Silver and gold have both again exploded on the COMEX open for the 2nd consecutive day.
After consolidating throughout the London session around $28.90, silver burst through resistance at $29, and exploded through $29.50 to $29.54.
Gold has also finally burst through it’s cartel cap at $1620, popping as high as $1641 in early COMEX trading.
Look for silver to quickly target $30, as it appears silver’s 15 month correction has completed.
Any retest of former resistance at $28.20-$28.35 (which could likely come tomorrow after the Fed minutes release) should be bought, as it looks like silver is ready to begin it’s explosive journey to new all-time nominal highs!
Gold is ready to retest Sinclair’s $1650 angel. From there, it will quickly target $1800, and after a likely battle there, should move to retest it’s August 2011 nominal highs near $1915.
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
When I saw the three consecutive closes at $27.83, all I could think was this was the signal for all those in the know that it’s time to buy and we are letting it rise for a while…. I guessed a Friday close of $29.12 and I was being optimistic but this could get so much sweeter than that. I want a slice of some silver pie in the sky!
Hi ho Silver…..away!!!!!!!!!
I’m anxious to see if this is the beginning of the massive moves Bill Murphy’s London source predicted. See the July 20 post here http://www.silverdoctors.com/bill-murphys-london-source-big-big-gold-silver-moves-coming-in-august/ and the August 13 follow-up post here. http://www.silverdoctors.com/bill-murphy-on-gold-silver-we-could-see-a-100-increase-in-90-days/#more-11367
(U2) It’s a beautiful WEEEEEEEEEEEEEEEK . . . . Well, I gotta go for now. Time to buy another 40 pound bag of bird seed. They go through 10 pounds a day, easy. (wild birds). It’s like an airport here.
You must have bird droppings everywhere.
Still a good time to buy some more and make sure more physical is taken off the market.
I’m eager for silver to become the new “hedge fund hotel.”
Occupancy rates have already started to move higher.
At some point, the hedge fund momentum monkeys will become a problem because they’re also quick to dump the sector after an initial cartel sentiment-targeting move. Feb. 29, 2012 is a textbook case of how the cartel acts initially to shape the behavior of the monkeys.
This run has plenty of room to move higher before getting frothy. Yesterday I showed how to use Kitco.com web traffic to get a reasonably pure sense of where North American sentiment for the PM sector stands. Another simple and complimentary method anyone can use is to just keep an eye on the relative stregnth index of silver and gold. You can click here to see a chart of silver. The Relative Strength Index (RSI) appears at the top of the chart. Generally speaking, given the nature of how silver trades, it usually will not be at risk of topping until at least it moves above 80 RSI (whereas common, less volatile stocks can start to send off risk signals at lower RSI). Even the cartel prefers to make their big attacks when sentiment is “excessive.” We’re a long way away from excessive sentiment and I don’t think we’re at risk of moving into that zone until we get to about $34/oz, which can happen as early as next week. RSI might be above 90 by then. From there, the key will be to see if we pause and consolidate, with a general horizontal direction vs. a significant take-down of more than $2 likely kicked-off by the cartel to set the stage for other investors taking profits.
I point these methods out because they’re easy to use, and the Kitco data is very objective. You can google RSI and learn more about its construction, which I highly recommend. Much of technical analysis applied to the PM sector is seriously flawed — in particular, Elliot Wave. But I’ll save discussion about that (and pissing off those that use TA to the exclusion of most everything else) for another day.
This is still a great time to buy if one needs more phyzz. If you think in ounces, then ten ounces would have cost around 275$ last week and 295$ today. Not a big difference. But there is no time to waste if you want to buy while it’s still on sale!
For once I am happy I was wrong about my guess of silver hitting $29.10 by week’s end. DA hat for me.
Nice timing, thank you silver conspirators!
I had just set the value for a purchase on 43 uncirculated 38mm .925 coins, at spot incl shipping. And before I got the guy’s bank details, my price to pay dropped to well below spot. Sweet!
I am absolutely broke now, so I suppose this is as good a time for silver to go wild. Until a large dip in January when some funds free up
XC Skater, going forward, be really demanding when going for anything 0.925. Reason being, coin shops frequently will only give about 85% of spot on a buy-back purchase for sterling given the way the refiner/scrap network works. When we have a huge run in silver in the future, that discount will shrink considerably. But if you had to sell in a period like last month, most coin shops would hose you. Knowing the history of buy-back trends for different products is really helpful. Try to check out those trends for any specific product you’re considering for purchase. I learned this lesson the hard way!
90% US pre-1965 coinage is a partial exception to my comments above because it’s more traditionally considered a standard bullion product with bigger built-in market demand. As a result, buy-back prices for 90% coinage is darn close to spot at most coin shops right now. Interestingly enough, about a year ago, sellers would usually only get about 95% of spot if they were lucky. The discount has largely evaporated, and that happened because the physical market has been getting tighter regardless of all the pundits that deny the market has been slowly tightening.
@Flying Wombat:
Thanks for the response.
The coins in question are 50 gulden 1987 , The Netherands. Look it up.
I buy my “junk silver” on a kind of craigslist. I will certainly not grant a coin shop my business, unless they are selling under spot. I scored 1.5kg nett in mostly 72% silver hugely (14%) under spot at the June dip this year. The shop owner had just taken in loads of coins at stole-it prices, and gave me a good deal. Or, she was really confused and forgot her markup. Anyways, I kick myself for not going red on my bank card that day. Thought I would get such prices each time, but next time I tried, party was over.
Not dealing with the HUGE spread of buy-sell, I *think* I’m doing OK for now. I get the most amount of silver (good luck scoring silver under spot anywhere on earth at will, unless my education is still very lacking) for my Euro’s, can sell to collectors, stackers and melters.
I did start out badly, buying kg bars. In Euroland, those enjoy a lovely 19% VAT hit, on top of the 4% premium over spot. I am trying to lose those (luckily in original seals, fresh LBMA stuff) so I can diversify in at least the same amount of ounces of various ounce coins, or more “junk” silver that is actually sort of a collection.
Just now for instance, I won a bid on a German 10 Mark 2000 coin. Hold 15.5 of .925. Under spot after shipping if I get my way with it. And German even pay over spot for their crappy .625 coins. The French are very possessive about their silver coins, nothing close to spot, and understandably so if you see them.
And in the mail today I had a 5 Shilling 1951 Springbok (South Africa, .500 only) and a 100 Schilling (Austria) 1979 (.640). Both under spot after shipping. Looks like I am starting a collection, of random silver coins I scored under spot. Will be happy to sell under spot when silver hits $400. It will be quite a collection by then, I can already recommend it.
What’s the site? Sounds interesting. Feel free to private-message me if you don’t want to mention it in public. Looks like you’re having great fun with the hunt too
Speaking of 0.925, one of the more consistent deals I used to look at was small batches of sterling forks, knives, flatware and other random items on eBay. I used to see stuff priced as low as 35% of spot. Alas, I don’t have the spare time to hunt for the small auction lots that had these deals and I’m not sure if they are still hitting eBay from time to time — probably not. But it was amazing to see such huge discounts.