Barron’s, the financial magazine infamous among gold bugs for its incessant bashing of the metal, has changed tactics, and decided to release an all-out hit piece on silver, which is by far the most intentionally misleading
article propaganda on silver we have ever seen.
The piece contains phrases such as ‘silver bites people, it’s nasty‘, ‘don’t be seduced into thinking that silver is about to shine again anytime soon‘, ‘Silver’s charms are fading–and so are chances of a quick silver comeback‘, and comes with a headline intended to keep the Average Joe away: ‘Beware: Silver Can Bite!‘
Lest investors remain unsure of Barron’s bias, they are informed that ‘signs abound that silver’s best days are behind it‘, and then fed a bevy of misleading data intending to steer investors clear of silver.
Frankly, this is a bullish sign, as it reeks of desperation among the banksters and elite.
Silver’s charms are fading–and so are chances of a quick silver comeback.
The metal has had a manic-depressive 12 months. On April 29, 2011, futures vaulted to a record settlement high of $48.599 a troy ounce, then plunged 27% over the next five sessions. The metal never recovered after exchange owner CME Group raised trading margins to quell the extreme volatility.
However, with prices now around $31, don’t be seduced into thinking that silver is about to shine again anytime soon. “Silver is the one that doesn’t get invited to the birthday party because it bites people; it’s nasty,” says Sterling Smith, an analyst with Country Hedging in St. Paul, Minn.
THE STOMACH-CHURNING UPS AND DOWNS of last year continue. This year’s roller-coaster ride has seen prices race up 33% in late February, only to slide 16% since then. This alone should serve as a warning to timid souls. But signs also abound that silver’s best days are behind it.
In the futures market, the open interest in Comex silver futures points to a metal losing its charm. This measure of the number of silver contracts in play remains anemic at around 120,000. This compares with more than 140,000 during silver’s rally last April, and more than 160,000 in late 2010 when most commodities benefited from a spike in investor demand on the back of QE2, the Fed’s quantitative-easing program. (And the threat of outright theft as clearly displayed in the MFG client theft fiasco couldn’t possibly have anything to do with the current open interest in silver, could it?)
The shimmering hoard of the metal building in CME warehouses also reflects its dimming allure. Silver stored there is touching a 10-year high at 140.6 million troy ounces, or about 18% of 2011 global mine output. The massive stockpile “points to currently plentiful supply on the global silver market and is likely to block any significant price rises in the near future,” analysts at Commerzbank say in a research report. (Hmm…no mention that COMEX REGISTERED OR INVENTORIES ELIGIBLE FOR DELIVERY are near last summer’s record lows- or at least were until JPM adjusted their entire client silver book into dealer vaults last Friday)
Barron’s metals ‘expert’ TATYANA SHUMSKY is credited with the hit piece, which can be found here: