Replies to post #670 on ProShares Ultra Silver (AGQ)

[Montanore]

These are some good charts that I understand.

Been reading a lot of negative stuff about silver lately. How it's in a parabolic bubble...and how it can't break $50 and therefore must go back to $30--or even lower; how it will end badly for those holding silver and so forth. These articles are appearing all over and I'm hearing similar things on CNBC. On the day silver was raided (options expiry and two more CME margin hikes!) it was almost non-stop with their 'Is the silver bubble bursting?' stories. I think it's a sign that the shorting banks are desperate. They have to be. Silver above $50 is unexplored territory...although if you count inflation into the factor, we're still not there yet (as a previous chart showed). The Hunts got prosecuting for manipulating the silver market which was ludicrous. They did nothing wrong. They merely bought silver. It was the banks that were illegally manipulated it for years (and still are)--which is why they got in trouble--but since the banks run the show, they get away with it and silver longs got the shaft. And they may again get away with it and they may again shaft silver longs. Perhaps they'll come out with a windfall tax on us silver owners. Perhaps they'll accuse us of 'financial terrorism' since we're messing up their rotten system. In fact, they already put away von Nothaus on that same accusation. The Fed must end. It's a rotten, corrupt money system.

We could see a giant crash in the markets if they really do stop the QEs. In that case silver and gold would also go down for awhile. We'd get some of the deflation Prechter and North are predicting. But considering the massive pain that would result, that couldn't last long. And besides, even more massive amounts of money has already printed and, along with the raising of the debt ceiling, more money will have to be constantly created to prop their system up to prevent a default. I think we will get QE3 and more kicking of the can down the road. I'm already seeing coffee prices way up...as well as other food items. I saw gasoline well over $5 in California.

There are a LOT of differences between the current pop in silver and what happened in 1980. For one thing there are a lot of entities buying. Russia, China, India and so forth. They see the writing on the wall about the dollar. They are tired of seeing it get printed up at their expense. The average American STILL owns little or no silver. When they start buying en masse, perhaps then we can talk about silver 'bubbles.'

Whatever will happen...we are in for a volatile summer, JMHO.