Silver Market Update

[webmaster]

Subject:Silver Market Update
By: Clive Maund

Overview: About a week ago in the last Silver Market update we called a SHORT-TERM top in gold and silver, and we got one. As you may recall the timeframe for the reaction was until about the 17th. Although we have seen a reaction it has thus far been modest, and now, after the extraordinary action and events of the past couple of days, it MAY be over.

Link: http://news.silverseek.com/CliveMaund/1205409857.php

[Jake182]

When the big shorts press the panic button and buy, my opinion, the price for silver could rocket to $25 in one day

Comments?

Jake

[silver1000]

Agreed, but if the shorts really start to cover than $25 is just the begining. $100 plus sounds about right to me.

[Jake182]

Some investors still look at the 60 and 200 day moving average but

When the big shorts are forced to buy, will that change the rules ( and old history is out the window) and a whole new program emerges?

In other words, no big downward correction-but instead overwhelming pressure to $50 or even $100--is this realistic? I think silvers time has come and the old moving average predictive analysis is irrelevant. Agree-disagree?

Jake

[JesterJay]

I have been saying this on forum ever since I started here;

Nifty little pattern charts have NO bearing on what is about to commence.

We will see upside moves almost exclusively from here on out with huge moves both up and down possible. The difference is the downs will be tiny blips that give small windows of opportunity to buy.

$25 will hit soon. Gold broke and closed above $1000. Silver follows Gold, but Gold will soon only HOPE to follow silver. Gold to sivler price ratio is 48.5 right now. By years end it may well be half that! That would be aroung $48 with a reasonable Gold price of $1200.

So I AGREE with you Jake.

Silver has only one rule: Buy it cuz it's going UP!

Regards,
JesterJay

Originally Posted by Jake182

Some investors still look at the 60 and 200 day moving average but

When the big shorts are forced to buy, will that change the rules ( and old history is out the window) and a whole new program emerges?

In other words, no big downward correction-but instead overwhelming pressure to $50 or even $100--is this realistic? I think silvers time has come and the old moving average predictive analysis is irrelevant. Agree-disagree?

Jake

[Jake182]

Thanks JJ

To JJ and all reading: how low can the dollar go before its shot? Some say $.52. I dont think the world really wants that to happen--nor do I.

What I am getting at here--if the dollar stabilizes soon, are there enough other factors to keep silver and gold going? My take would be yes--because people will continue to be leary. It will be a psychological or conviction factor--to hold a little piece of safe haven--and that little piece ( 1% of investment) times the size of the general public means a huge rise in gold and silver. Whats the buzz ?

Holding physical PM in your hands---good plan-- I dont have physical just yet but I will.

Jake

[JesterJay]

Jake,
I don't care what the dollar does or doesn't do.
The one rule of silver still applies.
BUY SILVER, it's going UP!!!
Oh, and read my signature.
Got IT?
JesterJay

Originally Posted by Jake182

Thanks JJ

To JJ and all reading: how low can the dollar go before its shot? Some say $.52. I dont think the world really wants that to happen--nor do I.

What I am getting at here--if the dollar stabilizes soon, are there enough other factors to keep silver and gold going? My take would be yes--because people will continue to be leary. It will be a psychological or conviction factor--to hold a little piece of safe haven--and that little piece ( 1% of investment) times the size of the general public means a huge rise in gold and silver. Whats the buzz ?

Holding physical PM in your hands---good plan-- I dont have physical just yet but I will.

Jake

[Jake182]

For the last week, the ratio is increasing (slightly). You notice that mainly when gold dips and then it takes silver a little longer to recover. You also see silver going down a bit when gold is stationary.

My guess is ( and I am new to PMs), the silver shorts are more active than those shorting gold, or this kind of slight unfavorable change in the ratio is typical when the PM market is taking a little breather.

I do the reverse: divide silver by gold--right now today silver is at 19.91 compared to gold at $1000.80--thats 1.99 % of gold or 50.27 the other way. I am used to seeing silver at 2.05% even 2.07%. This is a little disconcerting but when gold starts to reassert itself again, silver should refocus its relationship at 2.05 or higher.

A bigger question--what forces are bringing PMs down today? Why isnt there a flight to safe haven? Maybe its the Kool Aid people are drinking. I cant figure this out. Wonder when gold will get backover $1010?

Jake

Any thoughts on this

Thanks