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Another Decline In Registered Silver Brings Total Comex Physical To Multi-Year Lows
http://www.zerohedge.com/article/another-decline-registered-silver-brings-total-comex-physical-multi-year-lows
Another Decline In Registered Silver Brings Total Comex Physical To Multi-Year Lows
http://www.zerohedge.com/article/another-decline-registered-silver-brings-total-comex-physical-multi-year-lows
agree...
What is wrong with Bin Laden being killed in action??
Their not playing around tonight!!
Guess Who Just Got Invited To The Printer Party...
http://www.zerohedge.com/article/guess-who-just-got-invited-printer-party
With gold and silver taking off after the Fed statement, today King World News interviewed James Turk out of Spain. When asked about the action Turk stated, “I've just finished reading the Federal Reserve's announcement of its meeting concluded earlier today. I've also scanned some of the excerpts from Bernanke's press conference and Eric, I am struck by the inconsistencies. The precious metals markets must be seeing it the same way I am given the strength in gold and silver after the announcement's release.”
Turk continues:
“On the one hand, the Fed acknowledges higher commodity prices and rising inflation. Yet they go on to say that inflation trends are "subdued" and inflation expectations are "stable" - and those are the exact words they use. I mean, what can they possibly be looking at to reach those conclusions?
Then they say that they will keep interest rates low, but the reality is they need to be raising interest rates to fight the growing inflationary pressures, just like Volcker did when he was Fed chairman thirty years ago.
But here's the biggest inconsistency, the Fed plans to end its $600 billion quantitative easing program on schedule at the end of June. But the federal government continues to run horrendous deficits, forcing it to borrow record amounts of money. Consider this, since the Fed began QE2 last August, the federal government's debt has increased about $900 billion. Over $500 billion of that debt has in effect been borrowed from the Fed, courtesy of the Fed's printing press. Now I ask you, with the federal deficits running at or near record levels, who is going to buy all of the debt the federal government will be issuing after June 30th to fund its never-ending deficits?
Clearly, something has to give. There are only two choices to stop the dollar from the waterfall decline you and I have been talking about and expecting. Either the Fed raises interest rates, or politicians stop spending and it doesn't look like either one of those is about to happen. In fact, looking at the Dollar Index and precious metals markets as we speak, the waterfall decline in the dollar has begun. The Dollar Index has broken below all of its previous lows except for the last one at roughly 71 on the index. When that gives way you could see incredible panic selling ensue.
The bottom line is the market is calling the Fed's bluff. Investors don't believe the Fed will stop its purchases of US government debt on June 30th and for what it is worth, I don't either.”
When asked about gold Turk replied, “Gold is at a new record high, what's there to say? I am a firm believer in the message of the market. In other words, I don't look at cycles, momentum indicators or anything else, instead I look at prices, their trends and underlying fundamentals. The only conclusion to make about gold is that it is heading to my $1800 target and looks like it will get there soon, maybe sooner than the June 30th date I had been anticipating.”
When asked about silver Turk remarked, “Silver got close to its all-time $50 record high when it reached $49.78 on Monday morning in Asia. It is currently still below that price. Therefore, silver has not yet confirmed the new high gold made today. That may mean silver has to build a base here in the high $40s before plowing higher, and let gold lead for awhile. That would not be surprising given that silver has been leading since last summer, as is clear from the drop in the gold/silver ratio. We'll see how long it will take silver to hurdle above $50, but regardless, let's step back from the trees and look at the forest.
The dollar is in trouble and the Federal Reserve has its head buried in the sand. Washington's politicians are spending money they don't have and the federal government's credit rating is being called into question, I could go on, but you get the point. We're at an historic moment. Years from now we will look back and point to 2011 as the moment in time when the flight out of the US dollar accelerated leading to its eventual collapse. A simple and safe way KWN readers can prepare for this catastrophe is to own physical gold and physical silver.”
It is important to understand that your physical gold and silver holdings are insurance against a collapse of the US dollar if you live in the United States. If you live outside of the US it is your insurance against a collapse of your country or regional currency. This is an extremely important time in history because people are slowly losing faith in all fiat money globally. For now simply continue on your monthly accumulation programs and do not try to time these markets.
That's what the average Joe doesn't understand!! The dollar is not money, gold and silver are money. True money cannot be in a bubble, but a fiat currency definitely can. That is how I convinced only a few people I know to buy silver and gold. I said it is only a simple currency conversion from a weak to a strong position... The dollar is what has been in a 30 year bubble and now that bubble is popping. Once the hundred or so people that I have tried to convince start buying metals, then I will roll them over into something else...and that is when we know the silver/gold "bubble" has been reached.
He probably feels like he would be buying too late or at the top. I can understand that seeing the charts as of late but in my opinion we will look back at $45 silver and laugh at how cheap it was!! I would take advantage of any dips below $40 if I were him and I'm sure P.C. will advise him on a good entry point...
Ron Paul: I Totally Disagree with Bernanke's Central Economic Planning
Don't worry about silver until it hits at least $100, says Jim Rogers
James McKeigue
Commodities bull Jim Rogers has admitted he is worried that silver might go "parabolic" and crash later this year. The 69-year-old investor remains confident that gold will continue to rise but says that if silver continues to rise at its recent rate, "you've got a bubble".
Rogers is well known for attracting press attention, famously moving his family to Singapore because Asia is "how Europe used to be". However, investors will particularly interested in his view on silver as he has made several well-timed calls on commodities in the past.
Rogers made his name by co-founding the Quantum Fund with George Soros in the '70s but it was the launch of his first resource fund in 1998 - which benefitted from rising commodity prices in the following decade - that established him as a 'commodity guru'.
Speaking to a US radio station, Rogers acknowledged that "people are starting to notice gold" but remains confident that gold has plenty to rise. "Eventually everybody's going to be owning gold, and then we'll have to sell our gold. But that's a long way from now."
He denied that recent purchases by institutional investors, such as Texas University, marked the top of the market. "Gold's been going up for ten years in a row. I'd hardly call this a tipping point."
Rogers, however, was a little more cautious on silver. He noted that it has been "skyrocketing" recently and warned that if it hit $100 or more (it's currently trading at around $45 an ounce) this year, he "would probably start to think about selling".
On the one hand, "maybe the US dollar is going to become confetti in 2011, and if that's the case and silver goes to $150, then obviously I wouldn't sell my silver." But if silver "goes parabolic" this year without an accompanying currency collapse, "I would be very worried."
Recalling how he had begun to short gold when it "went parabolic in 1980" he reminded listeners that "there's never one [a bubble] in history that hasn't popped".
Jim Rogers is Right
Simon Black
Jim Rogers saw the writing on the wall for America several years ago. He uprooted his wife and family from New York and went where the opportunity was - Singapore. Rogers has famously said that the best career advice he can give a young person setting out to make a fortune today is to become a farmer.
Unlike some news anchors, who seem to take the comment in jest, I believe he is completely serious. Forget investment banking, derivatives trading, or managing a hedge fund. The big fortunes of the coming decade or two may well be made in agriculture.
Those quick to dismiss the notion assume this means toiling in the fields all day from dawn to dusk. Wrong. There are MANY ways of making a buck in farming and agriculture.
Farming itself is just one part of the supply chain. You could supply seeds, chemicals, fertilizer or stock feed. You could breed some exotic variety of cattle or pigs. You could provide logistics services to get products to market. You could even set up a fund to invest in agribusinesses on behalf of others.
There are literally dozens of ways to play this.
I just finished reading an uplifting account of a young Filipino entrepreneur (only thirty-one years old) who's well on the way to floating his diversified agribusiness company on the Philippine Stock Exchange for P2 BILLION ($46.5 million).
In just 7 years, he's grown the company, which does everything from selling livestock feed, to running rural supplies stores, to raising chicken hatchlings.
Annual sales have increased 9-fold from P200 million to P1.8 billion. Profits this year should hit P137 million based on company projections. By 2013 they're targeting P425 million. That's US$10 million, give or take, in net profit, all from doing something very basic.
Put simply, so little new blood and talent has entered the agriculture business in the past generation that many business practices remain stuck in a time warp.
How many people do you know who majored in agricultural science at university? How may people can you think of who stayed on to run their parents' farm, or returned to the land to run their own business?
Now, compare that to how many bankers, brokers, accountants, and lawyers you know...
Ten years ago, NOBODY studied geology and people looked at you as though you had two heads if you said you wanted to be a mining engineer. Today, agriculture is in the same boat, and the complete dearth of new talent in the agricultural industry is a sure sign to me of the wide-open field of opportunity.
In the Philippines, so low-hanging was the fruit - if you'll pardon the pun - that this young entrepreneur I just mentioned was able to double profits at his parents' farm supply business when he took it over, simply by installing some off-the-shelf accounting software.
You may think this is an extreme example, but I can tell you that there are dozens of countries in the same situation. Paraguay is one of them.
We talk a lot in our discussions about 'adding value' as a means to generate income, either as an employee, professional, investor, or entrepreneur. This is an important principle to understand because being able to generate independent income is absolutely necessary to become more self-reliant.
I'm quick to point out that the value creation process is often derived from solving problems - the bigger the problem, or the more people it affects, the greater the value created... and hence, the greater the reward.
Quite simply, there are a lot of problems to be solved in developing markets - lack of modernization, lack of technological know-how, lack of best business practice know-how, lack of financing and appropriate capital management, etc.
These are often second nature to many westerners who typically have both the knowledge and experience to make a big difference, and hence create a lot of value, overseas. One just needs the courage to do it... and prove Jim Rogers right.
www.sovereignman.com
Don't worry about silver until it hits at least $100, says Jim Rogers
James McKeigue
Commodities bull Jim Rogers has admitted he is worried that silver might go "parabolic" and crash later this year. The 69-year-old investor remains confident that gold will continue to rise but says that if silver continues to rise at its recent rate, "you've got a bubble".
Rogers is well known for attracting press attention, famously moving his family to Singapore because Asia is "how Europe used to be". However, investors will particularly interested in his view on silver as he has made several well-timed calls on commodities in the past.
Rogers made his name by co-founding the Quantum Fund with George Soros in the '70s but it was the launch of his first resource fund in 1998 - which benefitted from rising commodity prices in the following decade - that established him as a 'commodity guru'.
Speaking to a US radio station, Rogers acknowledged that "people are starting to notice gold" but remains confident that gold has plenty to rise. "Eventually everybody's going to be owning gold, and then we'll have to sell our gold. But that's a long way from now."
He denied that recent purchases by institutional investors, such as Texas University, marked the top of the market. "Gold's been going up for ten years in a row. I'd hardly call this a tipping point."
Rogers, however, was a little more cautious on silver. He noted that it has been "skyrocketing" recently and warned that if it hit $100 or more (it's currently trading at around $45 an ounce) this year, he "would probably start to think about selling".
On the one hand, "maybe the US dollar is going to become confetti in 2011, and if that's the case and silver goes to $150, then obviously I wouldn't sell my silver." But if silver "goes parabolic" this year without an accompanying currency collapse, "I would be very worried."
Recalling how he had begun to short gold when it "went parabolic in 1980" he reminded listeners that "there's never one [a bubble] in history that hasn't popped".
www.moneyweek.com
I agree, it looks like silver is taking a breather and gold is on fire today!! The Gold/Silver ratio needs to flatten out anyways so this is what we need to see if you are long silver. I don't want to see the ratio hit 15/1 when gold is at only $1600...
It looks like silver is taking a breather and gold is on fire today!! The Gold/Silver ratio needs to flatten out anyways so this is what we need to see if you are long silver. I don't want to see the ratio hit 15/1 when gold is at only $1600...
...and I feel fiiiiine!!!
The decline of the dollar is really beginning to accelerate!!
I agree!! It will look like gold did when it ran through it's old high of $850.
Yea I saw that!! They dropped it down a dollar in about a five minute time frame. Gold has recovered for that hit but silver has not reached today's old highs.
Here we go again!! Above $49...
I bet you there will be QE3!! The markets won't survive without it. Plus, he never said there wasn't going to be QE3...
Thanks for the green precious metals portfolio today Ben!
THANKS BEN!!!!
Looks like we may have found a short term bottom at about $45...
The Death of the Dollar: Will the Fed Kill the Greenback at Tomorrow's FOMC Meeting?
Martin Hutchinson
(Editor's Note: U.S. Federal Reserve policymakers meet today (Tuesday) and tomorrow (Wednesday) in a two-day meeting that could determine the fate of the U.S. dollar. Money Morning columnist Martin Hutchinson is betting that U.S. central bankers won't boost rates, a failure that could help bring about the long-term death of the dollar as a viable global currency.)
Months or years from now, when analysts are studying the death of the U.S. dollar, they'll look back and see that the greenback's demise began on a specific day - Wednesday, April 27, 2011.
As in ... tomorrow.
At 12:15 p.m. tomorrow, at the conclusion of a two-day Federal Open Market Committee (FOMC) meeting, we'll find out whether U.S. Federal Reserve Chairman Ben S. Bernanke and his policymaking posse opted for a sharp increase in U.S. interest rates - which appears to me to be the only solution to a looming third-quarter crunch.
Unfortunately, I don't think that Bernanke & Co. will make the needed move.
And without that sharp rate increase tomorrow, investors can look forward to rampant inflation, an evisceration of the U.S. Treasury bond market and - in a worst-case scenario - the death of the dollar.
Let me show you why....
It's Time to Worry About the Death of the Dollar
For the last two years, the U.S. economy has been supported by the twin catalysts of fiscal and monetary stimuli.
Fiscal stimulus seems likely to continue for some time yet - even the most avid Tea Party budget cutters don't see their way to cutting more than $100 billion or so off this year's $1.6 trillion deficit.
But monetary stimulus is another matter.
The Fed's so-called "QE2" (quantitative easing/second round) purchases of U.S. Treasury bonds are supposed to come to a sharp end on June 30. That makes July a crucial month - for the American economy, for the country's bond markets and, most of all, for the performance of the dollar.
These crucial monetary-policy issues will be reviewed at the two-day policymaking FOMC meeting that begins today (Tuesday) and concludes tomorrow. Policymakers are expected to leave the benchmark Federal Funds target rate in its current range of 0.00% to 0.25%.
If Bernanke wants to devise a "QE3" to follow his QE2, he needs to do it now: The next FOMC meeting is in late June, which is far too close to the expiration of QE2.
The decision as to whether to end quantitative easing - or to extend it - will be a tough one, made no easier by the fact that there is a substantial-and-growing group in the FOMC that did not like QE2 and that will strongly resist a QE3.
This "anti-easing" contingent has a strong case - and its arguments will be bolstered by figures that show inflation taking off.
Bernanke can resist these arguments for a time - either by focusing on "core" inflation, which excludes food and energy, or by looking at the "Personal Consumption Expenditures" (PCE) deflator, which is reported a couple of months in arrears. However, even with only one additional set of data from the present, he may find it difficult to argue that inflation is no longer a problem - in which case QE3 will be impossible to launch.
And without QE3, the U.S. Treasury bond market will be in real trouble.
The Looming Third-Quarter "Crunch"
Since QE2 began in November, the Fed has been buying about two-thirds of the Treasury bonds issued - or about $600 billion of the $900 billion in total bonds to be issued between November and June.
April is a particularly favorable month for the government: Because of individual and corporate-tax payments, the net issuance this month may be around zero. July through September, on the other hand, will be big months for T-bond issuance - at least $150 billion per month is needed.
It could be a tricky time, however. Credit-rating heavyweight Standard & Poor's has threatened to cut the United States' top-tier credit rating: But Japan, the world's second-largest buyer of U.S. Treasuries, isn't likely to be in the market much at that time, as it will need the money for its own reconstruction program.
Hence, expect to see a third-quarter crunch in the American Treasury market. The crunch will be made worse by the acceleration in inflation that is likely to occur between now and then: If inflation is running at, say, 0.50% per month - the equivalent of 6% per annum - by the summer, a 10-year Treasury bond yield of 3.5% will look untenable.
And so will a Federal Funds rate that remains close to zero.
The bond market won't be the only one to experience pain. The crunch we're predicting will also put a serious hurting on the currency market - specifically on the U.S. dollar.
If the U.S. government is trying to raise money that the markets don't want to give it, the U.S. dollar will decline on international exchanges, because of the continuing U.S. balance-of-payments deficit.
Thus, a third-quarter Treasury bond crisis is likely to go hand-in-hand with a third-quarter dollar crisis, as markets start to treat the United States as they would the European "PIIGS" (Portugal, Ireland, Italy, Greece and Spain). Despite their struggles, most of those countries have sounder budget policies than this one, and all of them have sounder monetary policy, thanks to the European Central Bank (ECB).
Simply extending QE2, as Bernanke almost certainly wants, won't solve this problem. The Fed would then be buying both too much debt and not enough.
You see, Treasury bond purchases of $75 billion a month would be enough to push inflation sharply upwards: This is, after all, the very same policy that gave the German Weimar Republic its trillion-percent inflation. (See the accompanying graphic: "A Grim Reminder.")
On the other hand, even if the Fed buys $75 billion of Treasuries a month, the summer months will bring with them the need to place an additional $75 billion worth of bonds every month. And with inflation rapidly accelerating, the chances of a bond market and dollar crisis would still be great.
The One Way to Avoid the Death of the Dollar
With the U.S. market straining under the burden of rising inflation and some ill-advised monetary and fiscal moves, the death of the dollar is looming as a worst-case - but still possible - scenario.
The Fed has one chance to avoid this outcome. But it has to act tomorrow.
Just to have a chance of staying level with inflation. U.S. central bank policymakers must boost short-term interest rates at least to the 3% level. That would burst the global commodities bubble, and reduce inflationary pressures.
With that accomplished, the Fed could then - if Bernanke & Co. wished - continue with a "modified QE3." For instance, perhaps it could buy $50 billion of bonds in the third quarter and $25 billion in the fourth quarter, thus breaking the Treasury bond market off its "Fed-bond-purchase fix," instead of making the market quit "cold turkey."
With inflationary pressure reduced by the interest-rate increase, the chances of a Treasury-bond-market meltdown would thus be reduced to almost zero. Interest rates would rise and bond prices would decline, but in an orderly manner. And inflation, if it continued, would do so at a more-moderate pace.
In fact, even inflation - should it remain stronger-than-desired - could be moderated, simply by raising rates a bit more, perhaps in several increments.
And the U.S. dollar would be saved.
There's only one problem with this scenario: I don't think it will happen. Bernanke won't boost rates. And we'll be back here sometime in the future, writing the epitaph for the death of the dollar.
Apmex Starts Reverse Inquiry: Seeks To Buy "Any Quantity" Of Silver From Clients At $3 Over Spot
http://www.zerohedge.com/article/apmex-starts-reverse-inquiry-seeks-buy-any-quantity-silver-clients-3-over-spot
I hope they bring it back down to the mid $20's!!!
Huge volatility!!
Low/High 45.66 49.85
I have never seen such volatility in the silver market as we have seen today!! There is definitely a battle going on because it is all over the place.
Silver hit a high of $49.85 in overnight trading!! It has come down from there because the Chinese raised margin requirements.
Silver hit a high of $49.85 in overnight trading!! It has come down from there because the Chinese raised margin requirements.
Ditto to everything that PHEZANTHUNTER said. If you have the money buy 100oz. bars because the premiums are the lowest. Anything from the U.S. or Canadian mint will have the most premiums on them but will also have the best bang for your buck when you go to sell them. APMEX.com is a great place to go but a local coin shop in most areas is unbeatable!!
If China dumps $2 Trillion dollars, then in my opinion that will be the beginning of the end of the dollar. That may trigger other counties to sell their treasuries so that they are not the ones holding the bag. Also, QE 3 will be a must if that happens because only a well lubed printing press could absorb all that liquidity!! Albeit a different form of QE because they would be buying them from a foreign country and not the U.S. treasury!! We are in unchartered territory for sure.
Kitco seems to shut down on holidays!! Silver and gold were up on Friday according to multiple sources...
Even if they put 10% of that into metals, the prices would be much much higher than they are now!! I thought China only had 900 Billion in U.S. dollars...
It's just a chart that shows silver closing at $47.78 in overseas trading!!
It shouldn't be!! I go to that site every day...
Holiday, No Holiday, Doesn't Matter: Silver Still Up By A Buck
http://www.zerohedge.com/article/holiday-no-holiday-doesnt-matter-silver-still-buck
Did anyone see what silver did in overseas trading?? I s this right??
http://dollarcollapse.com/default.asp
Eventually they will revalue, but they will do it a little at a time so that it does't shock the market. As far making the dollar go lower I would say yes!! The Yuan is not in the Dollar Index but it will end buy pointing investors away from the dollar because it is a better currency.