Monday, December 13, 2010

Hi-Yo, Silver!

Well, aren't we off to a fun start of the week? I'll keep this brief as things are really cookin.
Check out this 180-minute silver chart:
First, note the breakout today through the 29-29.20 area. It certainly looks like we are headed to new highs again. $32 this time? Note the closing levels I wrote on the chart. Watch these levels today. A close above $29.78 and we are definitely off to the races.
Also, look very closely at the horizontal lines I've drawn. Does it appear to you that the BoS has decided to put floors under the silver price at exact $1.50 increments? Could it be that obvious? Could it really be that simple? Maybe. If after the next leg up we find support at 29.50...well, you get the picture.

Obviously, one of the keys today is the dollar, which will get zero help from $9B in new POMO this morning. Last on the Dec USDX is 79.71. A move through 79.65 would send us to 79-79.20 which would only serve to induce more PM buying.

Crude's up over $1.30 and the grains are all indicated higher. Should be a fun Monday.

Lastly, if you have some time this morning, Harvey made a rare Sunday post. Seems he's all over this JPM et al derivative exposure. Check it out.
http://harveyorgan.blogspot.com/

And Santa is traveling abroad this week, checking out his operations in Africa and the Middle East. He sent out this email this morning. Classic Santa!




Dear Friends,

The train wreck of Western finance is no longer the slow train wreck you witnessed watching Freddie and Fanny come apart. It is therapeutic, as Dean Harry Schultz instructs us, to travel enough so you can look back at your Motherland and see things clearly.

It is my belief that the relative lack of success in the recent attack on the euro - at least compared to the earlier effort - could well presage the inevitable attack against another monetary union currency, the United States dollar.

Market commentary here in Dubai by so-called experts universally proclaims a sudden concern that the US is mishandling its debt. All of this has been explained to you before in the context of down cycles which at some point move to a zero equilibrium - baring some enlightened intervention which is highly unlikely.  

Intervention between 2008 and 2010 missed by a country mile but somehow managed to enrich the dastardly "banksters" who created this mess in the first place. The cause of what is now semantically presented as the "Great Recession" is no more than demons dancing on the head of a pin. The cause of all this mess is singular and so large that it defies conceptualization.

The cause of the Great Recession is the damned OTC derivative manufacturers and distributors. It is called a "real estate collapse" but again this is a semantic message for the OTC Derivative Securitized Mortgage Debt debacle.

The OTC derivative market has continued to grow, with Credit Default Swaps, another fraud, having a snowball in hell's chance of functioning when the spectre of  default again threatens Western finance.

As soon as the sharks finish their feeding frenzy on the euro, the dollar will come up next in their crosshairs. It looks to me as if the minor euro nations do not offer large enough opportunities for the destroyers of wealth that Greece did.

Mark my words when I say that gold will reach for the stratosphere, trading at $1,650 and above sooner than many people think.

Being in gold and avoiding the US dollar no longer just constitutes a trading situation but a financial survival exercise.

Stay the course and win. Vacillate and you join the sheeple.

Respectfully,

Jim Sinclair


More later.

34 comments:

  1. A little Turd with the Monday Morning coffee goes a long way. Thank you Turd!

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  2. Yes, sir. Coffee and a donut works every time.

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  3. great work fellow doomer......looking very solid this am......as expected

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  4. Bought Hecla (HL) at $10.95 Today! I also own AXU

    Long gold AEM, (main position) FRG, NG and tons of QNMNF. and Kinross Gold warrants

    Also long physical gold, silver

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  5. Gold is just itching to pop 1400.

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  6. The suppression gets hard as the physical drips away.With all the problems affecting the economic system something will start to give soon.Physical is the only protection.Buy those f****n dips man.

    Buy Silver,take down a bank,its your patriotic duty.

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  7. Heat: FRG on fire this morning.

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  8. Wow, the bottom really dropped out of the USDX.

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  9. Would be nice to see the EUR/USD get up above 134.50

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  10. zzz28 Right on! it showed relative strength on Fridays selloff. Go FRG!

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  11. I was a little off target on Friday: ben said...
    "Looks like we're headed for some sort of movement before the end of the day...up or down. Hopefully UP is the way for the Silver spot. golden cross on the 15min chart is possible.....I'd love a close of $28.80 or so today."

    There's still a lot of people playing the charts in this crazy market. Turd's drop below 79.90 call added to that perfect storm. Looking at other chart technicals, we may sit in this range for a little while...unless the EE decides to play with the darn thing again. We have momentum...Also watching that Crude chart...if that thing springs over $97 a barrel, all bets are off...I think we will see our $33 Silver resistance area. My guess at least.

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  12. With the rising price of Silver the EE are in a very tight corner,if they force down the price with paper the more physical disappears,however when the price rises it shows fiat vehicles,currencies,stocks,bonds,etc,to be worth lese and less.The positions taken in Copper by JPM are to try to gain liquidity to buy off the Silver paper before it matures into physical they can,t afford to loose.Whatever happens they have a short term breathing space,long term they are buried.The real interesting thing now is China in Copper.Having huge stockpiles,do they sell into a rising copper price to purchase G & S along with their relentless purchases to get rid of devaluing $ assets or do they flood the market,take down the price of copper and in effect help take down JPM.
    This is on top of,
    European situation,G & S at any time could be purchased on mass as the Eurozone disappears into the abyss.
    Bonds dropping.
    Currency wars.
    Pensions and stocks tanking for the private individual as they realise paper fiat is no defence.
    QE money spilling into PM markets.
    Banks and the financial system being bankrupt as increasingly worthless paper is printed in larger quantities to keep the Ponzi going.
    We are still climbing the Wall of Worry,what will frenzy and mania be like.

    Very interesting times ahead.Keep up the Good work Turd.The truth hurts the EE and knowledge is power.

    Buy Silver,take down a bank,its your Patriotic duty.

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  13. What's up with the dollar...dropping like a stone!

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  14. Massive gold coil compression between 1393 to 1399...major price surge above 1400.

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  15. Heat...

    You might want to consider IMPACT Silver Corp (IPT) to your list of recent acquisitions

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  16. This comment has been removed by the author.

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  17. IPT is iParty Corp. They operate temporary Halloween stores.

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  18. Collected quite a few mining stocks since Nov-23, mostly following the suggestions by Turd and ZH folks. So far my favorates are: SLW, PSLV, FR, SAC, GPR, EXK, HL, CMA.
    I will add FRG and IPT. Cheers to Heat and Doug~!

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  19. Have a look at PAL. It's a palladium stock that's up 35% since I bought it in late Oct.

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  20. Looks like we are gonna test that $29.70 again. I would like to see Silver spot test $30.00 tonight. Let's see what's in the cards.

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  21. Blythe says that those of you buying silver mining stocks need to be acutely aware that you are ultimately buying paper, and not real assets. In the event of a dollar crisis there will be acute pressure to nationalize precious metals mining operations, c.f. Chilean copper and current calls for nationalization of gold mines in SA and Venezuela. Your equity rests on the rather shaky legal structures of foreign jurisdictions, most of which are third-world countries.

    If it isn't physical, under your lock and key, then you don't own it.

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  22. Thanks blythe. I'll take that advice for what it's worth ; )

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  23. did you guys see that bull crap on bloomberg today saying that gold is going to out preform silver because the gold to silver ratio was getting "so low" in the 46 to 1 area??

    i had a good laugh...

    http://www.bloomberg.com/news/2010-12-13/gold-may-outperform-silver-lifting-ratio-technical-analysis.html

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  24. Blythe does make a good point. During a national/global crisis paper can be cancelled with just a few key strokes and property comandeered by the government. A sockful of silver coins will be worth its weight in gold.

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  25. Hey Blythe, I checked out some pictures of you over the weekend. You're actually semi-hot, for your age that is. Must be tough getting older.

    I see you are involved in breast cancer charity. Perhaps St. Peter will give you a few points for that.

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  26. Blythe on CNBC..dated video:

    http://www.cnbc.com/id/15840232?video=1310002361

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  27. to cmill: that's the danger with "technical analysis". too often it is unaware of what fundamentals are driving the market. in the case of silver, it has been outperforming gold, and is likely to continue to do so. so a 47 gold to silver ratio, although low when measured over the last few years, is trending lower and there are good reasons for it to keep going lower. meaning silver will likely outperform gold for a while yet.

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  28. JB,

    IMPACT Silver IPT is Canadian based to consider on US Pink Sheets look up ISVLF...

    Owned PAAS since 2003, Sold recently to take advantage of the Junior names and many of those are on the Vancouver exchange.

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  29. dd, thanks for the Blythe interview link. Did you notice her expression when asked if the PM market is being manipulated? Priceless!

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  30. Interesting article describing the influence of the SCO (Shanghai Cooperation Organization) on the gold markets. The article states that there is a conscious effort on their part to accumulate gold and silver and dump dollars. They also want to back their currencies with gold.

    http://buygoldsilver.org/2010/11/global-currency-crisis-gold-whats-really-going-to-happen-2011-2012/

    These member nations are truly BoS since they collectively contain 1/4 of the world's population.

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  31. Thanks Doug,

    I will check it out and maybe buy off support

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  32. JP Morgan Admits Defeat, Cuts Silver Short Position, Proves Millions Of Conspiracy Theorists Absolutely Correct!

    Read all about it!

    Zerohedge.com

    As I said last night, Karma has a funny way of sneaking up of evil mother fuckers!

    I raise my glass with all my brothers and sisters to the Death of the New World Order and the EE. Standing Salute!

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  33. eToro is the ultimate forex broker for beginning and advanced traders.

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