Silver Is Having Its Best Day in 15 Months

Tyler Durden's picture




 

In all the excitement over gold, silver has been largely ignored or forgotten. Today, it was the "poor man's gold"'s turn to stae a dramatic comeback posting its biggest single-day jump in 15 months. Having now retraced the Fibonacci 38.2% level of the record plunge, it appears $25 is th enext target - which is around 50% retracement levels.

Best day in Silver in 15 months...

 

with a target for 50% retracement at around $25...

 

Charts: Bloomberg

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Thu, 04/25/2013 - 14:27 | 3498908 Ruffcut
Ruffcut's picture

Hi ho silver, away

 

Thu, 04/25/2013 - 14:39 | 3498962 MillionDollarBonus_
MillionDollarBonus_'s picture

It's quite amusing to watch the wide-eyed silverbug lemmings cheer as silver bounces before it's innevitable plunge to fair value at $18 an ounce. It seems that there is no level of dignity or rationality that silverbugs aren't willing to sacrifice in order to satisfy their dreams of world domination.

Thu, 04/25/2013 - 14:41 | 3498983 SemperFord
SemperFord's picture

So now it's fair value should be $18 dollars? What happened to the "Only costs $5 dollars to dig out of the ground"???? Inflation is a motherfucker!!!

Thu, 04/25/2013 - 14:52 | 3499047 Bay of Pigs
Bay of Pigs's picture

That was the PM troll Math Man, not MDB.

Thu, 04/25/2013 - 15:01 | 3499092 SemperFord
SemperFord's picture

Thought that was Robotrader which was MDB's previous screen name?

Thu, 04/25/2013 - 15:15 | 3499166 nope-1004
nope-1004's picture

When it was $44, Meth Head said fair value was in the low 20's.  Now it's there and going up, but fair value is lowered?  LOL.

 

Thu, 04/25/2013 - 20:55 | 3500642 Jack Napier
Jack Napier's picture

World domination! Now that one is funny. Wealth is measured in ounces, not dollars. Price only matters insomuch as what I have to pay to get my hands on real money.

If cost of production is fair value then the price of silver is about right in the low-mid 20's.

If mining output determines fair value then silver should be 15% of the price of gold.

If available bullion on the open market determines fair value then silver should be over 500% of the price of gold.

If money supply determines fair value then gold should be over $8,000 per oz.

Thu, 04/25/2013 - 22:43 | 3500997 hoos bin pharteen
hoos bin pharteen's picture

It gets even funnier: on talk radio today I heard a commercial pushing the next big precious metal: TUNGSTEN!

http://www.tungstennow.com/

At first I thought it was a joke, but sadly, it wasn't.

Thu, 04/25/2013 - 15:15 | 3499170 Ahmeexnal
Ahmeexnal's picture

Pascua Lama gold and silver mine permanently suspended:
http://silverdoctors.com/some-seriously-bullish-news-for-gold-silver/

Thu, 04/25/2013 - 15:01 | 3499093 Temporis
Temporis's picture

I miss that worthless prick Math Man...

"It only cost $5 to dig it out of the ground" - Math Man

Thu, 04/25/2013 - 15:17 | 3499179 Ahmeexnal
Ahmeexnal's picture

MethMan is a fool.
He was on foodstamps, yet he bragged about driving a Ferrari.

Thu, 04/25/2013 - 15:02 | 3499086 Gringo Viejo
Gringo Viejo's picture

@ SemperFord

Silver is imho a much more valuable commodity than gold and it's been imperative to the PTB to squelch the price. They have done so successfully for over 30 years. However, thanks to the internet, the cat's out of the bag and people are accumulating it hand over fist. I think silver will far out perform gold on a percentage basis going forward.

Thu, 04/25/2013 - 15:15 | 3499172 DosZap
DosZap's picture

 I think silver will far out perform gold on a percentage basis going forward.

Likely so, but to really capitalize on it, you have to have a shitload of phyzz.Otherwise the percentage of profit wont matter.

Fri, 04/26/2013 - 20:01 | 3504366 MeelionDollerBogus
MeelionDollerBogus's picture

Depends on if you want paper profits or ounces. Or purchasing power. % fiat terms means paper profits to me but we’ll see.

Thu, 04/25/2013 - 14:41 | 3498985 malikai
malikai's picture

"Facebook is the AAPL" - MDB

Gold and silver:

http://blog.quantsig.net/2013/04/25/gold-silver-4/

Thu, 04/25/2013 - 14:52 | 3499048 Deo vindice
Deo vindice's picture

"Lest we forget" - it's still a manipulated market.

I am no more ecstatic over today's price increase than I was depressed over the price slam of the past week.

Thu, 04/25/2013 - 16:35 | 3499505 Troll Magnet
Troll Magnet's picture

Exactly.  Just got an email from Gainesville offering unlimited amount of 2013 ASEs for $4.55 over spot.  Granted, $4.55 over spot for silver is a bit high for my taste at these price levels but there's plenty of physical silver to be had.  Silver may go up.  It may go down.  Just don't get too high, don't get too low.  Stick to your guns and do what's best for you and your family.   

Thu, 04/25/2013 - 16:44 | 3499546 Bay of Pigs
Bay of Pigs's picture

Tulving now has some ASE monster boxes in stock (first time weeks/months), and he wants $4.99 per oz over spot.

Never seen that before. 

Thu, 04/25/2013 - 17:02 | 3499580 akak
akak's picture

You know, I will never understand the obsession that so many physical silver buyers have with so-called "legal tender bullion coins" issued by their OWN much-hated government, and at much higher premiums to boot.

Being generally if not almost universally anti-government, shouldn't physical PM buyers SPURN government-issued bullion, instead of hypocritically flocking to it in preference to privately-minted similar issues?

What does the fictional governmental sanction of legal tender status matter to a bullion coin, anyway, as NOBODY is ever going to spend one as currency?

Thu, 04/25/2013 - 17:39 | 3499799 sessinpo
sessinpo's picture

That is a great post, the type I love to see. A post that asks questions.

Here is my answer:

The reason one buys physical from the government is the "supposed" quality of the coins. We have seen posts on gold bars containing tungsten. At this time, coins from the US Mint have not been questioned in their quality of content. And that is the important part. Quiite frankly, if I am buy American Eagles, I don't care what year they are because the year doesn't matter. It would matter if a very limited quantity was created, but that is not the case. So what I am after is the content, the purity of the coin in either silver or gold. Until we see a story where a coin is filled with material other then gold or silver, the perceived safety of buying precious metals in certain forms is good.

 

In addition to the spurning the government issued bullion, the reason for buying it is to "attempt" to preserve wealth from a government that is mismanaging its money, either fiscally or monetarily.

 

Your last question is a very good one: "What does the fictional governmental sanction of legal tender status matter to a bullion coin, anyway, as NOBODY is ever going to spend one as currency?"

 

This is why I advocate only having a portion of your savings in PMs and not overloading. Having some PMs is a great way to protect yourself in the event of a total currency collapse. But eventually, whatever government is still left after a collapse, will institute new policies and possibly a new currency. That is why I don't overload but do advocate having some PMs.

 

 

Thu, 04/25/2013 - 17:45 | 3499827 de3de8
de3de8's picture

For me it's retribution

Thu, 04/25/2013 - 18:27 | 3500009 malikai
malikai's picture

It might matter, should the benevolent government decide to remonetize said instruments at face value some day.

..Just prior to taking and revaluing it, because it is only fair.

But of course they would never do something like that.

Thu, 04/25/2013 - 15:11 | 3499115 Ag Tex
Ag Tex's picture

There's very little physical silver delivery left to be found if any. Unequal weights and unbalanced scales are an abomination to The Lord

Thu, 04/25/2013 - 15:15 | 3499167 Deo vindice
Deo vindice's picture

That means God hates fiat currency (which He does).

Thu, 04/25/2013 - 15:24 | 3499219 Squiddly Diddly
Squiddly Diddly's picture

Fiat currency is the modern version of the Tower of Babel.

Thu, 04/25/2013 - 16:34 | 3499511 Troll Magnet
Troll Magnet's picture

AgTex,

go to gainesvillecoins.com.  You can buy UNLIMITED amount of silver eagles for $4.55 over spot.  Silver shortage my ass.

Thu, 04/25/2013 - 16:46 | 3499543 tbd108
tbd108's picture

Perhaps as you suggest, for the right price, there is no shortage of almost anything (although in the Weimar Republic food could not be bought) for any price. As far as the business about silver eagles being available in any quantity, it would be interesting to know when they plan on delivering the metal since shops all over the world are putting customers desire for delivery weeks out.

Thu, 04/25/2013 - 16:50 | 3499591 thewhitelion
thewhitelion's picture

"Please allow an estimated 13 - 15 business days to ship"

Seems a little "short" to me.

Thu, 04/25/2013 - 18:21 | 3499979 Ag Tex
Thu, 04/25/2013 - 17:45 | 3499832 Conax
Conax's picture

"You are to pay them in silver for the food you eat and the water you drink." ~ Deuteronomy  2:6

Annnnd,

"By your wisdom and understanding you have gained wealth for yourself and amassed
 gold and silver in your treasuries." ~ Ezekiel   28:4

Here it is from the Grand Poobah of Crooked Crony Capitalism himself-

"Gold and silver are money. Everything else is credit." ~ John Pierpont Morgan

 

Thu, 04/25/2013 - 18:22 | 3499999 Ag Tex
Ag Tex's picture

Gold and silver have a 6,000 year history as being money.  We are all created with this in our DNA.

Fri, 04/26/2013 - 10:14 | 3502192 Farley
Farley's picture

Let me correct Morgan,

"Physical" gold and silver are money. Everything else is credit.

 

there fixt it

Thu, 04/25/2013 - 15:29 | 3499231 mayhem_korner
mayhem_korner's picture

before it's innevitable plunge to fair value at $18 an ounce.

 

The value of silver doesn't change much, just the purchasing power of the bux.  What $18 bought 10 years ago will pretty soon require $90.

Thu, 04/25/2013 - 16:54 | 3499611 Golden_Rule
Golden_Rule's picture

The problem with that theory is the value of silver and gold has changed a lot.  Relative to wages, relative to assets, relative to currencies.  If gold and silver are not in a bubble, then the market is not accurately pricing anything else.

Fri, 04/26/2013 - 20:02 | 3504367 MeelionDollerBogus
MeelionDollerBogus's picture

The market is not accurately pricing anything else. That’s right. That will change shortly and it will be calamity including the price of currency and trade.

Relative to wages gold has more than doubled the work-hours required to get it in 100 years. That’s not good for those seeking to stack, only for those already holding.

Thu, 04/25/2013 - 15:55 | 3499348 tbd108
tbd108's picture

Dear MillionDollarBonusBoobus:

The idea that the "fair value" of silver is static shows, to paraphrase General Patton, that "you don't know anything more about bullion values than you do about fornication." With all the speculation. manipulation, and natural movements of the marketplace, the bottom line is and will continue to be that silver (and gold) is money and not the fiat linen that the banksters from London and New York want you to believe it is. People in India and China and many other parts of the world know this. Boobus Americanus has had too much TV and bad food and have forgotten although there are signs they are waking up. The linear relationship over time with money printing establishes this for a fact even though the permutations of the market make it not evident to blind donkeys like yourself. Go back to watching TV LAND reruns and spare the rest of us your silliness.

Thu, 04/25/2013 - 16:22 | 3499470 BeetleBailey
BeetleBailey's picture

Fuck off dickbag

Thu, 04/25/2013 - 16:33 | 3499506 Blano
Blano's picture

How does that compare to the fair value of your Herbalife distributorship?

Thu, 04/25/2013 - 17:04 | 3499650 dropdeadfed
dropdeadfed's picture

I'll continue to exit fiat and pump my physical.  See you on the other side....

Thu, 04/25/2013 - 17:13 | 3499679 jrpuffnstuff
jrpuffnstuff's picture

MDB you are the only reason I even look at comments on Zero Hedge anymore.  You da best bitch!

Fri, 04/26/2013 - 19:58 | 3504362 MeelionDollerBogus
MeelionDollerBogus's picture

Fair value is already far above the listed spot price for any delivery, so what, you mean spot at 18, physical at 28 ?

Thu, 04/25/2013 - 14:40 | 3498967 DoChenRollingBearing
DoChenRollingBearing's picture

Bitchez!

Now, will my LCS have any gold for sale for me today...?

Thu, 04/25/2013 - 14:44 | 3498995 Silver Bug
Silver Bug's picture

The shorts are being caught with their pants down. Physical is running out. The price of gold and silver are going much much higher.

 

http://sprottmoneyblog.com/

Thu, 04/25/2013 - 14:57 | 3499063 RockRiver
RockRiver's picture

Maybe...one day does not a market make

Thu, 04/25/2013 - 15:31 | 3499238 mayhem_korner
mayhem_korner's picture

 

 

Agreed.  This is just a bounce back from the manipulated lows.  Nothing near breakout range (which may never show up in paper, anyway). 

I stopped measuring gold and silver in USD/oz a while ago.  I go by weight now.

Thu, 04/25/2013 - 14:57 | 3499060 slaughterer
slaughterer's picture

The move up in PMs is paradoxical considering the GS confirmation (since they puppet master Mario) of an ECB rate cut next Thursday.  (Very Bearish for $USD denomimated PM paper prices).

I would say next Wednesday morning is the time to re-set the silver shorts (probably at $25.50 by then).

That is the short-term slaughterer strategy.  Refer to it by the acronym SSS from now.  

 

Thu, 04/25/2013 - 15:07 | 3499119 fonzannoon
fonzannoon's picture

But by next wednesday the comex will have defaul......sigh....nevermind.

Thu, 04/25/2013 - 19:34 | 3500303 HardAssets
HardAssets's picture

       BOUGHT DURING THE RECENT B.S. PAPER TAKEDOWN

       DIDNT BUY DURING THE TAKE DOWN

Thu, 04/25/2013 - 14:28 | 3498910 williambanzai7
williambanzai7's picture

SILVER MOONS

Thu, 04/25/2013 - 14:31 | 3498926 newworldorder
newworldorder's picture

Love your art and your active imagination.

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