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What Does the Largest Move Higher in Silver in Years Mean?
Today, as I write this short article, silver has moved from
$45 and some change from the close of the New York market last Thursday to $49.35
a troy ounce in Asia, a move of 9.06%. If the price of silver remains anywhere
near this level for the next four hours until the COMEX opens, this will mark
one of the largest, if not the largest, move higher in silver in years from
market-close in New York to the next market-open (remember the COMEX was closed last Friday in observance of Good Friday). So what does this enormous move mean, undoubtedly fueled by official comments from the China
Central Bank that it desires to offload some $2 trillion of US dollar
denominated reserves?
Well for one, it proves that all the recent talk of silver
bubbles is not only uneducated but also silly. If analysts can’t figure out
that soaring silver prices are directly related to a loss of confidence in the
US dollar and other major fiat currencies, a rejection of the global Ponzi banking system, and silver's return again to its well deserved status as a
monetary metal after years of being just an industrial metal, then they should
cease performing any further analysis. Silver is not just soaring against the dollar but it is also soaring against the Euro and many other global fiat currencies. Silver's recent big move also means that the recent articles
comparing silver (and gold) investors’ fondness for precious metals to a
misguided, religious-type fervor is also way-off base, and that analysts must
be using the term religious-type fervor as a euphemism for logic, intelligence
and reason. While exciting, this huge market-close to market-open move in New
York in the silver price also does not mean that silver will shoot higher to
$60 and then to $100 in a few weeks either (unless the shorts at JPM get run
over by this move and have to start furiously covering and the COMEX defaults -
then anything can happen). Nothing goes up in a straight line just as nothing
drops in a straight line. Silver will experience significant drops during
future consolidation periods as the silver bull progresses as well.
While it is true that some speculators and short-covering are helping to drive
the price of silver higher during this run, one never hears the other end of
this argument – that speculators are merely enabling the price of silver to
reach a price more reflective of the free-market fundamentals of supply and
demand after having been suppressed for decades by the likes of JP Morgan and
other puppet bullion banks that execute the wishes of the US Federal
Reserve. Furthermore, very few
people also discuss the safe assumption that China would not be releasing these
official statements about dumping US dollar reserves, knowing that such a
statement would drive gold and silver prices higher, if they had not already
purchased a large amount of physical gold and physical silver for their
reserves in recent months. No one releases information that drives the prices
of assets higher that they plan to purchase, just as no one (except Gordon
Brown) announces information that drives the prices of assets down that they
plan to sell. Thus, one can assume that China must have just concluded buying
physical gold and physical silver, and lots of it, even if they have not
announced this to the rest of the world. There is bound to be large sovereign
buying backing this large move in silver that is fundamental and long-term.
Such actions will counter and help smooth out the additional spike in silver
prices that can be attributed solely to speculators and short-covering.
While it is true that silver will pull back and consolidate
after an enormous run higher (a mind-boggling 162% since the end of last August!)
at some point probably in the not-so-distant future, and while it is true that
silver will likely experience some very volatile dips to the downside as well
this year, the next significant dip in the price of silver will not mean that
the silver bubble is bursting as the disinformation bots in the media will
assuredly report when it happens. In fact, I expect the silver bears to proclaim this recent huge move as a "blow-off" top
that marks the inevitable bursting of the silver bubble. I would be disappointed if they didn't. My take? I will use any significant dips in silver price in the future to convert more of my savings into physical silver. Let’s
wait until silver reaches the mid-triple digit range before we realistically start talking
about a silver bubble.
About the author: JS Kim is the Founder & Managing
Director of SmartKnowledgeU, a fiercely independent investment research and
consulting firm whose philosophy is the anti-thesis of Wall Street fraudsters.
The SmartKnowledgeU Crisis Investment Opportunities newsletter has cumulatively
returned 200.96% from its inception on June 15, 2007 to March 31, 2011 in a tax-deferred account, beating
the S&P 500 index by 213.90% over the same investment period.
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I think the odds are greater than 50/50 for a significant pullback. I am on the bandwagon that the FED needs to advertise the end of POMO and some rate hikes in order to tame the inflation talk. This will cause a short bout of deflation (which brings silver down as well), then in late June/July QE will come back, stealth or not, and juice things again.
(Deleted a snarky comment... Must be feeling cranky today.)
Why didn't Silver and Gold pop during the Japanese Tsunami and nuclear melt down? If these were true safe havens, they should have screamed higher and left equities behind.
This did not happen! Gold and Silver moved in tandem with equities.
This is the most blatant indicator that Gold and Silver will also fall with equities once Deflation re-commences its destruction of credit.
Remember, credit and the physical dollar are not the exact same. Credit implodes, which makes the physical dollar more desirable.
The hyperinflationists are blind to the the still blatant signs of deflation. Companies don't want to part with their dollars as they are not hiring, banks don't want to part with their dollars as they are not lending, consumers don't want to part with their dollars as they are not spending; etc.
Hyperinflationists can't answer why housing prices are collapsing and uneployment not abating....in hyperinflation, wages increase and prices scream higher universally. Given that housing is such a strong component of economic health, it is the strongest sign for deflation and against hyperinflation.
"Squire, bring me my paper armor, and saddle my unicorn --- I am off to fight deflation!"
The deflationary flat-earthers would be funny if they were not so tragic.
THE SILVER LUL
I'm planning to keep my silver for a few years. For me this isn't a short term investment.
The pitty part is that yet again, most silver coins have rissen 20% in price this weekend...
But never the less, all the money I put in it now at any price, will surely return a hefty return.
That's why like the bears once said: price doesn't matter and for me this is indeed very true.
Yeah, Im not (really) using silvers as an investment, but for protection and trading goods after the dollar crashes for good.
I grudgingly admit you are right.
However my agreeing with you now confirms you are wrong.
I personally dont think its a bubble when it reaches in the $100ish if the dollar continue to decline or crash. If it pops, then that tells me the America economy have recovered? Am I wrong?
You can try to beat down Silver you piss ant Banksters, But I have one word that will "Kick your Ass!" Follow the link you jerks...
http://youtu.be/AuULcVaMTf0
$3.60 move
silver battling back up from down .60 to down .10
wow at the bid under silver
I think the guys that called a short dip are going to be correct, there's too much buying going on for the price to stay depressed very long
juxtapose a 10 year chart of S&P 500 with that of Silver.....the near lock step is uncanny.
This is very bothersome to me, because Silver and Gold have been moving almost in tandem with the equities.
When the next wave of defaults, deflation, credit implosion hits at a primary cycle wave 3 down, equities will collapse and the run for the exit on gold and silver will be quite a show.....everyone will need to raise cash.
Correlation does not presuppose causation, so you should be overlaying a third chart (perhaps inverted) and that would be the dollar.
The entire story is rarely found by looking at just 2 factors, and rarely even 3.
Thanks for allowing me to add to my silver stash at a better price!
At 30 in end of May it would look even better.
Here is the chart for next months:
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&sta...
Still selling saposjoint?
46.1 . From 49,7 in 10 hours. GREAT! Told you watch the silver crash live today:)
Most people were sleeping in the USA so they didn't even notice the swing. Where do you get the glue that you are sniffing?
According to Bloomberg gold and silver are still up on the day. After watching the markets closely for the last four years, noticing all the patterns and manipulation, I no longer believe in coincidence. POMO is on again today. Has anybody here noticed a down day in the markets during POMO days. The $ seems to be going elsewhere. Wonder where that might be.....maybe to manipulate something else?
I would love to see silver back into the 30 dollar range.
I shall grant you your wish!
Hey thanks! Just sold some SLV and will by some physical with it on the dip!!!
This is it boys! Sell silver while you can! Heading to the low 30's.
In related news, Aka and Mosely declare bankruptcy after betting the farm that "this time it is different" and thinking silver was headed to the moon.
Aka and Mosely declare bankruptcy after betting the farm that "this time it is different" and thinking silver was headed to the moon.
No, they form their own bullion bank after betting that the $US dollar would go into free fall based upon fundamentals that include monetization to infinity.
Looks to me like their Balance sheet is shitting the bed. I hope they did something to protect themselves from the popping silver bubble!
Dangerclown, it is your words, not mine, which speak of desperation, frustration and anxiety. I sleep wonderfully soundly at night with the actions I have taken to protect my savings from the inevitable outcome of the current disastrous and outright insane experiment with fiat currency, as witnessed by hundreds of examples throughout thousands of years of history. Can you say the same?
You really are clueless. If silver went to $1 how would that bankrupt anyone except those on margin with paper PMs? You can rest assured that Akak and Mosely are not in that camp. Nor am I. You really don't understand how this works so why don't you just get along with yer ignernt ass.
OK, OK... so you've missed the ride in Ag... go ahead and get a few licks in while the Fed backed banksters throw yet more of your tax dollars down the tube trying to tame it... so boring and predictable after the biggest weekend gains in years!
Me, I'm buying more... thanks (Ben) JPM!
Stock prices support it. Going down as silver does. People price in tightening of some form. Soon.
And the tightening of the noose around the necks of the silver anarchists.
Fuck off troll.
You don't even offer the laughs of the likes of MethMan.
It's all going to be alright...from Bob PisAnne:
A Top in Gold? Here's Why
www.cnbc.com/id/42747112?__source=yahoo|headline|quote|text|&par=yahoo
Yet somehow there is no real explanation for a top in gold...lmao
in uncertain times (for investing/trading it's the best of times and the worst of times)..where can one turn to protect/grow wealth??
Frn's ? bonds? stocks? PM? farm land? collectibles?? a cash business? guns and food?
answer: unknown, you can only inflate- real wealth is an illusion..invest wisely my friend invest wisely.
I recommend finding a quiet backwater-were food production is close and cities far.. go where time is slow..the power centers of the elite are not a destination for a calm life and clear head.
PM's are showing more of us are aware of the failure of fiat paper..
One problem : with global warming/ozone layer dysfunctionning plus Fukushima bubbling...even the fresh air/water in 'how green is my valley' looks a fragile dream...Shane is a lonely pale rider as he fades into the sunset of modern times.
Huge cloud of crap apporached the West Coast on the 24th and is now spreading nationwide.
http://transport.nilu.no/browser/fpv_fuku?fpp=conccol_Xe-133_;region=NH
This has fallen so far off the radar, many people think it's over.
We are only in the second month of dealing with what might be a ten year time frame to clean up a massive dirty bomb [at best].
Not real smart here. Had to have my mom help me with the captcha. But if you had gold at $850 in the 80's and silver at $50 then when gold hits $1700 would we not be looking for $100 silver? Is that too easy? btw if it doesn' correct here my guess is they'll take a visit to the drop dead stops at around 52. that will be fun!
This guy is a real goldbug. (I'm just here to save my pension)
http://silver-and-gold-prices.goldprice.org/2011/04/why-swap-silver-for-...
The last 4 months have seen a huge move for silver.
"maybe not today, maybe not tomorrow, but soon...and for the rest of your life"
Casablanca 1942
"..fueled by official comments from the China Central Bank that it desires to offload some $2 trillion of US dollar denominated reserves."
Be afraid US Dollar, very afraid
"No one releases information that drives the prices of assets higher that they plan to purchase, just as no one (except Gordon Brown).."
even amongst the incompetent corrupt scum that is the political profession Gordon Brown stands out as the most incompetent corrupt scumbag of them all
stop insulting the incompetent.
it is all premeditated malevolence of the highest order.
they'll gladly shrug when you call them idiots,
it's the perfect excuse.
wake the fook up.
He just doesn't understand what buy low sell high means. Many don't.
He comes from Academia like Benocide. In the haloed alleys of Princeton and Oxford...we are protected from reality...oh, it's so lovely...sigh, all we need is WB7's visual fantasy and the world becomes picture perfect!
The next two days will be smackdown city. Plan accordingly. The raid this morning was so-so; Blythe will continue hammering at least twice more today and throughout the week.
Hope you are right. Money on the bounce is good. She dips it deep i'll buy more physical.
"Mid-triple digits"? As in $550? Okaaaay. I have coined a new term: "Pimple"...stands for Precious Metals Sheeple.
+550 I just ordered the website from GoDaddy it's my sister site to Sheeple Times
preciousmetalsheeple.com
When I first read "mid-triple digits" I thought of the $150 range. I wonder if that's what the author was attempting to say, rather than the $500 area.
The economic environment in which silver would price at $500 would be severely disordered. I hope we don't see that.
An imminent this weeks crash.
That's what that other guy said last week, and another guy the week before that, and another guy the week before that, and so on.
All wrong. What makes you special?
Bob Pisani says metals are in bubble territory. Can't be wrong! <sarc on high>