I recently suggested that Silver would be the beneficiary of the recent CME margin increases in Gold on the CRIMEX. We may find out very soon if this is to be true.
The September CRIMEX Silver contract goes into delivery tomorrow. Our criminal Banking Cartel finds themselves with their backs up against the wall heading into delivery. I will let Harvey Organ give you the details:
The total number of notices that wish to be served for silver metal stands tonight at 3194 or15,970,000 oz.
The total number of notices served on first day notice was only a tiny 173 for 865,000 oz.
The total number of notices to be served remains extremely high at 3021 or 15,105,000.
It seems that Blythe will have her hands full trying to satisfy all of our longs.
Thus the total number of silver standing this delivery month of September is
865,000 (oz served) + 15,105,000 (oz to be served) = 15,970,000.
Also remember that we have close to 4 million oz of silver from last month's option expiry.
Thus almost 20 million oz must be eventually served and settled upon.
Total registered (dealer) inventory is 32.146 million oz. The Banking Cartel has this small pile of Silver to meet delivery demand with. The month of September should be filled with volatility as the Banking Cartel seeks to meet delivery demands. Recall that registered Silver is available for meeting delivery demands, but the banks being served delivery notices my not own a sufficient portion of the pie to meet demands on them. This will result in a short squeeze unless contract holders can be convinced to settle for a cash premium instead of physical Silver bullion.
In the just completed CRIMEX August Gold delivery, 12,124 contract holders representing 1.212 million ounces of Gold stood for delivery at First Notice. By the end of August, ONLY 8220 contracts representing 822,000 ounces of Gold were actually given physical bullion. 3904 August Gold contract holders accepted cash premiums to fore go delivery of physical Gold in August. The short squeeze in August, because of a lack of physical bullion to members of the Banking Cartel, was massive. Gold rose $300 from August first to August 23. Could a similar fate be awaiting the CRIMEX Banking Cartel this September Silver delivery month that began today?
From Zero Hedge
Gold has stolen the limelight from silver in recent weeks with gold reaching a series of new record nominal highs.
But silver has been quietly consolidating after the sharp falls seen at the end of April and in early May when many claimed the silver ‘bubble’ had burst.
Media coverage of silver remains nearly nonexistent which is bullish from a contrarian perspective.
Technically silver is looking better by the day and is now trading not far above its 50 and 100 day moving averages (see chart above).
Today the 50 day moving average is trading at $38.70/oz and the 100 day moving average is trading at $38.74/oz. The 50 DMA is rising after recent price gains and looks set to cross the 100 DMA in the coming days. This will be a bullish technical signal.
Silver’s sell off was very sharp but volatility and a correction was expected and warned of once silver reached the nominal inflation adjusted high of $50 per ounce.
There are many factors that strongly suggest that silver remains a prudent buy and diversification today.
But there are three key metrics which strongly suggest that silver remains far from a bubble if not undervalued.
The first is silver’s real price today adjusted for the inflation of the last 31 years. Silver’s real high in 1980 was $130 per ounce – more than double the price today.
The second is the gold silver ratio which has averaged 15 to 1 throughout history due to geology and the fact that there are 15 parts of silver to every 1 part of gold in the earth’s crust.
Silver, unlike gold, is an industrial metal and a very significant amount of all the silver that has even been mined has been consumed, like oil, since the dawn of the industrial revolution in the 19th century.
Most analysts with a long term view believe that the ratio is likely to revert to the mean of 15 to 1 in the coming years.
The third metric is comparing silver’s current bull market to that of the 1970’s.
Silver has risen by a factor of 10 in the last 9 years – from near $4 in 2001 to over $41 today.
In its bull market from 1971 to 1980, silver rose by over 3,199% or by a factor of more than 32 in just 9 years culminating in the blow off top in 1979.
Today, the physical supply of silver bullion is much less than in the 1970’s. Also there is the ‘Asian factor’ and 3 billion people with growing incomes, many of whom see silver as a store of value against currency depreciation.
Demand for silver in Asia has been increasing and in China alone silver demand is increasing from a near zero base. The demand was not present in the 1970’s.
Were silver to replicate the performance of the 1970’s it would have to rise 32 times or to $130/oz (32 X $4.05).
Interestingly, $130/oz is also silver’s real high from 1980.
But silver has been quietly consolidating after the sharp falls seen at the end of April and in early May when many claimed the silver ‘bubble’ had burst.
Media coverage of silver remains nearly nonexistent which is bullish from a contrarian perspective.
Technically silver is looking better by the day and is now trading not far above its 50 and 100 day moving averages (see chart above).
Today the 50 day moving average is trading at $38.70/oz and the 100 day moving average is trading at $38.74/oz. The 50 DMA is rising after recent price gains and looks set to cross the 100 DMA in the coming days. This will be a bullish technical signal.
Silver’s sell off was very sharp but volatility and a correction was expected and warned of once silver reached the nominal inflation adjusted high of $50 per ounce.
There are many factors that strongly suggest that silver remains a prudent buy and diversification today.
But there are three key metrics which strongly suggest that silver remains far from a bubble if not undervalued.
The first is silver’s real price today adjusted for the inflation of the last 31 years. Silver’s real high in 1980 was $130 per ounce – more than double the price today.
The second is the gold silver ratio which has averaged 15 to 1 throughout history due to geology and the fact that there are 15 parts of silver to every 1 part of gold in the earth’s crust.
Silver, unlike gold, is an industrial metal and a very significant amount of all the silver that has even been mined has been consumed, like oil, since the dawn of the industrial revolution in the 19th century.
Most analysts with a long term view believe that the ratio is likely to revert to the mean of 15 to 1 in the coming years.
The third metric is comparing silver’s current bull market to that of the 1970’s.
Silver has risen by a factor of 10 in the last 9 years – from near $4 in 2001 to over $41 today.
In its bull market from 1971 to 1980, silver rose by over 3,199% or by a factor of more than 32 in just 9 years culminating in the blow off top in 1979.
Today, the physical supply of silver bullion is much less than in the 1970’s. Also there is the ‘Asian factor’ and 3 billion people with growing incomes, many of whom see silver as a store of value against currency depreciation.
Demand for silver in Asia has been increasing and in China alone silver demand is increasing from a near zero base. The demand was not present in the 1970’s.
Were silver to replicate the performance of the 1970’s it would have to rise 32 times or to $130/oz (32 X $4.05).
Interestingly, $130/oz is also silver’s real high from 1980.
The charts below show a Silver price consolidating following the May assault by the CME and the CRIMEX Banking Cartel. In the future this will be looked back upon as the banking Cartel's "Last Hurrah" in the suppression of Silver and their defense of today's crumbling global fiat monetary system.
Silver has been marking time, and fueling up for a major thrust higher. A large Ascending Triangle has formed below the $43.58 opening price of the May 1, 2011 drive by shooting of Silver. This top on the Ascending Triangle is the launch trigger for Silver to lift off to new ALL-Time highs above $50. The fuse on this Silver Rocket will be lit on a close above 42.
It is not too late to begin accumulating physical Silver bullion. As each day now passes, it is becoming less likely that the opportunity to purchase Silver below $40 an ounce will present itself. With the MACD on the weekly Silver chart now Bullish, it is highly recommended that all dips in the price of Silver be bought going forward into the Fall.
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