Prepare for $2100 gold by January, and $60 silver by January. The last open door is being made possible in the final days of August. Like last year, the months of September through January will be ones for the history books. The start of big bank failures in the United States, London, and Europe should add to the gold run. Contagion has hit Italy, Spain, and France (the newest PIGS lookalike). The breakdown will be broad, deep, and frightening in the next few months. The twisted thinking is probably that gold must be brought down as much as possible, to make a lower base before the next gigantic upward moves beyond the $2000 level and probably past $2100. The gold breakout will capture global attention and make major headline news. This is 2008 all over again, but much worse!! The story line will be that nothing was fixed, but that nothing can be fixed, and much more debasement of money will come. The Gold Meter will rise in direct reflection.
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Friday, August 26, 2011
Tuesday, August 23, 2011
Sunday, August 21, 2011
Why Silver Over Gold? [Aug 20, 2011 - 05:05 AM, by Mike Paulenoff]
During the last few sessions, my intraday gold/silver ratio work has been warning me that the recent leadership role of gold's upside acceleration might undergo a change. No, not that gold will reverse, but more than likely silver will begin to outperform gold again on the upside.
Again? Yes, remember that for 9-month period between July 2010 and April 2011, silver prices rocketed while gold prices climbed at a much more subdued rate of change.
My near- and intermediate-term ratio work is suggesting that the May-Aug gold leadership role is at or nearing completion, and that in the hours and days directly ahead, silver prices will begin to "out-accelerate" gold on the upside and show increasing resilience during periods of weakness.
The fact that silver prices hurdled their Apr-Aug resistance line this morning supports the unfolding leadership change.
Again? Yes, remember that for 9-month period between July 2010 and April 2011, silver prices rocketed while gold prices climbed at a much more subdued rate of change.
My near- and intermediate-term ratio work is suggesting that the May-Aug gold leadership role is at or nearing completion, and that in the hours and days directly ahead, silver prices will begin to "out-accelerate" gold on the upside and show increasing resilience during periods of weakness.
The fact that silver prices hurdled their Apr-Aug resistance line this morning supports the unfolding leadership change.
Read more @ ORIGINAL SOURCE
Friday, August 19, 2011
Eric Sprott - The Price of Silver Should be $110 to $120 Today [August 18, 2011)
With the Dow down almost 500 and gold surging above $1,825, today King World News interviewed billionaire Eric Sprott, Chairman of the $10 billion strong Sprott Asset Management to get his take on the action and what he is doing with his own money. When asked about his charitable foundation selling gold and buying more physical silver Sprott stated, “We’ve put a notice in that we are going to sell two million shares of the Sprott Physical Trust, which would generate something like $32 million of proceeds, and it’s my intention to move that into (physical) silver. As you know I have opined very often that I think silver should trade at a 16/1 ratio to gold. That would imply a price today of something like $110 or $120, (and today) it’s $40.
...The availability in dollar terms of gold is 100 times that of silver, so you can’t keep buying at a one to one ratio without something giving here. As long as people keep buying it you know the price has to go up, there is very limited supply. I think Comex has something like 27 million ounces (available for purchase), which is all of one billion dollars. What is one billion dollars these days? I mean there’s probably 500 different organizations that could clean them out.”
Read more @ ORIGINAL SOURCE
Thursday, August 18, 2011
Tuesday, August 16, 2011
Silver Market Update [By: Clive Maund]-- Posted 16 August, 2011 silverseek.com
Silver held up surprisingly well during the stockmarket collapse - you will recall that we had expected it to take more of a beating - no doubt assisted by gold's sparkling performance, so that now, having held above strong support, and with a marked improvement in its COT structure over the past week, it is believed to be poised for a really strong upleg.
Read more @ ORIGINAL SOURCE
Read more @ ORIGINAL SOURCE
Saturday, August 13, 2011
Friday, August 12, 2011
When will silver catch up with gold’s stunning $100 advance? [By: Peter Cooper 11th August 2011]
The gold price shows every sign of going exponential as predicted by Jim Sinclair (click here). We have surged from $1,700 past $1,800 in a matter of days, so much for the normal low season in the summer for precious metals.
Silver has lagged behind and even slipped back a bit over the same period, albeit not dramatically from $42 to $39 at the time of writing. Then again in the run-up to the $1,700 gold price silver delivered almost twice the price gain of gold (click here).
Silver best buy
So what we have is a picture of volatile price movements, with gold and silver occasionally swapping places as the lead precious metal. Logically then with gold out front now, silver is the better buy and due for an upswing.
Why are these two precious metals so inter-linked? Well basically because they are both monetary metals, although both also have industrial and other uses. There are no other monetary metals.
Silver is often tagged as ‘poor man’s gold’ because it is so much cheaper than gold. Yet that gap has been closing for some years. The gold:silver ratio of three years ago was around 80, now its a little over 40.
Over the centuries the average gold:silver ratio is 12-16 and as gold increasingly becomes the currency of choice again we can expect to see this historic relationship resumed. Silver reserves are also much smaller than gold reserves and that is a key determinator of the supply/demand price dynamic as Eric Sprott recently pointed out (click here).
Higher than gold?
If you are really bullish on silver like author Mike Maloney then you can envisage silver one day being worth more than gold (click here). That still sounds a bit far fetched but the notion of silver outperforming gold in the coming precious metal bubble is not hard to imagine at all.
Perhaps over the past few days silver has sold down because it is also an industrial commodity. But it is not down by nearly as much as oil, for example, and is being supported by buyers who see it as a precious metal.
Also there might have been a temporary shift into gold from silver as a safe haven trade. But if so this is only a buying opportunity for what promises to be the best investment this year and most likely the next few years too. Buy now, these prices can not last much longer (click here).
Thursday, August 11, 2011
Wednesday, August 10, 2011
Monday, August 8, 2011
Sunday, August 7, 2011
Friday, August 5, 2011
Silver outperforms gold again in the flight to safe havens, BY PETER COOPER [4th August 2011]
Reading the headlines about a new all-time high for gold north of $1,675 and you could be forgiven for thinking that gold was the star performer amongst the precious metals over the past month.
Wrong! Step forward the shiniest of metals to take a bow at $42 an ounce this morning. In the past month silver is up from $34 an ounce, a 19 per cent gain, while gold is up from $1,480, an 11 per cent increase.
Read more @ ORIGINAL SOURCE
Wednesday, August 3, 2011
White hot silver [Aug. 2, 2011, 10:32 a.m. EDT] by By John Nyaradi
BEND, Ore. (MarketWatch) — Newton’s first law of motion states that the velocity of a body remains constant unless the body is acted upon by an external force. In the arena of exchange-traded funds, sectors and ETFs with strong momentum can often continue on strong trajectories, and July’s “sector of the month” was silver, as the white metal has been white hot.
Precious metals, and silver, in particular, were the leading sector in July in response to the debt ceiling crisis and a “flight for safety” from a potential U.S. default.Up some 18% for July and approximately 29% year to date, the white metal, sometimes referred to as “poor man’s gold,” has put in an impressive performance in spite of the precipitous decline it experienced earlier this spring.
While gold gets most of the press, it’s up “only” 14% so far for 2011, and so silver has really offered “margined” returns compared to a similar investment in gold.
Monday, August 1, 2011
Stephen Leeb - Expect Silver to Trade in the Three Digits [kingworldnews.com;August 1, 2011]
When asked about silver specifically Leeb stated, “Well I think silver obviously is a precious metal. I think it probably has a history as a precious metal almost as long or maybe even longer than gold. Its ratio to gold right now is about forty to one, I think that’s extraordinarily cheap, but what people have to realize about silver and I don’t think it has dawned on people, that not only is it a precious metal, but it’s a critical and I emphasize the word ‘critical’ industrial metal.
The majority of solar panels require silver and I don’t think there is enough of it if we really start building this stuff out. I think the Chinese realize this, they are probably already accumulating silver and will continue to accelerate those efforts.
Incidentally, speaking of the Chinese and gold, Thursday’s report from Goldcorp made interesting reading. The Chairman of Goldcorp said he expected Chinese purchases of gold to exceed those of India this year, which is just extraordinary.
I would expect their purchases of silver will commensurately be even larger because they need it. They are not just buying silver because they want an alternative to the dollar, they are buying silver because they know they are going to need it desperately to build out solar energy.
So silver, yeah, pick a number, but silver is a three digit commodity there’s no doubt about that.”
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