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 Replies: 25 / Views: 3,444 |
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Pillar of the Community
United States
2764 Posts |
Since the thread "Silver Dips Below $30" created (it was a good thread), I thought we should have one focus thread for all discussion regarding silver and gold above the $30/$1650 level (Gold to Silver Ratio of 54.7). Let see how long will this thread carry.
Silver and gold had been trading within small range over the last 3 months. Now, silver just rise above $30 and gold just passed $1650. I think these are caused by the talk regarding ECB putting a cap on bond yield and some positive talk about Greece extension of debt & possible German support of ECB actions. Your thought & comments?
Looking at the 30 days chart for silver and gold, it seemed that silver movement is lagging gold by a day or two. Is this the usual case? Your thought & comments?
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Pillar of the Community
United States
1903 Posts |
Two words....Quantitative Easing.... it is imminent and will drive precious metals much higher
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Pillar of the Community
United States
830 Posts |
They are saying the Fed's willingness to print more money (next round of QE), combined with trouble in S African gold mines, and people just holding on to it now (not selling) is the fuel for this rally in price.
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Pillar of the Community
Canada
834 Posts |
Lets put it this way ... someone bought 2.5 million shares of SLV at 11:30AM on Monday, 4+ million after 9:30AM on Tuesday and 4+ million after 2:00PM yesterday... looking at 30 minute chart volume...
I see a pump and dump coming!
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Pillar of the Community
United States
830 Posts |
Hunt Brother's? Eddie Murphy trading places again?  |
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Pillar of the Community
United States
4008 Posts |
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I see a pump and dump coming! It very well could be and, if so, it would not be the 1st time.  Gold and silver do seem to be moving up through their former resistance levels. If so, then they will very likely form new resistance levels 5-10% higher than the previous level. This could proceed in multiple steps, one level at a time until considerably higher prices are realized. For silver, this would be around $28 + 10% or $30.80. If silver were to close above this figure that could be a fairly bullish sign. At $30.58, silver is leaning on that pretty hard. Gold seemed to have a resistance level of about $1675 several months ago and had been sliding downwards, bottomed, and now at $1672 seems to be challenging that $1675 level. If both gold and silver break above these levels, we could see some decent price appreciation. The trick, as usual, is how long will it hold? It seems as if so much depends on the news from Europe these days. The US election adds to the confusion, as does the possibility of QE. Then, of course, we have the usual problems in the Middle East and the current Iran-Israel situation threatening to boil over at any time. It seems to me that just about any of these could put a lot of upward price pressure on PMs, let alone a combination of them. I feel a LOT better about owning silver than I do about owning FRNs. |
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Pillar of the Community
United States
830 Posts |
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Bedrock of the Community
13014 Posts |
Agreed with Ed. I personally think well see a run up in price till the election and probably even december with the doomsday theorists (even though is the apocalypse is really coming it wont do any good). Any uncertainty seems to have a run up and really this election provides about as much uncertainty of the future direction of the country as any weve had in 20 or so years. Pretty much polar opposite financial plans which leads fiscal conservatives to be worried about future spending and what that will mean for the dollar with 4 more years.
Ive always felt silver is being kept artificially low with demand being greater than the yearly production for I believe a few years now. Youll see jumps from time to time before they can bring it back down. Those major purchases which very well could be a pump and dump could be an effort to fend off an upward price trend that was coming.
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Pillar of the Community
United States
648 Posts |
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Lets put it this way ... someone bought 2.5 million shares of SLV at 11:30AM on Monday, 4+ million after 9:30AM on Tuesday and 4+ million after 2:00PM yesterday... looking at 30 minute chart volume...I see a pump and dump coming!
 - I just have a feeling this is a bull-trap. All we need is some sort of bad news / report / stat and it could fall just as easily. I'm glad I was given the opportunity to stack a big core in the 27-29 range. There is always that "mental barrier" when it hits a certain $ price point in the stock market. Takes a dip, then corrects (hopefully) - and resumes back on track. When it does, hopefully it will be up and not down. Stay tuned....  |
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Pillar of the Community
United States
1119 Posts |
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Pillar of the Community
United States
4008 Posts |
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I just have a feeling this is a bull-trap. All we need is some sort of bad news / report / stat and it could fall just as easily. Could be, Trip, but bad news in general has been good for PMs in the past as people seek financial safety from whatever is causing the bad news. We have seen a lot of up and down price movement in PMs, especially over the past couple of years. One of these days, though, the fiat paper house of cards will crumble. When that happens, we won't be seeing any PM prices that look familiar to us. They will all be higher... possibly a LOT higher. Woe unto s/he who sells into this kind of a PM market move. While definitely not a common event, it is a possible event... like a... black swan. Quote:
In this article there is a paragraph or two about $30.50 being the launch pad for silvers rise also it talks about a potential drop to $22.00 range before the rise. Yes, I read that. Thanks for posting the URL for this article. A lot of people have predicted a low $20s price for silver for some time now. While it could happen, it seems unlikely to me because we would have to be getting a LOT of good news about the US, European, and Japanese economies as well as the US dollar and debt. Somehow, I just do not see that happening any time soon. I say this because the root cause of the 2008 financial crash have not been addressed. The patient came into the E-room with multiple wounds upon which we put antiseptic and band-aids. We did not address the cause of these wounds so it is likely that they will recur. What does seem possible is a series of fake good news stories with cooked up data supporting it. While the MSM will swallow this whole with no fact checking, the alternative media on the net will soon have it figured out. As to rising silver and gold prices... yes, they are doing that now and look pretty bullish at the moment. Not that these rigged prices can't be taken anywhere and anytime the COMEX and a few others want, of course. |
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Pillar of the Community
 United States
2764 Posts |
Thank you Ed for your detail input.
Today silver had been up and then down to around the same point.
What's the new support now?
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Pillar of the Community
United States
2764 Posts |
The USD benchmark drop 35 points while Platinum drop $26, Gold & Silver only rise a little..... what give?
Is everyone holding their breath for Bennie?
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Pillar of the Community
United States
2764 Posts |
This is a very interesting article from Patrick Heller: http://www.numismaster.com/ta/numis...&rid=2197220His main talk is about the premium of ASE, however, his example is about the silver squeeze in 1996-1997 by ......drum roll.... Warren Buffet! Very interesting read. |
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Pillar of the Community
United States
4008 Posts |
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Thank you Ed for your detail input. You're welcome, SA4H.  Quote:
What's the new support now? That's pretty hard to say. I don't think that my estimate of the support level has changed much. Yes, silver did rise above $31 an oz. but it could not maintain its price at that level and pulled back a little. It's just below $31 an oz. now. The trick in these support levels seems to be where the price can rise and then close at a new high. Doing that seems to establish a new floor in the price from which it can rally further and perhaps make new highs. Both silver can gold can get caught in fairly narrow trading ranges for extended time periods. I agree with Peter Schiff that such times are less of a problem and more of an accumulation opportunity. Quote:
The USD benchmark drop 35 points while Platinum drop $26, Gold & Silver only rise a little..... what give? Both platinum and palladium are seen more as industrial metals than as monetary metals. Yes, they are quite valuable but this value is directly connected to the automotive, waste treatment, and chemical industries. Mining problems in South Africa affect the prices of these metals as do changed in the industries where they are used. Pt has been very volatile of late, rose very rapidly, and is now coming back down. Pd is following Pt's lead. |
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Pillar of the Community
United States
5850 Posts |
Well, the news as of around 10:00 EDT was as follows: Quote:Bernanke Makes Forceful Case for More Fed Action to Spur GrowthThe Federal Reserve chairman, Ben S. Bernanke, delivered on Friday a detailed and forceful argument for the benefits of new steps to stimulate the economy, reinforcing earlier indications that the Fed is on the verge of action. Mr. Bernanke said that the Fed's policies over the last several years have provided significant benefits, that a clear need remained for the Fed to do more and that, in his judgment, the likely benefits of such actions outweighed the potential costs. Since then, gold and silver have been steadily rising (right now gold is up $21.50 to $1677 and silver is up $0.71 to 31.20). Coincidence? Short-term gain? Start of a trend? Ya got me... |
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Replies: 25 / Views: 3,444 |
Posted 08/23/2012 2:53 pm
