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Silver Bullion - “Brave Contrarians” Will Again “Earn Fortunes”

GoldCore's picture




 

Silver has had a rough year, slumping to major new secular lows.  After sliding on balance for years now, even the diehard silver bulls are losing faith in their metal.

Silver in USD – 10 Years

Despite its vexing slumber, silver’s price-appreciation potential from today’s levels remains enormous.  Between radical under-investment and very high speculator silver futures shorting, silver is poised to see massive buying as gold recovers.

Like all markets, silver is forever cyclical.  It perpetually meanders from in favor to out of favor and back again.  And after falling on balance for years as QE3 sucked capital and interest away from portfolio diversification with alternative investments, silver is way overdue to reverse into its next major bull.  

The brave contrarians willing to buy silver and its miners low before this becomes widely apparent stand to earn fortunes.

Editors note: Adam Hamilton of Zeal Speculation and Investment was one of the few contrarian analysts who correctly predicted that silver would rise from below $5 to nearly $50 per ounce in the early 2000s.  Adam is calling for similar gains for depressed silver today and his latest research is well worth a read – “Silver’s Vexing Slumber"

DAILY PRICES

Today’s Gold Prices: USD 1108.00, EUR 977.98 and GBP 716.97 per ounce.
Friday’s Gold Prices: USD 1106.35, EUR 980.85 and GBP 716.87 per ounce.
(LBMA AM)

On Friday, gold ended with a loss of nearly 0.5% to result in a weekly loss of 1.6%. Silver lost 14 cents, or 1%, to $14.51 an ounce, for a weekly loss of 0.3%. Platinum was 2% lower for the week while palladium bucked the trend and gained 2.4% for the week.

Gold Silver Ratio –  10 Years

Gold was marginally lower in gold trading in Singapore and was flat in European trading. Prices are near $1,108/oz,  not far from a one-month low of $1,098.35 reached in the previous session. 

Investors await a Federal Reserve policy meeting on Wednesday and Thursday for clarity on when the U.S. central bank might hike interest rates.

IMPORTANT NEWS

Gold price: all eyes on Fed as ‘test’ of lows predicted – The Week
Gold hovers near one-month low as traders eye Fed meeting – Reuters
Fischer’s 2014 Why-Wait Wisdom Points to Fed Liftoff This Week – Bloomberg
Gold Bulls Can’t Shake Fed Woes as $2.6 Billion Wiped From ETPs – Bloomberg
Solid gold key to Clerys worth €12,000 comes to light – The Irish Times

IMPORTANT COMMENTARY

 

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Mon, 09/14/2015 - 11:41 | 6546306 TVP
TVP's picture

Buying physical silver & gold doesn't make one much of a contrarian right now.

Supplies of coins, rounds, and bars are dwindling all over the place.  Most good deals are all sold out or backlogged.  Premiums to spot price ratio at a record high.  

It seems as though everyone is buying the stuff hand over fist.  

There's a guy with a really good Youtube channel, calls himself Dollar Vigilante.  He's one of many predicting that physical will be impossible to come by in the months and years ahead.  And he's no prophet - this is already on its way to becoming reality.  

And as several posters have correctly pointed out, all this hooplah about the price in USD terms is meaningless.  PMs are a store of value and an insurance policy against financial calamity.  They're also a middle finger to the banksters who buy tons of physical while shorting paper and talking shit about their "pet rocks".  

Mon, 09/14/2015 - 10:32 | 6545983 Spiritof42
Spiritof42's picture

I was stacking silver from 2001 to a few years ago. If silver approaches 2001 prices ($7) again, I would seriously consider adding more. Its industrial applications make it the buy of a lifetime if you can afford to be patient.

Tue, 09/15/2015 - 04:04 | 6549613 kuro_neko
kuro_neko's picture

you mean if you can afford to wait 50 years...

Mon, 09/14/2015 - 10:06 | 6545864 arbwhore
arbwhore's picture

Fortunes in what? Paper? Greed should not be the motivator to hold PMs. It will lead to disappointment at best.

Mon, 09/14/2015 - 11:03 | 6546128 Fourmyle
Fourmyle's picture

PMs are the way you can take a small fortune, and still have it later.

Mon, 09/14/2015 - 10:42 | 6546017 Bopper09
Bopper09's picture

Exactly, why do we compare to paper anyway?  If I have more OZ's this year than last year, I'm more wealthy.  I'm Canadian, so following the US price is really either stupid or ignorant.  Silver is bought worldwide, yet everyone thinks they're 'losing' if the fake american dollar price goes up against silver.  Not the fake shit I pay with.  Which is actually still a shock to me that it has lasted this long, that anyone would actually trade canadian digits on a computer for real metal.  I can still buy a steer for a Kg of silver.  Like 200 yrs ago, and 200 yrs from now.

Mon, 09/14/2015 - 10:35 | 6545999 Rakshas
Rakshas's picture

....well there are some plays that make sense, depending on your situation, such as selling abit to blow off any outstanding debts, in effect trading PM's for real estate.  I see some folks talking about the indexing of debt to monetary inflation but at best I think that will take a few months to implement following any "explosive" moves in PM's; hell look at how long it's taking the world to figure out the USD is basically worthless, shiiiite most don't even understand what QE is......  

Mon, 09/14/2015 - 09:58 | 6545818 Argenta
Argenta's picture

I have to look at metals in general from a perspective that doesn't focus too much on the price, because I view them as more of a store of wealth than an investment in the classical sense.  Suffice it to say that not only am I underwater with respect to silver, I'm trolling along the bottom of the Marinas Trench.  This is a mildly irritating position to be in because I firmly believe silver price is being driven downward due to naked short selling.  I'm only "mildly" irritated because at some point there will have to be true price discovery as more people will demand physical delivery.

So I continue to buy, a little each month or when the mood hits me.  My last purchase was a number of 10 oz bars.  Easy to store and pretty good premiums. And with all the crap that seems to be swirling around toward the end of this month, seems like fairly cheap insurance.

-Argenta

Mon, 09/14/2015 - 09:34 | 6545711 Lordflin
Lordflin's picture

Another September surge GC? You are either a charlatan or an idiot.

Buy silver? Good idea... But don't listen to this character... he will keep predicting till the day he is right... stopped clock... and the he will try to build a reputation from it.

Mon, 09/14/2015 - 09:32 | 6545698 honestann
honestann's picture

Because manipulation has never before been so extreme, two situation exist today.

-----

#1:  The distance manipulations-up (bubbles) and manipulations-down (crashes) becomes more exteme than ever before.

#2:  The gain opportunity for those with the ability to keep stacking real, physical, valuable goods that have been manipulated-down enormous distances is greater than ever before.

Which means...

KEEP STACKING
KEEP STACKING
KEEP STACKING

And stay away from margin and leverage.

Mon, 09/14/2015 - 10:57 | 6546096 Fourmyle
Fourmyle's picture

The manipulators will keep this going until they run out of speculators to milk ( up and down, no difference ) or until enough physical is removed to undermine the pretence of a market. Playing any bluff, the only way is to act like you hold all the cards right to the end. When it does happen, it's going to take about as much time as saying "fold".

Mon, 09/14/2015 - 08:59 | 6545563 EurGold
Mon, 09/14/2015 - 09:09 | 6545602 fukidontknow
fukidontknow's picture

How can you sell a dollar below spot? Is it fake?

Mon, 09/14/2015 - 11:08 | 6546149 Latitude25
Latitude25's picture

$30 for shipping.  Poster must be a bot becasue it never answers.

Mon, 09/14/2015 - 10:22 | 6545661 honestann
honestann's picture

Easy.

You send him money, he sends you nothing.

Mon, 09/14/2015 - 08:57 | 6545559 JPMorgan
JPMorgan's picture

The fraud that is the paper market is living on borrowed time.

Physical supply is only getting tighter and tighter.

Mon, 09/14/2015 - 08:23 | 6545434 Oh regional Indian
Oh regional Indian's picture

A sliver of silver....

Mon, 09/14/2015 - 08:10 | 6545388 Fukushima Fricassee
Fukushima Fricassee's picture

Hey Yellen you stupid bitch. All this fucking talk of a .25 rate hike has put me off gold. NOT.

Mon, 09/14/2015 - 08:05 | 6545373 actionjacksonbrownie
actionjacksonbrownie's picture

Editors note: Adam Hamilton of Zeal Speculation and Investment was one of the few contrarian analysts who correctly predicted that silver would rise from below $5 to nearly $50 per ounce in the early 2000s.

 

And that was the last time Adam Hamilton was right about anything. If anyone has been following this guy's advice for the past 5 years, they are surely underwater, and likely close to financial ruin. Gartman has nothing on this clown.

Mon, 09/14/2015 - 09:07 | 6545592 Roanman
Roanman's picture

Hamilton called the bottom in early 2009 and was buying everything with both hands.

Mon, 09/14/2015 - 07:56 | 6545347 Muddy1
Muddy1's picture

Wishful thinking?  Pump and dump?   They have something to sell?

Mon, 09/14/2015 - 08:54 | 6545551 gmrpeabody
gmrpeabody's picture

You'll see..., one day the Great Pumpkin will come, and you won't be here! Then you'll be sorry..., you'll see!

(disclosure)  i have a green monster and silver miners. if price goes lower..., i might have several green monsters.

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