With Friday afternoon’s sell-off, silver has now retraced it’s entire post QE∞ gains, retesting the gap in the chart on Bernanke’s QE∞ announcement.
While Bernanke, Blythe and friends are likely smugly congratulating themselves at their accomplishment, this is clearly unsustainable over the long term, and silver’s downside momentum and RSI indicators appear to be bottoming.
Our friend ReachWest has provided a chart demonstrating silver’s retracement of the QE∞ gap.
![[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)
Clearly a good time to add to our stacks!
Not now. There are signs it will retreat even further.
@snowrider, you real name wouldn’t happen to be Jon Nadler would it?
Very funny Crissy, no one will be laughing if it should retreat. The reason is, there is a constant touting of the real price of silver. No one here can tolerate the possibility that silver may return to $30! $25! As soon as anyone writes about this maybe happening, whoa???? Name calling and insults just pour out. Good grief I’m in a major way in silver, but I refuse to close my eyes to what I have seen and have been told by my father for 45 years. For too many insecure silver owners here they cannot handle the price retreating or, ANYONE PREDICTING IT MIGHT!! Of course there are a few fear mongers around who make statements to scare the weak handed to let go of their physical silver. I AM NOT one of them! Unfortunately, most here totally underestimate the resolve the cartel has and the resources to accomplish it. On many silver sites there is one command: Thou shalt not sell to may a profit, for if thou doest, thou shalt scare me! I have learned if I can sell on the spikes 25% of the time, I will do very well over time…., and I have and I will. Hope you do well with your little red wagon full of silver.
@snowrider I look at this way; I am trading fiat dollars for something of value. Seems pointless to trade something valuable for something that will soon be worthless. If one wants to gamble then there is Vegas. I don’t gamble with my future and have been doing this for 45 years and know that if anyone is making profit from buying and selling physical they take too much of a risk with the premiums that work both ways and the reporting and exposure factors. It is amusing to listen to people that think they can out think or out smart such a fickle market. Even if you win enough to be ahead it is still gambling.
Crissy, do you buy gas with silver? Groceries? Clothing? Movie tickets? No, you do not. You pay with paper currency. Wether you like it or not that is what you have to do. And right now the paper is not yet worthless. If yours is worthless, mail it to me, and I will use it. There are people who are doing quite well using paper currency and increasing their net worth. I just saw that silver was not going to break through $36, so I sold some of my physical believing the price will go down. In making that decision; if the price goes down I increase my position in silver. It the price goes up, my net worth increases. Doesn’t seem complicated to me. Is it a gamble for the casino in Vegas? Of course not! It is a SURE thing. As I said, my risk factor is my choice. I mentioned the other day when spot silver was $33.91. I could have bought physical silver for $32.75. You see you have been programed that there is only ONE way to buy physical silver. That is just another form of manipulation. I choose to look outside of this restricted box the markets have build for the public. Hope you do well in these uncertain times.
Obviously, snowrider, you have a problem with reading comprehension. I stated that fiat dollars will “soon be worthless”, which is one reason to buy and hold physical silver. It is a savings account and real money. I am happy that people, at the moment, are accepting the green TP for their goods, but it won’t last. I’m sure you think you have a superior brain since that is a typical human reaction (I have a degree in Psychology) and you appear to be a legend in your own mind, but silver and gold maintains value, it does not change in value, only the currency changes value. You are just chasing your tail and are in no way convincing that you can make dollars on both ends no matter what. Too many people are thinking outside the box, when thinking inside of it is sometimes better. You might want to step back in the box every now and then to make sure you don’t get lost. I really don’t care what you do, I know what I am going to do, and I am finished trying to be rational in the midst of irrationality. (begin sarcasm) By the way, I know many ways to buy physical silver; ebay, pawn shops, flea markets, coin shops and from dealers such as Doc.(end sarcasm)
Snowrider was right! Silver eventually went down even lower from 33.55$ per ounce to 32.73$ per ounce. I’ll be glad if silver goes down even lower since it’ll be an opportunity to stack more silver cheaply and especially gold when goes down again to 1500$ per ounce.
Young lady do you have a mental disorder? I am done with this immature 16 year old name calling, worthless insults, egotistical ranting from you. I try to be nice and informative and all you can do is start a pissing contest! Here is a short list of your problems:
First, you have not provided an original thought since you came here.
Second, you didn’t do the due diligence to investigate someone before you sing their praises, (Jim Rogers). If you knew the history of Mr Rogers you would have kept your mouth shut! A little study on your part was and is lacking.
Third, everything you write you read somewhere, and like a parrot all you know to do is repeat it!
Fourth, you don’t have a clue what an exit strategy is. If you did you wouldn’t write grade school investments statements:
YOU said:Fiat dollars will soon be worthless! DUH! Of course it would help if you knew the meaning of “fiat.” Parrot statement!
YOU said:Silver is a savings account. In reality it is a store of wealth. A savings account earns interest. Silver does not always do that. I will refer to the buyers of silver in April 2011 when many paid $50/oz. Tell those investors it is a savings account. So you’re wrong.
You accuse me of your own human flaws. You tout your grade school education, but your psychology degree and 1 USD might get you a cup of coffee, so get over yourself.
YOU said: Silver and gold maintain value: another statement from a parrot! Are you serious?
Come on Prissy, come up with an original thought. News Break: everything of value changes over time; EVERYTHING!
YOU said: I know what I am going to do, and I am finished trying to be rational in the midst of irrationality. You can’t provide one miniscule piece of evidence of irrationality on my part. I have an investment strategy and exit strategy you either don’t comprehend or don’t understand. Is my way the right way? Not for everybody, but it has served me well.
Finally, I will quote Sumkid above: Snowrider was right! Silver eventually went down even lower from 33.55$ per ounce to 32.73$ per ounce. And now silver is even lower $32.05. And by the way, I am $3/oz better off.
As soon as I can you will be ignored. I will not subject myself to a teenage investor.
As Jim Sinclair continues to state it’s MOPE.
This morning I had to make a store run to get a dozen eggs at the local chain store. Five years ago I remember buying eggs for about $1 per dozen. Today the prices ranged from $2.49 (on sale) up to $4.99 for premium organic eggs. Depending on which eggs you buy that’s over 100% to 200% inflation in the past 5 years.
“Depending on which eggs you buy that’s over 100% to 200% inflation in the past 5 years. ”
Um, nope, sorry. Uncle Ben says that there is only about 2-3% inflation in the US, so we can’t possibly have food or fuel rising at triple digit rates. Oh, wait! Those things aren’t counted in the inflation numbers. Silly me. I thought that anything that we HAD to buy would be counted. Guess that they are rising in price too fast to be able to chart and fit into the models easily, so we’ll just forget that they exist and maybe no one will notice. Works on paper. Too bad that we don’t LIVE on paper too!
I have my own chickens. My son has named them all Steve. You could say they lay silver eggs, since the money I save buys a few more silver coins.
We used to have chickens on a “practice plot” before we moved to the farm, they were called Gary.
I think this increased volatility is a positive sign in that it indicates that we are now moving into the next stage of this bull market. As Jim Sinclair has posited (he was referring to gold but IMO it also applies to silver albeit to a lesser extent) we’re going to reach a point where the volatility will become so violent that average investors can no longer get into the market.
Not too long ago, it was rare to see silver move over 30 cents per day (up or down) but now we have come to almost expect it. The battle between paper shorts and physical investors will get increasingly more intense and as this intensity ratchets up, so will the volatility.
This volatility for the most part is in the paper market, which is always volatile. We are nowhere near the next stage of this bull market. 30 cents a day has been typical for the past two years. The next stage will blow your hat off, but it will not happen in 2012.
You must also be careful after the bull run because remember the last time when silver was at about 50$ per ounce. In my opinion, I think that there is also a risk that the cartel might crash silver’s price when it goes back to 50$ per ounce again.
The extreme and irrational volatility can be laid at the feet of the bullion banks and is deliberate. Otherwise the price would steadily creep up with new industrial uses or new investor interest, and everyone would see it as a safe haven, and they won’t allow it.
It’s getting to be a farce now, most people know the lid is getting ready to blow. I think they were at the same point when they took down MFG and liberated all those accounts, buying some time. What crap will they pull in December? That’s the question.
Conax, I hope you’ll excuse my dis-agreement, but I rather lay the volatility at the feet of the commercial banks and governments legitimizing the Plantation Scrip credit-’money’ they lend. Were it not for that core influence, the bullion banks would have to settle metal for metal and the rational inter-relations between them would dictate values, rather than the sheer will of ’credit-ticket barons’.
These moves downward are to legitimize their tissue paper. The real value of silver must be kept from the people. In less than a generation the cartel has convinced the public that gold and silver are not money. However, that sentiment is to soon change.
“I think they were at the same point when they took down MFG and liberated all those accounts, buying some time.”
Liberated? Is that the word used today for STOLE? Oh, wait… nothing was stolen from any MFG clients. Somehow all that money plus gold and silver were, um, misplaced? Lost? Evaporated? Something like that and we have no idea where it went, even though federal law REQUIRES us to know. X-p
Good! More for me … less for ‘them’. The less ‘they’ have, the closer ‘they’ get to chronic delivery failures. In fact, I’d like to see private ‘Clubs’ emerge everywhere to keep physical exchange out of ‘their’ clutches altogether! Young savers exchanging their worthless Plantation Scrip with oldsters to pay their living expenses back to the Labor Slavers at un-inflated rates! What a beautiful vision THAT would be to watch materialize!
Seems sentiment is switching from bullish to neutral. No weekly closing above 1800 yet. We saw a double top around the 1770 level and a drop from there. I’m getting a close of 1753 in gold. I don’t see any real indicators of a breakout to a new high from here. I think what we see forming in silver now is something similar to what happened in January 2012 to May 2012, with a possibility of seeing something lower than that. Without sounding too bearish overall, I think silver is overbought to the tune of $26.
Although, Ive seen Dan Norcini remind his readers that this market is really driven by speculators. Not so much commercials.
Careful driven81, you can get stoned for making such statements around here. Seems many here do not have the stomach for a price retreat. I mean if silver drops $.30 CENTS people cry out: “Its time to stack!” For $.30 cents of silver? Seems I’ve heard a similar story somewhere. I only stack when the price retreats a certain % of the recent high. But I never stack because the price dropped $.30!! Can you imagine the mindset that says silver is a roaring buy it has went from $34.10 to now $38.80? I have noticed that not ONE SINGLE person who makes such statements is challenged for making their buying recommendation because silver drops $.30!! On the other hand, I have been called names and boycotted by some for stating my take on what is happening. That is fine, my silver sold for $35/oz and now you can’t get $34/oz for yours. And if it goes down more, I’ll buy back. And, has anyone researched what happens to gold/silver in an election year?
so funny graph,, if you put it alone you cannot see any signs of manipulation. It would be a normal correction, but put the information together; like the QE infinity, silver demand, economy condition, the number of naked shorts that have been sold in the past two weeks where they dumped 2 year of supply in 10min. all those indicators tell us a different story which begins with “WTF is wrong with this market!”
it will not be long now,, just a couple of years before we hit the hyperinflation 2015-2016. So just keep ur eyes on that day and forget the noise of the trade now
Pat- I don’t have a ‘reply’ button, but I agree, they’re all part of it. No argument from me.
Taking the long view is comforting. You know what the price of silver was in August, 2007, just five short years ago?
$10.42. I was buying maples and eagles delivered for $12.50/$12.70. With all the BS, it’s still a great store of value, and anyone holding it through the crash will be glad they did. Now let the heathen rage and the pundits pund, they can’t stop it. They can only spook the newbs.
Well said Conax.
Pat I like your idea of us oldsters converting our silver and gold for the occasional tranche of script to pay for life’s essentials.
This was my plan when I converted all but about 2% of assets (not including our home equity) to precious metals at about 50 to 1 silver to gold.
If silver and gold do nothing in the way of substantial value change over the next 20 years, we can convert some phyzz to pay the bills. As I made clear in a prior post there is no way in hell that I will disclose my purchases to TPTB whether there is capital gains in this exchange of hard or paper assets or not. That is something I plan to never reveal.
There will always be a black market for good quality assets. Capital gains taxes are nothing more than an illegal tax confiscation by a government that had nothing to do with the increase in value of a commodity except in their unique ability to degrade the currency to zero value. Since they tax us through inflation I see NO OBLIGATION WHATSOEVER TO COMPENSATE THEM FOR THEIR ACTIONS AND UTTER INEPTITUDE IN REPRESENTING THE WISHES OF THE PEOPLE.
If silver and gold go up by the inflation rate that is baked into the cake for the next 3, 5, 10 and 20 years, and in my opinion this inflation will be substantial, the demand for personal commodities versus their supply will present an exceptional opportunity to the perceptive individual to acquire a particular commodity and occasionally convert that asset. I expect that this little system of mine will front run the inflation and the reduced buying power of the FIAT dollar. This is my assumption. It’s based on the cursory study of inflation, currency debasement and the evolution/devolution of governments since the Roman Empire.
In other words, you gotta be right once in a while and I think most of us have these issues wired.
Props to you AGXIIK!
There is nothing to indicate that silver will surge at this point or retreat. But in this environment I would not be surprised to see the price retreat even further. If and when it does, I will be playing with more of the houses money.
Here’s a really good interview to watch by John Williams at Shadowstats.com.
John Williams… always worth a listen. Thanks for posting this interview, PB.
Snowrider needs to listen to this video and learn something, Especially around 13:00.
all of this is bs. There is no way this should have happened, its all rigging. The fuckers will have gold back at 1600 soon.
They will certainly try to do that but they have a BIG problem and it is called reality. They cannot juggle the paper market forever. At some point, no one really knows when but there are some pretty good well-educated guesses are out there, this house of cards system that is delaying the fiscal day of reckoning will collapse of its own weight. Manipulated markets are contra-economic law. They can do this for a while but as we saw with the USSR, Zimbabwe, Argentina, Mexico, and others, it WILL eventually collapse. The truly nasty part is that by delaying the day of reckoning, all that has been accomplished is to make the problem larger and more difficult to handle. Nothing that has been done with all this financially retarded “can kicking” has solved any part of this problem.
ed_b is right.
the lower they drive the price, the more that the eastern powers will buy up the gold.
china is melting down comex good delivery bars and re-casting and recertifying them in 1kg sizes.
the vaults of western banks are being depleted rapidly – is there even any gold left in fort knox?
many say no, and the fed refuses to allow any audit.
while a lot of what drives down the price is short paper contract dumping, there will be some buyers of those contracts standing for physical delivery.
western central banks (and their stooges JPM and HSBC) WILL run out of gold reserves to dump on the market, the only question is when.
Most powers that be usually have a Plan “B” Exactly what that would be is left to speculation. But one thing for sure; violent price dips will define the price of silver in the weeks and months to come. Anyone positioned to wait for those prices to occur stands to increase their position substantially. Or you can just hold on until the “moon shot event” that is JUST AROUND THE CORNER. My father died expecting that event to take place in his lifetime. DIDN’T HAPPEN! Now I hear new voices proclaiming the same event and I will not blindly follow their predictions of the imminent collapse. Do I believe it will happen? Not sure. What I do expect is major changes to take place, of which a collapse could be part of that, but I will not make decisions that affect my life based upon these NEW voices of so-called reason.
buying 24 oz of silver eagles this week and 10 the week after. Must do my bit to punch these criminals in the guts
*High Five!*
I haven’t been buying silver, been getting lead and guns tho…
I have been working on my food storage. Need to finish my rabbit hutches, might get tired of eating canned salmon, treet, and rooster meat.
Well, I’ve wanted to work with copper pennies since the Canadian government removed them from circulation but I don’t have any time to sort them. Gold is too expensive and hard to find and pure silver bars, coins and rounds aren’t available anymore since it is harder for my dealers to get them so my only option left is to stack some junk silver. :/
snowrider stated that “My father died expecting that event (big gain) to take place in his lifetime. DIDN’T HAPPEN!”
What a load of crap! If your Dad was even just my age, he experienced silver at 1:1 parody to banknotes. If he had foresight to hold onto it and a paper route or grocery bagger job, he could have realized ‘that event’ sleepwalking the balance of his life.
It’s tiresome to suffer the sneers and castigation you’ve been heaping on the folks here for having firm convictions that simply aren’t in line with yours. For all your cock-suredness, if our fears do come to pass and currencies collapse in an overnight spasm, you could find your ‘holdings’ confiscated at paltry ‘valuations’ against ‘margin calls’ and be left with no remote prayer of recovery.
There’s nothing ‘meek’ in humility. In fact, it imparts a gentlemanly character. But then, self-indulgence is easier to harbor than self-restraint.
PatFields you are right on. Anyone that bought consistently over the long years has seen their stack maintain value and if they had held to paper would have seen it diminish. The more things change the more they stay the same. I also tire of the self righteous supposed self proclaimed silver experts that splatter their ignorance on others, especially the ones that were still in diapers when I started stacking and they think they have something new to tell me.
According to Wynter Benton, silver will be traded above 50$ per ounce by the end of December 2012 unless if those pundits keep changing their dates by telling more predictions so that the others will be distracted and forget the older dates.