Is Silver Finally On Its Way To $40-$50? [View article]
I agree that silver will trend slightly up is all. It's in a trading range and no Fed action will take place until after the elections. Rather you must depend upon silver's record of demand exceeding supply for the umpteenth time.
Commodity ETF Flows: Investors Exit Agricultural And Energy Funds, Pile Into Precious Metals [View article]
Some of these funds just add to the paper gold since they don't buy physical, thus the demand that would have gone into buying the metal gets diverted and drops the actual physical price. It's a bit weird. Anyway, if there were no ETFs physical gold demand would probably be a lot higher. The SEC should regulate these ETFs and require at least they hold 10% of whatever commodity that underlies them and at least 90% should be covered by contracts not owned by the underwriting brokerage. Otherwise, if they don't buy the underlying from someone else the brokerage that runs it essentially is taking a commission fee from you and betting against the commodity you own.
QE, Inflation, And The Case For Precious Metals, Revisited [View article]
Thanks for mentioning the past. In the future I think people will look at reckless US policies these days and recognize they hurt rather than helped the economy and set us up for such a slow weak recovery that we will hit another downturn before the recovery is complete.
We'd better save up now because if another recession is to hit in a year or two it will probably be an even lower bottom than 2008 and the US government will be too broke to do anything about it.
QE, Inflation, And The Case For Precious Metals, Revisited [View article]
This assumes government is rational which it isn't. Government spends on cash for clunkers, oil subsidies, etc. Education is going sky high and schools are still closing, the post office is in equal opportunity ruins, most all government employees are unionized and couldn't care less about the public, our infrastructure is further behind than most of Asia now, etc. Government is not rational, its cronyistic.
Likewise, the Federal Reserve is not the government. They represent banks and are not part of the government save for being granted the opportunity to have a monopoly in US debt auctions which they can't hold these days without rigging it by buying their own auctions.
Indeed, precious metals are some haven, but the US blocks them being used as tier one capital around the world or used to pay debt so as to try to keep the US flotilla of extra debt as the only option for International settlements. If this caves there will be less and less demand for US treasuries and the massive uncontrolled debt the US government produces without much to show for it.
If you want to see who provides the government's goods and services such as roads etc. look to your city and county not the federal government. They are the ones who provide what you need from the government. Washington just produces mountains of waste.
Silver Summit Interview: David Morgan Of Silver-Investor.com (Part 2) [View article]
There is no indication the demise of the Euro will help silver and mounting indications its bad for silver. Any rise in the dollar seems bad for silver these days and gold is the clear safe haven if you want to call the end of fiat currency. Silver remains mostly an industrial use metal although on that note, demand keeps rising as well as applications. If supply hits a snag silver is still a great long term buy.
Silver Summit Interview: David Morgan Of Silver-Investor.com [View article]
I think what he's talking about is peak gold and silver. When Mexico starts running out of new mines that's the signal peak silver is here, and that day is drawing nearer and nearer. As for gold, it is just getting more costly to mine but at $1700 an ounce it is still very affordable to do all sorts of engineering feats to dig it up.
On a side note JPM is buying up MF global's positions which helps them buy out LME and control them like Comex as well as shores up MF global's short position in gold and silver. So I agree we are not looking for an eminent unwind of precious metals shorts. Maybe by 2015-16 like David Morgan said.
Silver Summit Interview: David Morgan Of Silver-Investor.com [View article]
On a side note JP Morgan is buying MF Global's metals position today which is largely said to be short. In so doing it also raises the prospect that JPM can try to takeover LME to try to force it to play the metals manipulation game with Comex which is under their thumb. So don't expect the metals market to get better or more fair anytime soon folks, especially when it comes to gold and silver.
Your only real hope to get "fair value" someday for precious metals is if Asia's gold market takes off or some decent sized country decides to allow them to be tier one capital. The US will throw inordinate amount of fits to prevent this since it threatens their stranglehold on flight to safety money flows which it depends upon to sell its bonds (along with the Fed buying them up itself which even they know is not fair or right).
I like the fact the author talks about its industrial use but only dives skin deep. Silver as a industrial use is climbing and is soon to work its way into every high end semiconductor due to the fact it is the best conductor around. It is industrial use growing over 20% annually that is forcing silver up, not the flight to safe havens. Once people find that out $50 silver will look cheap.
Sure the technicals look a bit weak right now. But if it wasn't for that silver would already be at new highs. Strangely enough, silver is too precious to just sit in a vault in bars like gold.
The Pros And Cons Of Going Long Silver [View article]
Going from silver to gold is a bit silly. At least silver has fundamental demand to prop it up. My suggestion is that if silver drops on liquidity gold probably has further to tank unless precious metals get designated as tier 1 capital which would be positive to weak sovereigns with precious metals reserves like Italy.
Should You Buy Silver Now? - An Update [View article]
So the call is between 22 and 37 with anything above or below unlikely but if it hits over 37 it may go up to 50? That's about as wide of a trading call as you get and says nothing a study in the widest moving averages you can get. I think 28 is the bottom for silver even with a weak copper price simply based on scarcity and near term 34 is the top with a slightly bullish bias after negatives clear away.
Of course Federal Reserve dollar debasement will change everything and the is more unpredictable about when that will be as a hurricane hitting the US (Like a hurricane we know one is coming its just a matter of when).
Great the Federal Reserve blames Congress, Congress blames the Federal Reserve. Republicans blame Democrats and Democrats blame Republicans. If this sounds a lot like the squabble in the EU you'd be correct. Don't expect any breakthrough or a better jobs picture save temporary Christmas season jobs for the rest of the year.
There is no vision or political will to be seen anywhere right now. Of course, market forces will take hold eventually which in some ways is not a bad thing. The sad fact is that the economy probably must go through the trough the government and Federal Reserve prevented since 2008 first for that to happen. Capitalism demands that the economy adjust to the harsh realities of the present which probably means less security, lower wages, and hopefully lower prices.
Gold And Silver Futures Just Made 'V' Bottoms [View article]
You have a good point. A sharp rise in overall demand for these ETFs can be used by shorters to squeeze the market. However, all paper ETFs can be used to crash the market because they must sell to balance their risk daily regardless of the fundamentals. This makes them automatic seller participants of forced price moves which reinforces the downwards feedback loop.
That aside, rising demand by ETFs tend to raise overall demand in normal markets and contribute to rising prices. So there is some upside price pressure exerted by these ETFs normally. When there is a mass surge in ETF demand watch out though.
Is Silver Finally On Its Way To $40-$50? [View article]
Commodity ETF Flows: Investors Exit Agricultural And Energy Funds, Pile Into Precious Metals [View article]
QE, Inflation, And The Case For Precious Metals, Revisited [View article]
We'd better save up now because if another recession is to hit in a year or two it will probably be an even lower bottom than 2008 and the US government will be too broke to do anything about it.
The Fourth Year Of Quantitative Easing [View article]
QE, Inflation, And The Case For Precious Metals, Revisited [View article]
Likewise, the Federal Reserve is not the government. They represent banks and are not part of the government save for being granted the opportunity to have a monopoly in US debt auctions which they can't hold these days without rigging it by buying their own auctions.
Indeed, precious metals are some haven, but the US blocks them being used as tier one capital around the world or used to pay debt so as to try to keep the US flotilla of extra debt as the only option for International settlements. If this caves there will be less and less demand for US treasuries and the massive uncontrolled debt the US government produces without much to show for it.
If you want to see who provides the government's goods and services such as roads etc. look to your city and county not the federal government. They are the ones who provide what you need from the government. Washington just produces mountains of waste.
Silver Summit Interview: David Morgan Of Silver-Investor.com (Part 2) [View article]
Silver Summit Interview: David Morgan Of Silver-Investor.com [View article]
On a side note JPM is buying up MF global's positions which helps them buy out LME and control them like Comex as well as shores up MF global's short position in gold and silver. So I agree we are not looking for an eminent unwind of precious metals shorts. Maybe by 2015-16 like David Morgan said.
Silver Summit Interview: David Morgan Of Silver-Investor.com [View article]
Your only real hope to get "fair value" someday for precious metals is if Asia's gold market takes off or some decent sized country decides to allow them to be tier one capital. The US will throw inordinate amount of fits to prevent this since it threatens their stranglehold on flight to safety money flows which it depends upon to sell its bonds (along with the Fed buying them up itself which even they know is not fair or right).
Why You Should Short Silver Now [View article]
Sure the technicals look a bit weak right now. But if it wasn't for that silver would already be at new highs. Strangely enough, silver is too precious to just sit in a vault in bars like gold.
Silver ETFs Lead Declines In Precious Metals For Second Day [View article]
The Pros And Cons Of Going Long Silver [View article]
Should You Buy Silver Now? - An Update [View article]
Of course Federal Reserve dollar debasement will change everything and the is more unpredictable about when that will be as a hurricane hitting the US (Like a hurricane we know one is coming its just a matter of when).
Thrill Ride Thursday: Finding Bottom [View article]
There is no vision or political will to be seen anywhere right now. Of course, market forces will take hold eventually which in some ways is not a bad thing. The sad fact is that the economy probably must go through the trough the government and Federal Reserve prevented since 2008 first for that to happen. Capitalism demands that the economy adjust to the harsh realities of the present which probably means less security, lower wages, and hopefully lower prices.
Gold And Silver Futures Just Made 'V' Bottoms [View article]
That aside, rising demand by ETFs tend to raise overall demand in normal markets and contribute to rising prices. So there is some upside price pressure exerted by these ETFs normally. When there is a mass surge in ETF demand watch out though.
Silver Is Once Again Beginning A Run Up [View article]