That's some serious silver action

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Lemonyellowschwin's picture
Lemonyellowschwin
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That's some serious silver action

[Most Recent Quotes from www.kitco.com]

Go figure.  Up more than a buck in two days.

Jager06's picture
Jager06
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Re: That's some serious silver action

I thought this was coming, so I bought a bunch more Friday....

cnbbaldwin's picture
cnbbaldwin
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Re: That's some serious silver action

That is for sure.  Gold is up .71% so far today, but silver is up 4.5 times that amount.  Anyone with a rationale for that much discrepancy?

Jager06's picture
Jager06
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Re: That's some serious silver action

Historical ratio 16:1

Last 100 years 30:1

Today 65:1

TIme for Silver to get back in line at 30:1 or better. I would like to see better, since there is less above ground than gold now.

My .02 worth.

gregroberts's picture
gregroberts
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Silver will go to parity with gold!

In an interesting Web Bot prediction, Clif High and George Ure of the Half Past Human project suggest that an epic event will occur in early November of 2010. Clif High says it won’t necessarily be a war, but rather, an event that will be associated with the death of the US currency.

http://www.shtfplan.com/precious-metals/prediction-silver-will-go-to-parity-with-gold_08192010

Jager06's picture
Jager06
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Re: Silver will go to parity with gold!

I bought the report in December '09 on a lark and glad I did.

The epic event in my thinking after watching some of the evolution of the Web Bot predictions, could be the results of the elections. It is possible in my mind that the newly elected members of the Congress push for real economic reform, they might start by balancing the books on the US, which we know would uncover the our current insolvency and lead to the dollar having to be replaced.

On the other hand, at least 8 different reports have surfaced on a global currency switch over the last 8 months. It might just as well be a planned switch from USD to SDR or the basket of currencies based with carbon credits thrown in for good measure.

Interesting to think about.

Glad I bought more metals last week.

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goes211
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Re: Silver will go to parity with gold!

Not going to happen but if it did, long gold short silver would be the trade of the century.

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SteveW
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Re: That's some serious silver action

Yesterday silver fell to the 200 DMA of $17.77 before moving up to the $18.40 level. Really so dramatic that it reminded me of the head fake used by the guy returning the football to make everyone move the wrong way.

So stop loss sales were triggered before silver took off yesterday. Today's action looks like stop buys anticipating the big breakout in silver we've all been awaiting. Options expiry is tomorrow and if silver can move up 60c in a couple of hours on Tuesday it can just as easily fall 60c on Thursday.

I've been playing silver for some time by trading SLW as a proxy. I sold a third of my trading holdings this past week and plan to buy back only if/when prices fall.

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investorzzo
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Re: That's some serious silver action

Ben Davies talks about Gold and Silver. Talks about the recent silver rise. :~)

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/8/25_B...

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vvolf
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Re: That's some serious silver action

I just ordered a few 10oz ntr bars and another tube of ML's from silvergoldbull, now off to my "guy" in the south side of town.  I've been buying 900 & 800 silver for spot price.  Gotta love it when they need the dollars.  (he has about 100 1920's standing libertys and a whole bunch of 50c pieces)  I just wish I had more of the funny money, right now to get it all)

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SteveW
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Re: That's some serious silver action

Looks like both silver and gold are taking off today. Silver is within 1.6% of its May 2010 high while gold is 1% off its June 2010 high. Apparently the most heavily traded Dec gold option is $1500 and we're going into the fall consumer buying season (in Asia). I'm resigned to the possibility that I may never be able to buy back my sell trades in SLW.

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investorzzo
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Re: That's some serious silver action

Tuesday, August 31, 2010

MARC FABER: QE WILL BE INTERPRETED AS INFLATIONARY, BUY STOCKS & GOLD

Marc Faber On Bloomberg 8-29-2010 - Fed and Japan Money Printing

Marc Faber believes the greatest risk to global economy is the impending inflation that will occur due to easy Central Bank policy and money printing . Faber says Friday’s “key reversal day” was a sign that markets will perceive further government intervention as inflationary and will result in higher prices for commodities, equities and gold:

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Re: That's some serious silver action

paranoid's picture
paranoid
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Re: That's some serious silver action

Jim Rogers said silver is still undervalued and is still a good buy.

SteveW's picture
SteveW
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Re: That's some serious silver action

Today's silver chart looks like a hockey stick. Dropped 80c to $24 in 10 minutes then regained 20c inside half an hour. I guess the market doesn't know which way to go.

 

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Doug
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Re: That's some serious silver action
SteveW wrote:

Today's silver chart looks like a hockey stick. Dropped 80c to $24 in 10 minutes then regained 20c inside half an hour. I guess the market doesn't know which way to go.

 

Silver is always more volatile than gold and it seems to be having difficulty breaking through $25 level.  Plus, its had an amazing run-up the last few months.  May be time for a pull back.

Doug

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agitating prop
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Re: That's some serious silver action
paranoid wrote:

Jim Rogers said silver is still undervalued and is still a good buy.

There are so many strong reasons to buy silver, but Roger's opinion isn't  necessarily one of them. He bases much of his analysis of silver on the strength of the emerging markets. However, the Chinese economy is slowing down, and indeed could grind to a virtual halt, compared to it's rapid expansion of the last couple of decades. I would really caution anyone who plans to buy silver that they take into account the fact that some of it's upward action is based on the assumption that the recession will not be global.  It's an industrial metal as well as a safe haven. When industry slows, the demand for silver may be impacted. I would watch it very carefully in the next few months and read everything I could to try to gauge what's happening in emerging markets before buying any more of it.

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Re: That's some serious silver action

Silver now green on the day.  Rather looks like someone was trying to get a little downside action in silver before the $600 billion thin-air money program was announced.  A cushion as it were?

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Re: That's some serious silver action

A little cushion and running stops to lessen their shorts.  It seems to me that many people were sitting on their hands in advance of the announcement and they took the opportunity to run stops.  Just like when people are on the bubble of making it to the next round of a poker tournament and everybody tightens up so that they aren't the last one eliminated before moving to the next round and the aggressive players see that as a green light to bluff and steal pots.  The shorts in silver are certainly aggressive, they are good at the game that they play.

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SteveW
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Re: That's some serious silver action

Silver hit $25.20 in early Asian trading today, more than 5% above the sub $24 level that took out those stops. All in a day's work for the traders, I guess.

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CalvinCarpenter
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Re: That's some serious silver action

Destroyed the 25 level and Looking to break 30$  What do we think about these reports  saying silver to hit over $100 an oz because of the potential 1billion new Chinese Consumers to the Precious Metals Market?

Doug's picture
Doug
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Re: That's some serious silver action

I've been accumulating au and ag for a few years expecting this kind of action.  Now that its here, I've got a sick feeling in the pit of my stomach.  This kind of meteoric rise cannot be good.

Doug

Jim H's picture
Jim H
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Re: That's some serious silver action

Agreed Doug... the canary appears to be dying.  Biting off 5% up days on my SLW stock and 3% on my PSLV does not make me feel any better about the slow motion destruction of our monetary system....

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SagerXX
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Re: That's some serious silver action

Concur w/Doug & Jim.  There's a small part of me that sees the price action and goes "YES!"  The bigger part of me is saying "Uh-oh..."

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cmartenson
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Re: That's some serious silver action
SagerXX wrote:

Concur w/Doug & Jim.  There's a small part of me that sees the price action and goes "YES!"  The bigger part of me is saying "Uh-oh..."

Ditto.

Very much on edge these days as I watch the world turn against the US' latest QE effort...where even the head of the Dallas Fed describes the efforts in these glowing terms:

For the next eight months, the nation’s central bank will be monetizing the federal debt.

This is risky business. We know that history is littered with the economic carcasses of nations that incorporated this as a regular central bank practice.

For some reason the rest of the world is not crazy about this.  Remember, my view on all this is that when the changes come, they will occur faster than most people expect.

I hear a creaking sound and am compelled to ask, "are the rivets supposed to shoot out like that?"

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xraymike79
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Re: That's some serious silver action
cmartenson wrote:

I hear a creaking sound and am compelled to ask, "are the rivets supposed to shoot out like that?"

LOL. I'm sorry, but that made me laugh.

I found this interview from today informative as to the Fed's/Washington's mindset:

Naked Capitalism's Yves Smith on Fed's 600 B quantitative easing

Banks to Cash In on QE2 "Carry Trade"

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leweke1
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Re: That's some serious silver action

Rivets...yes, that is something to laugh about for sure....at least there is some humor in it!!  I've had a subdued feeling of panic and dread for the last week.  I don't talk to anyone about it, not even my family, but the rising PM and commodity prices point to a very uncertain 2011.  I know now that the changes I've (we've) been expecting are well in motion.  The changes may be fast or slow, or like Chris' analogy of a bowling ball rolling down uneven stairs, but the forces are wreaking the inevitable consequences.

britinbe's picture
britinbe
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Re: That's some serious silver action

what about gold today? more paper gold selling?

 

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plato1965
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Re: That's some serious silver action

The feared One-world imposed currency happened 50 years ago.. it was the $ ..

... necessary for all commodity trades... imposed by force,deception and violence.

 This is the second american r(evol)ution...  not fought collectively with muskets but individual choices.

 Are you personally obeying the constitution ?

 Vote liberty.. vote silver. (Dorothy)

 "vote early (it's cheaper!), vote often (dollar cost average..)".

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Johnny Oxygen
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Re: That's some serious silver action

This is a completely NON market driven decline in PMs today.

oh well...good for me.

 

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Doug
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Re: That's some serious silver action
Quote:

I hear a creaking sound and am compelled to ask, "are the rivets supposed to shoot out like that?"

Don't worry, it's just an iceberg.  This tub's unsinkable.

DougSurprised

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