Silver price discussion and analysis

[explod]

Most argue that gold is not money, Fed Reserve Chairman Ben Benanke just recently and in particular made this clear to the US Senate Committee of Finance.

On silver there are many saying it is even further removed and its role will be purely industrial.

To me the arguments on these basis mean little. They both have intrinsic value. They are both scarce and to a growing number there is sentimental value as a store of wealth and protection against both inflation and deflation. And a point here, inflation includes everything that is going up, even the Stock Market rising is an inflationary factor. Of course the systems bean counters will/do not include it and argue vehemently that this is not the case, but have a think about it.

They are also both a very small part of the overall financial market, in fact a fraction of it. Just a small amount of renewed interest to a finite resource amounts to a lot.

Silver gets used up industrially so there is in fact less of it above ground than gold. It is becoming very sought after in medicines, phones, computers, alternative energy engines and solar panels just to name a few.

However a lot of very wealthy people around the globe are stockpiling huge amounts of the stuff too before the word gets out too much. I did a few years back and payday will come.

One could go on and on but as I said on another thread, it is surely worth having a bit of a read up on.

And just one I picked up an hour ago for starters. And will look for more over the evening between serves. Just at the beer stage now.

http://www.foxbusiness.com/markets/...-crushes-every-asset-class-ytd/#ixzz1nisqdplg

 

[Trex123]

any comment where is silver heading next week?

 

[explod]

any comment where is silver heading next week?

One can only guess, but on our current dollar situation here in Auz., and the dip in silver played out for the moment I think, will be buying some more physical this week.

 

[Trex123]

Resistance of silver?

 

[explod]

Resistance of silver?

Do not follow your question, can you elaborate Trex?

 

[Logique]

any comment where is silver heading next week?

It's only guesswork, but I expect it to consolidate in a tight range 34 - 35.

 

[explod]

"JP Morgan Increases Registered Silver Inventories 500% OVERNIGHT
Posted by The Doc on April 27, 2012 05:05


Something BIG is going down. First Blythe appeared on CNBC 2 weeks ago claiming that JP Morgan holds its metals positions on behalf of clients, then the CFTC moved 1 step closer to finally implementing position limits last week with their meeting discussing swaps, and today we have the kicker:

JP Morgan adjusted 5 million ounces of silver into dealer (registered) vaults Thursday, increasing their registered inventories 500% OVERNIGHT!!!"

http://www.silverdoctors.com/

They also discuss a 5 to 1 ratio to gold

 

[CanOz]

The weekly of the ETF, SLV.

 

[Starcraftmazter]

Saw this yesterday, pretty good.

[video]https://www.youtube.com/watch?&v=dMY0uPMl-6I[/video]

 

[reggiedunbar]

Any stackers in here? What are you buying and when are you buying? I have American Eagles and am considering getting some Maple Leaves. They are the only silver coin that is .9999 and they have the highest face value at 5 CAD. They're also slightly cheaper than Eagles and Koalas.

 

[explod]

Picked this up on the GATA site

http://www.gotgoldreport.com/2012/07/comex-silver-futures-skewed-short-potentially-explosive.html

 

[factseeker]

Picked this up on the GATA site

http://www.gotgoldreport.com/2012/07/comex-silver-futures-skewed-short-potentially-explosive.html

Thanks explod for the recommendation. I watched the entire video. It was one of the best silver price technical analysis that I have heard to date.

 

[Joules MM1]

worth reading, if only to figure the silver/gold ratio

http://www.zealllc.com/2012/silvund.htm

excerpt

Before the stock panic, silver’s correlation with gold was very tight both visually and statistically. Silver had a pre-panic r-square with gold of 94.7%. This means nearly 95% of silver’s daily price action was statistically explainable by gold’s own! Silver was truly a leveraged secondary play on the gold price, rallying when gold was strong and selling off when gold was weak. Gold overwhelmingly drove silver.

But the stock panic’s extreme fear radically disrupted this historical relationship. While gold plunged 27% between July and November 2008, silver plummeted 53%! This dragged silver to a 34-month low, while gold only hit a 14-month low. Silver was simply too low relative to gold, creating an incredible buying opportunity as I discussed just after the panic. Silver would have to soar to reestablish this relationship.

Interestingly during the panic, silver’s r-square with gold plunged to 52.5%. Only half of its daily price action was statistically explainable by gold’s own. This brings up a second important point for silver traders to understand. While gold is silver’s primary driver, the stock markets sometimes usurp it. Major stock-market down days generate so much fear that it spills into silver and taints this hyper-speculative metal’s sentiment.

The bottom line is silver is now quite undervalued relative to gold. It has been losing ground compared to its primary driver for over a year now following a massive mini-mania spike. But the selling in recent months has been excessive, driving silver too low relative to prevailing gold prices. So silver is likely to outperform gold in this year’s upcoming strong season for the precious metals, which is due to start soon.

 

[Joules MM1]

CFTC Commissioner Bart Chilton Comments on the Silver Investigation

By Christopher Barker
August 6, 2012

excerp

London's Financial Times dispatched some stunning news to silver investors awaiting the conclusion of a four-year investigation into allegations of silver price manipulation.

The article, entitled "Four-Year Silver Probe Set to be Dropped," reported that the investigation "looks increasingly likely to be dropped after US regulators failed to find enough evidence to support a legal case."

http://www.fool.com/investing/gener...ssioner-bart-chilton-comments-on-the-sil.aspx

 

[beatthemarket]

A bullish bottom wedge may form on Aussie Silver. This signal indicates that the price may rise to the range of A$30.10/oz to A33.80/oz. A Bottom Wedge is considered a bullish signal, marking a possible reversal of the current downtrend. The pattern is formed during a downtrend and shows two trendlines converging. The technical event occurs when the price breaks upward out of the Wedge formation and closes above the upper, falling trendline, thereby confirming the pattern.

A bullish weekly Moving Average Convergence/Divergence (MACD) signal may form on Aussie Silver. This technical signal indicates that the recent medium to long-term directional downtrend has changed into a medium-term directional uptrend, in line with the long-term uptrend. MACD is a computation of the difference between two exponential moving averages of closing prices. This difference is charted over time, alongside a moving average of the difference. A bullish signal forms when the MACD computation crosses above the signal line

 

[Trembling Hand]

Beatthemarket you charge for that work?

And what is "Aussie Silver"?

 

[Bushman]

Beatthemarket you charge for that work?

And what is "Aussie Silver"?

Link down the bottom is to a BBY web-site. So yes if you sign up as a BBY private wealth client.

 

[sinner]

And what is "Aussie Silver"?

It's a FOREX pair code, XAG/AUD ...there's also ETPMAG on the ASX.

 

[Joules MM1]

Silver Hoard Near Record as Hedge-Fund Bulls Recoil: Commodities

By Nicholas Larkin - Aug 14, 2012 10:32 PM GMT+1000

excerpt

At a time when hedge funds are the least bullish on silver in almost four years, investors’ holdings are near a record, siding with the analysts predicting a rally as central banks move to bolster growth.

Speculators cut bets on higher prices by 72 percent since the end of February, mirroring changes in their copper wagers, which turned bearish in May, U.S. Commodity Futures Trading Commission data show. Silver held in exchange-traded products climbed for three months and is now valued at $16.2 billion, according to data compiled by Bloomberg. Prices will average $33.02 an ounce in the fourth quarter, 18 percent more than now, the median of 13 analyst estimates compiled by Bloomberg show.

More Bullish

Hedge funds may be getting more bullish, more than doubling their net-long position, or bet on higher prices, to 9,323 futures and options in the two weeks to Aug. 7, CFTC data show. That’s still 58 percent below the five-year average. Wagers fell to 2,888 contracts on June 26, the lowest since October 2008.

Options traders are divided.........

 

[Joules MM1]

i dont usually give hat-tips to private opinions.....exception here:


http://www.uncommonwisdomdaily.com/...us-1-red-hot-rumor-14777#.UDYpcMKrr0A.twitter

excerpt

I think silver could be poised for an explosive move higher.

This is happening at a time when, according to a Bloomberg story, U.S. Commodity Futures Trading Commission data show that “Speculators cut bets on higher prices by 72% since the end of February, mirroring changes in their copper wagers, which turned bearish in May.”

But do you know what else is happening? The holdings in silver Exchange-Traded Funds are climbing higher and higher.

Specifically, according to recent reports, investors bought 797 metric tons of silver through silver-backed exchange-traded products this year and now hold 18,093 tons, equal to more than eight months of global mine output.