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Silver Is Soaring
Once again the correlation between silver and crude intraday has asymptoted to 1. As Crude accelerates higher so silver has surged - bouncing off its 100DMA...
Silver Soars...
Tracking Crude...
it seems they have recoupled from earlier in the week...
Charts: Bloomberg
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Time for a silver backed currency you dumb ass americans
oops typo 'mericans
Take a look at the multi-billion oz open interest in silver at London's LBMA. The claims for silver are 4x to 6x global refined stockpiles as well as annual global mine production of silver.
It's the world's dominant 'physical' market so there are going to be silver problems.
http://www.safehaven.com/article/36534/lbma-data-points-to-gold-and-silver-default
Silver is soaring.... until it's not. Too many shorts out there. This is what Ed Steer had to say today about it.
"Today at 3:30 p.m. EST we get the latest Commitment of Traders Report figures from the CFTC---and as both Ted and I have mentioned, we'll see some pretty impressive improvements in the Commercial net short positions in both silver and gold. But whatever improvements are shown, the report still remains in a major bearish configuration in both silver and gold.
Could we rally from here? Sure, but the odds aren't in our favour in the medium or long term---and unless "da boyz" get over run, a brutal sell-off still remains in our future. The only uncertainties are, is will it be quick---death by a single thrust---or the 'slicing of the salami' variety? Stay tuned."
TRP - you're looking at the COMEX which is the wrong market for gold and silver.
The global price is set at London's LBMA and that is where the problem is - although there will be a short squeeze in both markets.
don't worry about your "silver" paper currency........just worry about how high your stack is........tune out the noise
People have been known to get shot and nail gunned for talk like that. Call me yella again!
We have all been here before for another Ag head fake. Silver has the biggest short position ever right now, and that means the 8 banks that hold them are going to bring the paper sledge hammer down on silver in the coming months.
My suggestion?
Wait for the slam down and buy all you can. I am hoping for 12 or lower. THIS is a paper fools game, and you DO NOT win buying the real thing on the up days.
Was a time not long ago that a comment like yours would be downvoted dramatically. It seems that readers have come to look for what will happen rather than what should happen.
Bear markets do that. Blood in the streets time!
Have a link to investigate further? This chart's a few weeks old, but it looks like the commercials are the ones with the massive short position: http://news.goldseek.com/COT/1421440456.php
Here's silver CoT. For some reason, it wasn't updated last week. Should be updated tonight.
http://www.nowandfutures.com/images/cot/SI.png
@thunderchief: Wouldn't disagree w/ you but it's situationally different for me. In my mid 60s and aproaching expectancy, I buy whenever I can. It's not about me. It's about my loved ones. I've said this before and I'll say it again. I've bought silver at $5. I've bought silver at $35. And I sleep just fine. GL to all.....keep stackin'.
yep - I'm 75 and doing the same thing with silver. Sleeping ok as well. Buy some every month.
Have enough brass and lead now, but still stackin'
A silver quarter used to be worth 25 cents. Not what's it worth, $2?
So how, exactly, does it jump 3% in an instant? Then back down 3% the next day. Is this pure trading algorithm stuff or what?
Why are you asking those questions, go back to sleep, nothing to see here.
Why do people care what it's paper price is? A lot of people are looking at this backwards.
Also, I do not consider $.50 "soaring" especially when it's to $17.50
It's not even paper price, it's electronic price.
Paper prices are good for shorting.
The manipulation in the PM market makes it easier to profit.
I prefer the lower silver price, just means I can afford more to stack.
exactly
That's a good point. Bet paper on the price going down and buy physical in case it goes up. Seems leveraged either way.
Seems like DSLV would be a good way to go.
Especially when you can purchase physical with profits after you've covered.
It is my understanding that this is one of the strategies that the big bullion dealers have learned to employ to protect their physical for sale positions in this absurdly unstable " efficient market".
As a gold miner/producer, I will continue to swap my physical gold for physical silver until this crime is brought to an end. As long as I can get 70-100 ounces of silver for every ounce of my gold it is a no-brainer.
< Crazy people buy PM from Kitco
< Sane people sell PM to Kitco
From what I've read, so I'm just going off that here.
Silver is used in products and equipment more yearly than gold is, there supposedly is also less silver to be mined than gold as well.
Which would make it a more rarer and valuable metal in the current future.
Personally I think silver 1:4 to gold is a more realistic price.
Then again what do I know cause I'm biased and just hoping to capitalize on it when the time comes.
I have been telling my mining buddies for years that at some point in time Silver for physical delivery will sell for more than Gold. That will not last but it may very well happen before returning to a more realistic production based ratio of 9 to 1.
Of course they roll their eyes and laugh but time will tell. Gold is hoarded and treated with respect while silver is consumed and derided with glee, NO RESPECT !
This will lead to an availability inversion where there is FAR more Gold in reserve than Silver.
But hey what I do I know I play with dirt for a living !
pay-dirt
Silver 60% industrial vs. 10% for gold. It could still fall out of bed due to the lack of industrial demand, like solar panels that can't compete with cheap oil. Then, when that demand is washed out, the bottom would be in place.
DSLV is a short term only trade, just like options. It was introduced at the market top in 2011. It is actually lower today! If you can catch the wave down, then congrats.
Ron Swanson once said “I do not know how much money I have. I do know how much my money weighs!”
I really do not care what the paper or electronic price is. If the silver goes up in terms of dollars, I hold off on buying to see if it goes back down. Then when it does, I buy a little more. We need to stop thinking of silver as an investment. It is not. It IS MONEY. Trade in your funny money for real money while coin shops and dealers still accept pieces of paper (or cotton) as payment. A good way to get started with using real money are these candles with silver coins: https://www.etsy.com/shop/ScentSavers?ref=hdr_shop_menu
The dollar will collapse, so stop thinking in it’s terms. How many ounces of gold does it take to buy that house? How much silver to fill up your tank at the gas station? This is the way we need to think about money. Once day soon we won’t have the choice!
The easiest way to count cash is to weigh it.( assuming you have A LOT to count). $1,000,000 in US $100 bills weighs exactly one Kilo or about 2.2 pounds.
We are lucky it did not "Collapse" that happens a lot around here...
Fitty cend "soaring?" Shirley, you jest. This is
a sensationalist headline, just like the Dow
'getting hammered" when it's down a whopping
2%. I'll consider it "soaring" when it's corrected to above $30.00.
"Is this pure trading algorithm stuff or what?"
Who knew <face palm>
Its called the new norm.
Loving my buy @ $15.25
Hating my buy @ $33
Bought my first oz @ $36 and have bought all the way down.
Just remember at the end of the day you traded fiat paper for real metal that has practical applications.
This will only make sense to some when they are using dollar bill to whipe their ass.
don't worry so much about price...just BTFD's a little at a time. but for what it's worth, I started at 26/oz bought all the way up to 43 and back down to 15. My cost avg/oz is now around 20/oz.
That's why you just buy steadily in small amounts regularly over time and don't worry so much about price as long as you can get some on a dip.
Over time you will be more than satisfied with your big stacks if you keep this routine up regularly.
But definitely take advantage of these prices. Remember: The avg. cost per ounce of silver production is still between 20 and 24!
Silver is still on-sale even on an up day like today. And it will be "on sale" until it breaks the 50 barrier in my opinion, because if adjusted for the cost of inflation from the all time nominal high of 50 back in 1980, silver would actually be priced around 140/oz today.
It's the most undervalued asset on the planet, in the fucking universe right now, and barely a few % of the people in America even own just one single fucking ounce of the stuff.
And with only around 7 billion ounces of it in the entire world above ground, that means there's only 1 physical ounce available per person on the planet. Think of that when you're counting up your ounces!
Silver Eagle and Maple sales are at record highs again this year already. Silver is being scooped up like crazy by India and China. Silver Eagle sales the last couple years have outsold Gold Eagles 60:1
Mining production this year is down nearly 25%.
Silver is destroyed every day industrially never to exist again.
And while the physical silver to gold ratio is around less than 10:1, the price ratio is over 70:1
I feel sorry for those who won't back up the truck for silver phyzz these days and who won't listen to us and understand these fundamental reasons for owning silver phyzz while the entire world fiat system is imploding all around them.
Keep stackin' bitchez, and don't look back.
GUNS, AMMO, FOOD, WATER FILTRATION, HUNTING/FISHING/CAMPING GEAR, ETC. ETC. ETC. You must stack everything to your needs as well as the phyzz and you should do just fine.
Buy a roll of 20 Buffaloes today and have a kick ass weekend!
I'm not disagreeing with the bulk of your sentiments, but I highly doubt discovery cost is still at $20 with oil below $50. Even adjusted for inflation, the average discovery cost in the 90s was around $15, and silver traded well below that for the majority of the decade.
Lower fuel cost may have helped the bottom lines of some miners...but I suspect that it has been too little too late after such a prolonged smash-down of the paper silver prices up to this point.
Who knows how many producers have shuttered their mines by now due to these ridiculous price levels??? And suddenly lower fuel costs aren't going to be enough to get them to open their mines again until they get major investors supplying some much needed cash flow along with phyzz prices rising over 22.50 or so.
Not to mention that the majority of silver (about 2/3)is obtained as a by-product of copper and other base metals which are now too being monkey-hammered world-wide. The demand for copper, lead, zinc, etc. has also gone down which has greatly contributed to silver production being down nearly 25% so far this year.
SRSRocco (Steve St. Angelo) seems to have the best info on this stuff. Here's a report from Nov. 2014 regarding this subject:
http://srsroccoreport.com/primary-silver-miners-losing-nearly-3-00-for-every-ounce-of-production/primary-silver-miners-losing-nearly-3-00-for-every-ounce-of-production/
If the top primary silver producers are losing about 3 bucks per ounce just to dig it outta the ground, then the smaller guys are losing even more or shutting down/going bust.
I doubt much has changed since just a few months ago.
Frankly, I'm amazed we're still able to get supply right now and that the premiums haven't at least doubled or tripled. However, those are just prices based in U.S. dollars here in America. It's well-known by now that gold and silver prices are near or breaking their all-time highs based in all other currencies around the world and premiums for everyone else actually are very high. Especially if someone is a large buyer of size.
So right now us very few American stackers are benefitting very nicely by a "strong" dollar compared to the rest of the world.
Take advantage of it now. This isn't going to last much longer and then the the shit's really going to hit the fan!
Good points; appreciate the thorough and reasoned response. I always tend to forget just how many primary silver mines there are, which is to say, not many. Dr. Copper's plunge in recent months can't do much good for miners or silver discovery, you're right. And I certainly concur on using King Dollar's recent strength to leverage wealth into the metals. It's like they're handing salvation on a silver platter to those of us who pay attention.
As for SRSRocco, I love Steve's work on the numbers. Just wish he'd quit peddling that peak oil bullshit, but even though we disagree on that front, I think he's an honest cat.
You sound just like a Realtor or Stock Broker.
Rationalize much?
p.s. Note that not every 'disagreement' leads to a junk.
As I've read, it's not the price that's important, but that you own it.
I got stacking at around $33-34....DCA'ing all the way down just keep stacking! I have been increasing my Pb stack as well just in case.
Don't hate brother. I've done the same with gold and silver. I finally decided to just detach myself from the paper price of each. I just buy and hold the shiny. Paying whatever paper price it's at when I save the money. It's so manipulated that you really can't focus on the paper price of the shiny stuff. Simple buy it at whatever price you can confident in the knowledge that one day the criminal fraud paper price will collapse and the real price will have them both soaring through the stratosphere. Keep the faith!
Hey seasmoke- seems like you are not the only one out there who bought at $33 by the # of up votes. That was back when most people thought when you print a shit ton of money and spend like crazy for 6+ years meant currency devaluation which also meant that PM's would rise as a hedge.
Obama said it the other day that we are growing in this "New Economy".
It's just that this economy doesn't run on fundamentals anymore.
Loving my buy at $6.45, and not too bad at $17.50. But I would have loved it more if I bought a lot more (was only about $1,500 worth at the time at $6.45, long time ago). But don't worry, world elites and Fed keeps up their policies, $33. will be a distant memory. All the stackers will be smiling.
"asymptoted"
There has been a lot of that going around lately. Kind of like measles...
Who would buy a silver hedge 10$ under mining costs by shorting futures anyway? Oh yeah. Bankers in lala land.
top ticked it again, nice work Tyler
LOL - Easy to top tick it when it is your algo. I think Citadel or Goldman Sucks colocated their HFT servers next to the Zerohedge newsbot servers (this is the new worldwide marketing scam) so they can front run us all. Of course if we mostly just buy physical and ignore the banker psyops then they just get to front run themselves.
Hey Tyler's. Instead of doing an article on silver "soaring", even though it's been "soaring" up and down for a while now, try doing an I depth article on why silver and crude have a correlation. It would be informative and helpful in determining certain aspects of these two commodities.
Thank you
Sincerely, the peanut gallery.
I find I can achieve the same shiny endorphins whether I buy high or low. :-)
Silver is often a good pair trade on USD. Buy silver/Sell USD. And, silver is also fairly correlated with gold. Crude could just be up on lower dollar and a rebound from not being able to push lower than $48/bbl.
woo hoo back to $17... meh
Jeez!
Tyler just gave you the heads-up to short paper silver for .50 on a 17.50 basis.
With leverage you cold have banked fiat digits to stock a few rolls of physical.
Quit bitchin' and learn the ropes if you wanna end up with anything more than your mouse in one hand and your dick in the other.
Well put Throxx but some of these people probably don't even own a marginal account.
I am well enough off that I don't have to gamble. Debt free, in the woods, livin' the dream. No drama, no stress. You have a great day.
And is what the majority of us are working for here.
Good lord what I would give to have myself a nice cabin in the woods, a trout stream in the back yard, plenty of solitude...
Instead I am stuck in Chicago, one the crappiest places in the country...Sigh
I often browse landwatch.com and pipe dream.
Roadhazard - You are an inspiration for all of us who are working to unhook from the beast. I salute you sir.
How I did it was I just walked away from the big city in 74' with a pack, a sleeping bag and $600.00. I parlayed that into a wife, four acres, a house and three out buildings, two vehicles, chickens, guns and some silver dollars. When opportunity came along I took it. I still do, I didn't own silver until I came to ZH which proves that you can teach an old dog new tricks.
I assume a "marginal" account is one held with the Corzine's of the world..........
Trying to find correlation here....oh ya, "folks" are driving to town to buy phyz.
The planet will run out of easily accessible silver within a decade (per USGS); JPM has secretly accumulated over 300 million ounces in its proprietary account. Ore grades for mined silver have decreased almost every year for the past 3 decades. Going forward, forget about the demand for solar; water purification will be the big need for silver. At some ppoint silveer, because of it's a critical resource might be more valuable than gold. We can exist without gold in a tach age; but not withour silver.
WHAT'S NOT TO LIKE?
Supply and demand fundermentals don't apply in the land of the paper/electron printers!
Alchemy has been achieved by the central banks, who'd a thunk it.
Making gold from paper...
Sooo,
Supposedly the world has run out of easily accessible oil, thus we have the higher costing fracking for energy. And Oil prices did what? Tanked.
Deflation wins again simply because demand isn't there to justify the cost. Demand is down because growth is down despite the false stories of growth that the bankers and MSM want to sell you. Just substitute the word oil for silver or gold.
I might believe 3 or 4 million ounces.
I find it hard to believe they have... (let's see) 9,375 TONS of silver in an 'account'. It would fill several large warehouses to the rafters.
One could build a medum cruise ship out of pure silver with this megatonnage of phyzz.
I think this is more likely a bear story released to further depress prices.
Liars, the bunch of them.
I withdraw my statement
Well, perhaps not. Silver has a density of 10.49 or thereabouts, so 10,490 Kilo's per cubic meter. 35 ounces or so per kilo equals about 367 thousand ounces per cubic meter,
Lets say four feet by four feet by ten feet per million ounces.
Three million ounces will comfotably sit in a small Public Storage locker.
http://siamkidd.blogspot.com/2013/01/silver-to-become-extinct-by-2020.html
on that note. ;)
I am waiting on my refund check from .gov to puchase silver.
Here is how silver is going to play out.
It will rocket higher until I get the check and make the purchase, then we will go down and test 14 where it will bounce around till I get another chunk of fiat credits.
You get a refund check? That would be nice, I haven't had one in years.
It's becasue I over paid my quarterly like a jack ass. Don't kid yourself on a Homegrown, green shoots refund son.
You think that sucks? I've been on pins and needles trying to sell a fucking HOUSE, in New Zealand dollars. Wanted to sell it end of last year to catch the tax selling PM beatdown but that didn't happen (sob story). I've been bleeding PM's at low prices to pay for do up and mortgage while it sits un-tenanted.
soaring????
come on man its still below $500 per oz...
just sayin.
Brent up 20%+ from lows while silver is down during the same period. Sorry, but I cannot see the 1:1 correlation. Yet.
Noise - non story.
+100
Off topic but just as interesting, has anyone else noticed the ad for Arab singles with the hot chic in black has a breast that looks veiny and alien like. It's just the oddest thing when I see it hoping it's a blouse or something. Just wondering
Titties are never off topic. I've got an ad blocker installed but i seriously need a sub filter that allows breasticle shots to get through.
Isn't it amazing how pretty a girl gets when she has a nice stack of "PM's"?
I've found the perfect woman,
and who could ask for more?
she's deaf, and dumb, and over-sexed
and owns a liquor store.
funny...my ZH ads are showing boats, insurance and gold... is someone is trying to tell me something ( the occasional click bait for hot Russian dating sites pop up as well)
Ghostery keeps those ads off my browser...
although I do miss the one that read: Sage, Explorer, Photographer
Now you know why they keep 'em under the darth vader outfits.
Sorry Guy's.. it was My fault.. I needed a Bunch of Shiny Valentines presents...
What's your secret? When I buy, the price always plunges as soon as I hand over my cash.
Buy at the end of the month almost always the price
is hammerd down when the paper contracts expire
or rolled over.When BLS report is released wait a few days
extra.
Don't buy something when it has risen from 6.8 dollar
to almost 50 dollar.I stopped buying at 25 dollar
al the way up and started buying at 22.50 al
the way down.
Silver is a strong buy right now !!
ZH and I have a completely different understanding of "soaring".
Wake me up when it went above $20
thank you. i want to see 2011 highs all over again...then fucking stay there for more than 6 months
Expect another margin increase. Thats what keeps this metal price down. The manipulation of margin.
What keeps the price down is the stock available. Once there is no silver to be found then you get the rocket ride. If they can keep the supply flowing they can do whatever the fuck they want to the price.
As fun as that WILL BE, I would prefer to pick up another 1000 ozt at say $10. I have no doubt the day will come that silver will regain the respect it once commanded and deserves. Until then I would prefer to accumulate as much as I can on the cheap !
Long Chinese made leaky canoes-SILVER BITCHEZZZ
When it goes up $5 an ounce in a morming it's soaring! When it goes up 50 cents it's just another daily algorithm burp.
Sounds like ZH is taking a page out of the National Enquirer.
Wake me up, in OH about 20 years, when the BOYZ allow it to hit $30 an ounce again.
Icarus
remember "dollar cost averaging", like they used to advise for index funds when stox meant something?
just keep stacking, a little bit every week/month/qtr...... and like homebrew, keep it in a cool dark place, awaiting a party.
I have an honest question to pose for those that wish to answer. How is the price of oil affected, if any, by a stronger dollar based upon a petro dollar system? I know supply and demand have their fundamentals to them but I've been wondering for a while now if the dollar strengthens or weakens if that plays a role in price compared to all other currencies.
Any thoughts would be appreciated.
My my look at all the negative Neds we have here. 20 years before they lose control? Buy at $10?
When the fundamentals return from vacation, there will be wailing and gnashing of bankster teeth.
You can postpone reality but you can't cancel it.
LOL !! I find it so hilarious each time ZH post a 1 min chart to justify their headline "soaring". Tyler Turden is a newbie trader. Silver is NOT soaring Mr Turd : ) )
Yes, silver is volatile, but a 3% rise in a few hour is definitely soaring, even for silver.
Silvertowne mint has been having a fire sale on silver
over on Ebay , free shipping too, imediate delivery
2 nights ago i bought tubes of 20 buffalos for 338 $
search ebay eBay item number: 301335158202
yesterday morning bought again at 340 $ per tube
.12 to .20 cents over spot ..amazing price....
wonder why the fire sale
do they know something I don't ...
interesting days , stack on brothers
price today 398.$ per tube
silver soars tens of thousands of nanocents!
Weeeeee're REEEECH, BEEECHES!!