Monday, January 28, 2013

No Time Like The Present To BUY PHYSICAL SILVER

I added to my physical Silver holdings this morning, did you?  I purchased Silver this morning at 30.77 spot, did you?

With options expiration today in the February COMEX Gold futures, and Silver hovering above its 200 Day moving average at 30.60, it was an easy call if you believe in the upside for the price of Silver.  Today just may have been the last chance to purchase Silver below $31 an ounce ever again...but then in this rigged game, who can be sure about anything relative to price.

A monthly chart of Silver just might help convince you that NOW is the time to be accumulating more physical Silver before this train leaves the station once again.

Please click on the chart below to enlarge:

If a picture is worth a thousand words, this MONTHLY chart of Silver worth 1000 ounces!

As you can see on the chart, Silver is presently coiling into the apex of a Symmetrical Triangle:

The symmetrical triangle, which can also be referred to as a coil, usually forms during a trend as a continuation pattern. The pattern contains at least two lower highs and two higher lows. When these points are connected, the lines converge as they are extended and the symmetrical triangle takes shape. You could also think of it as a contracting wedge, wide at the beginning and narrowing over time.  [read more here]

Considering the existing uptrend in Silver since 2003, it should be considered highly likely that this Symmetrical Triangle marks a consolidation period in the price of Silver before it breaks higher.  Frustrating as it has been to watch Silver drift sideways in a $10 trading range for the past 15 months, a break towards new highs may be only weeks away now.

As you can see on the chart, Silver has been capped at $35 since September of 2011.  This cap is believed to be courtesy of the Evil Empire housed at JP Morgan.  I submit that whatever their involvement in the suppression of the price of Silver, it is difficult to argue that the 38% retracement of the fall in Silver from the May 2011 peak to the August 2011 low has also played a significant "technical" role in this cap on the price of Silver at $35 an ounce. 

I submit to you now that a break of the topside trendline of this Symmetrical Triangle will trigger a break of the cap at $35, and subsequently result in a very swift and powerful move higher in the price of Silver over the ensuing months.

A break of this trendline and cap projects a move higher in Silver by up to $30 an ounce.  That's $65 an ounce people.  I consider it highly unlikely that even the "Criminals of the CRIMEX" can take Silver much lower from where we are now.

If you have been waiting to add to your Physical Silver holdings, or are looking to establish a position in the "Best Investment Of Our Generation", there may be no better time than the present.


What To Expect After This Week’s Gold & Silver Smash / January 26, 2013
There has been a great deal of propaganda from the Fed and mainstream media claiming that the world is on the road to recovery. Today one of the wealthiest and most street-smart pros in the business spoke with King World News about the reality of what is really taking place, the gold and silver smash, and where markets are headed from here.
Rick Rule, who is the CEO of Sprott USA, said, “We are in the midst of a commodities super cycle of the same dimension we experienced in the 1970s.”  The 1970s was an extremely difficult period, and it eventually culminated in a flight from fiat currencies into gold as the world experienced a period of tremendous turmoil.
Here is what Rick Rule had to say: “We are in the midst of a commodities super cycle of the same dimension we experienced in the 1970s … By the way, I don’t disagree that there are attempts being made to suppress the price of gold, but the market is bigger than the morons who are trying to suppress it.  As far as I’m concerned, the harder they try to suppress it, the bigger the ultimate move will be.
At some point in time rational people, people who can add and subtract, are going to say, ‘Would I rather have my wealth held in the form of a floating abstraction, like a euro, yen, or US dollar?  Or would I rather have an asset that is not simultaneously somebody else’s responsibility?  Something that can’t be printed and counterfeited.’
My suspicion is that over time, more people will become comfortable with gold than they are with fiat currencies … The Chinese government isn’t trying to suppress the price of gold.  It’s encouraging Chinese individuals to own gold….

An Inside Look at the Rapidly Escalating Physical Silver Shortage
Silver Doctors

On Thursday, we alerted readers to the fact that the US Mint had sold out of Silver Eagles, selling over 6 million ounces over the first 9 days of sales in 2013, and was shutting down sales and production of Silver Eagles through at least 1/28, and would ration sales of eagles upon resumption of sales. 
With a rapidly growing presence in the retail gold and silver market via SDBullion, we have had a unique perspective of the escalating physical silver shortage, and would like to give our readers an inside glimpse of the time-line of events evidencing a growing shortage of physical silver.
Full time-line of the developing silver shortage from a wholesale perspective is below:
Silver Shortage Time-Line:
Mid December 2012: US Mint announces 3 week halt of Silver Eagle production as the Mint transitions to 2013 Silver Eagles.   Wholesale premiums and retail pricing of Silver Eagles do not change. 
Late December 2012:  Wholesale premiums begin noticeably rising on 90% silver -pre-1965 coins. 
Monday 1/7:  US Mint begins sales of 2013 Silver Eagles
Monday, 1/14:  Wholesale suppliers run out of 90% face pre-1965 silver coins.  Wholesale premiums rise 2-3 fold, and suppliers quote 3 week delays.
Tuesday 1/15:  SDBullion’s primary supplier informs us that premiums on generic 1 oz rounds are doubling, effective immediately, with a 1-2 week delay on delivery.  Delivery on previously placed orders are also delayed 1 week.
Wednesday 1/16: Rumors begin to circulate that premiums on Silver Eagles and Silver Maples are set to jump .75/oz imminently.  All major suppliers deny the rumor, and state they expect premiums to remain stable for the foreseeable future.
Thursday 1/17: 9am:  SDBullion’s suppliers all confirm ASE’s are in stock at standard premiums. 
Thursday 1/17: 3pm: US Mint sends the following communication to authorized purchasers:
Authorized Purchasers,
The United States Mint has temporarily sold out of 2013 American Eagle Silver Bullion coins. As a result, sales are suspended until we can build up an inventory of these coins. Sales will resume on or about the week of January 28, 2013, via the allocation process.
Please feel free to call us if you have any questions.
Jack A. Szczerban
Branch Chief, Precious Metals Group
Department of the Treasury
United States Mint
Thursday 1/17: 3:30 pm: SDBullion’s primary ASE supplier raises premiums by .75/oz. 
Thursday 1/17: 5pm:  SDBullion’s primary ASE supplier is sold out of 2013 Silver Eagles
Thursday 1/17: 5:30pm: advises readers that the US Mint is sold out of 2013 Silver Eagles
Thursday 1/17: 6pm: SDBullion is forced to raise premiums on 2013 Silver Eagles as wholesale supply is rapidly vanishing, and premiums are skyrocketing.
Thursday 1/17: 9pm: sells out of all remaining 2013 Silver Eagles
Friday 1/18: 9am: SDBullion is able to procure a small order of 2013 ASE’s from a secondary provider for .75 over normal wholesale premium.
Friday 1/18 3pm: Nearly all wholesale bullion dealers are sold out of 2013 ASE’s, wholesale premiums have risen by nearly $1.50 for those wholesalers with any remaining (and rapidly diminishing) inventory.  
Friday 1/18: 4pm: SDBullion’s primary supplier refuses to honor the new and increased pricing for 1 oz generic rounds agreed to 48 hours prior
2013 Silver Eagle retail availability As of Sunday 1/20/2013:
Apmex: Sold out
Provident: Sold Out
Tulving: Sold Out
Scottsdale: Sold Out
SDBullion: Under 500 oz remaining, with one last inventory order en route.
With the US Mint not scheduled to begin resumption of ASE sales for another 8 days, at which point it will begin sales with rationing/ allocation, expect premiums on Silver Eagles to continue escalating, and expect supplies of alternate forms of physical silver coins and rounds to begin drying up, as investors turn to Silver Maples, Philharmonics, generic rounds, 10 oz and 100 oz bars as alternatives to the skyrocketing premiums Silver Eagles are commanding.

With shortages causing panic buying among silver investors, much the way that the recent gun and ammo shortages and threats of gun confiscation have caused massive demand and 2-3 fold increases in prices of guns and lead futures, a similar situation could easily develop quickly in the silver market, particularly with the fact that silver is a Giffen good, and is an extremely small market.

Embry - Powerful Entity Now Battling The Silver Manipulators

Today John Embry told King World News that a powerful entity is now battling the powers that be in the silver market.  Embry, who is Chief Investment Strategist at Sprott Asset Management also spoke about the increase in net-long contracts in the face of the declining silver price, the silver shortage, as well as the gold market. Here is what Embry had to say in this powerful interview:  “I’m focused on this vicious takedown of gold and silver that’s been ongoing for the last month and a half.  I’ve been following this story for the better part of 15 years and I can honestly say I don’t think I’ve ever seen a more intense, day after day takedown.”

John Embry continues:

“When London opened gold and silver were driven down for about ten consecutive days.  The COMEX PM close was lower than the AM opening.  This just bespeaks very aggressive manipulation.  The question I ask myself is, ‘What’s bothering them?  Why do they feel they have to do this?’

I think there are a lot of reasons....


1 comment:

  1. Silver still looks like an oustanding buy even at current prices. Adjusted for inflation silver has not really increased much at all in value.