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Silver Surges 21% in January - Silver Demand Is “Diminishing A Supply Surplus”

Tyler Durden's picture


From GoldCore

Silver Surges 21% in January - Silver Demand Is “Diminishing A Supply Surplus”

Gold’s London AM fix this morning was USD 1,738.00, GBP 1,102.23, and EUR 1,317.27 per ounce.

Yesterday's AM fix was USD 1,720.50, GBP 1,097.40, and EUR 1,310.06 per ounce.

Cross Currency Table – Bloomberg

Gold edged higher in Asian and again in European trading today. Gold has broken through all major moving averages and Fibonacci levels this week due to a weakening dollar and geopolitical concerns regarding Iran and the European solvency crisis.

Euro gold appears to be breaking above resistance which should lead to new record highs above €1,359/oz.

Gold at €1,315/oz is now just 3% below the record high from September 2011. The correction and consolidation of recent months was necessary and healthy, and the intractable Eurozone debt crisis should result in further falls in the euro and €1,400/oz gold is likely.

Dennis Gartman, economist and newsletter writer, said he is buying more gold priced in euros after he “returned to this trade” last week. It is “time to add to the trade and we are doing so this morning,” he said today in his daily Gartman Letter.

"Mission Accomplished" As Venezuela Welcomes Home Final Shipment Of Repatriated Gold Bars
Venezuela repatriated 160 tonnes of gold that was held abroad with the last shipment, 14 tonnes , arriving from Europe at the Caracas airport today.

Declaring the process a "mission accomplished," government officials and state news crews met the 14-ton load at a Caracas area airport and heralded the televised event as a boost to national sovereignty.

“In two months, we’ve brought 160 tons of gold valued at around $9 billion back to Venezuela,” Central Bank President Merentes said on state television from the Caracas airport. “Today marks the last day of the mission.”

Venezuela has the 15th largest holdings in the world, according to the World Gold Council. Venezuela will leave around 15% of its reserves, (50 tons), outside of Venezuela for financial transactions, said Merentes.

CFTC data shows speculators are gradually beginning to enter the gold futures market again.

Fund managers increased their bullish bets in Comex gold futures and options in the week ended Jan. 24, according to Friday afternoon data from the Commodity Futures Trading Commission (CFTC). 

Reuters Global Gold Forum

The net non commercial gold position rose for a third week in a row - by 6,194 contracts to 142,223 lots versus an overall decline in total futures OI. This marks the longest stretch of gains in CMX net non-com futures OI since July/Aug last year. Money managers raised their gold holdings by more than 8,000 lots to 117,156 contracts, also the largest weekly increase since mid-November.

This raised their net long position 8.5% to 126,937 contracts, from 116,978 a week earlier.

The managed fund net long position represents around 12.6 million troy ounces of gold.

Importantly, the recent increase in net long positions are from multi month record low levels after the liquidation seen after gold’s sell off from nominal highs over $1,900/oz.

This suggests that gold should see further gains in the coming months as these positions continue to be added to.

Silver Surges 21% in January - Silver Demand Is “Diminishing A Supply Surplus”
There continues to be no coverage of silver in the non specialist financial media and little coverage of silver in the specialist financial media. However, both the Financial Times and Bloomberg cover silver today which might be a harbinger of short term weakness.

The majority of articles on silver are bearish and most bank analysts remain bearish on silver again in 2012 – as they have been in recent years. Prices will average $37.50/ounce in Q4, according to a survey of 13 analysts by Bloomberg.

The lack of coverage of silver and consequent “animal spirits” in the silver market is of course bullish from a contrarian perspective.

Analysts look set to get the silver market wrong again as recent rocketing industrial demand for silver, from solar panels to batteries to medical applications and growing investor demand for coins, and small & large bars is “diminishing a supply surplus” according to Nicholas Larkin of Bloomberg.  This has led to silver’s best January gains in 30 years with silver up over 20% from below $28/oz to nearly $34/oz.

Barclay's estimates that manufacturers will need a 2.5% increase of the metric tons used last year and investment demand continues to grow due to risks posed by both inflation and systemic risks.

Silver like gold – cannot go bankrupt and will always have a value.

Silver supply shortages are something we and other analysts who are bullish on silver have been warning of for some time. This is because the silver market is small versus the gold market and tiny versus equity, bond, currency and derivative markets.  This is why we believe silver should rise to well over its nominal recent and 1980 high of $50/oz in the coming months. 

While focus has been on silver’s fall from $50/oz last year – there is very little focus on silver’s long term performance and how silver has massively outperformed most asset classes in recent years

For breaking news and commentary on financial markets and gold, follow us on Twitter.

Silver is trading at $33.55/oz, €25.46/oz and £21.26/oz. 

Platinum is trading at $1,614.00/oz, palladium at $683/oz and rhodium at $1,325/oz

Gold edges up; heads for biggest monthly gain since August‎

Gold edges higher as dollar slips

(Financial Times)
Price of silver is given a further shine

Gold falls on euro but technical outlook encouraging

(Financial Times)
Banks set to double crisis loans from ECB

Silver Powering 20 Million Homes as Supply Surplus Subsides: Commodities

Venezuela Receives Last Shipment of Repatriated Gold Bars

(Wall Street Journal)
Venezuela Welcomes Home Final Shipment Of Repatriated Gold Reserves‎

(The MarketOracle)

The Coming Paradigm Shift in Silver

(U.S. News & World Report)
The Financial War Against Iran

(Gonzalo Lira)
Why Democracies Will Always Go Bankrupt

Gold Procrastinators: The Endless Agony

(The Telegraph)
Mario Draghi, the Latin Bloc’s monetarist avenger

Murray Coleman: Gold, Silver Demand Seen Picking Up; Barclays Eyes 7% Silver Run

European Bailout Infographic: Presenting The Truckloads Of Cash Needed To Rescue The Insolvent PIIGS


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Tue, 01/31/2012 - 08:40 | 2112214 PaperBear
PaperBear's picture

The only supply surplus in the silver world is in the paper futures market - get the physical before it is all gone.

Tue, 01/31/2012 - 08:56 | 2112240 lunaticfringe
lunaticfringe's picture

Fiat=Supply Surplus


Tue, 01/31/2012 - 09:20 | 2112279 Buckaroo Banzai
Buckaroo Banzai's picture



That is all.

Tue, 01/31/2012 - 09:34 | 2112308 trav7777
trav7777's picture

if "TSHTF" like all the silverbug cretins around here keep saying, silver demand (industrial) will collapse and so will the price.

This is not like oil where 100% of the use is industrial

Tue, 01/31/2012 - 09:45 | 2112350 tmosley
tmosley's picture

Nice strawman.

Tue, 01/31/2012 - 09:49 | 2112359 mrgneiss
mrgneiss's picture

If industrial demand collapses, and it could, temporarily, base metal mining will all but shutdown - and then goodbye 70% of mined silver - don't see how that would be bad for the silver price.

Tue, 01/31/2012 - 10:17 | 2112468 Chump
Chump's picture

I don't understand why anyone gets caught up in the fiat price of anything if "TSHTF."  The "price" of silver may be 100 .22LR rounds at that point, who knows?  The point is, have some metal (gold, silver, brass, lead, etc.).

Tue, 01/31/2012 - 10:31 | 2112534 sunnydays
sunnydays's picture

David Morgan - Silver Investor guy, interview.  Says Paper is not wealth and that Silver is a monetary metal just ask the latin American countries.  Says industrial too, expects it to go way up and the moves are always at the last 10% of the up swing.  Good interview.

Tue, 01/31/2012 - 10:41 | 2112567 trav7777
trav7777's picture

you think all those bugz will still have jobs??  they'll be SELLING silver, not buying

Tue, 01/31/2012 - 11:21 | 2112709 Citxmech
Citxmech's picture

That's precisely the point.

Tue, 01/31/2012 - 09:55 | 2112379 mark mchugh
mark mchugh's picture


When TSHTF people will re-learn how important silver is for survival.  Silver cups for children were just for decoration, right?  Get a clue.  The phrase "born with a silver spoon in his/her mouth" is a reference to health, not wealth. 

Not only should people be buying physical silver, they should be learning how to use it, to purify water, treat wounds, and make colloidal silver (which is the closest thing to an antibiotic one can make at home).  Oh, you can also use it to make simplified batteries.

So when TSHTF, silver owners will survive....morons like you, not so much.

Tue, 01/31/2012 - 10:28 | 2112515 drivenZ
drivenZ's picture

these anecdotes never cease to humor me...your presumption of a much greater depression and full blown world collapse(unlike we’ve ever seen) as if it’s a given is ridiculous. I guess there’s nothing wrong with being prepared but there’s always been times when people have said this stuff and they’ve been wrong almost 100% of the time. If you’re buying some PM’s(5-20% of your $) as a hedge against the dollar, then great, that’s rational, logical and the facts have proved it out. If you’re buying PM's in prep for the end of the world, well, I wouldn’t hold your breath.  

Tue, 01/31/2012 - 10:52 | 2112602 mark mchugh
mark mchugh's picture

You seem to think acquiring knowledge (even if you never use it) is ridiculous.  I don't use the pythagorean theorem often either, but I'm glad I know how to use it.  Nothing's a given, but if you crack open a history book or two, you'll find total economic collapses (unlike YOU'VE ever seen) happen a lot, as do pandemics.  Do you have confidence that you will never see such things?

The whole world's using monopoly money, and you're not concerned (that's funny!)

The beauty of silver is how useful it is in how many different circumstances.  I mean, gold's pretty, but doesn't have many practical uses.

We'll run out of silver long before we run out of uses for it, and I consider anyone who thinks otherwise a fool.

Tue, 01/31/2012 - 12:29 | 2112946 drivenZ
drivenZ's picture

Well, i would suggest you and anyone else prepping for world collapse learn how to farm prior to learning how to make antibiotics out of silver.  



I have confidence that there’s a good chance that currencies will keep inflating away and that the rich will probably get richer and the poor will probably get poorer(atleast in the US) and we will have booms and busts that go on for multiple years and there will probably be a few scattered wars here and there. I do not believe nor do I care to prep for world collapse. The world was “going to end” about 50 times just in the last 5 years. No one I know is having to make antibiotics out of silver right now. Besides if everyone spends their time trying to learn that they won't be able to learn real skills that could probably get them back to work.


Tue, 01/31/2012 - 17:18 | 2114229 akak
akak's picture

DrivenZ, you actually bring up some valid points about "End of the World" scenarios, and associated fearmongering.  But note that both usually, and in this thread as well, this sort of TEOTWAWKI, total economic and financial collapse fearmongering is almost invariably the province of the anti-precious metals, pro-Establishment, pro-fiat propagandists and trolls, who use it in the (feeble) attempt to discredit ALL those who hold silver and gold as hedges or investments against the ongoing fiat currency depreciation, and as insurance against more drastic and quite possible financial and monetary chaos, as merely "survivalist kooks" and deranged, doom-obsessed crazies.

It is almost always the Jon Nadlers, Jeffrey Christians and Steve Liesmans of the world who love to repeat the "Armageddon", "survivalist", "End of the world" memes in relation to holding precious metals --- precisely because they cannot attack them or their advocates with logic nor with the historical record, which favors the "kooks" and NOT the pro-fiat lackeys of the corrupt and failing status-quo powers.  When you can't attack the message, attack the man --- the classic fallback of the intellectually defeated.

Tue, 01/31/2012 - 20:10 | 2114823 RockyRacoon
RockyRacoon's picture

Interesting, Mark.  So-called "lost skills" will come back in vogue when times get troubled.   I had a ceramic tile company back in the 1980s and we used the 3-4-5 triangle all the time to set tile square in the room, both on walls and on floors.  It's all in what you need to survive and/or prosper, eh?

Tue, 01/31/2012 - 11:11 | 2112667 chinaguy
chinaguy's picture

"which is the closest thing to an antibiotic one can make at home"

Google "sugardine"....sugar & iodine...under the idea that it's good to know different things.........

Tue, 01/31/2012 - 11:46 | 2112803 mark mchugh
mark mchugh's picture

Noted. Thanks.

Tue, 01/31/2012 - 21:30 | 2115063 RockyRacoon
RockyRacoon's picture

Iodine can be hard to get in some areas (meth materials doncha know).   I'd suggest getting Lugol's Solution which is readily available on eBay at reasonable prices.  It's an iodine solution that is a disinfectant and can also purify water for drinking.  A good bug-out-bag item as well as the usual household medicine cabinet.

Tue, 01/31/2012 - 10:02 | 2112408 fuu
fuu's picture

Weak. 4.6 at best.

Tue, 01/31/2012 - 10:10 | 2112443 oddjob
oddjob's picture

Fat people driving SUV's ridiculous mileage to eat at drive thru's is not industrial useage.

Tue, 01/31/2012 - 08:40 | 2112216 Ghordius
Ghordius's picture

Now of course I could make some snide remarks why the price of gold in EUR is becoming more and more important... ;-)

Tue, 01/31/2012 - 09:08 | 2112265 _underscore
_underscore's picture

Soon gold will have its native price in Yuan in the PAGE - and silver soon as well one would think, since China actually uses the stuff to make things. I wonder how  the fact that PAGE gold will be a purely physical transactional price will alter the dynamic here - it surely makes any manipulation (assuming good behaviour by the PAGE authorities) much more difficult & price discovery a truer reflection of value/demand.

Tue, 01/31/2012 - 09:35 | 2112310 trav7777
trav7777's picture

it's in CHINA.  Why the hell would you expect legitimacy from anything there?

Tue, 01/31/2012 - 10:35 | 2112548 _underscore
_underscore's picture

No evidence I can see to suppose otherwise, yet  - if there is I'll change my position accordingly. The interesting aspect is the 'physical' nature of the exchange (as is widely reported) & how

 that will contrast/contradict (or not!)  the NY & LDN exchanges. Should be interesting whatever though.

Tue, 01/31/2012 - 11:44 | 2112796 tekhneek
tekhneek's picture

Because they kill people like Jon Corzine for their crimes?

Tue, 01/31/2012 - 08:40 | 2112217 lolmao500
lolmao500's picture

Since I got $30k in silver, this is good news.

Tue, 01/31/2012 - 08:55 | 2112239 shokdee
shokdee's picture

Since I've got 130 kg of silver, this is good news for me too.

Tue, 01/31/2012 - 09:07 | 2112261 mick_richfield
mick_richfield's picture

Yeah, but I found a 1963 dime in my change!  Yow!

Tue, 01/31/2012 - 10:55 | 2112614 Badabing
Badabing's picture

I sent my kids out to Frendlys for ice cream the other day. gave them a ten and said, I want the change.

they returned after a short ride on there bikes with my change. it contained two silver quarters and one silver dime.

I thought to myselfe some poor basterd who has kids raiding his coin collection.

Tue, 01/31/2012 - 11:09 | 2112664 Frank N. Beans
Frank N. Beans's picture

i gave you a greenie because you fooled me with that avatar.  very good.

Tue, 01/31/2012 - 09:13 | 2112271 gdogus erectus
gdogus erectus's picture

Since my canoe flipped over and I lost my 130 ASEs in the lake, this is sad news for me.

Tue, 01/31/2012 - 09:34 | 2112306 cowdiddly
cowdiddly's picture

I was on a cruise ship off the Italian coast and all of the sudden.............

Tue, 01/31/2012 - 09:48 | 2112358 Cast Iron Skillet
Cast Iron Skillet's picture

wow, a couple of rich banksters ... time to break out the ACME Internet True Identity Discovery Tools .... when did you say you were going on vacation?

Tue, 01/31/2012 - 08:46 | 2112223 BurningFuld
BurningFuld's picture

FYI: Teck Resourses is starting a silver refinery upgrade to go from 20 million oz/yr to 30 million. Two years before it is online. I guess they see a market.........

Tue, 01/31/2012 - 09:13 | 2112273 mick_richfield
mick_richfield's picture

One question I haven't been able to answer yet -- maybe you can help? -- is, how fast can new silver production be brought online?  If you had to start from scratch, including geology, creating the mine, and refining -- and assuming you had arbitrarily strong motivation -- how many years is that to start a new mine?


Tue, 01/31/2012 - 09:21 | 2112283 Ghordius
Ghordius's picture

perhaps a very strange opinion I can offer you: it does not matter at all

markets move faster than mines and "consumption" in PMs is anyway a strange application of the term

Tue, 01/31/2012 - 09:54 | 2112377 mrgneiss
mrgneiss's picture

Seven years had been the rule of thumb average for many years, but with greater environmental hurdles, local communities having greater influence (both with which I agree), the properties usually in more remote locations, the better grade stuff being deeper down - if higher grades can be found at all; it is more like ten years now from geophysical discovery to concentrate being sent to the refiner.

Tue, 01/31/2012 - 17:48 | 2114246 akak
akak's picture

Ten years in Canada, maybe, but probably verging now on 15 years on average in the United States --- and that's for relatively non-controversial mines, not those such as Pebble in Alaska or the proposed copper/nickel sulfide mines in Michigan's UP.

Tue, 01/31/2012 - 09:21 | 2112284 Buckaroo Banzai
Buckaroo Banzai's picture

5 years.

Tue, 01/31/2012 - 09:32 | 2112303 mick_richfield
mick_richfield's picture

Thanks, BB, and you too Ghordius.

The reason for my question is that I expect Ag to eventually return to its historical ratio wrt Au, and then to significantly overshoot that ratio by a factor of between 1.5 and 3.  ( ie all the way up to 10::1 or 5::1 ) 

When that happens, the ratio will eventually correct back to 15::1.  But how long that correction will take depends on how long it takes to create new mining capacity under maximum motivation.  It also depends on the emotional overhang that people would have at that point.

If I ever see such high Ag::Au ratios, I will trade Argentum for Aurum.  Not because what I really want is Aurum, but because I would expect a gradual correction.


Tue, 01/31/2012 - 09:36 | 2112318 trav7777
trav7777's picture

typical silverbug, trying to profit from a bubble.

you guys bleat about all the paper ponzis out there but you're just jealous that you missed out on them.

Tue, 01/31/2012 - 09:48 | 2112354 tmosley
tmosley's picture

lol, now Trav is saying profit is bad.  Christ, you will say ANYTHING won't you?

Is there any strawman the mighty Trav can't erect and then tear down?

Tue, 01/31/2012 - 10:52 | 2112605 trav7777
trav7777's picture

sayeth the KING of strawmen?  LOL.

Dude, stop repeating shit that I say and trying to sound smart.

I didn't SAY profit was bad; THAT is the strawman.  I said that you silverbugz are ponzi-chasing SPECULATORS.  That is NOT a strawman, that is a statement of fact.

You don't hate bubbles, you WANT ONE, just in the shit that YOU own.  That is why nobody should listen to what you people say.

You condemn ponzis and bubbles but then cheer for and actively hope for one.  And talk about how wildly rich you'll all be when one happens.

Tue, 01/31/2012 - 09:56 | 2112383 mick_richfield
mick_richfield's picture

No, trying to recognize it when it happens, so I can get out when the value becomes inappropriately high.

I do look forward to a world where we are not controlled by human-shaped beasts that make 'money' from nothing, and who profit without taking risks or creating wealth. 

But all I want to profit from is my own effort.


Tue, 01/31/2012 - 10:54 | 2112611 trav7777
trav7777's picture

so in ONE breath, you say you look forward to a world where we don't have money from nothing and in the PREVIOUS breath you talk about profiting from nothing more than a PRICE BUBBLE, and in the subsequent breath say you just want to profit from your own effort.

JFC, is it possible to hold MORE contradictory thoughts at one time???!?

Tue, 01/31/2012 - 11:34 | 2112758 Badabing
Badabing's picture

Trav! This is mom, I want you to come up out of the basement and explain why your not in school today YOUNG MAN!!

Tue, 01/31/2012 - 16:04 | 2113803 mick_richfield
mick_richfield's picture

You're not very smart, are you Trav?

Tue, 01/31/2012 - 17:31 | 2114270 akak
akak's picture

Actually, he is quite smart, it's just that his dishonesty and rage all too often tend to suppress his reason.


PS: It helps to recognize who this "Trav7777" actually is in real life: Bob Moriarty of  Just go do a Google search of "Bob Moriarty" + "silver", and everything will fall into place.  But in brief, suffice it to say that Bob Moriarty is the Jon Nadler of silver, and just as hate-filled and irrational towards the advocates of silver as Nadler is toward the advocates of gold.

Tue, 01/31/2012 - 21:49 | 2115131 RockyRacoon
RockyRacoon's picture

I don't care if he's Jon Corzine, outing him is un-cool. 

Tue, 01/31/2012 - 21:58 | 2115154 akak
akak's picture

Au contraire, my masked friend --- liars, hypocrites and malicious trolls deserve no respect whatsoever, here or anywhere else.  ANYTHING that can be done to expose them for who and what they really are is fair play --- this is war, with truth and (financial) freedom itself hanging in the balance, not some gradeschool playground game.

Tue, 01/31/2012 - 17:40 | 2114324 Al Gorerhythm
Al Gorerhythm's picture

Education has confused him. Educated by the state beyond his innate capabilities, poor soul.

Tue, 01/31/2012 - 10:03 | 2112413 fuu
fuu's picture

You didn't even get a 6 from the East German judge on that one.

Tue, 01/31/2012 - 10:06 | 2112424 Ponzi Unit
Ponzi Unit's picture

Trav is the brat at the neighborhood block party, a freckle-faced, gap-toothed, nasty little fucker with a slingshot meant for your attic windows.

Tue, 01/31/2012 - 10:10 | 2112440 mark mchugh
mark mchugh's picture

Silver's been kicking the living shit out of the paper ponzi for more than ten years now.

Who's jealous?

Tue, 01/31/2012 - 10:37 | 2112555 _underscore
_underscore's picture

I think trav has a short position on up arrows.  ;)

Tue, 01/31/2012 - 08:46 | 2112225 GeneMarchbanks
GeneMarchbanks's picture

'Silver like gold – cannot go bankrupt and will always have a value.'

It's backed by nothing. I'm not sure what it's backed by.

Tue, 01/31/2012 - 08:50 | 2112231 Silverhog
Silverhog's picture

That video is a classic now. She must be proud. LOL

Tue, 01/31/2012 - 09:00 | 2112247 Ghordius
Ghordius's picture

LOL. And her engagement's ring is backed by her suitor's love, no need for a rock on it...

Tue, 01/31/2012 - 09:39 | 2112322 mick_richfield
mick_richfield's picture

Fiat currency is backed by love. 

The plutocrats love us, as ranchers love their cattle.

Tue, 01/31/2012 - 21:55 | 2115144 RockyRacoon
RockyRacoon's picture

That's the first time I've seen that video.   I think my brain just fell outta my ass.   Hers obviously has as well.   No, wait... she had to have one in the first place.  Never mind.

There were 3 fools in that video:  The reporter in the studio, the reporter in the field, and whoever wrote her talking points.   Come to think of it, I'd write something like that for her.  It would make the viewers go, "Huh?!"   Might generate some critical thinking amongst the couch-taters.  


Tue, 01/31/2012 - 08:48 | 2112227 rokka
rokka's picture

>>> This is why we believe silver should rise to well over its nominal recent and 1980 high of $50/oz in the coming months. 

May 50 CALL in SLV is 0.2 with the probability of expiring ITM just 4%. Good luck with your believe. 

Tue, 01/31/2012 - 08:49 | 2112228 Thomas Jefferson
Thomas Jefferson's picture

Silver is going to skyrocket shortly.  Hold onto your hats.

Tue, 01/31/2012 - 16:32 | 2113970 ManOfBliss
ManOfBliss's picture

Nah.. silver has another 3-4 months of mediocrity before it resumse it's rise... Historically all the corrections take about a year.

Tue, 01/31/2012 - 08:52 | 2112232 Darth Silver
Darth Silver's picture


That is a lucid, intelligent, well thought out article

Tue, 01/31/2012 - 08:53 | 2112234 knight99
knight99's picture

i like silver but dont think its going to fly just yet. I can see a high of 35 before we get to 31 then in a month or so start to roll. Still needs more time to consolidate its recent gains.

Tue, 01/31/2012 - 08:56 | 2112241 Tense INDIAN
Tense INDIAN's picture

ALERT:---------- You will not get a better chance to sell your silver. Do it now.

Tue, 01/31/2012 - 09:28 | 2112297 Calmyourself
Calmyourself's picture

LAST CHANCE TO SELL IT TO ME AT $10/OZ, DO IT NOW...  Does this mind control stuff work TI?

Tue, 01/31/2012 - 08:59 | 2112246 earnulf
earnulf's picture

Like many, I have physical.    My thoughts are when PM's go, they will go with very little warning and most will be left scrambling to get in.    I have some from 11-12 and most from sub20 so I just relax and let the world scramble.

Tue, 01/31/2012 - 09:37 | 2112319 trav7777
trav7777's picture now or risk being priced out FOREVER!!!!!1

just like houses and .com stocks!

Tue, 01/31/2012 - 09:50 | 2112363 tmosley
tmosley's picture

Christ, every post you have made in this thread reeks of desperation.  I can see the tears running down your cheeks as you realize how irrelevant you and your dumb opinions are, yet persist out of empty pride.

Tue, 01/31/2012 - 11:16 | 2112684 trav7777
trav7777's picture

you have a very weird fantasy life, cliff

Tue, 01/31/2012 - 22:48 | 2114306 akak
akak's picture

And you, Bob Moriarty, have an utterly pathetic life spreading your desperate, irrational, dishonest and deceitful anti-silver propaganda here.  You and Nadler really ought to get a room already.

Tue, 01/31/2012 - 09:59 | 2112392 mick_richfield
mick_richfield's picture

Trav, my hope for you is exactly the same as my hope for myself.

Let us both act on our respective visions, and let us both get exactly what we deserve.  And soon.

Tue, 01/31/2012 - 13:20 | 2113209 mrgneiss
mrgneiss's picture

That's the problem with trolls.  They're not espousing some grand vision they have thought through, they're just spouting off nonsense for some entities agenda.

Who the fuck sits around all day making comments about something they hate or are apathetic about?

Most here are apathetic to or hate JPM, yet I bet none of us infest the JPM blogs trolling all day every day.  You would either have to be insane or paid to do it.

So with Trav, we are left with these inescapable choices:

A) He is a kind-hearted soul who takes hours of his day everyday, to try and dissuade those who will listen about the evils of investing in silver - he is a true humanitarian, trying singlehandedly to warn the public about the folly of investing in silver.  He leaves the bigger issues such as MF Global, fiat ponzi, nuke power, Fukushima cover-up, loss of civil liberties, peak oil,  the corporate media disinformation, the power of the Oligarchy etc etc to others.

B) He is somewhat insane.

C) He gets paid to scare-off potential silver investors by some entity that is threatened by a rising price of silver.

Here are some guidelines for internet trolls:

Tue, 01/31/2012 - 10:07 | 2112429 supafuckinmingster
supafuckinmingster's picture

Being priced out forever is priced in!

Tue, 01/31/2012 - 09:08 | 2112262 Unholy Dalliance
Unholy Dalliance's picture

"This is why we believe silver should rise to well over its nominal recent and 1980 high of $50/oz in the coming months."


Make that "weeks" {;–)

Tue, 01/31/2012 - 09:31 | 2112286 Crash N. Burn
Crash N. Burn's picture

"Diminishing A Supply Surplus" - That's some serious bansksterese there.

Silver inventories are down 75% in the last decade AND production (while its been averaging a 1%-2% increase over the same period) is actually falling despite a 10 fold increase in the price (from the 600 year low). Seriously, if you haven't started your "physical"collection, you need to!

If you cant touch it, you don't own it! For those who still don't:

Why Gold and Silver - Full DVD - Mike Maloney


Tue, 01/31/2012 - 09:24 | 2112288 Freegolder
Freegolder's picture

Silver is nothing but an industrial metal these days. There will certainly be a big blip higher if Comex crashes, but the warehouse has plenty of silver, not so much gold though.

Thos of us that buy gold do so because we know it is going to be permanently a wealth reserve that is headed for a one-time revaluation that will demonstrate to the world how little paper is worth.

Sadly, silver will spike up, then crash back down, because industry is contracting, and none of the 'giant investors' in the world have silver, they only have gold. Just look at all central banks, they have zero silver, but are accumulating gold.

Check out Fofo's site for more details, but you need to be ready to sell your silver as it spikes, before it heads back down, and what are you going to sell it for, fiat? Gold will not be available for too much longer. A shame to be on the right track, but holding the wrong metal.


Tue, 01/31/2012 - 09:57 | 2112376 JTBfromtheWL
JTBfromtheWL's picture

Silver will spike up. There, fixed it for ya. Buy, buy, buy sheeple!

ps: it's not only an industrial metal if i'm along with others are investing in it! Pretty sure we make the rules here!

Tue, 01/31/2012 - 11:48 | 2112812 Badabing
Badabing's picture

If we ever get our country back, and follow the laws of our fore fathers, than only gold “and” silver will be money again. 

Tue, 01/31/2012 - 10:08 | 2112432 Dr. Engali
Dr. Engali's picture

I like readig FOFOA as well. However his insistance on gold only as a wealth transfer agent is very short sighted in my opinion. I believe that you need exposure to a variety of precious metals. Another  problem I have with FOFOA is his backing of the EURO. It tells me his writing is biased and he is long Euros.

Tue, 01/31/2012 - 11:52 | 2112830 tekhneek
tekhneek's picture

That blog cool... but extremely tiring. When I read it all I can think about is:

"A sentence should contain no unnecessary words, a paragraph no unnecessary sentences, for the same reason that a drawing should have no unnecessary lines and a machine no unnecessary parts. This requires not that the writer make all his sentences short, or that he avoid all detail and treat his subjects only in outline, but that every word tell."


Tue, 01/31/2012 - 17:38 | 2114319 akak
akak's picture

Well said, and I concur completely.

While I do not utterly dismiss the writings and thoughts of FOFOA, and find the information on his site always at least interesting, I can't help but feel that ANY theory, no matter how profound, should be able to be presented in less than 165,000 words.  When starting out reading a FOFOA piece, I can never help getting the feeling that I am about to enter a giant hedge maze.

Tue, 01/31/2012 - 22:01 | 2115173 RockyRacoon
RockyRacoon's picture

That's why Dr. Paul sounds like a kook to so many people used to sound bites instead of a verbalized thought or concept, no matter how long or convoluted the thought is.   We understand what he is saying because we have already peeled the onion sufficiently to fill in the voids.   The regular guy, starting at a zero understanding baseline, just sees him as weird.   I love the FOFOA articles and relish each new one.

Tue, 01/31/2012 - 22:06 | 2115184 akak
akak's picture

Interesting analogy.  Thanks for making it!

Tue, 01/31/2012 - 10:22 | 2112490 Rakshas
Rakshas's picture

No issue with Au but as far as Ag goes; poor mans gold - wtf do you think the 99% are going to be chasing when the bank runs start?  with less than a billion oz's per year available - less than 800MMoz from mine supplies the rest from scrap/recycling and the sales both of which are declining how much does that leave for the po' folks?  

Bottom line - reports from sources like Sprott/Turk et al have money going into Ag:Au at 1:1 over the past couple of years but production of Ag to Au is in a ratio of less than 10:1 - oh for fuck sake less than 35billion takes the entire available yearly supply out right now and there are millions of people not knowing what the hell to do next; and with the paper markets shedding hundreds of billions to trillions with each notable fuck up - people are going to finally wake up and move to metals that is a given.  

Industrial demand yes, thats right so what has ID done for the stockpiles of Ag?? Yeah if you guessed use it up well jim you win the new pony parked out front......

Silver vs Gold well I'm just inclined to believe the historical ratio will return.....

When TSHTF for reals and the  paper is just paper again you will have the option to lock and load or play hide and go fuck yourself .... Silver Biach



Tue, 01/31/2012 - 11:54 | 2112841 tekhneek
tekhneek's picture

Amen, bitchez.


Tue, 01/31/2012 - 09:39 | 2112323 Gohn Galt
Gohn Galt's picture

Thank you ZHr's for holding the prices down while I stocked up.

Tue, 01/31/2012 - 09:50 | 2112364 Bahamas
Bahamas's picture

One humble question: since the morgue has unlimited access to Fed funds, what prevents it from doing the same thing they did to Hunts bros all over again. Can they short silver indefinitely? 

Tue, 01/31/2012 - 10:48 | 2112592 chdwlch1
chdwlch1's picture

I've wondered the same thing and came to the conclusion that, yes, they can short silver indefinately.  My thought is that once it is apparent that COMEX can't handle physical redemptions, the paper contracts aren't going to matter anyway.  The paper market will be exposed for what it is...a tool to control the prices of all commodities and a fraud.  The physical market will then decouple from the paper market and silver will be liberated to seek it's true market price.

Tue, 01/31/2012 - 11:54 | 2112840 Badabing
Badabing's picture

Yup, thats the plan

Tue, 01/31/2012 - 09:53 | 2112373 fuu
fuu's picture

"The majority of articles on silver are bearish and most bank analysts remain bearish on silver again in 2012 – as they have been in recent years. Prices will average $37.50/ounce in Q4, according to a survey of 13 analysts by Bloomberg."


With silver currently at $33 and change how is an average price of $37.50 in Q4 bearish?

Tue, 01/31/2012 - 09:59 | 2112395 JTBfromtheWL
JTBfromtheWL's picture

Because silver to the moon is priced in.

Tue, 01/31/2012 - 10:04 | 2112417 fuu
fuu's picture


Tue, 01/31/2012 - 10:18 | 2112476 JTBfromtheWL
JTBfromtheWL's picture

What if silver to the moon was literal? Being so reflective id say we'd have a pretty nice night-light. Now all we need is newt and 1oz for the cause from everyone. Next I'll be contacting CBs on the prospects of brighting our sun.

Tue, 01/31/2012 - 11:48 | 2112813 moondog
moondog's picture

Only if we can send Newt on a one way trip to the moon. That would be one way to get rid of that fat bastard.

Tue, 01/31/2012 - 17:52 | 2114327 akak
akak's picture

NASA is going to have to develop an entirely new and more powerful rocket to haul his fat attack-muffin ass into orbit, much less beyond orbit.  But it should have three separate boost stages, each one in turn being suddenly discarded as useless even while some life is still left in it, just like his marriage history. 

Maybe NASA can even manage to squeeze in a couple of hidden extra boosters "on the side" as well.

Tue, 01/31/2012 - 10:03 | 2112410 mick_richfield
mick_richfield's picture

It's bearish, because if argentum goes up only 14% this year, I will growl.  Grrr.

Tue, 01/31/2012 - 10:23 | 2112495 BlackVoid
BlackVoid's picture

It is not over yet (January).

Tue, 01/31/2012 - 12:12 | 2112896 Hansel
Hansel's picture


Tue, 01/31/2012 - 12:43 | 2113059 gnomon
gnomon's picture

Silver will be good, if you have the means to survive, (and are lucky enough to survive).

Gold is for your grandkids, (after twenty years of Hell).


Tue, 01/31/2012 - 12:55 | 2113131 maximin thrax
maximin thrax's picture

"Silver is nothing but an industrial metal these days. There will certainly be a big blip higher if Comex crashes, but the warehouse has plenty of silver, not so much gold though... Sadly, silver will spike up, then crash back down, because industry is contracting, and none of the 'giant investors' in the world have silver, they only have gold. Just look at all central banks, they have zero silver, but are accumulating gold."

Apples and oranges. Silver, being the industrial metal, is warehoused for industrial use. Gold, the monetary metal, is mostly placed in vaults as wealth storage.

If the draw-down in silver supply for industrial use exceeds the warehoused amount, price goes up. When silver investors buy the entire US's silver output each year as coinage, warehoused silver gets depleted. Price must adjust upward to entice sellers of physical outside of the paper markets

Gold, however, can leave bank vaults as fast as it enters, as it has done in the past. Investors are not likely to own enough gold to maintain price stability in the event the banks dump gold holdings for other forms of investment, so they will be bag holders. Such a reversal in industrial demand of silver is most unlikely. Buying up depressed real estate with gold at record-high prices might be the ultimate trade for the financial industry. Both hold historical intrinsic value - however, only RE produces income. Gold is an elevator, not a destination, and when you have to sell you must disembark at whatever floor the elevator doors open.

The idea that there will be a revaluation in gold to $50k+ so that sovereign debt can be repaid with extant gold holdings is wild speculation, with a one percent possibility of ever happening. Sounds just like the Iraqi Dinar scheme where speculators are buying up physical dinars in hopes of an impending 1000x one-time revaluation backed by oil, coming down the road any day now.

Tue, 01/31/2012 - 13:13 | 2113196 DionysusDevotee
DionysusDevotee's picture

"Up 21%"  Check Kitco....

Tue, 01/31/2012 - 17:47 | 2114345 akak
akak's picture

Fuck Kitco and their malicious, lying, pro-bankster, gold-hating spokesman. 

Any supposed precious metals dealer who would employ such a dishonest, rabidly pro-fiat, anti-gold bankster shill as their official spokesman deserves to fail, and fail spectacularly --- as I have no doubt Kitco ultimately will once their paper Ponzi "PM pooled accounts" go up in smoke.  Oh, and guess who SET UP those Ponzi pooled accounts for Kitco in the first place?  That same malignantly anti-gold spokesman himself!

Tue, 01/31/2012 - 13:24 | 2113236 JLee2027
JLee2027's picture

Silver is money.


What will be the demand for money when the paper system collapses?

Tue, 01/31/2012 - 13:28 | 2113252 gnomon
gnomon's picture

And if I hope that Silver increases in fiat dollars so that its appreciation might offset all that I have lost in buying power from my lifetime earnings, how does that make me just another Ponzi Speculator?  

I call that just "setting things right".  My hard work is being inflated away, that is the Ponzi!

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