Tuesday, August 10, 2010

August 10, 2010

Update 7:24pm EST - The fed meetings brought the price of silver higher. The move earlier that is circled in the photo is a potential for a failed move. If it is a failed move, the fast move has not happened yet, but should happen by the open on Wednesday. If this does not happen then the $18.18 level is going to be huge. The reason for this is if the support is not able to hold then the failed move will be this afternoons action to highs and the expected price target to the down side would be $17.67 for a fast move.

As of 1:40pm EST on Tuesday, the comex of Silver is trading at $18.19/oz. The technicals still have us located within' this range that has been a range that has lasted pretty much the entire year. On the short term the five day moving average is starting to give in or reverse to a bearish formation as the fifty day average is being used as resistance. There is some great articles on todays blog, including one from SeekingAlpha on the inventory fraud by JP Morgan.

ARTICLE: Inventory Fraud Increases in Silver Market
When I first began examining supply/demand data on the silver market several years ago, I was somewhat hesitant to form conclusions, as silver (and gold) have traits which are very different than ordinary commodities – which affects supply/demand analysis. The second factor which made such analysis more difficult was that supply and demand are reported much differently than for ordinary commodities.

Silver is unlikely to lose its charm in the coming days even as analysts predicted that the metals is expected to remain bullish this week, supported by technical indicators, a weak dollar and weaker China economic data.

ARTICLE: Why the Official Antipathy to Gold and Silver?
Every so often someone asks, 'Why do the government and the banks manipulate the price of gold and silver?'

There is a great deal of circumstantial evidence to support this, even some blatant quotes pertinent to the topic from the likes of Volcker, Greenspan, and Bank of England governor Eddie George. Of course it can all be denied. People can deny anything, even well known historical events with many witnesses, if it suits their bias and purposes.

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