Precious Metals Morning Summary

Tyler Durden's picture

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tiger7905's picture

If silver's going to $50/oz then I'm glad I hold McEwen plays like MAI.

Of course I think $50/oz is just the next step, McEwen has said $300/oz isn't unreasonable, and Sprott has been calling for $50 for a while now.

Harlequin001's picture

$50 is a temporary step. You can't print twice as much money and go out and buy twice as much oil, or wheat or copper. Eventually you run out of oil or wheat or copper and the price goes up. When interest rates pop and Govt funding costs rise you will see bigger QE and more frequent. That's money creation.

Nobody can say how high silver and gold can go because no body can quantify the future even short term cash needs of a liquidating market. The price target is therefore infinite. And by that I mean until gold is back in money; a long way off

johnQpublic's picture

if both wheat and copper goes up, what happens to the price of my wheatback copper pennies?

Harlequin001's picture

If you save up I could trade you some copper plated wheat biscuits...

oddjob's picture

Dump MAI and its copper exsposure and buy UXG!

Cash_is_Trash's picture

What will be the straw that breaks the fiat's back?

Arch Duke Ferdinand's picture

""What will be the straw that breaks the fiat's back?""


.....Starve the Government.....

Posted 2011-02-11 11:30
by Karl Denninger

""All governments exist only with the consent of the governed. That consent does not have to be "withdrawn" via unlawful force at-arms or even via the ballot box.

Indeed, it is most-effectively withdrawn when the citizens refuse to go to work!
The Beast of Government exists on tax revenues. ALL governments share this fundamental reality. ALL governments fail when the economic capacity to tax is destroyed.""

Zero Govt's picture

don't know why you got junked twice, seems a pretty good idea to me ....slightly better would be small businesses (90% of the real economy) and taxpayers simply refuse to pay tax ....starve the f'n parasitical beast of its money which would in turn kick off one hell of a clown show in US and Eurozone Govt Bonds (would i love to watch that;)

InconvenientCounterParty's picture

"The Beast of Government exists on tax revenues"

Bullshit. Government exists on borrowing and patronage.

The coporate elites are running the show people! Isn't it obvious that they are above the legal system? They want humans to behave like little gears in their machines. Wake up before it's too late.

Dumping tea was a tax protest. A general strike is the obvious answer to modern productivity parasites.

Zero Govt's picture

Govts still get the bulk of its income from taxation, the balance between the grotesque orgy of spending and tax takes (socialised theft) is the deficit financed by the borrowing you mention.

You're right it is Big Govt and Big Corps in a parasitical collusion to rob society... the correct term for this is fascism now the practice of both left and right wing parties (the left have almost entirely given up trying to manage industries in their previous practice of socialism).

It's all now one big fascist elite scum... The Parasite Club  ...or as they like it to be called, "democratic government" ....yeah right, pull the other one you MF's

jkruffin's picture

Many of us said for the past 2 years this would all end badly, and the dominoes are starting to fall into place to end the biggest ponzi scheme ever created. How many will end up homeless and left with nothing? We will find out soon enough.

tiger7905's picture

The Camels back is already broken, just no one has notice the 2X4's strapped to each side as a splint to hold it together.

Paper CRUSHer's picture

Yes,I know its rid-i-kill-i.o.u.s too be in cash.I jus' ain't got the guts ain't buyin' jack shit...and that goes for silver too....jus' don't like buyin' those parabola's as the hair on my back is beginning to stand up contemplating $50 silver.

Sudden Debt's picture

just wait untill they give you 1/10oz of silver as your salary this month



Zero Govt's picture

cash is fine, in fact it's a 'safe haven' for now... the real threat to humanity is the credit/debt mountain, that'll be first to blow, during which 'Cash will be King' ....after the hyper-deflation (debt implosion) that's when to worry about inflation and how many Benny Bucks he's printed Debt will be 1st to go, then 2nd the Benny Bucks funny money

sudzee's picture

Vietnam will soon have to print trillion dong notes to buy gold from residents for worthless paper. Watch this situation closely as it may pretain to the developed world gov'ts last kick at the cat. 

Sudden Debt's picture

Silver is not a option for the Japanese because Nickle absorbs the radiation!



Silverhog's picture

Well, were back to the battle of $36. This should fall soon. The real battle ground will be $50.

DosZap's picture

The real battleground is $37.00...............have you seen the WAR at / in the #$36.00 range, there's a MAJOR reason.


Sudden Debt's picture



Go figure.... didn't see that one comming....




I wonder how I will  be able to power my deathray now....

SilverFiend's picture

Seriously,  I need a correction back down to $30 toz so I can add to my stockpile!

Crumbles's picture

Cliff High (Webbot Clif - TSOTTC) predicts $600 silver in 2011, started mentioning spike in silver in early 2010.

warning:  this is scary shit - just avoid the site if you are easily upset


ivars's picture

I think there are few weeks left before a short term ( 1 year) correction at 45-50 USD to 26-32 USD, which may last 1 year. The same proportions for gold- peak at 1600-1700, drop to 1000-1200, till April 2012: Summary in the graph below ( its still clearly worth buying if holding time is > 1 year-but remember MARGINS-the correction will be close to 50%):

What if Japan starts to sell gold reserves?


They already released oil from strategic reserves, and there has not been even a nuclear accident yet, but its obviously brewing.

Zero Govt's picture

Ivars  -  are you making lots of money from your charts?

ivars's picture

Not yet-timing is the problem, and I have little own money that I loose and then recoup when I get the timing right. Training on own money. But I am prepared to make some more money on the DJIA meltdown in H2 2011. The expected difference is from 11500 in July to 7500 in January-March 2012( timing!) .

Basically, on spread betting, You need to sell some 20 positions with margin 200 ( =5000 EUR investment) to make 20*4000=80 000 EUR in the end. Return 20 times. Margin must be adjusted along the slide, stops adjusted, and profits taken every few hundred points so that sudden peak does not eat up too much of gains. Or, more positions can be added.

You do not need too much margin there, as it continues to slide with +-200 points volatility. Oil and gold are so volatile, You need a lot of money to stay in even few days shorterm. Like 1000 EUR margin, even that might be not enough , per position.

But the middle term timing should improve with every new peak/bottom. Little more data needed. So far things going well. If I only had more money - but people who have can use the ideas in the graphs.


Zero Govt's picture

yes "timing is the problem" indeed as i've also found out "training with my own money" ....that's why I just invest straight short or long... your spread betting requires almost pinpoint timing which i don't think can be done unless you have a very defined clear trading set-up pattern ..but i can see the temptation if you've a small pot and are looking for fast bucks

I think your Silver and Dow numbers are good BTW.. but timing is everything

depression's picture

100% bullish sentiment as every news story is now being spun as ultra-bullish for PM. Smells like a top to me.

Zero Govt's picture

Possible but take Silver for example, it's friggin around up and down through $36 Oz like a Yo-Yo .....tops are usually fast spikes up then down, that isn't happening... it looks like sideways action ready for a blow off to me     

adamas's picture

Silver is back in contango. hold your core. if you're a member of gamblers anonymous with a billion oz's bought with a credit card deposit on and hoping for no more than a $1.50 pull back prepare for a shock......

lsbumblebee's picture

Looks like $1430 gold and $36 silver are sore spots from the syphillis that is JPMorgan.

Long-John-Silver's picture

$ Billions are at stake if one or both exceeds those prices.

speculator's picture

Silver explorers index is still down 50% from 2007 highs:


While silver producers are at twice their 2007 highs:


Incredible discrepancy - I bet a lot of those marginal exploration or development properties aren't so marginal anymore at >$30, but you wouldn't know it from share prices.

The list of profitable miners (usually a rarity) must be growing every week:

I Am The Unknown Comic's picture

Well well...looks like Uncle Benny just gave the Blythe whore a fresh wad of POMO cash and told her to go spend it all in one place....

Rusty Shorts's picture

Okay, lets man up and go to Africaaa before China grabs everything that's not nailed down, I've already done the legwork.

youngman's picture

I think PM´s are going to hold for a day or two until we figure out what is up with Japan....and MENA...we know know what is up with the EU.....print more.....but the trend is up and up big....

guasilas's picture

 Pity, Viet nam had the only sensible system in the world:  Untaxed and free trading gold.  Which meant that as soon as the government behaved stupidly with the local currency, people would exit it for gold.  In fact giving power to the people.  Obviously it could not last.

Bansters-in-my- feces's picture

It seems like the "Fucking Pig-Dog" Manipulators are Willing to allow silver to go to $35.80ish,and Gold to $1425.ish.

After that,it's bang bang Maxwells (JPM) hammer comes crashing down on them.

So speaking of Hammers,when is Benny going to get hammered out of a job.?