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Forget Parabolic: Silver Is Now Asymptotic, Hits $29
It seems just yesterday that we wrote about silver going not parabolic, but asymptotic, and hitting $28. A few hours later it is at $29. Blythe Masters' already terminally precarious tenure at JPM just got shortened by a few months.
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u the king King...
damn i glad i bought that metal...
starting 3 years ago....yeah boy!!!
MSM still refuses to even mention the sister metal of gold. Clue as to whom Cinderella is? I got this glass slipper, you see???
Pony! Great observation that the MSM has said zippo about silver. Maybe silver REALLY IS the weak link...? Kick out the weak link, JPM et al go DOWN, then the system fails.
...
JonNadler, please advise Jamie to get his helicopter fired up, or better yet, go steal it!
Yahoo Finance has this as their main headline at the moment: "Stocks Sluggish as Rally Wanes; Gold, Silver Jump"
Chart: Silver
http://99ercharts.blogspot.com/2010/11/silver_09.html
http://www.zerohedge.com/forum/99er-charts
shorts getting their balls squeezed, HARD. couldn't happen to a nicer, more deserving bunch of douchebags IMO.
JPM doesn't seem to be trading as if it were in trouble...
Because JPM has the full faith and credit of the United States of America behind it.
Shorting JPM is a sucker's play, regardless of market fundamentals. They're majority stockholders in the Congress Corporation.
Nor does PAAS
If all of the estimated above ground Silver was split evenly amongst the world citizenry each of us would barely have one pre-1964 US quarter.
Somebody please challenge my math.
Goldman Sachs refuses to pull back on this intraday selloff.
well, well, well, just look who's here, if it's not Mr. tetas, Mr. I-leave-all-the troll work to JonNadler-when-things-get rough.
Don't think Jamie will send you the usual stipend this week, you little coward
Fellers,
If you are waiting for a pull back before 30 or 40 or 50 you are going to be waiting.
There will be no pullback. If you look at the numbers on the COT report you will see steady buying for the last 4 or 5 months. They are taking delivery and will keep taking delivery of every oz the comex has. They may allow a pullback for a couple of hours but that's it. The same people are buying up miners and explorers. They will strangle the supply coming into the Comex as well as buying up the existing stock.
If you think this is tin foil hat stuff consider the timing of all the Chilton announcement, lawsuits, the calls by king world news for $30 an oz etc. This has been choreographed. The end game is to squeeze the hell out of JPM and HSBC. Take the silver and take their cash. Gold is just along for the ride. It's accelerating faster than planned only becasue the retail minnows are switching sides. They normally short silver along with the banks. The hedge funds are figuring it out. It will only stop when the Comex are cleaned out and cry uncle.
If you think I am nuts or blowing smoke I'll make another little prediction. We are going to see class action lawsuits against all the major foreclosure banks based on the fact they already got paid on their tranches of loans that they hedged through Credit Default Swaps.
In other words the bank already got paid. The taxpayer is the one that's out the money not the bank.
I think we've just seen a pullback.
"They may allow a pullback for a couple of hours but that's it"
Watch
This may explain PNC and BAC raising some cash by selling BlackRock.
This may explain PNC and BAC raising some cash by selling BlackRock.
I have been one of those who've been bullish on silver since 2005 and been for the most ppart, wrong until July of 2010. About freaking time!!
This can go mostrously parabolic in my opinion. Ain't nothing the devil at the fed can do about it.
I just bought my monthly alotment last week and am waiting for delivery, today or tomorrow. It's gained $4 since I made my purchase!!!
killing vampires ain't gonna be easy at these prices....
Blade will have to look at alternate careers..
Silver has been up against all the currencies as is gold. With the head of the World Bank talking about the role of Gold in a monetary currency and the very long term supression of the silver market, which is now under intense scrutiny due the CTFC's announcement and multiple law suites and Whistle Blowers, silver could easily reach its inflation adjusted high of $125, especially when there is far far far less of the stuff then there was when the Hunts cornered the market and drove the price up to $50 in 1970's dollars. Who knows what "actual inflation adjusted" value silver has. It doesn't hurt either that silver has more new industrial applications than almost any metal outside the rare earth metals and that will continue.
The key is really to buy physical silver and hold it for the long term and not on margin.
Are they waiting until all of the hedge funds are in, so they do some skinning?
Nice to see what happens when the brakes are removed! See the etf that tracks Silver at 2x spot: AGQ -- a good place to park those funds while you get ready to buy more physical.
how many of you silver investors are starting to feel like george bailey's old pal that bought into plastics in "It's a Wondreful Life?"
http://nymag.com/daily/intel/2010/08/jp_morgans_blythe_masters_will.html
gold just turned negative
i think silver might have hit its peak here
dollar rallying euro dropping
Is that a top call?
Only until the tomorrow monster POMO+++
Hey Jack, did the price of silver do the same thing right before the QE2.0 was announced? If so, do you see a possible similar outcome as the initial POMO is set for tomorrow?
Edit: deleted duplicate post.
Silver and gold are bubbles, yes. But they have many years to run. The problem is always one of time frame, position size, and leverage. Trading is a game of hot potato. Right now silver is a hot potato. But there is still a $14(?) Trillion hole in the US balance sheet. There is no consensus on the number. The point being that BB's $2.9 T QE effort to date has not filled the hole. There is more deflation to come. I don't think BB can fill enough of the hole fast enough without ringing alarm bells worldwide. This latest vertical move is a global chain reaction, and the FED is losing credibility quickly.
If you look at BB as the private banking cartel's pawn, then think about what policies best serve their interests. Inflation, followed by deflation, in ever accelerating waves. The more whipsaw and volatility, the better. Meaning: big up, big down, rinse and repeat until all weak hands are busted and their chips swept off the table. From a game theory standpoint, I don't think this is the final "endgame" we are witnessing but merely another sneak preview: "endgame part 2" (part 1 was the commodity bubble of '08). Today is a perfect example, actually, of this model. Witness the massive dumping of PM's on the close today. In an environment like this, leverage is very dangerous unless you are nimble.
If you are buying and holding physical to weather the storm, fine, but just be prepared for the great reckoning. Once USD capital flight takes place and a new international standard is established and stabilized, gold/silver balloon will come back to earth. This may be 3-10 years away. Not sure yet. PM's are not the final monetary solution, they are merely an insurance policy against fraud. I will stick by my call, though it seems idiotic right now: gold hits $1,000 again before $1,500, but it eventually takes out $2,000.
With the likely flood of QE2 about to hit possibly as early as Fri, what could possibly cause a short term liquidity crunch outside a margin shenanigan?
The sloshing cash should be able to tide any of the banks through any stuff fraudclosure can bring, and with the ECB now reopening funding for the PIIGS no real chance of a periphery default.
I'm just curious as to what manner of event could squeeze the PM longs now.
The fact that the major US banks are insolvent seems to be dismissed by the market as "whatever, the liquidity crisis is over, Bernanke helicopters, etc." The ECB will not bail out every sovereign failure indiscriminately. There are inherent conflicts in the Eurozone which will be resolved by the discipline of the market, not by politicians. If you think the central bankers can fill the gaping holes in banks balance sheets and keep the plates spinning, then more power to you. BAC alone can cause a domino affect that ripples through all commodity markets. It's like the market lived through 2008 but doesn't want to believe what they saw. Nothing, fundamentally, has changed. The causes of 2008 have not been resolved. This is not about liquidity, this is about solvency.
I've been bullish of metals since 1998, and the last few days is the first time I've seen price action that makes me suspicious/wary. Even before today's $2 silver dump-off. This price action is not healthy. If you want to play that one-way trade that 90% of the flock has bought into, that's fine. Today's PM tape looks like classic outside reversal. Just sayin'. Not coincidentally, they raised the margins on silver today by ~30%. Think: global margin call.
I trade for a living, so I may be an idiot, but I'm an idiot who makes money playing in the trenches. My theories are half-baked, no doubt, but I don't work in the kitchen, I merely taste the bread. If you want inside information, I'm not your guy.
To clarify I didnt junk you, but as expected it was a margin play that caused a panic.
I agree that there is no way that the CBs short of printing 10T can possibly patch up bank balance sheets, even after that theres the small issue of unwinding the derivatives books.
After todays big swing what's you're feel for the metals in the coming months?
Much appreciated.
Today's actions confirms what I've been suspecting since Thursday's delayed reaction to QE2. Blow-off top. Intermediate term reversal. USD rally. Euro weakness. Low growth. Stagnation. US/Euro banking crisis. Double whammy.
Downside price target for gold is near $1,000. I will leave it at that. Longer term, gold moves to 2K as USD crisis becomes acute. But the debt math tells me we are still 2+ years away. Deflation first. Remember, PM's are just another leveraged financial asset right now, going up and down with everything else. Yes, gold is an alternative currency, but the PM markets are still very small relative to forex.
Today's action is indicative of a very unhealthy market. It's flashing a big warning sign today.
Agree that the market is hollow, but dont see how the CBs will allow a TBTF to go.
Agree that the paper PMs are just a leveraged play but, if todays margin induced move in the PMs doesnt have staying power it'll be interesting - don't know how to read futures enough to understand whether the market is looking for delivery or not though.
Exciting times.
You have no idea what you are talking about.
I hear ESPN allows comments. Idiot.
Ugh, delete.
Have you noticed how those bastages have been slamming the close the last few days? -- pouting pussies taking their ball and storming off the field home to mommy.
Yup. It recovers nicely after 1:30pm est.
Not even waiting for the close today - getting punked back under $28 at the moment.
Insane action. I saw 28.02! Now 28.22.
Ouch that was a painful drop. Is it done?
Silver down over $1, high of 29.36 trading at 28.09 currently. Make that 27.83.
Round trip ride today... with Volume.
oops.. Silver rocket today just farted out.
Anyone else see silver just drop a dollar in 10 mins?
What happened? http://finviz.com/fut_chart.ashx?t=SI&cot=084691&p=m5
Gold and silver getting whacked now...
27.84...I'm still holding
sell heading to $23
im not a bear just think this liquidty thing is overdonw
put action today should have confirmed your sell
Knock it down more PLEASE so i can buy more LOL.
25 is a REALLY nice round number :)
Begining to feel like one of those -5% days
Weak hands getting tossed off. Call in the rodeo clowns!
buy zsl
double short now
uh oh. but who can blame them. nice time to take some winnings and party.
Imagine the havoc that kind of gyration can have on the upside!
Hopefully JPMorgan stop getting investigated and receive a bailout so they can continue shorting the hell out of silver so it goes back below 20$.
Hopefully you will go all in and buy Silver at $40 in a few weeks when someone smarter than you smacks you in the face and slaps a "$50 put" order on your forehead.
We had huge volume yesterday and today in the runup above 28. There! You just saw the first test of support.
Would it be rude if we all stood outside JPM's offices tomorrow morning with signs and pom poms cheering "Go Silver"? I wonder if we could build a human pyramid tall enough to reach Blythe's office window?
Yes, it would be rude.
And that is why I would be the first one there to participate.
Lol - looks like peeps in charge didn't like silver at $29 !
Hell no. Not when they're short from 23.
Silver and Commodities Complex Intervention. Guess will have to wait until tomorrow for $30 silver.
The last 24 hours' new money with their smart stops just got run. They'll be back.
Some guys are scared. Hold tight, *hold* being the operative term.
Could the increasingly worrisome bond charts be the catalyst for todays attack on the commodities complex or does this have to do with the Chinse downgrade of the US?
Naw, man. This is silver -- that wonderous psychotic cunt that takes your heart and never lets go. She's a bullet train en route to $50-$70. But if you ride her, don't expect to take a direct route. Then again, she'll never let you get bored.
AU 1405; AG 28 -- Carry on.
Good description of silver. I do forget sometimes the way she makes those quantum moves. Never boring.
+ $27 or whatever it is now!
that 5 and 6 dollar silver
is pretty shiney stuff
tarnished as it might be ..
buck and a half drop ..
margin killer...
Re. Margin killer -- Yeah, and rightly so. That's the tail wagging the dog, digitized fake brokerage money to play the real. Rent-to-own sounds good in theory, but rarely pays off.
We'll be back to 29 and beyond soon enough. This girl's got *alpha* we ain't never seen the likes of before.
There was a 12 percentage point discrepancy in the electronic and floor price BEFORE the close!
HTF can that happen?!
And, of course, the predators-that-be tell their co-conspirators (the regulators) to change the rules to crash the price of silver and gold in the commodity markets. No surprise, as we have long understood that 100% of all government employees are bought and paid-for agents against honesty, ethics, justice and the individuals they supposedly work for (the citizens).
The only question is --- will the world continue to put up with this utterly, totally out of control predators-gone-wild criminal cartel known as the government of the USSA?
I say no! We need to help the rest of the world wipe out these predators. Sell every last paper asset [except gold and silver miners], and spend every last penny you have to buy physical silver and gold. Close all savings accounts, and every checking account except one. Convert all money into that checking account immediately into physical silver and gold.
Let's try to help the world stick it to these scumbag predators for a change, and work our way out of defacto slavery.
Last nights rally in Silver was totally amazing to watch. The level of bullishness is now completely insane! By the end of the night all the “Johnny-Come-Latelies” must have been completely disappointment to see a huge reversal in prices. Most likely majority of them being on this blog who were thanking Bernanke yesterday for a Silver rally hehe.
It looks like Silver could have complete a strong reversal pattern in a blow off top manner. I think at one point Silver was trading three standard deviations above its 50 day moving average and over 20% in price away from it!
This move is way overdone. It is time for a correction as precious metals exuberance</a> to enter precious metals correction.
Great link on the Gold & Silver topic - http://theshortsideoflong.blogspot.com/2010/11/precious-metals-exuberanc...