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EU Debt Restructuring Leads to Bailout Euphoria / Silver to Double to $100 Say Citigroup
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.
NEWS
(Bloomberg) -- Gold May Gain on U.S., European Debt Concerns, Survey Shows
http://www.bloomberg.com/news/2011-07-21/gold-may-gain-on-u-s-european-debt-concerns-survey-shows.html
(MarketWatch) -- Gold, silver tick higher in electronic trading
http://www.marketwatch.com/story/gold-silver-tick-higher-in-electronic-trading-2011-07-22?link=MW_latest_news
(Bloomberg) -- Silver May Rebound to Test $100 Level, Citigroup Says: Technical Analysis
http://www.bloomberg.com/news/2011-07-22/silver-may-more-than-double-to-100-citigroup-says-technical-analysis.html
Silver May Rebound to Test $100 Level, Citigroup Says: Technical Analysis
http://www.bloomberg.com/news/2011-07-22/silver-may-more-than-double-to-100-citigroup-says-technical-analysis.html
COMMENTARY
(MarketWatch) -- Silver Will Continue to Win Investors’ Attention Along With Gold
http://www.marketwatch.com/story/silvers-a-worthy-gold-rival-2011-07-22?pagenumber=2
(Financial Times) -- Financial Times - Moore, Wienberg and Jessop on the Outlook for Gold Prices
http://www.ft.com/intl/cms/s/0/84edf710-b395-11e0-b56c-00144feabdc0.html#axzz1SoteSdsn
(ZeroHedge) -- Guest Post: David Morgan On Silver Price Manipulation, Delivery Default & Supply Shortage Risks
http://www.zerohedge.com/article/guest-post-david-morgan-silver-price-manipulation-delivery-default-supply-shortage-risks
(24HGold) -- The Global Physical Gold & Silver Reserves Race is the New Nuclear Arms Race http://www.24hgold.com/english/news-gold-silver-the-global-physical-gold--silver-reserves-race-is-the-new-nuclear-arms-race.aspx?article=3576863098G10020&redirect=false&contributor=JS+Kim
(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
http://www.zerohedge.com/article/fatal-flaw-europes-second-bazooka-bailout-82-million-soon-be-very-angry-germans
(Mineweb) -- Jury rules US Govt. confiscation of rare double-eagle $20 gold coins legal
http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=132055&sn=Detail&pid=102055
(Bloomberg) -- James Grant: Return to the Gold Standard - "This is not a threat, this is not a promise, this is going to happen"
http://www.bloomberg.com/video/72621750/
Psychological Barriers In Gold Prices? ($1,600 Gold) - Brian Lucey and Raj Aggarwal
http://brianmlucey.files.wordpress.com/2011/05/psychogold.pdf
»
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That's old news Daddy-O.
I've been long physical for years.
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.
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.
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".
TSilver and gold go hand in hand. you need both.
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........
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
Ditto. Thanks, ZH.
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.
why in the world would they talk about little old siver for? hmmm?
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.
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?
Silver $100 long term. No shit.
That means it is a good time to sell if sources like that are saying buy.
What are you selling yours for?
I agree with Goldfish, I'll take whatever he leaves you with.
Silver?
Gold?
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.
http://geraldcelente.proboards.com
agree...change of 'money' from paper to gold...will benefit a few..and we will still have our overlords...
no change.
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.
http://geraldcelente.proboards.com
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...
"u are thinking differently...maybe we need a new name for ur beliefs..."
No, the name exists.
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.
I view Ron Paul as an insider, who was put in place long time ago...in 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...
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.....
DHS and FEMA team up to call you, whitey, the problem.
?FEMA Partners with Homeland Security on Psyops Campaign? - YouTube
SD-O,
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.
strange acting white guys running around dropping off suspicious bags.......hmmm, maybe it is truel. maybe we will all be "terrorist" one day......
How is Ron Paul a threat? He's one statesman on a stage of nearly 500 bankster puppet politicians.
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.
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.....
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.
watch the jewish people.........ha ha ha ha........
so true. so true....
guess what. my jewish friends are buying metals hand over fist..........kapiche?
$
We should annex the European Union as part of the greater US Republic. Since we are paying or just printing for it anyway.
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.
sounds like a plan
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.
Haven't you left yet? You keep saying you are leaving, but you keep coming back.
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.
ORI
http://aadivaahan.wordpress.com/2011/01/27/wisdom-for-warriors-6/
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.......
Silver should already easily be $100, just imagine things when it gets to $500.
The problem of course is that when it gets to $500, that $500 will still only buy you a gallon of gas.
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.
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.
The last thing a poor man (or woman) needs is silver.
Silver is money. Paper money fails. Do your history homework.
yawn.... Specious argument at best.
But your argument was incisive. lulz
Tough Guy with thin skin, oxymoron.
Incisive arguments take time and space, not one line rebuttals.
Gold WILL Fold!
Fifiefofafum!~
ORI
http://aadivaahan.wordpress.com/2010/10/18/an-opportunity-and-a-golden-warning/
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.
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.
x2
this type of tech. analysis is about as useful as a blindfolded momo money stockpicking by throwing darts at the business section
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.
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.
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 years.....how can this game be broken? that is the question.
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.
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.
Thanks
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?
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?
>> if anyone comes across a site like that let me know.
tfmetalsreport.com
the pied piper of silver sheeple.
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.
exactly
+1
Beware daytraders and margin players. Stories like these preceede takedowns. Coming from Citi, Goldman, JPM, or any other TBTF, one should expect nothing less.
Is this the Bargaining or the Acceptance stage?
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!
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.
If the high in Silver is $100, buy gold, which is going to >$5000.
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? http://www.youtube.com/watch?v=-HaqwFJj4ZY
and maybe Citi will double its all time high and hit 1,000
would anyone like to share their price targets for Gold and silver's blow-off top
I'd say 10,000 G
450 S
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.
monopoly,
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.
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.
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 $140.
2016: that's about 4X+ the inflation adjusted 1980 highs as PM safe haven becomes mainstream.
I pay very little attention to all those who know where we are headed with gold, silver, stocks. I study the fundamentals and see what is happening and stand fast in my convictions. It is taking time, but has anything been solved or has it just been delayed.
Could not sleep well if I did not have gold, silver to protect me from these moronic statesmen who care about nothing but their own net worth.
Yeah, C has done so well over the years I will really follow their advice. Pathetic excuse for a bank.
>> C has done so well over the years
If they say what you already believe, they are genius.
For a glimpse into what coming next, govt says 'white terrorism' is rampant, as shown in this DHS/FEMA psyop film.
?FEMA Partners with Homeland Security on Psyops Campaign? - YouTube
Yes, as you and I know SheepDog-One the foundations for Homeland Security were laid by patriot Bill Clinton in 1994 to be used ultimately on the American people, not some turbined dudes in caves in Western Pakistan. This is nauseating propoganda from the true terrorists in WDC.
Tuco Benedicto Pacifico Juan Maria Ramirez
Patient and accumulating physical. This is fun to watch. Buy the dips while the dips in Washington take PM's to the moon. Bernanke is our friend. I like his stupidity! Geithner, well, thats another story.......to be cont.
1) use logarithmic charts for a time period this long
2) Citibank mega bullish silver? time to take profit short term
I hate posts like this.
I'd would rather like to see silver stay at 40$ 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.
SD,
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.
Silver Bitches!
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.
Story happens to be timed with the first day of HKMEx silver futures. Maybe they are acknowledging a paradigm shift.
"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:
http://howestreet.com/wp-content/uploads/2011/04/ChartWorks-Gold-Silver-...
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.
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.
What will be interesting is the close on the Comex in 5 minutes. Will it rain paper after or will demand outstrip paper ?
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.
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.