might be time to take some profits...
May the Fourth be with you.
Why, did we all of a sudden slow the printing presses? As long as we maintain trillion dollar deficits and more quantitative easing I think the overall trend for silver/gold will be upwards.
Is the value of gold and silver really going up, or is the value stable and the value of our dollar is going down at the same rate precious metals are going up? Perhaps a bit of a hedge in metals favor, but values balance out in the end. Taking profits now are probably a bad choice, might be left with a fist full of dollars worth nothing. Going to hang onto the little bit I have, simply because I have more faith in the metal holding value over time. Keep making the same choices that brought us to this point and the dollar will be worthless.
jud
Silver?
Around this place it's a couple of candlesticks!
Jud,
Silver has accelerated past gold by about 10 times.
Stephen
Something funky is going on with silver:
1.) I'd be concerned holding paper silver that the main silver ETF (SLV) is partially owned by JP Morgan at the same time that they hold the biggest short position in the market;
2.) There have been two recent very large after closing sell offs that have looked like someone is trying to shake a bunch of stop loss orders out of the paper silver market; and
3.) Why are the futures brokers suddenly raising margin limits on silver and no other commodity?
I keep hearing a TDD like rumor that JPM has been short on silver (and they are WAY short on silver) to push the silver/gold spread off it's historic 1/18 ratio as a favor to the FED to help slow the dollar's drop. I think we're heading toward two silver prices by the end of the summer; paper (lower) and spot for physical (higher).
This article may be of interest for those who have "paper silver"
http://yukoncorneliusssilverandgold.blogspot.com/2011/05/monday-action-updated-throughout-day.html
> Why, did we all of a sudden slow the printing presses? As long as we maintain trillion dollar deficits and more quantitative easing I think the overall trend for silver/gold will be upwards.
We can't slow the printing presses because of two wars, gotta support those tax breaks for the wealthy (you know, trickle down theory), and we have to continue to support slave labor in places like China and India with a strong dollar. Oh yeah because of above policies we have unemployment/underemployment of 10-20%, unless you want to see those people in the street knocking on your door for a sandwich, we need to print those dollars for unemployment bennies.
I posted too soon, looks like the CME raised the silver margins twice this evening (effective May 5 and May 8). Pretty soon you're going to have to deposit $10,000 to hold $5,000 of paper silver futures.
[flash width=480 height=390] http://www.youtube.com/v/Gm72UYgEarw?fs=1&hl=en_US [/flash]
October 23, 2008
Henry Waxman: You found a flaw in the reality…
Alan Greenspan: A flaw in the model that I perceived is the critical functioning structure that defines how the world works, so to speak.
Henry Waxman: In other words you found that your view of the world, your ideology was not right. It was not working
Alan Greenspan: Precisely. It’s precisely the reason I was shocked because I’ve been going for forty years of more with very considerable evidence that it was working exceptionally well.
That is not necessarily a rumor as i've read that some months back where zero hedge showed JP short on the London (?) exchange.
> That is not necessarily a rumor as i've read that some months back where zero hedge showed JP short on the London (?) exchange.
I didn't mean that it was a rumor that JPM was way short, I meant it was a rumor as to why.
They eventually have to pay somebody for the rights to access the 1.) borrow money from the Fed Discount Window on Wednesday night; 2) buy treasuries at the Thursday auction with borrowed zero interest money ; 3) resell the treasuries back to the Fed (plus a 0.5% markup, of course) the next Tuesday as part of their their Permanent Open Market Operations ponzi scheme.
BTW: as far as I'm concerned Zero Hedge is the best site on the internet. BTFD
Well it's kind of stupid now but here's the article. Apparently their long position was on the London exchange.
Rumor is that the SLV ETF doesn't have the real metal it is supposed to hold. I don't know but there really isn't that much real silver as most is used as it is mined every year.
I for one wouldn't trust the Wall Street brokers, they'd sell you the silver whether they had it or not. It would be hard to test because to withdraw the metal from the ETF requires a minimum of 500,000 oz. withdrawal So a regular trader couldn't find out. Maybe some big trader will test and ask for the metal, be interesting if they can deliver. Seems know one actually knows where the silver is stored.
I will only hold the real metal not the paper but I did trade a bit the last couple years.
