Colonel_Reb said:
Don Wassall said:
Silver continues on its roll, up to $23.90 today. The gold/silver ratio is down to 57.31 to 1. A few weeks ago it was nearly 70 to 1. Historically it's been around 16 to 1.
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<div>Ted Butler is the leading source on the price manipulation of silver. If/when the manipulation is ended, the price may really take off. Given that it's as scarce as if not scarcer than gold and has many essential industrial uses, silver looks to be a better investment that gold.</div>
Thanks for lending some more credence to my claims about silver, Don! I'm very surprised though, to see silver going higher again this week. Maybe the blinders are starting to fall from more eyes than I previously thought.
I've been involved in the silver market for about 9 years now and watch the price patterns on a daily basis. The banksters (HSBC and JP Morgan Chase) used to be able to drive the silver price down at will. Between 8 and 12, they would just smash the price, trip the stops of the momentum traders, and then the price would cascade down. Ring the cash register. Wash, rinse, repeat. However, their Achilles heel has been the lack of above ground (and below ground) physical silver. Because the shorts have continuously and artificially held down the price of the shiny and useful metal, there's been no incentive for the miners to bring more silver to market. So now we have much less silver above ground than gold, and unlike gold, silver is absolutely necessary to run a modern society.
There is so little above ground supplies of silver now that the silver market simply will not be able to accommodate the investors' appetite for the physical metal without a price explosion. The Powerz and the silver users cannot afford to have investors buy the physical metal which is happening now. There is no above ground stock to speak of at this point. The United States produces about 40 million oz of shiny stuff a year, and about 30 million silver eagles were sold last year. The trend of physical buying is up, up, up. The silver users absolutely need the metal and cannot have a bunch of individual investors go and buy up their metal like the smart guys on this forum. Yet, it's a free world, and the smart people all over world--especially the Asians--are buying, and buying and buying, to the extent that the usual attempted price smash downs by the banksters are now failing.
I noticed a few months ago that any attempt at the 8-12 smash down was met with an abrupt turnaround. The daily price action has fundamentally changed and the big shorts (banksters) on the futures markets are being overwhelmed by PHYSICAL buying of the beautiful and useful stuff. The tag along small fry paper shorts can no longer rely on the easy money and have to cover their shorts now. Even with the recent price action, there's still a huge bankster short position that has to be covered--Ha, ha!! The weaker shorts where shaken out at 25-25.50 which rocketed our shiny friend even higher. The banksters then tried another smash down just before helicopter Ben whacked the champagne bottle across the bow of QE-2, THE MONETARY DEATH SHIP. Ha, ha. The downdraft last a hour or two and then the physical buyers came in with a vengeance and launched the shiny rocket once again as the declawed banksters observed helplessly on the financial tarmac with their fat bellies STILL stuffed with oversized short positions that still need to be covered. Sooner or later, they're going to have to puke those shorties up. Ha, Ha!!
Adding even more fuel to the fire is the fact that a CFTC judge and CFTC
commissioner have recently admitted that manipulation is occurring in the
silver market. The smart money has learned that the silver price has
been artificially held down. They smell the blood and are buying on any, any price
weakness. They have deep pockets and the silver market is really
small, small enough that a few billionaires and thousands of individual
small investors can route the paper manipulators. JP Morgan-Chase and
HSBC are being sued for manipulation in the silver market as I write.
We may get a little downward action here but I kind of doubt it will amount to much of anything. The fat silver shorts are utterly trapped and will need to cover. The best they can hope for is to briefly drive the market down and cover which then drives the price right back up as the physical buyers pounce (cat and mouse). The trapped shorts my get overrun at any moment, and if this happens, silver could easily DOUBLE in a matter of weeks. The gashed and bloody bodies of the paper shorts will litter the field as the smoke clears and the longs shout in triumph. In a way, I hope JPM and HSBC succeed one last time so we can all buy the good stuff at even a cheaper price.
My sources are saying China, the world's #3 silver producer, has announced that silver exports from China will plunge 40 percent. The physical silver is a very small market, just in the billions (not trillions) of dollars. Gold is much, much larger, and unlike silver, central banksters still have gold to sell into the market in order to suppress the price of gold. The paper silver market is much larger than the physical silver market, and there have been many more dollars of paper silver sold and pledged than there are silver ounces above ground. THE PAPER PROMISES/OBLIGATIONS HAVE ALREADY BEEN MADE. It will not take much physical buying (and hoarding) to completely overwhelm the paper silver market and the paper shorts. This is likely happening RIGHT HERE, RIGHT NOW!! Silver users will continue to need the real stuff, so sooner or later, they are going to panic and stockpile all the physical silver they can in order to survive as investors continue to pile into physical silver in a desperate attempt to save themselves financially. As the investors and users pounce on every crumb of physical silver available, the big silver shorts will be completely overrun and the price will gap higher and higher as they are smashed and have to cover. At that point, panic will really set in as the silver users go crazy on each ounce of silver that may become available. Quarterly reports from mining companies will show monster earnings, feeding the greed of the equities investors, especially the momentum idiots. At the same time, the media will be finally forced to really cover the silver story which will eventually attract Joe Sixpac, and the silver (and gold) frenzy will intensify even further. At this point, the price will explode even higher, perhaps to $200.00+ per ounce, and just about everyone will be talking silver, silver, silver. Well, you and I will know what to do at that point.
Yes, I see silver at $50+ in a very short time as the silver shorts are smashed. The Asian billionaires are pouncing on every shallow pull back RIGHT NOW. It's cat and mouse time. The strong Asian physical buyers are the cat, and the shorts are the mouse. Metals share prices will also explode because there are heavy, heavy criminal naked shorts on the miners as well. The price explosion to $50+ will hold, then the silver users will panic as the investors keep buying and buying the physical as all trust in paper silver erodes. This will vault the price even higher as there is no where near the amount of silver to even satisfy current demand, unlike 1980 when the refiners were choked with several months of backed up supply at the top. The public will finally jump in and the craziness will launch the price to $200+. Perhaps the price will then stabilize if the miners are not taken out by greedy and envious BigGovCorpocrats. If the miners are squeezed by the politicians via taxes (windfall profits, capital gains confiscation, etc.) and nationalizations, the shortages will intensify even further, and the price of the metal will get even crazier.
In the last silver bull, the price of silver went up about 38 times from a $1.29 to about $50.00. The price of gold when the bull started was $35.00. There was plenty silver above ground and available at the end of the bull and the refiners were choking on supply. Even so, the price of silver at the end of the bull exceeded the price of gold at the beginning of the bull. The silver/gold ratio at the end of the bull was 16/1.
In the present silver bull, the price has risen about 6 and a half times so far from $4.00 to about $26.75. The price of gold when the current gold bull began was about $250.00. The stockpile of silver has evaporated. The silver refiners are not backed up at all. Yet, silver has not even come close to matching its previous nominal high in 1980, unlike gold, which has exceeded its nominal high of about $850.00 in 1980. Big Ben and his merry band of counterfeiters are destroying the fiat dollar and economic conditions are much, much worse now than in the late 1970's. Certainly a 38x price increase in silver is a low ball figure in the current bull. That would put silver at about $156.00. However, silver will likely exceed the price of gold at the beginning of this bull just like what happened in the last bull which is over $250.00.
Jim Sinclair accurately predicted the price of gold at the top of the last bull ($850) by taking the amount foreign debt owed by the USA and dividing it by the number of gold ounces held by the USA. Using this calculation, the price of gold in the present bull will reach $10,000+. In my opinion, the silver ratio likely get close to the historical 16/1 ratio. That would put silver at $625+ per ounce.
What am I trying to say? Buy, buy, buy!!!!
Buy all the physical you can as the price will likely to keep going until the public frenzy pushes the price into the stratosphere. Again, the silver shorts and silver users simply cannot afford to have silver investors buy the physical silver stuff. Just not enough to go around, and the silver users must have it and will pay $200.00+ per ounce for it. Once the public comes in, you got about 1-1/2 years, then the price may collapse again. There is no hint of this at this time, though, as Joe Sixpac is still clueless about silver and gold, although my sources are saying more and more people are taking an interest in real money. Can you imagine what's going to happen when the general public finally learns there is less silver supply above ground than gold?
Some of my sources:
JSMineSet
King World News
Harvey Organ
Bob Chapman
Money and Markets
Financial Sense
Jim Willie
GoldSeek--Chris Waltzek
CMI Gold and Silver--Bill Haynes
Silver Bear Cafe
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Edited by: qj 
