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Silver Surges By 6% In Shanghai - Longest Run Of Gains Since 1968

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Today’s AM fix was USD 1,326.00, EUR 967.60 and GBP 791.97 per ounce.
Friday’s AM fix was USD 1,308.50, EUR 955.60 and GBP 783.21 per ounce.

Webinar: Join Gerald Celente this Thursday as he examines the opportunities in 2014 and in the coming uncertain years.         


Silver in U.S. Dollars, 1 Year - (Bloomberg)

Silver has surged another 1.55% today. Overnight, silver futures in Shanghai surged by 6% - the  daily exchange limit. Silver for June delivery in Shanghai climbed to 4,440 yuan/kg, highest price for a most active contract since October 31.

In London, silver surged another 2.3% today to $21.99/oz prior to giving up some of those gains. Silver headed for the longest run of gains since at least 1968 according to Bloomberg. It is now up 11.3% year to date and is, as expected, again outperforming gold.

Buying in China picked up from Friday's levels. Premiums for 99.99% purity gold on the Shanghai Gold Exchange rose to about $7  from $5.50 on Friday though volumes were slightly  lower.

Gold bullion for immediate delivery rose 0.5% to $1,324.03/oz and gold in Singapore traded as high as $1,330.02, the highest since October 31. Prices climbed 4.1% last week, the biggest increase since the period ended August 16.

Gold climbed $16.90 or 1.3% Friday to $1,318.60/oz. Silver rose $0.94 or 4.58% at $21.55/oz. Gold and silver were both up for the week at 4.06% and 7.09%. The precious metals continued their strong recent performance as the dollar came under pressure. The dollar fell to its weakest level in a year after the recent poor U.S. economic data. Precious metals saw strong gains as prices moved up through key technical and psychological levels  such as $1,300 on gold and $20.50 on silver.

Gold has rebounded 10% so far in 2014 amid expanding demand for coins and bars as signs of faltering U.S. growth lead to safe haven demand. U.S. factory output unexpectedly fell in January by the most since May 2009, Federal Reserve figures showed on Friday. Recent retail sales and employment data were also poor.

Billionaire John Paulson kept his gold holdings unchanged in the fourth quarter, while hedge funds raised bullish bets to a three-month high last week.

Silver continues to have very favourable supply and demand fundamentals and should continue to outperform gold. The nominal high of $50 per ounce is likely to be seen again in the coming years and longer term, we continue to see silver reaching the inflation adjusted record high over $150 per ounce.

Those considering allocating to silver should consider dollar, pound and euro cost averaging into position to protect from the inevitable pullbacks.

Webinar: Gerald Celente On Strategies For Protecting Your Wealth In 2014 And Beyond
Join Gerald Celente on this broadcast this Thursday as he examines the opportunities in 2014 and in the coming uncertain years.

Gerald Celente needs little introduction: Founder of The Trends Research Institute in 1980, Gerald Celente is a pioneer trend strategist. He is author of the national bestseller Trends 2000 and Trend Tracking (Warner Books) and publisher of the internationally circulated Trends Journal newsletter.

This webinar is scheduled for this Thursday, Feb 20, 2014, 1:00 PM - 2:00 PM GMT and will be moderated by Mark O'Byrne, Head of Research at GoldCore.

Register Now!

 

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Mon, 02/17/2014 - 20:32 | 4446267 Carpenter1
Carpenter1's picture

What is this Shanghai price concept? Thot they still used Comex pricing. 

Mon, 02/17/2014 - 19:31 | 4446101 Loanman26
Loanman26's picture

Physical , not paper. Average in, is the best strategy in my opinion. $500 bags of 1964 silver.

Those are the bags I want to be holding.

Mon, 02/17/2014 - 20:18 | 4446221 James
James's picture

Loanman, curious why you prefer 90% over say Eagle coins or bars?

Just wondering.

Mon, 02/17/2014 - 18:57 | 4446005 Downtoolong
Downtoolong's picture

All I can say is my short position in SLV Puts with an $18.50 strike which is expiring on Friday is looking pretty safe. Normally I would close out a position like this when it’s offered at $0.02 cents, but, this is one of those situations where even my two cent opinion to ride it through expiration seems certain to pay off.

Oh, and my long position in physical which I acquired by exchanging the SLV shares which got put to me the last time I tried this is looking pretty good now too. That was the real winning trade. 

Mon, 02/17/2014 - 18:13 | 4445878 Freddie
Freddie's picture

I almost loaded up with AGQ options last week. I did it in paper account and did SLV in real account. :-(

Wed, 02/19/2014 - 19:15 | 4454743 MeelionDollerBogus
MeelionDollerBogus's picture

I've certainly still got my eye on the AGQ1 C 15JAN16 34.00

contract but I think USLV will pay out even better.

By the time the old agq's price would be 134 the new one would be 536, silver would be 57/oz, USLV would be $2728 , and while 100x 100 looks good for $10k profit on 1 contract, it's a bit of a long shot compared to having no time limit, no expiry, which USLV would have. Obviously having an odd number of shares is either a pain or not going to fill but as the math goes...

today's USLV price closed just under 60 and 4x60 is 240, and 2.40 is cheaper than the useful strike prices for 2016 agq calls, and 4x (2728-60) = $10,672

so there's something to think about, obviously to include your own fees.

USLV = silver 3.92 / 2815 today, generally for c=2815 today that c could be 2600 to 2900 or so, prices are still fairly good looking to higher silver prices regardless of that variation (10%)

Mon, 02/17/2014 - 19:28 | 4446094 RaceToTheBottom
RaceToTheBottom's picture

I bought AGQ and CEF last week but have stayed away from the calls since my Ass-emdectamy buying LEAPS last year :(

Wed, 02/19/2014 - 19:16 | 4454762 MeelionDollerBogus
MeelionDollerBogus's picture

Just don't get greedy. I had a few GLD calls for last september in the 160 strike or so if I remember... it was worth a try & I didn't pay a fortune to get in.

Mon, 02/17/2014 - 17:38 | 4445748 Au Shucks
Au Shucks's picture

stop counting your wealth using dollars.  this is the simplest way to eliminate the concern over continued PM manipulation.  in fact, counting one's wealth in terms of troy ounces, acres, means of production, food stores, etc. is the only rational way of doing so.  the side benefit, you will actually become thankful for the price suppression and smile on down days.  the upside is inevitable and when that day arrives, your patience and diligence will be rewarded.  of course, that day will likely coincide with a systemic breakdown of most of today's economic and societal systems, but you knew that when you started accumulating.

i don't always stack metal, but when I do, it's precious.  stay shiny my friends.

Mon, 02/17/2014 - 20:56 | 4446335 Boxed Merlot
Boxed Merlot's picture

stop counting your wealth using dollars...your patience and diligence will be rewarded...

 

 

Amen. 

"he said to them, “Why put me to the test? Bring me a denarius and let me look at it.” And they brought one. And he said to them, “Whose likeness and inscription is this?” They said to him, “Caesar's.” Jesus said to them, “Render to Caesar the things that are Caesar's, and to God the things that are God's.”  Mark 12:15...

Mon, 02/17/2014 - 17:59 | 4445834 Marco
Marco's picture

The dollar is a better proxy for all those other things you mention than troy ounces ...

Wed, 02/19/2014 - 19:17 | 4454766 MeelionDollerBogus
MeelionDollerBogus's picture

it isn't for me.
For me the dollar is only useful to measure the theft put upon me as my work-hours are translated into losses before I can get anything of real value & be rid of those dollars.

Mon, 02/17/2014 - 18:08 | 4445864 Au Shucks
Au Shucks's picture

why do you seek a proxy?  are you insecure in measuring your wealth in the context of the wealth itself?  dollars and all other fiat paper nothings change in value over time, change in worth without your involvment.  why would you measure something using a proxy that changes? when it comes to things of storable value, aka "wealth", using a proxy only serves to strip you of that wealth. 

 

a fool and his wealth are soon parted

 

POLO!

Mon, 02/17/2014 - 17:30 | 4445725 BeetleBailey
BeetleBailey's picture

Fuck this spot price. Manipulated by complete liars and assholes.

 

Stack Phyzz....and FUCK THE NAYSAYERS.....

Fri, 02/21/2014 - 01:02 | 4454775 MeelionDollerBogus
MeelionDollerBogus's picture

have you seen the spot price for bitcoinz on the QOMEX today? MtQox Quatloos are under 300. Now how am I gonna bet 400 quatloos on the newcomers??

Mon, 02/17/2014 - 17:17 | 4445685 Midas
Midas's picture

Has anyone seen the talking bears?

Mon, 02/17/2014 - 17:43 | 4445780 mt paul
mt paul's picture

no

i'm still learning to type

Mon, 02/17/2014 - 17:00 | 4445616 SuperRay
SuperRay's picture

don't buy phyzz until the smackdown...

Mon, 02/17/2014 - 17:42 | 4445774 fijisailor
fijisailor's picture

You mean the 2 year smackdown we are just coming out of?  I already bought at the double bottoms.

Mon, 02/17/2014 - 17:59 | 4445838 RaceToTheBottom
RaceToTheBottom's picture

In the FED Olympics, who will get the air time, the Paper Money Printing Race or the Precious Metals Race?

Mon, 02/17/2014 - 17:03 | 4445626 El Oregonian
El Oregonian's picture

Just keep stack'in whatever the price.

Mon, 02/17/2014 - 20:10 | 4446199 Drifter
Drifter's picture

Yep, anything below 25 is a steal, maybe 30, hell, maybe 50.

Does Shanghai allow naked shorting by certain big above-the-law players.  Appears not.

Mon, 02/17/2014 - 15:56 | 4445450 pitz
pitz's picture

Surging by 6% in Shanghai, but only 1.55% everywhere else that's controlled by the likes of JPM and Goldman Sucks?  Sounds awfully suspicious. 

Mon, 02/17/2014 - 17:01 | 4445619 El Oregonian
El Oregonian's picture

The continued suppression of PM's is as likely as an eskimo suffering a heat stroke.

Mon, 02/17/2014 - 20:17 | 4446220 max2205
max2205's picture

Que hypifocating or however you spell it

Mon, 02/17/2014 - 20:38 | 4446287 J S Bach
J S Bach's picture

Hi Ho Silver... Awaaaaaaaaay!

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