A weakening dollar overnight has given us quite the rally in our precious metals. As noted in the last post, I expect the dollar to explore the lower end of its recent range and this should give additional support to the metals. Again, I'm hoping both metals can trade this week back up toward their most recent intraday highs of 1415-20 and 30.25-50. This will set the stage for the new year blastoff of the next UP leg.
In the short term, I offer you these three charts for some perspective on the silver market. Note that, post-1980, silver has not
closed above $30. In fact, the closing highs from three weeks ago are 29.74 and 29.78. These are the first levels to watch. As you can imagine, a close above $30 will really get the algo machines humming, particularly if we can finish the week there.
I'm going to be somewhat tied up today as I am opening another business this week. You can bet that I'll be keeping a close eye on things, however, and I'll check in again if conditions warrant.
Have a great day!
XAG/JPY is another pair worth watching, if silver can breakout against a currency currently in deflation, its not just a debasement trade but real appreciation against all other hard goods.
ReplyDeleteIt feels like I have been waiting weeks to see an open like this one! Glad to see the patience has paid off!
ReplyDeleteLong, valuable lecture by Jim Rickards:
ReplyDeletehttp://outerdnn.outer.jhuapl.edu/rethinking/VideoArchives/MrJamesGRickardsPresentationVideo.aspx
He thinks it's possible that the US will go back onto a Gold standard of some kind. China has been buying/acquiring gold on the quiet for years via its State Administration of Foreign Exchange. SAFE buys the gold, then flips it via an accounting entry to the PBoC, who then reports a "sudden" increase in gold reserves.
In terms of reserve assets vs GDP, US, Germany, and France are gold superpowers, China isn't. China is trying to catch up.
Turd, this move has nothjing to do with the dollar, it's one of those great days where it's up vs. every currency.
ReplyDeleteYes, Pat, ain't it great?! I love days like this as it supports our general thesis that gold and silver are the ultimate currencies.
ReplyDeleteThe right trade in this market is not trading.
ReplyDeleteThe entry point is everything.
Gold is the "last man standing" according to Richard Russell the guru of guru's.
You are watching the death dance of Socialism. Gold is the enemy of the welfare state.
POP! $29.97 last!
ReplyDeleteAnd my wheat is $7.97! Go daddy, go! A close above $8 and its headed to $8.60 real fast.
ReplyDeleteSLW SSRI ANV all racing.....
ReplyDeleteHoly Toledo, look at it go! $30.06 last!
ReplyDelete@PAT, @Turd,
ReplyDeleteThe move might be triggered by dollar index moving down overnight, but it's true, in general gold is going up for the last decade in every currency. This means it goes up regardless the temporary direction of the dollar against other currencies. REMEMBER, IT IS NOT THE PRICE OF GOLD GOING UP, IT IS THE VALUE OF FIAT CURRENCY GOING DOWN.
http://www.commoditypress.com/2009/12/05/nederlands-investing-in-gold-just-dollar-play-not-really/
To put it in Alan Greenspan’s words: (excerpt from Gold and economic freedom, 1966)
ReplyDelete“The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”
TRE also- Santa Sinclair. Christmas arrives 3 days late
ReplyDeletea song for today, bitchez!
ReplyDeletehttp://www.youtube.com/watch?v=LK0CJqMK6f0 - Pixies, Gigantic
Having trouble pasting. Anyway Cafferty Faucher lawfirm class action lawsiut against JPM and HSBC
ReplyDeleteallow me sir,
ReplyDeletehttp://pymnts.com/cafferty-faucher-llp-files-class-action-lawsuit-against-jpmorgan-and-hsbc-alleging-manipulation-of-silver-bar-financial-products-20101227005224/
Anyone remember Turds post with all the charts on other commodites. Something about those charts needs no explanation. I need to educate someone I have converted to PM's.
ReplyDeleteThe next hour and a half should be interesting. $30.20 at noon and rising. Fun Day!
ReplyDeleteI absolutely love seeing the PMs rally right alongside the cancer ridden buck!
ReplyDeleteNobody has mentioned Silver is 30.23 and climbing right now???
ReplyDeleteThis is absolutely ridiculous. Hedge yourself in silver miners!! Especially junior silver miners which have 400-600% gains coming their way to get back to previous 24$ silver levels!!!
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http://thehardrightedge.com
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Scott J
US peeps, how long till COMEX close (hours) ?
ReplyDeleteCloses at 13:25EST, 18:25UTC, about an hour from now.
ReplyDeleteI guess they'll draw the line at a "triple top"......hehehhehe
ReplyDeletethanks!
ReplyDeleteHiyoooooooo Silver, Awaaaaaaaayyyy!
Ol' man Butler suspects EE is short covering like crazy.
ReplyDeleteHey Turd shoot me an email crinerinvestments@yahoo.com. I got something you might find interesting. Would like to get your opinion on it. Thanks.
ReplyDeleteLook at that gold silver ratio on my spreadsheet, on it's way down to the rightful ratio of 16 to 1 or less:
ReplyDeleteclick here for spreadsheet
Chris: email me at tfmetalsreport@gmail
ReplyDeleteYes, nice short squeeze today but be careful, it IS Tuesday, after all, and the EE already shot all of their short bullets last week.
I'm working on a "cautious" post now. Look for it soon.
I am somewhat new to owning junior miner stocks. Are we supposed to be taking some profits on days like this?
ReplyDeleterm: Yes. Or on the open tomorrow.
ReplyDeleteDammit, I take off the week between Christmas and New Years and all Hell breaks loose. Blythe is going to kick some minion ass when I get back to the office next week.
ReplyDeleteToday's action is great, but I'm sure the EE will be back. Bought me a handful of SLV puts....
ReplyDeleteThe request was made by a defence lawyer for Private Bradley Manning, 23, as he appeared at a military court.
ReplyDeleteHe faces 22 charges of obtaining and distributing government secrets - which he allegedly leaked to anti-secrecy site Wikileaks.
The Article 32 hearing will determine whether Pte Manning is to stand trial.
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Vladimir Putin has declared victory in Russia's presidential elections, returning for a third term after spending the last four years as the country's PM.
ReplyDeleteExit polls and preliminary results gave him about 60% of the vote.
Mr Putin told supporters at a rally in central Moscow they had won in an open and honest battle.
But opposition groups have reported widespread fraud, with many people said to have voted more than once.
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