Wednesday, September 8, 2010

September 8, 2010

UPDATE - 9:00PM - 09/20/2010

Technical Issues on my end have been resolved and daily updating will resume on this blog. Check back on Tuesday and beyond for more great charts and information regarding to silver

UPDATE - 12:50PM - 09/16/2010

This rally in silver has seemed like a tortoise rally. This is because the daily moves have been low, but it is price that pays and we have now seen a 20% move from its bottom a month back. There has been only small corrections either through a day or two of time or a percent or two in price. However, we are now approaching the three decade high of $21.35 which was made in March of 2008. Also because the movements and volatility are so small in silver, if Silver can stay above $20 for the rest of the week (which seems pretty favorable) then this will be the first time since 1980 that silver has had a full week of being over $20. In 2008 even though it got to $21.35 from a 50% rally it closed its week below $17.00 thus it lost over 20% that week alone. Silver is used to having these big rises and falls. We are not seeing this now with silver and I have been commenting on this before to watch out for the big moves. For silver to make the $32, $50, $78 levels and beyond it will need some big days where silver is up 10% as well as having corrections of mass proportions to the down side.

UPDATE - 11:50AM - 09/14/2010

Silver is priced at $20.49 and has taken out the psychological $20 level by 2.5%. The next big potential resistance is in the $21 area and change with $21.35 being the highest silver has been in around thirty years. This area does seem to be the next test. The volatility is still very weak and most of the market corrections during this intermediate term bull market has been through time. This means that after a big gain, prices stay flat in a general area rather than going lower.

Update - 2:16pm EST 09/09/2010. Due to unfortunate technical issues I will not be able to update this site as much for a week or two. Therefore I will not be putting any or many charts on the screen during this time and thus be restricted to mainly adding text like I am doing so here. There is not much to update on todays action other than this is the third straight day for Silver over $20 and the move has taken us to as low as $19.80 which is only about 1.5% of a move lower from it's highs which is fairly insignificant thus far during a rally that has well exceeded 10%.

Silver over $20 for the second day in a row

Silver has managed to get over $20 for the second consecutive day as the intermediate bull market continues. The market is over extended, however there is no reason why it can not move higher towards it next price objective of around $21 towards the thirty year high for silver which was established in March of 2008 at $21.35. Some time soon we will be talking about breaking the 1980 high of $50, but for now the trade is much lower than fifty dollars. The inevitable at some point will happen to keep moving silver higher as well as many other assets and commodities because of the value of the fiat currencies getting slammed into oblivion. If you are unsure how to play this market when buying bullion silver coins and bars, and you are sure that rising well above $50.00 is in the cards then is a pull back needed? Many fear that another stock market crash will bring the price of metals much lower, and they may. However, its that it may happen if the stock market does get hammered. There is no guarantee that the stock market will get crushed and there is no guarantee that if it does that silver will follow suit. When you look at timing, the silver may follow suit with a pullback down to the $20 area. I say this because if the market crashes later on after silver has a huge move up to the $30-$40 area, then it could easily lose 30-50% from this area back to $20. What is guaranteed is the fundamentals of the dollar being awful with little to no intrinsic value, while meanwhile silver is guaranteed to be an industrial metal on the periodic table of elements that is used in many different forms.


Silver Tests $20, Turns Back

It was an exciting day for silver early on, the metal poking its head above the $20 an ounce mark for the first time since March of 2008 – not once, but twice - before dipping back down to the high $19 range where it seems likely to end today...(SeekingAlpha)

Silver looks set to take off (This metal is being overlooked in favor of Gold)
Silver has a nasty habit of taking people by surprise. Of all the metals, precious or base, it is the one with probably the most potential. On the one hand, it finds more and more industrial uses each year. On the other, it's also a monetary metal, like gold. So investors seek more and more of it because of its value as a hedge against the debasement of money by governments. Yet months, years even, can go by without the metal apparently doing anything it's 'supposed' to. Then, suddenly, just as your back is turned, it will dramatically spike up...(FreeRepublic)

Gold & Silver Trading Biggest Scam in History Financial Armageddon Could Result
For those with a good memory this is the promised follow up to my piece on the manipulation of the silver market and its very scary ramifications. Before we get into the possible end of civilization as we know it details, a recap is in order. Andrew Maguire of London blew the whistle on JP Morgan Chase's very likely profound manipulation of the silver market to the CFTC...(Huffington Post)

VIDEO(S) on Silver Shortages
This is not an article, but many different videos on this site which is concerned on the silver shortage (World News)

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