As Silver Prepares To Take Out $30, Here Is Why Eric Sprott Believes The Metal Is Going Much Higher

Tyler Durden's picture




 
0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 12/06/2010 - 12:13 | 782106 gwar5
gwar5's picture

Sprott has the anti-paper/anti-GLD ETFs for PMs.

 

Mon, 12/06/2010 - 12:13 | 782107 wharfdaddy
Mon, 12/06/2010 - 12:23 | 782137 Kali
Kali's picture

Too funny.  Hope it works!

Mon, 12/06/2010 - 12:26 | 782144 Spalding_Smailes
Spalding_Smailes's picture

Instant Classic.

Mon, 12/06/2010 - 12:30 | 782161 Hook Line and S...
Hook Line and Sphincter's picture

"Fck those smartass's over at ZeroHedge."

Hitler is seething and truly going off the deep end this time. Love it!

 

 

Mon, 12/06/2010 - 12:46 | 782235 johngaltfla
johngaltfla's picture

Congrats to Tyler for ZH getting prominence in the video. That is some funnnnnnny stuff right thar!

Mon, 12/06/2010 - 12:48 | 782245 bankonzhongguo
bankonzhongguo's picture

Rumbeleivable!

 

I'm sending this everyone, including my 15 year old Eagle Scout nephew.

 

These motherfuckers need to be burned at the stake.

Mon, 12/06/2010 - 13:52 | 782582 A_MacLaren
A_MacLaren's picture

Definitely one of the best of the Bunker Series.

Mon, 12/06/2010 - 15:36 | 782961 damnitalready
damnitalready's picture

lmao, great post! 

Mon, 12/06/2010 - 12:31 | 782108 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Silver caught gold's move this fall; it is up 600% since the fall of '08.  It is monie.  You want monie, you better own silver.  Oh yeah, and you do it and you won't just end up with something in your pocket, you may very well help take down the biggest bankster of all time, the John Pierpont Mourgue.  Rest in peace, snitchez!

 

by Mr Lennon Hendrix 
on Sun, 12/05/2010 - 21:39
#780740

 

Gold to test resistence at $1420 on Monday, it will test support on Tuesday at $1401 and stay there on Wednesday.  Thursday, it should move back to $1420 and then breakout on Friday to $1440.  This not considering any swans.

Silver should continue its move higher, with less of a downside risk when compared to gold.  Silver is also primed to break out to $36 this month.  There will be a major move in silver during the next three weeks.  It should take gold, platinum, and oil with it, and at the same time, crush the dollar.  The next three weeks could be the biggest month of the year for gold.

 

 

 

http://lhmarketwatch.blogspot.com/2010/12/buy-silver.html

Mon, 12/06/2010 - 12:15 | 782115 ReeferMac
ReeferMac's picture

/SI Hit $30/oz and bounced right off... Trying again, and again, and....

 

Bullion Bitchez!

Mon, 12/06/2010 - 12:18 | 782122 TheMonetaryRed
TheMonetaryRed's picture

Buy, Buy, Buy, you wise survivors of the imagined age.

Gold to $1700

Silver to $50

Meanwhile, back at the ranch........

Mon, 12/06/2010 - 14:50 | 782810 midtowng
midtowng's picture

That sounds like a safe prediction. But what then?

Mon, 12/06/2010 - 12:19 | 782125 chinaguy
chinaguy's picture

Gold has traded at a ratio of 16-to-1 to silver in terms of price, but today it trades in the range of 50 to 1.

Agreed, which is why I over weighted silver to gold 2 -1 when I made my PM purchases three years ago.

Mon, 12/06/2010 - 12:19 | 782127 butthead
butthead's picture

The real fun will begin when silver breaks $50.  Then the sheeple will really start to buy.  They didn't want it at $5 or $10 or $20, etc...but they will rush in as it breaks the 1980 high.

Mon, 12/06/2010 - 12:25 | 782141 Arius
Arius's picture

thats people for you...but with all the misinformation, so, carefully managed out there cant really blame the regular joe (mutual fund manager not the six pack one)...

Mon, 12/06/2010 - 13:58 | 782595 living on the edge
living on the edge's picture

The masses always come in late but will arrive nevertheless. Our gov has succeeded in keeping the masses at bay till now. I see the storm rising on the horizon. I have waited 25 years to see this day (started buying PM's). With mixed emotions I sit in anticipation of the inevitable.

Mon, 12/06/2010 - 12:19 | 782128 TheMonetaryRed
TheMonetaryRed's picture

Sprott - what a ganef.

Mon, 12/06/2010 - 12:36 | 782196 Cdad
Cdad's picture

I understand why you might reference E. Sprott on the matter, however, the guy is a giant ass.  I was on his PHYS when he more than doubled the size of his physical gold fund [double the IPO proceeds] through secondary offerings sold at sweetheart prices to his Wall Street buddies...two secondaries with over allotments before the fund was even a year old.   

As far as I am concerned, Sprott is part of the syndicate to which I often refer.  Good luck with your physical metal crush on him.

Mon, 12/06/2010 - 12:21 | 782132 SwingForce
SwingForce's picture

2nd Derivative Dreaming.....

Mon, 12/06/2010 - 12:22 | 782133 quasimodo
quasimodo's picture

You still can't eat it

But can sure as hell eat WITH it

 

Mon, 12/06/2010 - 12:22 | 782134 dryam
dryam's picture

Sprot on.  Silver just hit $30.

Mon, 12/06/2010 - 12:26 | 782149 unky
unky's picture

holy shit yes, cant stupid JP M not manipulate a little downward please, i still need to buy some more

Mon, 12/06/2010 - 12:24 | 782138 Harry Hood
Mon, 12/06/2010 - 12:28 | 782155 oddjob
oddjob's picture

Sprott is the largest shareholder in Alexco Resources.

Mon, 12/06/2010 - 12:38 | 782203 Bring the Gold
Bring the Gold's picture

Been holding AXU for awhile now. A great stock. He also holds a lot of Arian Silver. I originally got in between $0.09 and $0.12 it's around $0.60 as I write this. He also likes Avion gold miner.

Mon, 12/06/2010 - 12:28 | 782157 rubearish10
rubearish10's picture

Short squeeze in PM's not nearly upon us. If you've witnessed the late 70's you would know this. Many amateurs afoot.

Mon, 12/06/2010 - 12:36 | 782190 spartan117
spartan117's picture

OK, I'll bite.

I was too young during the late 70s to invest in anything but lollipops and G.I. Joes.  Care to elaborate on when you believe the squeeze will occur?

Mon, 12/06/2010 - 12:46 | 782234 rubearish10
rubearish10's picture

Wish I knew when however, the Silver market (gold not as much) is an extremely tight community of players. Let's assume the JP Morgan/HSBC manipulation theme plays out further. Well, anyone, of these "players" or group of players (outside of them) would and do have the ability to "corner" the product. Given the global economic theme, a "squeeze play" against the manipulators should develop rather soon. When it does, you'll see volatility and price extremes not seen since the 70's and culminating in 1980. I'd play that bet all day play with enough dry powder to trade through it or else greed will beat you.

Mon, 12/06/2010 - 12:29 | 782162 Alex Lionson
Alex Lionson's picture

According to KITCO.com Silver just took $30, but was repelled (for a while I think)

Mon, 12/06/2010 - 12:33 | 782183 CD
CD's picture

$30.04 @ 11:32 EST

Mon, 12/06/2010 - 12:32 | 782173 Oh regional Indian
Oh regional Indian's picture

Aggggg.....agggg...agggooooo....agggooo....

Happy baby!

;-)

ORI

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

Mon, 12/06/2010 - 12:37 | 782199 Silverhog
Silverhog's picture

eBay Silver averaging $33 an oz plus shipping. Better know brands going up to $40+ no shortage of buyers.

Mon, 12/06/2010 - 15:43 | 782987 Fearless Rick
Fearless Rick's picture

I've been able to buy on ebay at spot INCLUDING shipping, but only on small amounts.

It's true, though, buying pressure is huge.

Mon, 12/06/2010 - 12:38 | 782200 rubearish10
rubearish10's picture

Will we ever experience the wake-up call the equity market needs to lean over, roll over and die? Somewhere between 40:1 and 16:1, right??

Mon, 12/06/2010 - 12:44 | 782228 SilverIsKing
SilverIsKing's picture

$30 looks expensive...just like $20 looked expensive a few months ago.

In a couple of months, $30 won't look so expensive.

Mon, 12/06/2010 - 12:51 | 782257 MsCreant
MsCreant's picture

303030303030303030303030!!!!!

Mon, 12/06/2010 - 13:43 | 782549 samsara
samsara's picture

I just have to mention Ms, that your assessment of RobotTrader the other day was one of the best I have seen.  A perfect observation on where he is at.

Sorry to interrupt your celebration.

(p.s.  I got in at $7 and $400 respectively.  GREAT to watch this unfold,  So long in coming,  Soooo long in coming... )

Cheers 

Mon, 12/06/2010 - 12:51 | 782263 velobabe
velobabe's picture

silver jewlry, bitchez†

Mon, 12/06/2010 - 13:01 | 782316 MsCreant
MsCreant's picture

Silver Belles

(silver belles)

Silver Belles

(silver belles)

It's Christmas time, in get Jacked City.

See the Stings

(see their stings)

Those ding-a-lings

(ding-a-lings)

Soon it will be, Indictment Day.

Mon, 12/06/2010 - 14:01 | 782609 Dr. Sandi
Dr. Sandi's picture

Thanks. Yes, I really did LOL over that.

Mon, 12/06/2010 - 15:11 | 782883 MsCreant
MsCreant's picture

I know you have gold and are gold, but are you too a silver belle?

Mon, 12/06/2010 - 16:17 | 783093 CrockettAlmanac.com
CrockettAlmanac.com's picture

Cue Burl Ives...

Tue, 12/07/2010 - 21:58 | 784840 Dr. Sandi
Dr. Sandi's picture

Yes

Mon, 12/06/2010 - 13:00 | 782312 JonNadler
JonNadler's picture

Oh please don't buy anymore silver, please, Jamie took away my Ritz Carlton pass and says I have to use 3 star hotels now! I may have to be next to a truck driver. This is not what we're used to. Blythe will have share a room with a truck driver soon, you can let this happen to people like us! We are the masters of the univ.....well we used to be.

Does anybody have employment opportunities for a couple of shill have beens? Blythe and I are available

Gold will be confiscated!..... oh what's the use

Mon, 12/06/2010 - 15:10 | 782879 MsCreant
MsCreant's picture

Keep your bra on or there will be trouble.

Mon, 12/06/2010 - 13:03 | 782327 Mongo
Mongo's picture

If gold takes on $10,000 and gold/silver ratio hits 10:1... the that means it's paaaardey time!

 

Silver @ 30 bucks is still cheap. Dirt cheap!

Mon, 12/06/2010 - 14:10 | 782638 dehdhed
dehdhed's picture

yup, buy 10 oz bars of silver and trade later for 1 oz gold.  it's like buying gold for 300 bucks an oz today.  

just keep stacking

Mon, 12/06/2010 - 13:12 | 782384 Prejudice in Fa...
Prejudice in Fancy Dress's picture

using past performance as evidence of why to buy something is how you get caught up in a bubble... if you're a long term investor and not trying to get rich quick then don't buy gold/silver... look at the dow/gold ratio

Mon, 12/06/2010 - 13:13 | 782389 Client 9
Client 9's picture

To narrow that ratio gold will shortly tank and silver not far behind.  You zombies are such suckers!

 

 

http://seekingalpha.com/article/235917-gold-bubble-final-warning

 

 

So why could Gold be a Bubble?1) Rapid price run-up. Prices never run up forever; they always come back to stable levels. Gold prices are up almost 500 percent since 2000 and almost 1300 percent since the mid-70s. At some point they have to come back down. When that will happen is still in question, but they will stabilize at some point. And stabilization may involve a quick plunge in prices.2) “We Buy Gold” everywhere! In the past two years, there have been more “sell your gold” commercials and “we buy gold” stores than ever before. It seems as if everywhere I go or look I see some kind of reference to gold. The prevalence of these stores and commercials not only points to market saturation, but also points to the massive spotlight that has been shining on Gold.3) EXTREME speculation. A bubble requires investors to be so absolutely certain that prices will continue to rise that they actually neglect to protect themselves from the risks involved. By asking “How high is Gold heading?” instead of “Why is Gold going up?” or “Can Gold go higher?” we’re actually ignoring the downside involved, which can lead to severe panic if Gold actually does start to drop. Here is why extreme speculation is here and very dangerous: a. Common investors can now buy gold. With the introduction of the Gold ETF (GLD), any person who wants to buy gold can easily do so by simply buying the GLD. Before 2004 the only way to buy gold was to buy the actual thing. If gold is available to everyone, and becomes the hot new commodity, a bubble is definitely possible. b. No hedging by the mining companies. In order to protect their businesses from a sudden decline in Gold prices, mining companies have generally hedged themselves by owning some put options or other forms of derivatives that would limit their losses in case of such declines. And the higher the price of gold, the more dangerous the price decline is for the miners. But because most of the miners think that gold prices are going to continue rising, they have recently stopped hedging themselves. At a time when protection is actually the most important in the history of their businesses, they’ve joined the gold craze and ceased to hedge. This has to be one of the most counter-intuitive moves I’ve ever seen. Hedges are protections “just in case” prices go down; miners seem to have forgetten that “just in case” is a small bet compared to the potential devastation they may be setting themselves up for. 4) Gold isn’t enough! With Gold prices soaring, investors have looked for new ways to take advantage of the run-up. Not only have investors run the price of gold (GLD) to high levels, but they have found ways to leverage their positions and even increase speculation in related metals. First, Gold itself was enough (GLD). Then, when investors wanted increased returns if gold went up, they bet on the gold miners through the Gold Miners' GDX ETF; the GDX moves in correlation to GLD, but with a higher beta (in essence, if GLD goes up GDX should move proportionally higher). Now it seems even the regular miners aren’t enough! Investors are now going even further downstream, betting on the junior miners (GDXJ). The junior miners are not only a third derivative bet (Gold-Gold miners-junior miners), but they also signal the extreme belief investors have that prices will continue higher.And if a third-derivative play in Gold wasn’t enough, investors have speculated in the entire precious metals sector. Since Gold is going higher, they say, so should the prices of related metals. And to satisfy investors’ insatiable demand for these metals, the “Glitter” ETF (GLTR), composed of gold, silver, platinum, and palladium investments, was introduced on October 22nd.And if metals weren’t enough, investors have also chased “Rare-Earth” resources through companies such as Rare-Earth-Elements (REE) and Molycorp (MCP). Not only did Molycorp CEO, Mark Smiths, recently “mistakenly” call the Rare-Earth craze a “BUBBLE” (“I don’t think short-term prices in rare earth (minerals) are prices people ought to be counting on…they are really spiked right now and there may be a bubble occurring because of all of the news and the frenzy.”), but the fact that REE and MCP are up about 500 percent and 300 percent respectively since the summer should be enough of a warning. 5) Gold Vending Machines. It wasn’t enough for Gold to be bought at jewelry stores or through distributors directly. They have now built vending machines from which to buy Gold! A German company, Gold-To-Go, has began setting up vending machines around the world in order to attract the average investor. Buying Gold coins and bars from a vending machine? I hear “BUBBLE”!6) Inflation or Deflation? Gold prices have increased due to fears over currency and economic growth. But buyers of Gold have bought Gold both due to fears of deflation and due to the potential for inflation. In other words, some bought Gold because they expect deflation and some bought it because they expect inflation – but one of the two is wrong! We can’t have both deflation and inflation; therefore, a considerable number of investors are wrong and have pushed the price of Gold up farther than is warranted.7) Front Page of the Wall Street Journal. When a story makes the front page of a widely-circulated newspaper or magazine, it signals widespread recognition of that story or theme. Since heavily-distributed newspapers and magazines tend to reflect the widespread sentiment of its readers and the general population, a front-page headline signals the acceptance of that idea as consensus.It’s been a fairly long-standing negative omen for the market when major cover stories marvel at the wondrous bull-market run-ups and, inversely, a positive omen for the market when cover stories mourn the death of markets. That said, positive cover stories regarding investment themes are bad omens, signaling an upcoming pause or correction, if not an end to that theme.Gold made just such an appearance on September 29, 2010 on the front page of the Wall Street Journal, in an article titled “Gold Vaults to New High.” If a front page spot is a signal of widespread acceptance and a warning of an upcoming correction, the Gold Bubble is alive, but probably not so well.

Do NOT follow this link or you will be banned from the site!