Tag: silver

Bullion Banks Sell Even More Silver: Do They Have It?

Bullion Banks Sell Even More Silver: Do They Have It?

Anyone with a naked short in the silver futures market risks getting squeezed by physical buying. Demand for delivery of COMEX silver bars is rising, even as the paper price of the metal fell more than 4.5% last week. Silver shorts sold contracts representing a whole lot more silver than they have available to deliver again last week. The disconnect between paper prices and physical demand is getting more ridiculous by the day. It is also getting more dangerous for COMEX market participants – long and short. The COMEX functions on confidence, which can vanish suddenly. It will happen when long contract holders discover, en masse, the paper they bought […]

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Could Silver “Do a Palladium”?

Could Silver “Do a Palladium”?

Palladium was manipulated for years. It had the largest short position relative to its size, while physical demand rose inversely to decreasing supply. In 2018, demand became so large that it overwhelmed the shorts. Physical palladium could not meet the market’s needs and prices exploded. Shorts eventually decreased their positions until they got to a more sustainable level. For many years, the platinum/palladium ratio, shown on proprietary charts, averaged 2.4 to 1 in favor of platinum, stretched as high as 5:1 in 2009, but then collapsed for a decade into 2020, to where 1 ounce of palladium would buy 5 ounces of platinum! Today, much like what was the case with […]

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Be Patient, Silver Investors… It’s Only a Matter of Time

Be Patient, Silver Investors… It’s Only a Matter of Time

A wild week of trading across asset markets has left investors wondering what represents real value – and whether it even matters anymore. Stratospheric GameStop shares came crashing back to earth after their gravity-defying run up.  The stock had clearly been pumped to ridiculously overvalued levels based on all conventional metrics. But that didn’t deter buyers who believed they could push it to $1,000 per share before cashing out. After dropping over 85% its nominal price peak, perhaps the GameStop craze has ended just as abruptly as it began. Meanwhile, some online speculators have jumped aboard other bizarre market frenzies. For example, the crypto token Dogecoin – which launched a […]

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Silver’s Coming Double Trigger Shotgun Price Explosion

Silver’s Coming Double Trigger Shotgun Price Explosion

Even in the competitive hunting/shooting community, few enthusiasts know about an arcane rifle known as a “double trigger shotgun.” Essentially, it’s a double-barrel shotgun having a trigger for each barrel. This was an early day’s design with the triggers located inside the trigger guard, back to front. It was possible to press both triggers at once, causing a double discharge, though for the most part this was not a good idea – since it caused twice the recoil, and was hard on both the shotgun and the shooter – especially if not anticipated. Though this essay is not about shotguns, but rather silver, the above concept provides a perfect analogy […]

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Goldman Sachs Likes Silver; Trump Wants Even More Stimulus

| October 16, 2020 | Category: Economy
Goldman Sachs Likes Silver; Trump Wants Even More Stimulus

Gold and silver markets slumped this week as stimulus talks faltered again in Washington. Even though the White House upped its offer to $1.8 trillion, House Speaker Nancy Pelosi refused it – not wanting to give President Trump any kind of political victory ahead of the election. Meanwhile, the President continues to campaign for stimulus. He is bucking Senate Republicans by offering to go even higher than $1.8 trillion. Here’s what President Trump told Stuart Varney of Fox Business on Thursday: Stuart Varney: You don’t expect a phone call from Speaker Pelosi, but you would go higher. How much higher would you go? How much higher would you go? President […]

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Could Buffett Buy 130 Million Ounces of Silver Again?

Could Buffett Buy 130 Million Ounces of Silver Again?

Earlier this week, precious metals markets got a surprising Buffett bounce. Legendary investor Warren Buffett isn’t often associated with gold – at least not in a positive way. In the past Buffett has made derisive comments about the monetary metal. He once quipped that gold “has no utility.” A perpetual optimist on the U.S. economy, Buffett by nature doesn’t like the message that is sent by higher gold prices. He has likened investing in gold to “going long on fear.” Well, the Oracle of Omaha, as he is known, seems to be reluctantly bracing for a return of fear in the markets.  His Berkshire Hathaway holding company recently dumped shares […]

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Silver May Be Overextended – But It’s STILL Cheap

Silver May Be Overextended – But It’s STILL Cheap

Silver prices aren’t just rising; they’re erupting! Silver has been ascending at a far steeper rate than the climactic move of 2010-2011 which briefly brought prices back up to all-time nominal highs. Adding a 20-week rate of change (ROC) indicator to the silver futures chart below shows prices gaining 122.4% over that period – far exceeding the rate of ascent of the last big silver spike. After years of being suppressed below $20/oz, then being forced down to an absurd new low during the lockdown, extreme pressures built. Finally, silver erupted like a geyser. Old Faithful at Yellowstone National Park erupts according to a predictable cycle. As intense heat builds […]

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Why You Should “Follow the Money” on The Yellow (and Silver) Brick Road

Why You Should “Follow the Money” on The Yellow (and Silver) Brick Road

Since the Federal Reserve detached the dollar from the gold standard in 1971, the world’s central bankers – with the Fed leading the charge, have flooded the world with fiat currency to the point of diminishing its purchasing power to shadow status. A common belief during the early decades of the former Soviet Union’s rise after 1917 was that, according to Marxist-Leninist theory, the West and capitalism would either self-destruct, or be “buried” by the superior economic platform being constructed for the proletariat by the USSR, and later Communist China. But even the Great Depression, which in the West lasted from the Crash of 1929, and arguably into WWII, failed […]

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Silver’s Three Legged Bull-Run Stool

Silver’s Three Legged Bull-Run Stool

A case can be made that silver’s current price “stability” – believed by many to be well below where it “should” be – is the result of at least three interlocking factors. There are certainly other considerations, but the following seem especially relevant today… Our chosen metaphor is the three-legged stool. Take one leg away, and the stool topples. In the case of silver, the outcome is likely to be a violent price rise of epic proportions. 1. Draining the Silver Trading Swamp In recent months, a series of criminal charges and admissions among banks, trading houses and their employees have begun to expose unfair and/or illegal trading practices. They […]

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It’s Time to Get Serious about Silver

It’s Time to Get Serious about Silver

The World Silver Survey 2019 Review, the institute’s annual World Silver Survey said that global silver demand hit a three-year high in 2018, surpassing more than one billion ounces, an increase of 4% from 2017. At the same time, global silver mine production fell for the third straight year, dropping 2% in 2018 to 855.7 million ounces. The top 10 silver producing countries are: Peru, Bolivia, Australia, Argentina, Mexico, Chile, Poland, China, Russia and Guatemala. And get this… in every one of these countries, silver production has been falling for the last 4 consecutive years! Supply from scrap sources is at a 20-year low. Silver fabrication (manufacturing) demand is just below record levels. Silver […]

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Fool’s Silver: Why Most “Silver Miners” Don’t Live Up to Their Name

Fool’s Silver: Why Most “Silver Miners” Don’t Live Up to Their Name

If you buy shares in a silver mining company, you will have to assume additional market risks compared to ownership of silver bullion. You may wish to do so in order to potentially gain leveraged exposure to silver prices. What you may not realize, however, is that most of the publicly traded “silver” stocks out there are primarily in the business of mining other metals – sometimes gold, often copper, zinc, lead, and other base metals. Consider Pan American Silver (NYSE:PAAS), a $3.6 billion company that makes up the largest weighting (13.5%) in the Global X Silver Miners ETF (NYSE:SIL). While Pan American is indeed a producer of silver, its […]

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Silver Market Alert: Powerful Bullish Setup Takes Shape

Silver Market Alert: Powerful Bullish Setup Takes Shape

The silver market appears to be setting up for a big move. After spending this spring stair-stepping lower in a narrowing range, silver prices have formed a falling wedge pattern. That pattern usually resolves in a powerful directional breakout. The good news for bulls is that falling wedges usually break out to the upside. Commercial hedgers and bullion banks (i.e., “smart money”) in the silver futures market have significantly trimmed their short positions over the past couple weeks – a bullish development. While their net positioning isn’t yet at an extreme, it is more favorable than not for a price rally to commence in the near future. Of course, neither futures traders […]

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Silver Sentiment: Is It (Your) Friend or Foe?

Silver Sentiment: Is It (Your) Friend or Foe?

The gold and silver bull markets have been on a roller coaster ride for almost two decades. Gold came to life in 2000, with silver crawling along between $4 and $5 until late 2003, making its first print above $10 in March 2006. The next two years saw the last part of a 400% up-move for those who “kept the faith,” before silver dropped below $9 during the 2008 global financial meltdown. Then it was up, up and away, as silver rocketed to nearly $50 by April 2011. By then, “everyone knew” it was going to $100. A blogger announced he had sold his house to buy silver and advised […]

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Silver slowly heading towards a cluster of resistance, strong challenge for the bulls

Silver slowly heading towards a cluster of resistance, strong challenge for the bulls

The price of silver significantly fell in the global market after hitting the critical resistance level at 25.03. Majority of the aggressive price action traders managed to make a decent profit by shorting the silver with the formation of bearish pin bar right at that critical resistance level (25.03). After the extended bearish rally, it found some solid support at 13.64. From that level, the pair started its bullish correction after the formation of bullish morning star pattern in the daily chart. Currently, the price silver is heading towards a cluster of resistance and breaking above that level will be a tough challenge for the bulls. So, looking for a […]

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