mistake was assuming those markets HAD physical silver to back the  contracts was their mistake. Sound familiar? PLUS, as you stated, they levered through a bank who was SHORT silver at the lofty price levels. Some smart young suite at that bank figured to call in the loans, to either cover his books and drop the price, or get physical. A cascade ensued.

Fri, 07/22/2011 - 10:01 | 1480264 High Plains Drifter
High Plains Drifter's picture

its my understanding also that a lot of hunt silver which was supposedly located in great britain, was never located either?  hmmmm....... gee i wonder what happened to it....


i had to go back and reread what you wrote. wow, so the comex did not have the silver to deliver to the hunts even back then. amazing. totally amazing. nothing has changed there. nothing. all these can this game be broken?  that is the question.

Fri, 07/22/2011 - 10:16 | 1480392 moonstears
moonstears's picture

They were buying rapidly, at all price levels, and standing for delivery. My assumption is that the exchanges couldn't keep up with their demand, more so than the metal was not extant, somewhere, at the time, but they had taken the physical, and TIME to get the metal together was needed, to settle, and couldn't be done so quickly. Remember, correct me if wrong, shorts either come up with physical metal, which was what the Hunt's wanted, or paper currency, which the Hunts did not want.   P.S. I think the same's true today, but there are MANY small players, and much less metal to source, JMOs.

Fri, 07/22/2011 - 08:38 | 1480030 BeerWhisperer
BeerWhisperer's picture

I wonder if there are any blog type websites that have a vested interest in hosting speculative cheer leading into precious metals? You know, a place where you can encourage people to buy because just like the housing market, (things are only going to go up). That way you have an outlet to dump the scheme on the poor suckers that have been buying metals hand over fist. Buy low sell high type deal.


Anyway, if anyone comes across a site like that let me know.



Fri, 07/22/2011 - 09:16 | 1480131 EvlTheCat
EvlTheCat's picture

Supplying news is a job.  Interpreting the news is left up to the inmates.  Read it how you will but when Citigroup talks up Silver I am suspect.

What do you whisper to your beer?

Fri, 07/22/2011 - 09:45 | 1480229 prole
prole's picture

I wonder if there are any blog type websites that have a vested interest in attracting paid trolls and minions to cloud the minds of the dull? You know, a place where a compensated employee of Mordor can post little sarcastic...

Anyway- beerwhimperer, hoist the troll banner high! Your fallen comrades are dead upon the field of verbal combat where you will soon collapse as well. How long will you be (not) entertaining us with your (not) funny comments?

Fri, 07/22/2011 - 10:50 | 1480654 grey7beard
grey7beard's picture

>> if anyone comes across a site like that let me know.

the pied piper of silver sheeple.



Fri, 07/22/2011 - 08:56 | 1480069 New World Chaos
New World Chaos's picture

We are the Hunt brothers this time. We didn't pledge the silver as collateral to Wall St. banks, and the Fed will not be able to jack interest rates to 18%, and plus the five biggest currencies will all collapse at once.  I'll pay off my mortgage when silver hits $400/oz but will still keep most of it.

Fri, 07/22/2011 - 09:33 | 1480186 caerus
caerus's picture


Sat, 07/23/2011 - 00:43 | 1484260 nathan1234
nathan1234's picture


Fri, 07/22/2011 - 08:27 | 1479986 malikai
malikai's picture

Beware daytraders and margin players. Stories like these preceede takedowns. Coming from Citi, Goldman, JPM, or any other TBTF, one should expect nothing less.

Fri, 07/22/2011 - 08:21 | 1479989 Catullus
Catullus's picture

Is this the Bargaining or the Acceptance stage?

Fri, 07/22/2011 - 08:23 | 1479995 Leo Kolivakis
Leo Kolivakis's picture

Watching Greek politicians speak on Greek TV is a riot. G Papp is telling the nation to ''be proud'' and his counterpart in the opposition, Samaras, is a total moron. Papoulias, the President of Greece (figurehead), said ''Europe has awoken.'' These people are shameless. And the Greek navy and taxi drivers decided to go on strike to sink the country into hell. Tourism is the only thing they've got left and the stupid Greeks want to kill that too. Yup, we deserve what we get!

Fri, 07/22/2011 - 08:34 | 1480021 doomandbloom
doomandbloom's picture

u may deserve it...not the people of Greece..

This is the point in capitalism, where people are forced to blame themselves for mistakes( and they believe how bad they were) , when in fact this was forced upon them.


Fri, 07/22/2011 - 08:24 | 1480001 Zing
Zing's picture

If the high in Silver is $100, buy gold, which is going to >$5000.

Fri, 07/22/2011 - 08:24 | 1480003 GoldCore
GoldCore's picture

Most Watched Video on youTube  on Gold in the World in 2011 - Going Parabolic From 120,000 Views to 128,000 in 4 Days
GoldNomics - Cash or Gold Bullion?

Fri, 07/22/2011 - 08:26 | 1480005 curtly
curtly's picture

and maybe Citi will double its all time high and hit 1,000

Fri, 07/22/2011 - 08:48 | 1480059 goldfreak
goldfreak's picture

would anyone like to share their price targets for Gold and silver's blow-off top

I'd say  10,000 G

            450  S

Fri, 07/22/2011 - 08:56 | 1480072 monopoly
monopoly's picture

goldfreak, I do not think we will have a blow-off top. Sure, we will have ups and downs of epic proportions. But just look around you, gold is going to blow up and then go back to 400. Nope, it will take years, but at some point, gold will be part of a currency that is recognized by most countries.

I do think, this time is different, but there will be many tests moving forward, as there have been since I first started with gold over 700.

Fri, 07/22/2011 - 10:41 | 1480584 DosZap
DosZap's picture


Yes it might.......................

But not until the entire global system re-sets.

When it goes back to 400, it will be because either things have been artificially priced, or things have gone back to a semblance of normalcy.

I think the first is the likely scenario,and that's if individuals are allowed to wn it.

Fri, 07/22/2011 - 11:34 | 1480896 gwar5
gwar5's picture

If gold ever goes back to 400 it's only because that'll be the price in a new global currency. This is a one way trip for the USD.

The USD will no longer be the WRC in a few years, making the USD collapse even faster and further --  gold priced in USD will become ridiculously high. A sudden 50% haircut in the USD is a quick double in the USD cost to buy an ounce of gold.

$400 gold would be lower than the inflation adjusted low of Volcker's 1980's post-crash gold. And there's no Volcker that is going to ride to the rescue of the USD with 20% interest rates. 

Fri, 07/22/2011 - 11:11 | 1480781 gwar5
gwar5's picture

Market discovery gold price at high level, then stabilize with volatility at the top as fiats fade. Predictions:

$5000 gold and $280 silver by end of 2013.  $10-12,000 gold and $560 silver by the end of 2016.

2013: that's about 2X the inflation adjusted 1980 highs $2340 and $140.

2016: that's about 4X+ the inflation adjusted 1980 highs as PM safe haven becomes mainstream.



Fri, 07/22/2011 - 08:53 | 1480068 monopoly
monopoly's picture

I pay very little attention to all those who know where we are headed with gold, silver, stocks. I study the fundamentals and see what is happening and stand fast in my convictions. It is taking time, but has anything been solved or has it just been delayed.

Could not sleep well if I did not have gold, silver to protect me from these moronic statesmen who care about nothing but their own net worth.

Fri, 07/22/2011 - 08:59 | 1480081 monopoly
monopoly's picture

Yeah, C has done so well over the years I will really follow their advice. Pathetic excuse for a bank.

Fri, 07/22/2011 - 10:56 | 1480693 grey7beard
grey7beard's picture

>> C has done so well over the years


If they say what you already  believe, they are genius.

Fri, 07/22/2011 - 09:00 | 1480084 SheepDog-One
SheepDog-One's picture

For a glimpse into what coming next, govt says 'white terrorism' is rampant, as shown in this DHS/FEMA psyop film.

?FEMA Partners with Homeland Security on Psyops Campaign?‏ - YouTube

Fri, 07/22/2011 - 09:14 | 1480123 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Yes, as you and I know SheepDog-One the foundations for Homeland Security were laid by patriot Bill Clinton in 1994 to be used ultimately on the American people, not some turbined dudes in caves in Western Pakistan.  This is nauseating propoganda from the true terrorists in WDC.


Tuco Benedicto Pacifico Juan Maria Ramirez

Fri, 07/22/2011 - 09:05 | 1480100 f16hoser
f16hoser's picture

Patient and accumulating physical. This is fun to watch. Buy the dips while the dips in Washington take PM's to the moon. Bernanke is our friend. I like his stupidity! Geithner, well, thats another be cont.

Fri, 07/22/2011 - 09:16 | 1480129 equity_momo
equity_momo's picture

1) use logarithmic charts for a time period this long

2) Citibank mega bullish silver? time to take profit short term

Fri, 07/22/2011 - 09:17 | 1480136 Sudden Debt
Sudden Debt's picture

I hate posts like this.

I'd would rather like to see silver stay at 40$ to just right before the paper game exploded and it goes to 500$.

In that way, I'd be able to keep accumulating at a cheap price for a year or 2 more.


Fri, 07/22/2011 - 10:53 | 1480680 DosZap
DosZap's picture


Yeah, and I would like to see it at $5.00, and gold at $3-450.00, and get our lives and the safety of our futures back,and those of our children, and grandchildren, also all over the globe.

But people in hell want ice water, and like them, we AIN'T getting it.

I would like my country to be rid of it's so called Protectors, who are nothing less than agent provacateurs, stirring up shit where there is none.

When and if it is, they will be the one's starting it.........the PTB have set this in motion on purpose, and we are the victims.

Fri, 07/22/2011 - 09:31 | 1480180 fuu
fuu's picture

Silver Bitches!

Fri, 07/22/2011 - 09:34 | 1480187 Phillips Capital
Phillips Capital's picture

ah, the silver bull articles have started again. this is my sign that if i haven't already gotten in a position, it's too late. 

Fri, 07/22/2011 - 10:02 | 1480350 Raymond Reason
Raymond Reason's picture

Story happens to be timed with the first day of HKMEx silver futures.  Maybe they are acknowledging a paradigm shift. 

Fri, 07/22/2011 - 10:12 | 1480408 Bullionaire
Bullionaire's picture

"Our long held target for silver of $140 per ounce, the real inflation adjusted high from 1980, remains viable and becomes more likely by the day."


Actually, the ShadowStats inflation-adjusted 1980 high is $490:


Fri, 07/22/2011 - 10:17 | 1480437 Nothing To See Here
Nothing To See Here's picture

If that's just one guy at Citi who suddenly found religion in silver, then I'm still comfortable with my holdings. He might even get fired for suggesting that. But if everyone at Citi recommends silver now, then I'm worried.

Fri, 07/22/2011 - 10:57 | 1480708 DosZap
DosZap's picture

I really am amazed that one or a few very well to do folks (globally), have not pulled a buy it all deal.

That way they make a killing,we make out,  and Congress can't touch them.

Fri, 07/22/2011 - 13:26 | 1481457 Threeggg
Threeggg's picture

What will be interesting is the close on the Comex in 5 minutes. Will it rain paper after or will demand outstrip paper ?

Fri, 07/22/2011 - 20:26 | 1483441 suckerfishzilla
suckerfishzilla's picture

If somebody would figure out a way to make one ounce rounds look more like a lottery ticket that might bait more of the public into metals investment.

Mon, 07/25/2011 - 11:01 | 1490494 Saucy-Jack
Saucy-Jack's picture

Eventually everyone is going to be saying to get into silver and silver will still move up. Just because the bandwagon is getting bigger, it is not necessarily a contrarian indicator. This is going to be a reverse waterfall for pm's. They are going way up, then a little retracement, then up to stay for good.

That's the fact, Saucy Jack.

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