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Visualizing The Silver Squeeze
Despite 'crashes' in the market, the demand for physical silver continues to rise. "Buyers are already outpacing sellers by a stunning 50-to-1 ratio. We are seeing the beginning of shortages; but this will only accelerate if Western governments continue with this raid on paper gold and silver."
The Silver Squeeze – An infographic by the team at The Silver Squeeze Free Infographic
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Yup a piece of red meat thrown into the den.
Tainted red meat.
R-U Kidding me? The "Day Walkers" , are sharpening thier stakes.
Yen I own silver, and I think it will have it's day. I also think you are right about platinum, that may be the big winner. But these articles are just thrown out here on the weekends to keep us busy.
Show me an article of a delivery failure and I am all ears.
HY-dro-gen (platinum)
This is the time to be at least scaling into a silver position. No way they can take this much lower, not without blowing up the COMEX completely. Right now they can mess with gold and take it down through the 1000's but as soon as it gets under that (doubt it even will), huge #s of buyers who regretted not getting in last time will get in and buy physical. Not everyone out there has a 'ZH' awareness level of the farce that are these 'markets', but a lot of people I know know a thing or two about gold and how there is an innate turn to it when things are bad, a la the currency wars and kinetic military wars that seem on the horizon.
I just can't fathom silver getting much lower, even to $18, because so many people want to add to their stacks or would look at it as a great way to get in on a leveraged play on gold. Gold breaking below 1000 would also correspond with silver moving down that much more as silver is beta play on gold, so silver would probably be in mid-teens or lower, and a very attractive price. Even ordering 5k ozt's at a time from COMEX would be more feasible than it is now, where many still are just buying relatively small quantities from dealers, Apmex, etc.
Anytime one can get a tube of phils for under $600 its a bargain. I think at todays price its closer to $500 for the tube. Hard to say thats a bad buy.
The floor for PMs is from here to maybe 1000 gold and 18 silver. Sure it could pay off a bit to wait a bit if the price does indeed go down from here, but that is no sure thing, and conversely the price could explode up from here just due to all that is going on with the Middle East, IRS scandal, Benghazi, currency wars (not just Japan; all the other commodity currency countries doing it as well as Fed and all the Keynesian clowns will see the lousy economic data like initial claims and PMIs and durable goods orders think just takes more ctrl-p'ing ), all the net shorts and funds who've thrown in the towel on PMs and are set to get squeezed, and the double bottom going back to the last epic raid to 1322, as those are hugely bullish usually. Tons of bullish factors here, including the fact that an insane amount of fiat has ALREADY been printed.
Entry point depends on if one is trading or holding phyz for saving. I'm buying phyz for long term. I think scaling in and accepting that there might be a bit more downside to those aforementioned levels as they try to make the PM holders sweat and cause more capitulation, margin calls, etc, is the way to go. PMs have already been hit hard, and it has taken a long time to get down here from the highs, and every plunge in price puts enormous pressure on the physical market. Unlike Apple which got crushed in a hurry, gold has been stubborn and resilient, and that is for a reason. It is money.
Thus, downside risk very minimal here, whereas upside fantastic. Maybe another 10% down as they try to really spook us and test our mettle. People who buy phyzz PMs, though, are tough suckers. They tend to 'get' that this whole thing is a house of cards.
I try not to blindly follow anyone. So I ask myself, Who benefits from the downward price movement in precious metals and commodities?
Possible answers: The Gov't ? Ponzi Traders that front run the Gov't? Normal cyclical price action? What am I missing?
The Gov't can't be that dumb (can they?). We read that physical demand is global and very high. At some point, they or the organizations that represent TPTB would fail to deliver physical. Delivery failures such as the ones we read about with ABN Ambro, the German Government's request foir Gold, or even MF Global make me believe that there is a serious shortage of PMs. Suddenly, there is a crack in the wall of my confidence. Could there be a gov't ponzi?
So the Gov't holds a meeting betwn. the G7 and the bankers and they decide to reajust the price of Gold downward. Russia, China, Inidia, and interestingly South Africa reportedly buy on the dip. It appears most of the Brics bought on the dip. Gold leaves GLD. Nothing leaves SLV. What does that mean? Currency war? Not sure.
The stock market is rocketing skyward. No one believes in the fundamentals but the QE fuel has been lit. The rocket is going skyward destination...unknown...really? All that 401K money and stock money inflating upward without fundamental growth or meaningful hiring. Food-stamp and similar social program participation seems to be rising in conjunction with the stock market. Those are not the fundamentals that I expected.
Let's throw in some Gov't scandal for spice. Let's add a dash of regional friction in the Pacific Basin, Europe, Middle East, Mexico, Argentina, Venezuela, and then put a big comet in the sky. What does all that look like to me? Dragons are coming? (Game of Thrones reference)
Its interesting to read about hyperinflation in Germany. At one point near the beginning the mark was considered the the strong currency, money flocked to Germany from all over the world they were in a state of severe deflation. The same way money is now flocking into the dollar and we are experiencing the same thing. Just like the Fed they felt the cure for the deflationary malase was to print money. Just like the Fed they noticed that inflation was not rising due to the increased money supply so they just kept on printing. Just like the Fed
The German stock market during this process experienced a number of spectacular booms and busts. Finally a huge bust.
They were finally only able to restore faith in the Mark by issuing bonds backed by Gold, Land, and the industrial production of the country.
Strange parallel's to today's situation.
retail buyers flooding in always signals the top
Long buzz. I love ya/
retail flooding in S&P at 1666 is a sign of the top. Retail flooding in Silver 50% off it's highs????
June gloom
And last I checked, it's still May, so the whole "sell in May need not apply this year" mentality isn't out of the woods.
June Gloom I've nothing to say...
What's gloomy about June? The girls are just beginning to shed those winter clothes! (not that I look too hard).
S&P 1666 is a *wink* of the all-seeing eye, to those in the know, that some major false flag, military op, or financial take down is in the offing. Be careful out there.
Hey Buzz,
Are there statistics that show these sales are mostly to retail buyers?
Dog help us silver holders if 22+ is the new top.
Buzz is kind of right. In my thinking both gold and silver need to go to zero. I will vomit if we get a massive spike up from here. If I read a yahoo finance story in two months about how Soros or some assholeface nailed it on a GLD and SLV trade I will probably sell my shit and go long Lululemonstarbuckschipotlepricelinefacefart
When silver was trading up to $49 and all the "silver bitchez" were saying $100! $200! $500! you would have been pummeled relentlessly with down arrows and comments suggesting you were the product of semi-retarded first cousins mating for hinting that silver (PMs in general) weren't the fastest most obvious road to unimaginable wealth. I remember one guy on here, a day or two before silver topped, who said he was maxing out his credit cards and pawning off all his shit to go all in on silver with every last penny he could scrape up. Wish I could remember who it was, but I've got CRS, I just remember thinking, "If this isn't a top, I don't know what is." I was personally attacked by some of the regulars here for making the comment that PMs are a market and they go up and down just like any other market. To even hint that you thought they might go down before going parabolic was seen as heresy. The time to sell all your shit and go long PMs is coming, but it isn't here yet. More down before up.
Naked shorts, re-hypothecation (multiplied who knows how many times) compounded with fractional reserve bullion banking, leasing, 100 maybe 1000 to 1 ratio of paper silver to physical... You call that a market?
Better to be 2 years early than one day late when all this unravels.
Market or not, I was right, it is cheaper now than it was then, as I suggested it would be. And it'll get cheaper yet. If you liked it at $45 you're gonna love it at $20. I do believe it will go higher, but I also believe it goes lower first.
Maybe you're right, maybe you're wrong. But the fact remains that YOU DON'T HAVE ANY SILVER!
If the music stops, you are SOL just like you would been at the 50 top if they wouldn't have faked up a Bin Laden story, posted a fake birth certificate, and smashed the price after hours during 7 margin hikes. I on the other hand have been buying every dip since 4 bucks. No, you can't have my chair ;-)
Silver For The People
Let the price of Au go to $200/oz and Ag to $5/oz. I'll buy moar.
Those of us with strong hands who truly believe the house of cards will be crashing down really don't give a shit what price point we enter. It's immaterial. We're holding our PMs until an opportunity presents itself on the other side. Yes, it's obviously better to always buy at the lowest price, but unlike those of you on here who bought silver at $5, then sold it at $50 -- and are waiting to buy again when it drops to $20, I don't have a crystal ball -- and I refuse to get stuck when the music finally stops playing.
When fiat finally dies, it won't matter whether or not we bought gold at $200/oz or $2000/oz -- the only thing that will matter is we'll be holding real, stackable, wealth in the form of gold and silver, and not worthless fucking Bernanke paper.
(And if that day doesn't come in my lifetime, my PM wealth will get passed down to the kids -- far out of reach from any fucking government death taxes ... assuming the kids can fish it out from the bottom of the lake.)
You are absolutely right. But the daring do is whether you will be able to take delivery when the time is right from a price perspective.
I think the safest bet for a "paper top" is: long on physical, short on paper.
I.e. never to sell physical, but at certain times it can pay off to short the paper.
I wonder if the disconnect will happen at a top, or at a bottom? A bottom seems more likely, since the trigger is going to be COMEX and/or LBMA default. But who knows...
Lindsey Williams just said on the Vinny Eastwood radio show, that according to his elite insiders, gold and silver have bottomed after the huge takedown a couple weeks ago.
Since the intended effect was to strip the average person of their holdings, and it backfired and increased sales exponentially, the elite bought up as much as they could get their hands on and are ready to run it now.
http://www.youtube.com/watch?v=rm9MT0jUsNw
So get ready for 5000 gold and 75 silver.
Get ready for 1200 and 18 before 5000 and 75. I'm not saying that buying now is wrong, we all have to do our own analysis and make our own decisions, but it'll be cheaper next week.
Forgive me if I do not put full faith in your putatively infallible oracular visions.
I think for the short term, $22 probably is the top. The trend is downward. You're talking the teens in the not too distant future. I don't think it goes below the upper teens, though.
"I think for the short term"
I don't
The trend will continue to be opposite the bubble until the bubble pops.
I get your point about this article. But it is the dollar that ends up beaten to shit in the back alley when it's all said and done.
I think truth gets beaten to shit in the back alley before it's all said and done and the real party begins. Evil is good, up is down and slavery is freedom. Do I have that right? I'm studying for my test.
Fonz,
No matter how much the price drops, I still end up saving more in PM's than dollars.
A drawer full of dollars always ends up getting spent one way or another. Poof, it's gone.
Too much work converting metal to spendable cash, so it never gets spent, in this houshold anyway.
damn right. I just find this place so interesting lately. I watched the market close of friday. A bunch of people entered shorts. I mean this respectfully...they don't get it. Still trying to beat the house at the houses game. Another bunch spent the night psychologically examining themselves and where they went wrong. A lot of them laid blame with this site. It was fascinating to see.
We are talking about the idea tha the dollar has seen it;s best days, and is on the way out. The idea that this will happen easily and without trauma is ridiculous. If you believe that it is occuring, you better have some serious mental fortitude.
Will silver and beer work?
You just locked in all my spelling etc. errors. lol
Be strong in the knowledge that the dollar has been losing value consistently for 100 years.
On a long enough timeline, ZH will be correct.
Right + early = wrong.
Just sayin'.
late = dead
Point begrudgingly conceded.
Bullshit.
That is only true for the myopic and short-term traders.
For those who buy and hold, right + ANY time frame = right.
Yes, and in a top we're usually flooded with MSM articles urging you to sell all over the place.
How kind of them.
That doesn't even make sense from a grammar standpoint.
It's like saying "I've found the peak of the mountain, it's right here" at a point half the altitude of the highest point that SAME PERSON had found before, on the same mountain.
But hey, we need capitulation from idiots and declarations of victory from other idiots, so by all means...
J'aime pièces d'argent.
Every week there is a "we buy gold, silver, fender guitars et al" ad in the local fish wrap. these ads are full page spash with 1/2 page for a couple of days. As soon as these ads go to "WE SALE gold silver and the rest" I will sell.
Hang onto your silver coins and sell one oz at a time. Got 400 one ounce coins? Guaranteed come hell or high water you have yourself and a friend locked in on 400 lunches for two at any time in the future at your favorite neighborhood restaurant.
Exactly. And 3 pre 65 Dimes will still be enough gas to get some where as it did before 1965.
Positioning of the Paper Gold Comex Comittment of Traders
http://winteractionables.com/?p=2558
Get some rest. Bitchez That felt good.
They let Medias take care of the rest, so even prices drop, people will not buy useless golds. "Buy s&p, you will become rich next day.
Both gold and silver have loads more of paper per oz than quantity. The banksters are doing fractional reserve on the PMs. Thy couldn't deliver the physical.
suckers and their conspiracy theories born every minute.
buy silver, crash jpmorgan. howd that work out for you???? LOL
it was nice to sell near the peak of the hype... not sure many others viewed it as a trade first, stack second
What's your money in now smart guy?
Remember, the devil is a liar.
The supply of physical silver is so tight that absolutely anyone can call Tulving.com today and have thousands of one ounce silver bullion coins and kilo bars delivered vis overnight shipping. Zzzzzzzzzz.
500-1000 oz minimum...
But the smartest man in the world Martin Armstrong says the high demand for physical doesn't make a difference. He says since everyone called for the death of the dollar that the dollar is going to strengthen and that there's no organized smack down of the metals. He says I wear a hat made of foil and that he's a lot smarter than me despite his lengthy prison sentence. He told me for $69 he would tell me the future of the metals. Then he told me Jim Sinclair took Lithium and was insane.
I told Martin to go fuck himself and that his prison tats were retarded!
He makes a good point on organized smackdowns. At least its nice to read a new perspective. MA is saying his tea leaves indicate gold $5000 is in the realm of possibility.
MA uses his cycles for his predictions. I'd wager probably some of the best time cycles around.
2014ish onwards (2015.75 ish). A major turning point I think. It will go up from there. It's something like the 4th Turning in that you may be able to predict an "event" but you won't be able to predict how it will unfold.
It strikes me that anyone using cycles without being aware of astrology is seeing half of a picture. The siderograph has a major turn very close to the summer solstice this year; if the surging stock markets aren't the first signs of hyperinflation, I would suggest that reality might intrude on the markets around then (or we'll see hyperinflation proper start at that point).
I suspect when they release eagle sales this month the numbers will be through the roof causing a greater spread in spot vs phys
The annual two coin set release date was May 9 with delivery June 17
The site crashed at least a few times in the first few hours of sales
By May 11 the date for delvery was already + 105 days from June 17
If I hit the lottery, I wonder if I could get a dealer to order me 2,000 monster boxes from the mint?
Shit I think the asset requirement is 10 Mill to become a dealer and buy direct from the mint
You could do that many times over and get it at dealer cost to boot
you can get on the mailing list and buy direct from the mint yourself...
That depends on where you win the lottery...
Illinois Lottery officials confirm they bounced eight checks.
SILVER PROPHECY:
http://www.elliottwavetechnology.com/2013/05/silver-prophecy.html
Exactly.
And let's not forget it costs just $5 (or was it ¥5?) to dig it out of the ground!
Regardless of what theory or model or belief, there is no greater truth than price.
Silver weekly of March, 2013
http://bullandbearmash.com/chart/spot-dollar-daily-continues-rising-shar...
Price is the true measure.
Anyone who really wants to know how far---or not---paper is from physical, go to a large international non-retail two-sided market dealer who can take or deliver physical in size on the spot. Cash and carry. Front end loaders for the silver on pallets. Expect to be surprised.
The Emperor has no clothes.
You are probably correct ---- for now.
But I can't help thinking of the captain of the sinking Titanic vainly attempting to convince the doomed passengers that all is well --- "Look how much of the ship is still above water, after all!" Until it wasn't.
Maybe, akak. We shall see. Right now, however, on 5/19/2013, the tales about physical shortage might be right for minted coins, but for the bulk element, there's plenty on offer at the paper price.
Are you saying I can get spot price if I buy 10k oz at once? What is the minimum order size for this arrangement? Curious.
Hi Ho Bitcoin. Something doesn't sound right.
Nothing feels like money as physical Gold and Silver do.
After being raped in 2008, and really ever since I started into the casino 34 years ago, nothing else has felt so very real and so much like money.
And...they are going to have to get past me and my firearms to get to it; they can't "vaporize" it, or "Cyprus" it.
So there.
I always marvel when I think of all the people out there who don't read their money. The top says "federal reserve note", as in promissory note, as in a promise to pay. JP Morgan was right when he said gold and silver are money, everything else is credit.
Screw anything US Govt (minted), I'll stick to stacking .999 buffalo rounds and sunshine 10 oz bars.
nothing wrong with morgans, pre 64 junk, franklins, walking liberty, peace. too hard to counterfeit. but bars?
I don't see a problem. Prices down, I buy more. A strong dollar for a while is a blessing to a PM stacker. I know zero about finance and even I can figure this out.
straight from the horses mouth (the Austrian Mint):
from the Austrian (online and paper) daily „Die Presse“ 4.24.2013
http://diepresse.com/home/wirtschaft/economist/1393730/Stark-gestiegene-Nachfrage-nach-Silbermuenzen
„Strongly increased of demand for silver coins
After the price crash the Austrian Mind needs to run extra shifts in order to satisfy the stongly increased demand for silver Philharmonics.
Starting in May, the Austrian Mint will produce silver coins in double shifts - in order to be able to satisfy the demand which strongly increased since last week. „Production isn't able to keep up“, said the GM of the Mint, Gerhard Starsich. „Normally we produce around 50.000 ounces of Silberphilharmonics per day. Last Tuesday we sold 426.000 oz in a single day.“
("Die Presse", printed edition, 25.04.2013)
price goes down
demand goes up
wow... so mysterious
up until recently,
you could walk into a coin shop around here and purchase
"junk" silver coins .... dimes, quarters, and half dollars
which are 90% silver in cntent,
for $18.80 per face value $1 or in other words a $3.20 markup over spot.
I say "used to be able to" because a friend of mine bought them all out .....
most of that $3.20 markup is the cost of fabrication, not the skim.
the coin dealers are happy to buy them back for $17.00 ......
Just bought 200 rounds o sunshine at 23.67 ea!!!!!
People are still buying silver and nothing seems to stop them.
Wah... my PM's are tanking, wah... it's a conspiracy, wah... why doesn't everything go in a straight line forever??? Wah wah wah...
Wow, this is a nice advertisement!