Surging Oil And Deepening Inflation - Gold & Silver Rise To Record Nominal Highs At $1,459 And $39.50

Tyler Durden's picture

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TheGreatPonzi's picture

I'm glad to see you mention the fact that it is only nominal yet. 

The MSM has reported "New all-time record for gold", while it is in fact "New all-time low for the US dollar"... 

tek77blu's picture

gold and silver will see higher and higher floors going forward here...on top of that, the miners, are becoming a sweeter fruit by the minute: http://www.youtube.com/watch?v=L_oh5ke2Cf8

Another Texan's picture

agreed.  Gotta to love my buy of EXK last week.

Turd Ferguson's picture

sell near 40

buy back at 38.20 

buy more at 36.50 if it reaches down that far

overmedicatedundersexed's picture

Turd, your lordship...much too timid my friend..PMs are going to run much further this bounce..the sleeping masses are getting a silver hard on.

eigenvalue's picture

Then how about $150 silver by the end of this year?:)

Cash_is_Trash's picture

Plz include utter reserve currency status destruction ; )

Hephasteus's picture

You mean what happend in october 2008.

Reserve currency status is gone. It's just been dumping the whole time.

malikai's picture

By "reserve currency" one must mean Gold, Silver, Oil, and Corn.

falak pema's picture

If silver hits 150 where will the USD be? Jesus, these are communicating vases! Not every body has silver, whereas everybody lives off the USD!!

Manthong's picture

The gradient on the Comex silver chart changed from .20 to .50.

I wonder how long it will be before it changes to 1.00?

 

tarsubil's picture

Look at the last six years of silver prices with a logrithmic scale for price. It really looks like the price of silver was put under control twice then around August 2010 something broke.

High Plains Drifter's picture

i beg your pardon.  i am heavily diversified , with 75 percent physical silver and 25 percent gold physical holdings, per franklin sanders and no sir, i shall not sell, not now, not ever...........ha ha ha ha

umop episdn's picture

Agreed! I may spend my silver, and I may barter my silver, but I will have to be starving before I sell my silver.

PlanForTheWorstHopeForTheBest's picture

If you buy something you are never going to sell it's not an investment, it's a hobby.

 

Long-John-Silver's picture

I always wondered why my Silver Buffalo's are called art rounds.

yabyum's picture

Turd, the demographic has changed at the coin guy. The buyers are more middle age as opposed to geezers (like me). The sellers are more seedy looking with less teeth. Hide your stuff well my friends.

tarsubil's picture

I'm one of those new guys. Why is silver rocketing up as opposed to gold's steady pace? I think it is because guys like me don't like paying near 200 bernanke bucks on 1/10th an oz of gold when we can buy a lot more physical silver. The reality of inflation is setting in with the middle class too. Any way to protect savings from inflation is being used.

PlanForTheWorstHopeForTheBest's picture

Trade in your gold for silver.  Silver is the buy of the decade...

Math Man's picture

And the moron-athon continues...

Never mind that silver has more than doubled in a little over six months--- and the US dollar index is down less than 10% in the same time period.

Buy silver because the dollar is devauling.  It is always the same shit, different day with you bubble chasing monkeys.

You get the logic right, but the price wrong. 

You bought tech stocks because the internet was going to change the world... it did, you just overpaid.

You bought real estate in Florida because the baby boomers were going to retire there...  they are, you just overpaid.

You are buying silver because the dollar is devaluing...  it is, but you're massively overpaying.

A 100%+ run in just over six months, meanwhile the dollar index is down less than 10%. 

You never learn.  You just chase one bubble after another.  That's the funny thing about bubbles... they exist because there is always some underlying logic behind the mania that makes sense.  It's the price that gets out of whack...  Silver is a perfect example of that right now.   Oh no!  The dollar is devaluing!  We better buy silver!  Never mind that is just doubled!  Never mind that only 50% of it is used industrially!  Never mind that it only costs 5 bucks to dig it out of the ground!  None of those things matter because the dollar is devaluing! It different this time!  It's not a bubble because the dollar is devauling!

But when you stop and look at the facts, you realize the dollar index has moved down less than 10% in the same time silver has more than doubled. 

You're setting yourselves up for a epic crash here...  don't be suprised when silver is back below $20 this summer.

 

Long-John-Silver's picture

Striking Silver miners have caused the price to dig it out of the ground well past $5 a ounce. It now costs $30 an ounce to dig it up. I think that has shot holes in your $20 an ounce price.

Math Man's picture

Bullshit.

Please go pull out some financial statements for silver producers... you'll find cash costs between $5 and $10 an ounce. 

Why do you think the curve went in to backwardation?  Because producers are selling foward their production, because production costs are low.

Six months ago, when silver was around $18, you could only lock in $13 buck/oz...  now that number is $34/oz --- 2.6x the profit of a few months ago.  They're selling forward as much silver as they possible can to lock in profits for the next few years.

tmosley's picture

You keep talking about backwardation, and you keep proving that you don't know what it means.  It doesn't matter if miners are selling forward.  There aren't any holders that are wiling to pick up free money off the ground by setting down their silver for a while.  That can only mean that investors expect a default due to tight supply.

But hey, you can't expect a zombie troll like yourself to use even a modicum of critical thinking.

Math Man's picture

To arb it you have to enter in to futures contract, lease silver, sell it on the market, invest the proceeds and have a return higher than the lease rate.

The one year backwardation is around  0.1-0.2%, one year treasuries yield around 0.25%, but one year lease rates are over 50 basis points/year...

The arb is negative...  no one is leaving any money 'free money' on the table.  Because there is none.  You can't turn a profit on the backwardation.

And, if there was any chance of default (as you claim), you wouldn't be able to lease silver for any price...  but the truth is the 1 month lease rate is negative.  A silver holder will actually pay you to hold the silver.   

 

tmosley's picture

I see a bunch of blah blah blah, but no reasonable explanation as to why silver hasn't been in backwardation for the last 150 years save for the few short periods immediately prior to a huge run-up in price.

"It's different this time, I swear!"

Fail.

Math Man's picture

And what always happens after the run? 

I give you a hint.  It starts w/ CR and ends with ASH. 

Silver has run almost 40% since it went in to backwardation...

But the backwardation on the long end has recently dropped almost 50% - from over a buck at its peak to around 60c at yesterdays close.

The crash is coming soon.

malikai's picture

I see a crash coming, but the crash I see is in the USD. Nevertheless, people looking for wealth preservation would be folly to not notice the very low price of OOTM puts these days. For those looking to ride the waves of QE uncertainty, which is destined to strike solid once this stupid "debt ceiling" bullshit is done, buying puts now or in the near future will be buying both insurance and profit if there is a risk-off mode (even if very brief).

Just saying.

tmosley's picture

Give us a date, or you are worthless.

Long-John-Silver's picture

You should move to another venue. We know what you are.

Lots of "people" you interact with online are sockpuppets

http://www.networkworld.com/columnists/2011/032411-backspin.html

 

Move along you paid Government Shill. Your mission here has failed.

Math Man's picture

And the conspiracy theories continue...  I'm suprised you haven't tried to claim I was the 2nd gunner on the grassy knoll.

 

I'm just a normal guy concerned about the bubble fueling idiocy that spews forth from this site.

SilverBoy's picture

Please tell me to bury my silver in the back yard because the boogie

man is coming. 

RockyRacoon's picture

Your concern is heartwarming.  You might want to look into your need to "save" us from ourselves.

http://quizilla.teennick.com/quizzes/4513150/are-you-codependent

Flakmeister's picture

I don't jump into these pissing matches but:

1) Lift cost per oz is non-GAAP

2) It does not include debt service and amortization

A lot of silver companies that had lift costs at $7 were loosing money at $18 silver.... 

tmosley's picture

Blah blah blah said the troll.  I thought $34 was "definitely" the top?

GTFO loser boy.

benb's picture

I liked most of your post. Needless to say I disagree. Yes silver has risen 100% in the past six months. However, the rise is not due to mania as you suggest.  To be valid your model must consider decades long market manipulation/repression in the silver and gold market which is to a measurable degree now weakening. (Again, to be blunt -the price has been kept artificially low.) You must also include rising public awareness of the ongoing deterioration of the global financial system with weakening currencies. Western civilization is now clearly entering a turbulent period. Many more investors are entering the PM markets especially from Asia and this trend will continue. $20 silver with respect to the present U. S. dollar shall not be seen again. (IMO)

 

Bicycle Repairman's picture

Mathman, even a broken clock is right twice a day.  I think your hands have fallen off.

Abitdodgie's picture

That's if it drops , with the way things are going in the world ? However gold looks like it on course for your prediction

overmedicatedundersexed's picture

to wynter benton, carry on. still betting with your group. hope you post when it gets toppy and time to short.

Conrad Murray's picture

The Gold Core link is busted. Think it has an extra "e" in it.

Sudden Debt's picture

THIS IS JUST TEMPORARY!!!

IN 20 YEARS FROM NOW, ALL WILL GET BETTER AGAIN!!!

 

ps: VOTE ALL BUNDY FOR PRESIDENT IN 2012!!

 

 

Popo's picture

Bernanke is clearly fucked.

 

Although... he still thinks he has nothing to do with this.

manipulate this's picture

Is Blythe simply being overwhelmed by demand here?

malikai's picture

Never count out a Primary Dealer. Remember, they get free money. More free money than any of us will ever see in our lifetimes.

Also, green shoots bitchez!