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Silver Passes $30.50

Tyler Durden's picture




 

Now that risk assets once again are trading purely on monetary stimulus vapors, and broad dollar weakness, we expect that precious metals will continue generating better beta than the S&P. Sure enough, this morning silver is up nearly 2%, with gold spot also just passing an all time high of 1,428.85. At this point every uptick in stocks is offset by a grater loss in purchasing power, and after various commodities opened limit up earlier, it is only a matter of time before the hot topic of mid-November: margin collapse, is back on the radar screen. But, as always, at least the wealthiest 1% of America which has the bulk of its net worth in the stock market, and recently, in gold, is making off like a bandit.

 

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Tue, 12/07/2010 - 09:13 | 785043 papaswamp
papaswamp's picture

Think you mean $1428 on Au.

Tue, 12/07/2010 - 09:17 | 785053 snowball777
snowball777's picture

Gave a me a 2 second infarction; you're supposed to wait until April for that shit, TD!

Tue, 12/07/2010 - 10:13 | 785217 qrad
qrad's picture

I hope you're not waiting until april to get your physical silver. Over 147,000 ounces are pledged to be delivered by Dec. 29th at http://standfordelivery.com .

Tue, 12/07/2010 - 13:22 | 786049 SilverRhino
SilverRhino's picture

Damn, it peaked at 30.70 this morning and now it's 29.66 two and a half hours later .... no fucking manipulation here.  

Tue, 12/07/2010 - 09:20 | 785060 Hephasteus
Hephasteus's picture

That's tough to say. Barely got used to it being 1300 now gotta get used to it being int the 1400's. Then everybody have to reset brain and get used to 1500's very very shortly.

Tue, 12/07/2010 - 09:22 | 785065 snowball777
snowball777's picture

I think the shit-eating grin will help me cope somehow.

Tue, 12/07/2010 - 10:24 | 785260 whaletail
whaletail's picture

+ :)

Tue, 12/07/2010 - 10:03 | 785174 HarnyWanger
HarnyWanger's picture

I purchased my most recent BMW M3 (parchment leather finished in Mica Black) with money I earned from selling expensive items to lower middle class people (and a few shares of AAPL that I sold). Last I checked, my local BMW dealer wasn't accepting bullion for payment.

Tue, 12/07/2010 - 10:11 | 785213 packman
packman's picture

Sorry to hear that Harny.  Otherwise if your dealer did accept bullion, and you had some, you probably could have gotten a 750i.

My condolences.

 

Tue, 12/07/2010 - 10:15 | 785223 TheGreatPonzi
TheGreatPonzi's picture

LMAO

Always catches me, this imitation.

Tue, 12/07/2010 - 10:19 | 785231 Astute Investor
Astute Investor's picture

So what's your point?  Your BMW dealer wouldn't accept cheap home chatzkies for payment either.

I would have thought you could have afforded more than a 3-Series given all your braggadocio...

Tue, 12/07/2010 - 10:42 | 785321 Shinrai
Shinrai's picture

When gold surged last month I sold my used M3 and bought a Maserati before the upcoming inflation swept through the European auto market.  When my friend told me I was being impulsive and spending too much on a car, I reminded him that in gold terms my Maserati was only about 10% more expensive than the Mercedes he bought in early '09.  He had no reply to that...

Tue, 12/07/2010 - 10:18 | 785233 LongSoupLine
LongSoupLine's picture

Wow, with the debasement of currency, hence loss of purchasing power, you got fuked! 

Tue, 12/07/2010 - 10:24 | 785248 CPL
CPL's picture

Yes but with the 4000 ounces silver I bought last year I can cash it in and get the same car in terms of real money and get it for half the price.

 

My gold and silver as a currency can be exchanged for any paper currency and at my benefit and allow me deep discount even at retail prices.  That's how you get rich.

 

Take care of the dollars and the penny's take care of themselves.

Tue, 12/07/2010 - 10:23 | 785249 Pladizow
Pladizow's picture

Whats the difference between BMW's and a Cactus?

A cactus has its pricks on the outside!

Tue, 12/07/2010 - 10:23 | 785255 Bill Lumbergh
Bill Lumbergh's picture

Then why do you claim you have been holding gold for years...why not sell now so you can afford the maintenance costs on your vehicle...time to admit you are performing PSYOP for a larger organization.

Tue, 12/07/2010 - 10:26 | 785267 CPL
CPL's picture

There is a reason they have to keep paying civil servants more and more money.  Because it just isn't worth anything.  Let him believe the car is worth anything...until it has to get fixed...filled with gas and oil...and in his particular model the suspension rides hard and the barings have to be replaced nearly every year after two years and the fuel injector in them is flaky.

 

Both are very expensive.  Let him believe.

Tue, 12/07/2010 - 10:29 | 785273 TheGreatPonzi
TheGreatPonzi's picture

This is HarnyWanger, not HarryWanger. The first is a good imitator, the second is the real.

Tue, 12/07/2010 - 10:34 | 785290 CPL
CPL's picture

Just noticed that...mental tricks the mind plays when scanning.

 

Thanks.  Thought it didn't sound like Harry.

Tue, 12/07/2010 - 10:45 | 785338 Bill Lumbergh
Bill Lumbergh's picture

I did not even notice that until now...the real Harry is no doubt flattered.

Tue, 12/07/2010 - 10:40 | 785315 Yardfarmer
Yardfarmer's picture

this type of hauteur reeking of class privilege and snobbery begs for a nasty comeuppance which we hope and pray will not be long in coming. "selling expensive items to lower middle class people" indeed. your most recent BMW, the vaunted emblem of your insensate greed, won't save you from the approaching cataclysm as your worthless FRNs are incinerated in your bankers hyperinflationary blast furnace. your's is the smug and self satisfied ignorance of the fool. better that you had wisely invested your obviously ill gotten criminal gains in  solid golden and silver bullion bars than your soon to be worthless status symbol with its much prized parchment leather. a word from the psalmist "in his riches, man lacks wisdom, he is like the beasts that are destroyed"

Tue, 12/07/2010 - 11:48 | 785594 DosZap
DosZap's picture

Harry,

I'm  sorry your wasting your money on a horribly depreciating purchase.

Tue, 12/07/2010 - 10:17 | 785229 Turd Ferguson
Turd Ferguson's picture

We'll probably see another EE "intervention" soon. The question is, will EE interventions  have shorter and shorter effective half-lives, similar to recent BOJ interventions?

I suspect that will be the case. Another margin hike would shake the markets but instead of postponing new highs for a month like the last one, it may only slow us down for a week or less.

Things seem to be rapidly spinning out of control for Blythe and her minions.

HAHAHAHAHAHAHAHA

Tue, 12/07/2010 - 10:33 | 785285 erik
erik's picture

If they really wanted to stop the silver moonshot, all they have to say is there will be no more QE.  Look at silver's chart.  Started going exponential on Aug 27th, the same day Bernanke hinted at QE2.  That is not a coincidence.

Granted, that means all commodities and stocks would drop precipitously, but at some point they'll be forced to rumor at tightening.  They won't tighten, just drop a rumor, and that'll be enough to chop commodities again, until their next moonshot begins.

Tue, 12/07/2010 - 12:59 | 785950 KTV Escort
KTV Escort's picture

the silver moonshot can be slowed, but not stopped... the peeps of the world want their physical and there's not enough of it

go Dawgs

Tue, 12/07/2010 - 10:38 | 785313 Kaiser Sousa
Kaiser Sousa's picture

Turd -

why do u expect an attack?  any reasons other that the ordinary??

Tue, 12/07/2010 - 10:45 | 785336 Turd Ferguson
Turd Ferguson's picture

No. Maybe not today. Maybe not tomorrow. But they'll try to jack with thing soon. Probably up near the $33 level.

Tue, 12/07/2010 - 11:05 | 785417 A_MacLaren
A_MacLaren's picture

Turd - Good call on the attack. 

I thought it might be a little later, closer to $1450 and $32.

But Blythe must be feeling the squeeze.  Choke on it Bitch!

 

Tue, 12/07/2010 - 09:14 | 785046 eigenvalue
eigenvalue's picture

According to my schedule, when silver breaks $30, I will go and look for a girlfriend. When silver breaks $50, I will get married. Hopefully, the move will not be too hyperbolicotherwise I will have to have a "flash marriage"... Guess I should postpone my wedding till the day when silver breaks $70.

Tue, 12/07/2010 - 09:22 | 785066 duo
duo's picture

$50/oz, and the wife will let me buy one of those new A8's.  Silver, of course.

Remember, 1 oz of gold for every month you plan to be retired.

Tue, 12/07/2010 - 09:25 | 785069 Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

you laugh, but SLW & GDX options trade are fully sponsoring my Jag XJL purchase in about 1 hour..... Santa came early this year.

Tue, 12/07/2010 - 09:31 | 785081 taraxias
taraxias's picture

No, not laughing, but I hope you don't end up crying with the repair costs on that thing, reliability is atrocious. A lot better choices out there IMO.

Tue, 12/07/2010 - 09:33 | 785087 Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

extra fat warranty.

My father has had many over the last 20 years, they have all been exceptionally well... with minimal issues....not worried in the least

 

Tue, 12/07/2010 - 09:41 | 785101 Quintus
Quintus's picture

Actually, the new generation of Jaguars are extremely reliable according to the JD Power surveys.  My wife's had one for couple of years now and it's been flawless.

I think in many people's minds though, Jaguar are still stuck in the 1970's when they really were crap, thrown together by communists during those rare moments when they weren't on strike about something or other.

Tue, 12/07/2010 - 09:44 | 785109 taraxias
taraxias's picture

I wish you the best with it. My Lexus LX570 makes me sleep a lot easier at night. My partner bought the XJ last year and it has more vertical miles going up and down a hoist than horizontal miles. 

Tue, 12/07/2010 - 10:44 | 785330 Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

My wife drives that, we got it covered.... but jeez that thing drinks gas....

Tue, 12/07/2010 - 09:36 | 785096 Dagny Taggart
Dagny Taggart's picture

SLW just passed $42.05. If you hold out longer, you can scratch the Jaguar (no pun intended) and just buy a jet.

Enjoy your new ride and remember... gotta keep kids and the party off the leather seats.

Tue, 12/07/2010 - 10:08 | 785195 duo
duo's picture

Gold $2K, and I'll consider trading my Flight Design CTSW for a Diamond DA-40.

Tue, 12/07/2010 - 10:18 | 785236 Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

You been riding the SLW train?

Between that and hoping in and out of GDX and GDXJ, its been a hell of a two month stretch.....

 

the jet is next, I need Blythe to pull it back about 10%, after China does its rate hike over the weekend, then off the the moon.

 

Happy Trading!

Tue, 12/07/2010 - 11:23 | 785477 gmrpeabody
gmrpeabody's picture

I don't know about you guys, but the SLW shares that I own just got slammed. And then slammed again. Oh well..., win some and lose some. I just bought some more.

Tue, 12/07/2010 - 09:35 | 785083 eigenvalue
eigenvalue's picture

To be honest, I think agricultural products are also an attractive alternative. Arable land in China is rapidly decreasing while China's population keeps growing. The Chinese government has been manipulating the prices of agricultural products in China for too long just like JP Morgue. Huge pressure is building up...

Tue, 12/07/2010 - 09:23 | 785067 Ricky Bobby
Ricky Bobby's picture

"flash marriage" LMAOF

Tue, 12/07/2010 - 09:40 | 785108 Max Hunter
Max Hunter's picture

when silver breaks $30, I will go and look for a girlfriend. When silver breaks $50, I will get married

Interesting.. When silver hits $50, i'm dumping my girlfriend and buying the playboy mansion.. LMAO.. j/k sweetie.. ;)

Tue, 12/07/2010 - 09:58 | 785157 bigdumbnugly
bigdumbnugly's picture

please allow me to help readjust that schedule, eig.

silver passes $30, you can move outta your mom's basement.  At $35 get a girlfriend.  $40 means two of 'em.  This can increase by one gf per $5 move to infinity.  (that's why jim sinclair calls it "QtE's to infinity," right?) 

And think about selling at  $69.99!   lol.

Tue, 12/07/2010 - 09:15 | 785047 NewThor
NewThor's picture

Get the hottest gift of Christmas! The Ben Bernanke Home Printing Press!!! 

Need some food? Print some Dollars!

Got a house you can't pay for? Print some Dollars!

Want a 3rd luxury get away home? Print some Dollars!

Need an extra gold toilet seat? Print some Dollars!

Would you like to win 6.6.6 secret society points? Print some Dollars!

* (Helicopter not included.)

 

 

Tue, 12/07/2010 - 09:43 | 785116 NumberNone
NumberNone's picture

Speaking of printing presses...how ironic is it that the first $100 bills with Geithner's signature on them are all fucked up and will cost the taxpayers millions if not billions to fix.

http://www.cnbc.com/id/40521684 

Tue, 12/07/2010 - 10:35 | 785295 trav7777
trav7777's picture

but...but...these masterminds planned and executed 911 and got away with it.

Tue, 12/07/2010 - 10:44 | 785327 Vergeltung
Vergeltung's picture

excellent point.  :-)

 

Tue, 12/07/2010 - 15:48 | 786560 Al Gorerhythm
Al Gorerhythm's picture

Did someone shove their naked ass on the photocopier. Dollar moon-shot?

Tue, 12/07/2010 - 10:57 | 785383 goldfish1
goldfish1's picture

Where can I get one?

Tue, 12/07/2010 - 09:16 | 785050 Internet Tough Guy
Internet Tough Guy's picture

And oil is over 90. J6P ain't gonna like it.

Tue, 12/07/2010 - 09:18 | 785055 snowball777
snowball777's picture

Why, is J6P driving somewhere these days? ;)

Tue, 12/07/2010 - 10:58 | 785385 goldfish1
goldfish1's picture

Ain't driving to work.

Tue, 12/07/2010 - 09:17 | 785051 Racer
Racer's picture

And the poor get poorer because of an increasing amount spent on fuel and heating and food as oil soars

Tue, 12/07/2010 - 09:19 | 785057 snowball777
snowball777's picture

A viciously self-regulating problem, I'm afraid.

Tue, 12/07/2010 - 09:46 | 785122 A Man without Q...
A Man without Qualities's picture

Not really - they just stay at home and breed...

Tue, 12/07/2010 - 11:56 | 785630 DosZap
DosZap's picture

A Man,

GREAT!, we need more little people to pay these friggin QE bills when they come due, and we won't need as many illegals.

Tue, 12/07/2010 - 09:27 | 785072 papaswamp
papaswamp's picture

there is no inflation....there is no inflation....just keep saying that as Ben clicks the heels of his ruby slippers together.

Tue, 12/07/2010 - 09:37 | 785099 Peace is the x-axis
Peace is the x-axis's picture

We should all read more books, instead of watching the movie. The slippers were silver...

http://prosperityuk.com/2001/01/a-wonderful-wizard-of-oz-a-monetary-refo...

Tue, 12/07/2010 - 10:08 | 785194 Argonaught
Argonaught's picture

+1 for joining my crusade, you little humbug.

Tue, 12/07/2010 - 09:17 | 785052 Oh regional Indian
Oh regional Indian's picture

Silver is the story that cannot be bubbled away.

Why?

Too long a pressure build up underneath.

A few good spikes, a few harrowing but higher lows and then, the dyke(!) has to give.

ORI

http://aadivaahan.wordpress.com/2010/10/18/an-opportunity-and-a-golden-w...

Tue, 12/07/2010 - 09:22 | 785064 Quintus
Quintus's picture

A few good spikes, a few harrowing but higher lows and then, the dyke(!) has to give.

 

You referring to Blythe?  :-)

Tue, 12/07/2010 - 09:29 | 785079 Oh regional Indian
Oh regional Indian's picture

In-you-end-o Quintus, with a sprinkling of double entendre!

ORI

Tue, 12/07/2010 - 10:14 | 785220 VeloSpade
VeloSpade's picture

Put your finger in the dyke.

Tue, 12/07/2010 - 17:40 | 787073 RockyRacoon
RockyRacoon's picture

It would take John Boehner's ego to plug that hole.

Tue, 12/07/2010 - 09:19 | 785058 yabyum
yabyum's picture

I tell the kids at work "you can play in PM's" go buy  a couple of silver dimes every payday, the coin guy is a couple of blocks away. I've bought a little since the late 80's and it has been the best investment I've made. PAY YOURSELF FIRST DAMMIT!!

Tue, 12/07/2010 - 09:26 | 785070 Silverhog
Silverhog's picture

 16:1 may become very real in short time. Even a possible overlap to 12:1 with shortages and JPM squeeze.  

Tue, 12/07/2010 - 09:38 | 785103 tmosley
tmosley's picture

You underestimate the severity of the shortage we are facing.  The price has to go up so much that the demand is cut nearly in half.  This is for a commodity with inelastic demand from industry, and a demand profile that is directly correlated with price from investors.

In my opinion, the blow off top will take it higher than gold, at least for a while.

Tue, 12/07/2010 - 09:48 | 785128 Shameful
Shameful's picture

You don't think we'll see strong selling if/when it reaches 1/20 or 1/16 gold/silver ratio?  I love me some silver and I know I would be hard pressed not to sell at 1/16 and dump into gold.

Mining operations are starting back up to.  Friend of mine moved back to Northern Nevada and told me they are opening the old mine his folks used to work at.  Silver might not be a prime thing that is mined for but as commodities move more of the old mines will come back online.

Tue, 12/07/2010 - 10:28 | 785271 tmosley
tmosley's picture

Most of the weak hands are out, or will be out at $50.  Those who hold longer than that will not be willing to sell for dollars, more than likely.  Some may consider trading for gold, but why should they, when they are seeing much better returns than gold?  Why should they sell when the world is only producing 7 months worth of silver every year?  They are going to need a hell of an incentive to sell.

Sure, that also means a lot of people are going to hold on too long, until well after consumption has dropped or production has risen to fill the need (there are plenty of mines around the world that will be reclassified as silver mines once the price of silver goes high enough, including ones that aren't profitable right now).  1:1 will NOT last very long, but rather it will be a blow off top.  The silver bubble will be remembered for decades, or more likely centuries.

It's the trade of the millennium, you just need to know when to get out.  I happen to think that the best place is between 5:1 and 1:5, cost averaged.  Those buying now have nothing to fear, as even a 90% drop from the bubble high will still leave them well in the money

Tue, 12/07/2010 - 10:47 | 785345 qussl3
qussl3's picture

Would really like to know how you arrived at global production being only sufficient for 7mths of demand, and what are your thoughts on the supply of scrap silver.

Tue, 12/07/2010 - 18:06 | 787161 tmosley
tmosley's picture

I don't have my source for that data close at hand, but Ed Neilson is a good source on these matters: http://www.bullionbullscanada.com/index.php?option=com_content&view=arti...

Scrap silver is certain to increase as the price increases, but there is simply too much silver consumed in processes that do not allow for economical recovery for equalization to occur for less than 2010USD$1000/oz silver.  At those prices, it will become economical for people to take in their broken mirrors for recycling, and for people to start digging through electronics components.

Tue, 12/07/2010 - 09:45 | 785121 Temporalist
Temporalist's picture

I actually believe silver will hit 1:1 and possibly surpass that.  I won't bet on it though and it won't make a difference to me either way but I feel like it will happen when the outdated psychology (that silver is a secondhand metal) behind the ratio evaporates and people realize there is less silver available than they thought...even less than the amount of gold from most sources I read.

Tue, 12/07/2010 - 09:56 | 785148 trav7777
trav7777's picture

1:1???

there is 9x the annual silver production as gold.  And silver is not yet peaked. 

If you want to play a scarcity trend, play platinum.  Less than 6% production oz's compared to gold annually.

Tue, 12/07/2010 - 10:04 | 785177 eigenvalue
eigenvalue's picture

But silver is more useful than gold and is a must in many industries. Scarcity is not everything. In China, a kilo of clean water is more expensive than a kilo of rice. 

Tue, 12/07/2010 - 10:11 | 785212 Shameful
Shameful's picture

How and where?  China is a big place, assuming you are talking about the north and to the west.  But even still, takes a lot of water to grow rice.  I know there is a huge water problem but that is crazy.

Tue, 12/07/2010 - 10:31 | 785283 eigenvalue
eigenvalue's picture

If you visit a supermarket in China, you will find a 550ml bottle of Wahaha Purified Water priced at around RMB1.1. Nestle's water is more expensive. But if you look at the rice traded on Zhenzhou Commodity Exchange, it is only worth about 2200 per tonne. Of course, you can say that one is on the retail level while the other is on the wholesale level. But the ratio is still puzzling. By and by, running water in China is generally not considered clean like in US. If you drink the running water in China, you will not be far from illness.

Tue, 12/07/2010 - 11:27 | 785492 Shameful
Shameful's picture

I know bottled water is popular for drinking but I simply assumed there would be larger local purification where treated water could be purchased at lower prices by the gallon or more.  So do must just buy smaller bottles of water for consumption?

I've not been able to go over to China yet but talked to a lot of people who have and well aware not to drink the tap water.  Also aware that aside from purity issues the north is having water shortages and pumping ground water like crazy. 

Tue, 12/07/2010 - 10:38 | 785307 trav7777
trav7777's picture

those expecting 1:1 are going to have a rude education in demand elasticity.

Tue, 12/07/2010 - 17:42 | 787079 RockyRacoon
RockyRacoon's picture

Chalk it up to irrational exuberance.

Tue, 12/07/2010 - 10:09 | 785203 tmosley
tmosley's picture

Silver is at the end of a transition state where it is going from a precious metal (where it is mined and placed in a vault) to a regular commodity (where it is mined and immediately used).  During the transition, we have been using approximately 40% more silver than we have mined.  World stockpiles are now down to less than one year's production shortfall.

Silver will likely go to 1:1 with gold, but that will not be a permanent situation.  It will be caused by an industrial panic when they suddenly find that there is no silver on the COMEX or the LBMA.

When you think of price stability, you must look at both sides of the equation, both production and usage.  Where is platinum used such that it is "used up"?  Mainly in catalysts.  I don't know the figures on how much platinum is produced versus how much is used irretrievably in industry, but that is the key ratio.

Gold is NOT used in industry.  As such, the production rate of gold doesn't really have much of an effect on its price, any more than snowfall rates really effect the thickness of the polar ice caps.

Tue, 12/07/2010 - 10:23 | 785257 Pants McPants
Pants McPants's picture

Interesting analysis.  Do you have links to support your claim re: amount of silver remaining for industrial use?

You are one of my favorite contributors to this site.  Keep up the good work!

Tue, 12/07/2010 - 10:44 | 785326 trav7777
trav7777's picture

dude...do you think before you post this?

Do you guys ever do any critical analysis of what a 1:1 ratio or anything close to it would do to the affordability of these silver-intensive processes?

You are almost like economists, you just ASSUME demand will be there irrespective of price.  If silver goes that high, the processes will STOP because demand will collapse!  It's as simple as that.

I could see silver at historical ratios maybe a bit higher in a blowoff top.

But 1-fking-1?  GTFO here.  that would put it near 1:1 with Pt, which has 1/150th of annual production volume, no real stockpiles and a handful of mines in the world producing any real ozs.

Tue, 12/07/2010 - 10:54 | 785365 Temporalist
Temporalist's picture

Trav I don't plan on it happening, don't bet on it, don't stragegize around it, I can just vizualize it happening because of demand from investment not industrial use.

Like you I expect the historic ratios to be where they meet but a frenzy could drive it beyond imo. 

Tue, 12/07/2010 - 17:50 | 787110 tmosley
tmosley's picture

I think all the time, unlike you, who finds a conclusion and fits the facts around it.

Prices must rise enough to effect a 40% drop in silver use in the face of dozens of industries who become suddenly aware that a vital resource has completely disappeared, except for the rather small amount in investor hands.  This is a fact.  Also a fact is that perhaps 90% of applications requiring silver use it in such small amounts that they DON'T CARE what the price is (at current levels) because they use so very little of it.  Think about the micron thick layer of silver in a mirror times 50 million mirrors made per year.  Think about twenty micrograms of nanosilver in an antimicrobial bandage.  Think about 5 grams in a 50" television set.

Silver intensive processes don't matter, because the silver used there can all be easily recovered (at a high enough price), and thus will net to zero in a new ultra-high silver price regime.

Further, you can't really predict where a bubble will peak, when there were once human beings who paid 100 ounces of gold for a tulip bulb.  Who is to say they won't pay the same price for 10, 20, or 50 oz of silver?  Well, other than you, of course, since you are an all knowing being, and God's gift to humanity.

Tue, 12/07/2010 - 10:30 | 785279 Pladizow
Pladizow's picture

The 16:1 ratio is a little off, as that is what it has been for many centuries and is based on in the ground ratio's.

Perhaps more fitting is a 40:1 ratio, which is what it has averaged for the last 100 years.

One step at a time.

Tue, 12/07/2010 - 09:27 | 785073 Kaiser Sousa
Kaiser Sousa's picture

im amazed not by the rise but by the fact that as of this moment the cartel has not attacked either metal n London or pre NY...will hold my tongue until the open n NY...that is except for the following - fuck a banker and his debt coupon confetti...

"there are only 2 forms of real money...Gold & Silver..."

Tue, 12/07/2010 - 09:27 | 785074 margaris
margaris's picture

yeee!!! I bought 200g silver yesterday.

Tue, 12/07/2010 - 09:31 | 785076 qussl3
qussl3's picture

Silver going parabolic again.

 

I smell margin increases plus Chinese interest rate rises this weekend.

If it happens buy with both hands.

Tue, 12/07/2010 - 09:28 | 785078 NewThor
NewThor's picture

I bought 200 cans of silver bullet yesterday.

I've got 17 left. And I've almost got a buzz. Almost.

Tue, 12/07/2010 - 09:29 | 785080 boricuadigm-shift
boricuadigm-shift's picture

And today is the day for Crash JP Morgue!  Buy Silver!  Did you buy your 1oz (or 100oz) today?

It is Bank Run day!  Take your money out and buy silver!

Lets support the initiative!

Tue, 12/07/2010 - 09:56 | 785150 damnitalready
damnitalready's picture

Thought the Crash JP Morgan was on the 11th... 

Tue, 12/07/2010 - 09:31 | 785084 TLT
TLT's picture

US$30.70.

Tue, 12/07/2010 - 09:33 | 785088 paddy0761
paddy0761's picture

Don't get too excited, remember the taxman.

Tue, 12/07/2010 - 09:58 | 785158 Kaiser Sousa
Kaiser Sousa's picture

whats he gonna tax...familiarize urself with one of the key tenants of why the wise buy physical Gold & Silver....dont try to rain on the parade homie...

Tue, 12/07/2010 - 09:34 | 785092 Caveman93
Caveman93's picture

I can't wait to retire. 

Tue, 12/07/2010 - 10:46 | 785342 Acidtest Dummy
Acidtest Dummy's picture

Cave, don't wait! Retire while you still can. Me, I'll work until I die, but not a minute longer. :)

CHUMBAWUMBA Bitchez!

 

Tue, 12/07/2010 - 09:35 | 785093 NewThor
NewThor's picture

 "Butterfly pees in forest. Stocks climbs to record heights." - comment on yahoo

Tue, 12/07/2010 - 09:37 | 785098 The Third Man
Tue, 12/07/2010 - 09:43 | 785115 NewThor
NewThor's picture

Is it true Ireland's atms aren't working on Bank Run Wimpy Tuesday?

 

Tue, 12/07/2010 - 12:04 | 785668 Mariposa de Oro
Mariposa de Oro's picture

I believe that is true.

It reminds me of the porno scanners being shut down on Opt Out Day.  Very convenient.

Tue, 12/07/2010 - 09:51 | 785136 ringo3khan
ringo3khan's picture

As the devaluation continues, Gold/Silver have nowhere to go but up.  It wouldn't surprise me to see Silver, in particular, become more commonly traded or "used" as a medium of exchange for goods between private buyers/sellers.

Tue, 12/07/2010 - 10:02 | 785169 centerline
centerline's picture

Really hard to pull the trigger on more when silver has effectively almost doubled in the last couple of months without any meaningful consolodation or pullback.  Unfortunately, I have that gut feeling that something is not right in the force here... that silver is in fact going to continue up for awhile at least.  Damn.  Decisions.  Decisions.  What to do.

Tue, 12/07/2010 - 10:09 | 785205 notadouche
notadouche's picture

In the words of Casey Reports as a long term holder of gold or silver the question is not how much you paid for the metal but how much do you have.

Tue, 12/07/2010 - 10:44 | 785331 jomama
jomama's picture

^ this

Tue, 12/07/2010 - 11:29 | 785505 Absinthe Minded
Absinthe Minded's picture

Go for it! I did. Just ordered 10 ASE's @ $32 and I feel good! Doing my part to beat down JPM. Don't know if it will matter up here in NH but I'm going to pull out $2G at the bank to try to help in the bank run. I just don't see the outrage here, I guess the UE rate being in the 7% range keeps the sheeple thinking all is well. I know the construction industry is horrible but I guess the service industry is keeping us going. A lot of people commute to MASS for work, sucky commute though, did it for 8 years. Glad to be in NH no sales tax, no income tax. Just outrageous town property taxes.

Tue, 12/07/2010 - 09:53 | 785140 HellFish
HellFish's picture

Bought two Gold Eagles and 50 Silvers yesterday.

Tue, 12/07/2010 - 09:59 | 785162 VFR
VFR's picture

The way the price is going we will soon be branded evil speculators and terrorists

Tue, 12/07/2010 - 10:05 | 785182 Shakey
Shakey's picture

+1

Tue, 12/07/2010 - 10:06 | 785190 Mark Medinnus
Mark Medinnus's picture

A brand I'll wear proudly. 

Tue, 12/07/2010 - 10:13 | 785218 taraxias
taraxias's picture

.....until they decide to confiscate it for "national security" reasons.

Tue, 12/07/2010 - 12:41 | 785291 Smiley
Smiley's picture

Haven't you heard?  Protecting your wealth makes you a threat to the sanctity of the state.  Think of all the wonderful Chevy Voltz that could be sold if people bought those instead of buying precious metals.  Think of all the union jobs that would benefit.  Think of the tax revenue windfalls for the government so they can spend even more money!  Yet here you are selfishly trying to protect yourself and *SCOFF* plan for the future:  OFF TO THE CAMP FEMA WITH YOU!  A couple years of "re-education" will get you straightened out.

Tue, 12/07/2010 - 10:05 | 785179 dryam
dryam's picture

B-cups on CNBS just said gold & silver are rising b/c of "fear & greed", no mention of the simple logic a 5 year old can understand of failing fiat

Tue, 12/07/2010 - 11:20 | 785458 goldfish1
goldfish1's picture

"fear & greed"

Perhaps she's right.

Tue, 12/07/2010 - 10:06 | 785186 NewThor
NewThor's picture

1430.60

WORLD OF WARCRAFT BITCHEZ!


Tue, 12/07/2010 - 10:43 | 785323 jomama
jomama's picture

nerd.

Tue, 12/07/2010 - 10:09 | 785204 frugalman
frugalman's picture

If JP Morgue is really short 3.3 billion ounces as some claim, then in Q4 alone, they have lost roughly 10 dollars an ounce or $33 billion.  This better show up somewhere in their financials or their auditors have no integrity.

Tue, 12/07/2010 - 10:14 | 785221 damnitalready
damnitalready's picture

I think the latter.

Tue, 12/07/2010 - 10:18 | 785230 dryam
dryam's picture

Did you actually use the word integrity?

Tue, 12/07/2010 - 11:20 | 785466 goldfish1
goldfish1's picture

Of course they don't. 

Tue, 12/07/2010 - 11:31 | 785512 frugalman
frugalman's picture

If I knew how to read an annual report or financial statement, I'd love to buy one share of JPM, attend their annual meeting, and call them to task for hiding their $33 billion loss 4th quarter 2010..

Tue, 12/07/2010 - 10:19 | 785237 youngman
youngman's picture

JPM mark to market...no way...those shorts are listed as assets

Tue, 12/07/2010 - 10:37 | 785299 whaletail
whaletail's picture

+10

Tue, 12/07/2010 - 10:20 | 785239 thetruth
thetruth's picture

what do you think about getting out of gold for now and into more silver and oil?

Tue, 12/07/2010 - 10:23 | 785254 johnnymustardseed
johnnymustardseed's picture
My enthusiasm for silver is tempered by my fears of those who have none. Turmoil for sure.
Tue, 12/07/2010 - 10:38 | 785308 Zerohedge fan
Zerohedge fan's picture

$30.50????

That's will be cheap, by tonight

Tue, 12/07/2010 - 10:56 | 785376 trav7777
trav7777's picture

annnnnd...there we go, nice -$12 vertical on the crimex open

Tue, 12/07/2010 - 10:58 | 785389 jtmo3
jtmo3's picture

And here comes the PM smackdown. You can almost set your watch to it most every day. How sad.

Tue, 12/07/2010 - 11:41 | 785560 erik
erik's picture

bubble stocks are also getting whacked today from their daily high prices.  it seems that all things frothy are taking a breather. 

Tue, 12/07/2010 - 11:02 | 785404 NewThor
NewThor's picture

How do they smack down the Metals?

Tue, 12/07/2010 - 11:25 | 785484 goldsaver
goldsaver's picture

JPM or any of the EE buy naked shorts to drive down the price. A second technique is to dump long contracts in London (HSBC) overnight to get the trend moving downwards and shake the weak hands out. Finally they can change the rules in mid stream and jack up the margins to force small investors (under 500M) to cash out.

Tue, 12/07/2010 - 11:28 | 785491 goldsaver
goldsaver's picture

.

Tue, 12/07/2010 - 11:48 | 785593 thetruth
thetruth's picture

ugl and agq are getting crushed even though gold and silver are holding strong

Tue, 12/07/2010 - 11:54 | 785619 I_Rowboat
I_Rowboat's picture

Oh yeah, that was a plausible $22 drop.  Because of Boeing and Wikileaks and extended tax cuts or, you know -- stuff.  Ireland, yeah that's it.  Or not.

Tue, 12/07/2010 - 11:59 | 785642 DosZap
DosZap's picture

These MFR's make me sick.Can't stand for anyone to make an honest buck investing, but they can Barney Frank the world, and it's OK.

Need new ROPE.

Tue, 12/07/2010 - 12:49 | 785915 Bokkenrijder
Bokkenrijder's picture

Yup, it passed $30,5...on it's way down again! Hmmpf!

Tue, 12/07/2010 - 14:46 | 786386 ColoradoBikerChic
ColoradoBikerChic's picture

Nice DOJI candlestick just occured on the SLV hourly chart folks, most likely a good spot for to pick up for a ride back up.

Tue, 12/07/2010 - 17:33 | 787037 Bokkenrijder
Bokkenrijder's picture

Candlestick..?

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