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From the MARKET ORACLE a nice article
explaining why the author thinks U.S. hyperinflation might not materialize and if it does ought to be short lived. If correct
it gives information helpful in answering the big question of
when to sell one's silver.
http://www.marketoracle.co.uk/Article30359.html
SilverEagle, right - jobs program is one of several coming QE3 pigs with lipstick.
lol Like bailing water from the front of a sinking boat and tossing it in the back of the boat. It smells of attempting to use half a trillion dollars of taxpayer money as 2012 campaign money. Unknown to the sheep it's estimated each job will cost $300k.
With this type thinking silver&gold ought to appreciate rapidly.
Keep stacking.
LOCHUTE, In King World News' interview with Andrew Maguire - the whistle blower Maguire who was nearly killed along with his wife
after disclosing JP Morgan Chase & HSBC fraud in the Gold and silver markets. In the interview regarding the impact of the soon to be open Pan Asia Exchange he mentioned that there would be a slight delay in opening because the Chinese had scrapped the exchange's Western built software. The Chinese decided to build their own exchange software from the ground up. They don't trust the West.
This is a good interview and I can hardly wait to see the new
exchange's positive impact on gold & silver prices.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/9/6_Andrew_Maguire_-_LBMA_Shorts_Will_Be_Forced_to_Take_Losses.html
( If link doesn't work just go to Kingwold News's or GoldSliver's website to access the article ).
If its claim is legit' and my math is correct Iran has 151.7 tonnes of gold. This would rank them approximately 26th in gold
holdings and suggests a possible rapid increase in the last few years.
Major Bankz, Sounds as if Max has found a new friend
named Hugo to help him sink JP Morgue Chase. Not really.
Evidently Chavez has a smart financial adviser or it
has become so apparent to the world what's happening
and not being a 'friend' of the U.S. he decided to be
the first to protect his country's assets in this manner.
Hanglong, reading about Gold Resource Corp.
makes me grin - the audacity of a company not
willing to be swamped in SEC paperwork and
paying its shareholders in real money ! lol
Re. Governments increasingly buying gold it appears many
countries see the current fiat currency writing-on-the-wall and that gold could be at least part of an accepted basket of assets backing the next world's reserve currency.
In 2003 China claimed it had 600 tonnes of gold. Then in 2009 it announced 1,054 tonnes which put it at 5th in holdings. The linked list shows China's currently at 6th place in gold reserves. http://en.wikipedia.org/wiki/Gold_reserve#World_gold_holdings
Many think China may have understated its 2009 1,054 tonne figure
assuming someday it planned to announce a startling high amount of gold in its quest to replace the dollar as the world's reserve currency. Aside from this conspiracy theory IF the 600 tonne (2003) and 1,054 tonne(2009) announcements were correct it represents an over 40% increase in just six years.
In 2009 China announced it would stop exporting gold. As the world's leading producer of gold (313.98 tonnes in 2009) plus whatever China has imported at suppressed prices (thanks mostly to the United States) puts it on track to eventually be a first place contender in a few years. http://goldsheetlinks.com/production.htm
Notice that China wasn't shown as a gold producer in the 1970, 1975, 1980, 1985 or 1990 pie charts but by 2007 was the world's largest producer.
One of China's reasons for its rapid gold accumulation is likely aimed at replacing the dollar. The significance of this upon the U.S. economy would be staggering.
xjag, I've assumed that if JP Morgue Chase was forced to cover (most) of its short position on silver our Treasury & Fed' would bail them out via escalated dollar printing. Hell, Greenspan said we can print whatever we need : ) Now we're presented with the not so remote possibility the Chinese could default on their (financially negative) short positions.
I too can't begin to understand the ramifications of either a JP Morgue or Chinese short position default and certainly not both but the word CHAOS like a big red blinking neon sign comes to mind
and the type chaos probably created would likely be very bullish for silver.
SilverSurfer, thanks for posting the link to Durden's article. He actually paints a conservative scenario for gold's future ... and it's mind boggling. (No wonder Mike Maloney has casually said gold & silver could go to infinity).
It's interesting that the United States has been inflating the dollar and manipulating the price of both gold & silver down (to keep our dollar looking better) while China has also been 'paper' shorting gold & silver in order to buy more physical (knowing it can default on its short positions causing catastrophic damage to the U.S) if it chooses to.
Our inflation has left China holding over a trillion in U.S. treasuries as it watches the value vanish via or inflation and the Chinese are mad as hell and they aren't stupid.
What goes around comes around.
Hanglong, good observation.
When Theodore (Ted) Butler speaks, any interested in silver
ought to take copious notes. Mike Maloney says when he became
interested in silver years ago he began studying Ted Butler's
writings. Butler is the silver analyst's analyst proving himself
to have a vast knowledge of all things impacting silver for two decades.
Incidental to Butler's latest article re. China possibly walking
away from covering certain COMEX silver short positions he has recently praised CFTC's Chairman Gary Gensler - says he nearly walks on water. (Coming from Ted Butler that is SOMETHING !)
Butler says Gensler has been effectively working behind the scene
to fix the short problem. Now, with the addition of the Chinese threat hopefully signaling JP Morgue/COMEX that things will change with or without their help it ought to make Gensler's job easier and faster.
IF silver traded without a sustained huge concentrated short position the price could fly. I'm hoping to see this later this year.
"Warnings Ignored" by Ted Butler is worth a good read.
http://news.silverseek.com/TedButler/1252075929.php
Andrew Maguire has stated there could be as much as a 100:1
paper to physical silver ratio. If he's in the ball park with his ratio estimate it's little wonder JP Morgan Chase (possibly soon to be JP Morgan Chase Bank of America : ) has been able to suppress
silver prices.
http://en.wikipedia.org/wiki/Andrew_Maguire_(whistleblower)
Anthony, very interesting about the amount of silver in cruise missiles. Then there are other missiles that probably have good amounts of silver in them too.
We also know the more efficient solar panels contain silver and
solar energy seems to be one of Obama's favored green items
as he often mentions solar power. High silver prices would put
solar panels at more of a retail disadvantage.
Then there is the political-psychological thing about being able
to print trillions&trillions of dollars in the face of silver as traditional currency.
Bottom line seems to be our government doesn't want silver high
silver prices and has its proxies using lots of tricks to keep
the lid silver prices.
Budget deal appears at impasse with Democrats seemingly sure Republicans will take blame for a default with Republicans not caving-in out of fear of voter reprisal in next election :))
I'm wondering when fear of default will move silver significantly higher. Any guesses ?
qfp927z, if you're buying silver call Monex and get a quote for 100 .999 Silver Eagles. Then compare their price with Apmex, Provident, Westminster, etc. Entire process shouldn't take much time.
Silver opened up overseas and is currently 39.69.
With a Greek default said to be looking more and more in the cards this week British banks have pulled billions of funding out of the eurozone (Greek lending) banks in fear of a 'Lehman-style' event.
Some analysts have offered that a Greek default could send very negative ripples clear back to the U.S. Federal Reserve. Hmm,this week might be exciting for physical silver & gold
investors.
Looks as if consolidation @ $38 area might be nearing completion.
Hanglong, thanks for posting the link to that interview. The question of how much pressure can the new Chinese exchanges put on
our rigged exchanges has occurred me several times.
It's good to hear the likes of Maguire, Embry and Sprott estimate Chinese exchanges will pave the way for more honest silver pricing.
I'm also reading that long time short positions are being covered.
'excuse' ? Perhaps a reason which I casually suggested for the present selling. Perhaps you can offer this forum you reasons for the recent selling. Thanks
Franz' your point is well taken. However, apparently some might have bought thinking they'd see more/better test results and it is these who are providing the light sales.
Wondering why this idea which might explain the light selling down to .0585 is so repugnant to some here ?
floyd', apparently some 'investors' might have bought anticipating Briscoe would share at least some of the Company's more detailed test results. It's been one month plus 2 weeks with nothing offered and I thought it reasonable to assume some were selling because of this. (No big shakes IMO & I'll continue holding all my shares).
Briscoe stated in his May 26 PR a final (test results) draft would be completed in a month. Having stated this in a public manner might suggest that more definitive results would be disclosed in a month. If he thought disclosure of these results would be too much for investors to handle why mention it ?
Sorry to stir the yellow-jacket nest with a casual observation that light selling might be the result of a perceived missed deadline.
After a couple of years I'm still holding LBSR and waiting.
Company's innuendo that more definitive test results would be available in a month apparently have (selling) consequences.
The U-Tube Bears cartoon -think it was # 6 - suggested an eventual divergence of paper and physical silver quotes with silver paper quoted low and physical silver for actual purchase being much higher as expected silver demand outstrips availability. (Whoever did The Bears series called the shots pretty well) Many now know it's a game being played by money printing governments represented by their proxies known as JPMChase, Central Banks etc. on one side and actual physical buyers on the other side.
I'm just waiting for the Money Printers to either (1) print themselves into a problem that can't be fixed by printing more or (2) seeing the handwriting on the wall initiate a buying program. (Some analysts have suggested Central Banks have recently been suppressing prices with their paper while buying).
I'll just keep buying silver. lol
China opens oil field in Iraq.
http://www.nytimes.com/2011/06/29/world/asia/29chinairaq.html?.
Matt', good information. Thanks. The COMEX seems to be supported by
the Dark Side (JPMChase, Central Banks, U.S. Gov. lol etc.) and no doubt we'll see more tricks - some of epic proportion - to prop the COMEX up between now and 2013. (Of course if its supporting elements cease needing its services it'll vanish).
Your info' also supports the idea that physical silver will face accelerating demand which production will almost certainly fail to meet.
I have to remind myself to think long term and buy more during these hanky-panky episodes.
one4theroad, no big deal but side from Bro.John's soliciting computer play money donations lol I like what he has to say which seems balanced and informative. He probably has some expense in doing what he does :) BroJ seems well read i.e. Martin Armstrong's June 13/14's axis reference and other mentioned information.
SilverSurfer, It seems there is a point of diminishing antique and numismatic value of gold and silver antique items as their bullion content increases in value.
I recently took my grandfather's gold plated old railroad pocket watch to a trusted friend who buys gold & silver jewelry. He carefully looked at the watch noting its gold content, manufacturer and date made and smiled saying its antique value was about the same as its bullion value. In simple language he said they were roughly the same and the watch's value was either one (antique or bullion) but not (much of) both.
I'm not the least bit privy to whether this (above) situation is or could later be applicable to coins but it might be worth considering.
My WAG is that in good economic times a coin's numismatic value would be higher and in bad times a coin's bullion value might be greater.
LOL, this might be a plus for certain (rare) silver coins.
one4theroad, hanglong, thanks for the links. Good stuff.
Anyone own gold stocks ? Stewart Thompson gives a candid
(no sh*t Sherlock) analysis of whats been going on..and on..
and on re. gold mining stocks.
http://www.321gold.com/editorials/thompson_s/thompson_s_060711.html
Thanks Hanglong. There are so many economic currents running simultaneously and most are not crucial to the USA regaining it's dominance as the uncontended leader of the world. Most 'important' economic stories brought to us by the news media are simply noise making it difficult to focus on things most important...which brings us to what might be the most important economic puzzle piece.
I won't get into what our Founding Fathers wrote re. fiat money but it's safe to say they strongly warned about it and attempted to bar it via their specific definition of money. They were truly wise and knew that fiat currency and greed could bring disaster. Greed's best friend could certainly be 'free'/fiat money.
Fiat currency and inflation have been the demise of empires. Martin Armstrong has written extensively on how inflation destroyed the Roman Empire. While much of Armstrong's writing is very technical his history lessons are an excellent study on how governments' economic policies have lead to their end.
With Nixon's announcement taking the U.S. off the gold standard virtually ALL currencies became fiat and were deemed to be worth whatever the government that printed it said it was worth. (of course all currencies were attached to the Dollar). As Spock would say , This is not logical.
When the dust finally settles regarding the current world fiat fiasco it seems logical that all will put as much distance as possible from fiat money as possible lol. I'm estimating that somewhere in the not too distant future the new world reserve currency and with it all currencies will will be backed with something/s of generally accepted value whether it's gross national product , gold , silver , etc. or possibly a basket including some the above.
In the past gold has been the preferred backbone of currencies with sliver playing an important but second fiddle position. This time around due to several factors silver could win a very important position.
Hanglong, Re. the negatives at work in the silver market
I'll offer a positive spin on the items you mentioned.
Purely for consideration....
A)... While a lot of the big margin (long) accounts are either out or reduced in size their exit is mostly history at this point in time with silver currently @ 36.
No doubt these accounts will return in some abbreviated form but return they will and this will help fuel the buy side of the equation.
As for a well financed , sustained short position continuing at length it would create artificially cheap prices increasing an already huge apatite for silver buyers world over. Another thing artificially low prices will accomplish is further depletion of available silver to the retail market. Several analyst in the Sprott camp (Rick Rule & John Embry) plus James Turk say physical silver supplies are in danger of not meeting demand.
B)...With QE2 ending this month and no doubt our version of Pravda - NBC,CBS,ABC,MSNBC, PBS, NY Times, etc, etc , etc - digging up every grain of positive economic news none should be surprised if it moves the Dollar up very short term. However , I don't think too many physical silver investors will buy into the temporary ruse. In fact , when some version of QE 3 is created it will launch another silver & gold bull market.
I'd like to add a comment on the EURO. Should Greece default and reconstruct its own currency it could in the short term hurt the EURO which could add fuel to silver buying.
As with so many possible things happening - or not - it makes timing their impact on silver deviously complex.
C)...Slipping back into a recession...We're in one now IMO. Your point is that without more fiat dollars printed things could get a lot worse. I agree and lets not forget the major reason for QE 3 , QE 4 , etc is the 2012 Presidential election. A rose is a rose by any name and QE 3 will no doubt be called by another name or names. When it happens precious metals will go up and with the assistance of short covering the prices could go strait up.
D)... Equities investors can't be totally stupid. They will remember the '09 DJIA at 6500 and take their coins somewhere else...maybe bonds , CDs ,real estate ? Not likely.
Wish I knew more and could offer better information. However, these are summations based on what I've read & heard...and remember lol.
Hanglong, Thanks for the reminder that silver's pricing is a serious game with entities that do not want silver (or gold) to move substantially higher. You've offered several credible reasons the price of silver could stagnate or move lower from its current $ 36 price in the short and even near intermediate term.
I'll even add that one respected analyst/CEO that keeps statistics re. silver recycler inventories has stated that with silver's
price still holding relatively high that the recyclers had big inventories and would be sellers thus helping keep silver prices low the next 60 days. (He offered this opinion near 30 days ago).
All of the items you listed have some credibility as to the suppression of silver's future pricing. The difficult job for most in this forum is figuring how much the sum total of bearish factors will affect pricing and adding as much as possible near
the bottom : ))
Seems at least several got their clock cleaned when margin requirements were increased 5 times with brokerages doubling their margin requirements overnight. This might have something to do with what seems like a broad decrease in silver interest.
However, the basic reasons for investing in physical silver are growing more critical - not less and many silver analysts expect to see a less margined group of silver buyers push the price up in a more sustained/stable manner this summer.
That was me. I expected Dexter could at least put a bit of lipstick on LBWR and say something by the end of May. Evidently he may? have bought into the production end of silver or gold which hasn't done near as well as bullion prices. (Just guessing).
Informative editorial on silver published today offers eventual nationalization of mines. Nice article with new ideas re. silver's place in the future.
http://www.321gold.com/editorials/groenewegen/groenewegen060211.html
Seems like Chris Puplava gives the same illustration as Mike Maloney
regarding what price gold needs to be to 'properly' back U.S. currency. BTW, Chris' father Jim Puplava is a big time long time physical silver investor.
(.....On to read your second link).
Matt, best overall synopsis I've seen. Thanks.
Anyone done business with Westminster Mint ? Had a couple of questions I phoned them about and they never returned my calls. I've also Emailed them without any success.
Interesting idea SS - China being more of a Democracy than the West.
Jim Rogers - I paraphrase his words a lot... you have to like the guy - says it's much easier to start and run a business in China than the U.S. Says they are much more capitalistic than we are and less communistic than California or Massachusetts.
If the U.S. were more representative of the people and pro free market we wouldn't have as huge a national debt with silver & gold skyrocketing in price.