09/21/2010

The Silver Rally



For one month silver has been making higher highs and higher lows while gaining three dollars or almost 20%. The moves have done been that volatile as we have not had any four or five percent days along the way. It is very normal after big up moves for silver to have some serious price corrections and thus far it has not been the case. The federal reserve has their minutes meeting today and that can often cause volatility in most markets including silver.










I was reading this article from the AP which states the Federal Reserve not only wants to heal this economy naturally, but will take steps to boost the economy if need be. Boosting the economy is nothing more than printing additional fiat dollars and thus adding to the money supply. The only way to add to the silver supply is to actually mine and refine silver and thus it is not as easy as printing money. The price movements both up and down are done so through the comex market exchanges and do not reflect the real supply and demand


LINKS


Investors Flock To Gold And Silver On Economic Recovery Concerns
Investors worried about the global economic recovery pushed gold prices to fresh highs on Friday, marking the third time in a week the shiny metal set a new record. Silver also climbed to its highest price in thirty years. Spot gold climbed above $1,282 an ounce in New York and London as a weakening dollar spurred demand from investors for wealth protection, while silver rose to $21.44 an ounce, its highest level since 1980... (Daily Markets)

ETF's Brooks Says Silver May Fall in Economic Slowdown (VIDEO)
Sept. 20 (Bloomberg) -- Nicholas Brooks, head of research and investment strategy at ETF Securities Ltd., talks about the sustainability of silver's 24 percent rise this year. Brooks speaks with Maryam Nemazee on Bloomberg Television's "The Pulse."

Silver Outperforming Gold During September
(Kitco News) -- Silver has outperformed gold so far during September, and the trend may well continue for the foreseeable future, traders and analysts said. “In a normal bull market for the precious metals generally, one of the hallmarks would be that silver gains upon gold,” said Dennis Gartman, publisher of the widely followed The Gartman Letter. “That is in fact what is going on right now.”

Gold Forecast $2,500, Silver Could Easily Reach $180
More than 95 respected economists, academics, analysts and market commentators are of the firm opinion that gold will go to $2,500 and beyond before the parabolic peak is reached. In fact, the majority (55) think a price of $5,000 or more - even as high as $15,000 - is actually more likely! As such, just imagine what is in store for silver given its historical price relationship with gold!...(Market Oracle)

5-part series on gold/silver manipulation...
From a posting forum and the links are from Seeking Alpha

Silver's Breakout
It finally happened. Through months of struggle, silver has finally managed to crack the $20/oz mark. In past newsletters, we touched on the positive signs of why silver, along with gold, should outperform and continue to see new highs. After months of what many believed to be market manipulation... (Seeking Alpha)