SBSS 8. The REAL Silver High [TruthNeverTold on Feb 1, 2012]

SBSS 7. The Historical Case For $960 Silver [TruthNeverTold on Jan 31, 2012]

Nick Santiago – If You Have Some Extra Money Buy Silver – 31-01-2012

Click Here to Listen to the Podcast

Silver Price Forecast 2012: Massive Amount of Energy Underlying the Silver Market [Jan 18, 2012]

The Great Silver Market Myth! [by silverguru on Jan 16, 2012]

Silver Market Update [Clivemaund.com; January 15th, 2012]

We have until now concentrated on this Head-and-Shoulders thesis and not really considered the possibility that the entire reaction from the April high, which was a downtrend bounded by parallel trend boundaries, is quietly morphing into a strongly bullish Falling Wedge, as shown on our 2-year "Scenario 2" chart below.

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Silver XAG/USD Fibonacci Levels JAN 13 2012

Eric Sprott: "Who is not Getting the Silver?" [Jan 11, 2012]

Silver Newsletter: Why Silver For A Monetary Collapse? Part 2 [http://hubertmoolman.wordpress.com; 10th Jan 2012]

Silver Newsletter: Silver Forecast

In part 1, I stated:

“We are at the edge of a major economic crisis. Our monetary system is the underlying cause of this major crisis. The massive debt bubble created by our monetary system is about to burst. The demonetization of gold and silver, has over the years diverted value from these metals, to all paper assets (such as bonds) linked to the debt-based monetary system.

The process of the devaluation of gold and silver, started by the demonetization of gold and silver, is about to reverse at a greater speed than ever before. This is similar to what happened during the late 70s, when the gold and silver price increased significantly. However, what happened in the 70’s was just a prelude to this coming rally. The 70’s was the end of a cycle, this is likely the end of a major cycle; an end of an era of the debt-based monetary system (dishonest money).”

What this debt-based monetary system has done, is to create what I call a “mirror-effect”, whereby, silver (and gold) is pushed down in value, to a similar extent as to which paper assets such as general stocks are pushed up in value. This mirror-effect clearly shows up on the long-term charts of gold, silver and the Dow.

Here (in part 2), I would like to show how this “mirror effect” of silver versus the assets linked to the debt-based monetary system (general stocks in this case), shows up on the long-term charts. This “mirror effect”, also reveals an interesting cycle, which provides more evidence to support my view, of the impending judgment of this system (monetary system), in terms of standards according to the Holy Scripture.

Below, is a long–term silver chart (real and nominal) from 1850 to present (generated at minefund.com):

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Silver Market Update [Clivemaund.com; January 8th, 2012]

A large and very bearish looking Head-and-Shoulders top appears to be completing in silver which portends a severe decline and thus a deflationary downwave. However, a factor complicating the picture in recent weeks has been the COT structure for silver and sentiment indicators, both of which look very bullish. For reasons that are set out in the parallel Gold Market update, the COT is believed to be highly deceptive at this time, and with regards to sentiment indicators, there is the scope for readings to get even worse (even more bullish) in the event of a breakdown and severe decline.

The big Head-and-Shoulders top can be clearly seen on the 2-year chart for silver. What is remarkable about this pattern is that its "neckline" or lower support line is perfectly horizontal with the price bouncing back up late in December EXACTLY from its September intraday low. This large top area appears to be complete, although action over the past couple of weeks suggests that we will see one last rally before it turns down and breaks below the support at the bottom of the pattern. It is rather hard to determine what it would take to abort its bearish implications - a break above the Right Shoulder high at about $35.70 would be a bullish development but not convincing - it is better for us to use a gold breakout above the top line of its Descending Triangle as a guide to a probable abort of the bearish patterns in both gold and silver.

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Ted Butler: Commercials Have No Interest in Shorting Silver Again [5th Jan 2012]

Silver analyst Ted Butler had his mid-week commentary for his paying subscribers yesterday and, as usual, I have a couple of free paragraphs.

"The big commercial silver shorts had a near death experience when the price approached $50 in April. They were at the end of their rope and needed to do something in a hurry. That’s why they rigged prices lower; so that they could buy and save themselves. These well-connected commercials knew, perhaps for the very first time, just how tight the silver market had become and how close we were to a profound physical shortage. The key is that the silver shortage wasn’t caused by excessive speculative buying or a bubble or a mania. The extreme tightness and near shortage in silver was as a result of the gradual and cumulative impact of normal investment buying over the past five years. There is nothing to suggest that the long term and steady silver investment buying has ended."

"Because there was no bubble or mania in silver, there was no bubble to burst. The orchestrated takedowns of the price by the big commercial interests were simply so that these commercials could buy and rid themselves of silver short positions. That’s done now. That means that the silver market is now in the best possible shape."

"What lies ahead for silver is exciting. While we have not witnessed a bubble in silver yet, we will some day. The silver story and the dynamics of the market are too compelling for an investment mania not to emerge at some point. If anything, speculative sentiment has been completely wrung out from silver, clearing the way for speculators and investors to enter the market with a vengeance. At some point, enough of the world’s industrial silver users will panic as prices climb and attempt to build physical silver inventories. This user buying, something that never kicked in during the run to $50 will create a silver shortage, the likes of which never witnessed before. It seems that the big commercial interests have come to learn the real silver story and they appear to want no part of the short side again. The major pressure of selling has passed...and the way seems clear for higher prices. By the time the next chapter in the silver story plays out, $50 could look cheap."

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Silver's average annual price reaches record high in 2011 [Author: Dorothy Kosich; Posted: Thursday , 05 Jan 2012]

With a 74% gain over 2010, silver outperformed all other precious metals last year in terms of average annual price increases boosted largely by investment demand
RENO - 

The average annual silver price of $35.12 per ounce last year, set a new price record, a 74% gain over the 2010 average annual price of $20.19 per ounce.

The Silver Institute observed Wednesday silver's average annual price has increased an astounding 703% since 2001.

Silver outperformed all other precious metals in terms of average annual price increases. Palladium recorded a 39% gain last year, while gold was 28% higher and platinum rose 7% over 2010 data, the Silver Institute reported.

In a report released by the institute last November Thompson Reuters GFMS forecast that world silver investment would reach $10 billion last year, easily surpassing the previous record of $6 billion in silver investment set in 2010.

"Silver's strong price performance last year owed much to the strength in investment demand, as well as growth in industrial demand, much of which is relatively price insensitive in the short term," said Michael DiRienzo, executive director of the Silver Institute.

ORIGINAL ARTICLE

Silver Fibonacci Price Update 03 Jan 2012 [TheSilverLog]

Powerful Rebound In Gold and Silver Prices About To Begin? [SilverBearCafe; Jeb Handwerger

Rarely has such technical destruction been visited on stalwart sectors such as gold, silver and the mining stocks(GDX). The silver charts reveal technical damage not seen since the destruction of 1984. It can only be conjecture that can account for a once in a generation obliteration of a once hallowed sector. It must be remembered that both gold(GLD) and silver(SLV) had major moves earlier this year to the $1900 and $50, surpassing overhead resistance and reaching overbought territory. This may be the reason why the decline in precious metal is overextended and extremely oversold. We urged caution back in April for silverand in September for gold. Silver has characteristically corrected close to 50% from its highs, while gold has fallen less than 20%. Pullbacks are normal and restorative in a secular bull market in precious metals especially after explosive moves.

Unless such technical destruction is reflective of an upcoming geopolitical news development, we must look for more mundane causes. When the woods are ablaze, the fire obliterates the sequoias at the same time they incinerate the pines. The recent declines may be the result of a rush to the U.S. dollar (UUP) and treasuries (TLT).

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Currency Wars, Silver, and QE3 [BY RUSS WINTER 12/22/2011 Financialsense.com]

The set up for silver looks like a Bump-and-Run Reversal Top pattern consisting of three main phases:

1. A lead-in phase in which a lead-in trend line connecting the lows has a slope angle of about 30 degrees. Prices move in an orderly manner and the range of price oscillation defines the lead-in height between the lead-in trend line and the warning line which is parallel to the lead-in trend line.

2. A bump phase where, after prices cross above the warning line, excessive speculation kicks in and the bump phase starts with fast rising prices following a sharp trend line slope with 45 degrees or more until prices reach a bump height with at least twice the lead-in height. Once the second parallel line gets crossed over, it serves as a sell line.

3. A run phase in which prices break support from the lead-in trend line in a downhill run.

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Silver unable to sustain price rallies [From Trader Dan Norcini; Wednesday, December 28, 2011]

Silver has become the victim of the deflationary mindset trade with RISK AVERSION leading to a significant outflow of speculative money from the grey metal. I have said repeatedly that Silver will not go anywhere as long as INFLATIONARY FEARS are NOT foremost in traders' minds. 

Note the following Gold/Silver ratio chart which details this exact thing. This ratio began moving in favor of Silver only after the Federal Reserve first announced and then began its Quantitative Easing programs back in late 2008. You can see the line beginning a steady decline as Silver appreciated at a faster rate than Gold during rallies as well as holding its losses to a minimum compared to the Yellow Metal during any setbacks in prices for both metals.

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Is It Too Late To Buy Gold and Silver? - Mike Maloney [Dec 20, 2011]

SILVER ANALYSIS W/ DAVID MORGAN '$60 SILVER AND $2,500 GOLD FOR 2012' [VictoryIndependence 18/12/2011]

Silver Price Forecast: Where is the Silver Price Going? [HubertMoolman Dec 15 2011]

"One of the best video I've seen in 2011" SilverReport

Tfmetalsreport.com [Wednesday, December 14, 2011 at 3:55 pm EST UPDATE]