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"Something will happen for silver in the not too distant future.
The market is frustrating at the present time, but anybody
that's being spooked out of the gold and silver markets by
this price action is making a horrific mistake." -- EMBRY
Just popping up the most recent side-by-side views of Gold and Silver, just for prosperity.
The most recent takedown was a bit later than expected but it eventually got here.
In terms of the silver chart there were three or four 'ideal' takedown spots that were completely ignored this time around. The moving averages were slice through quickly and it wasn't until we got up to JPM's $36-37 'worry-zone' that we saw any real action. Better late than never I guess.
When 'nothing' happens at those key spots one can be left thinking, "OK, they've got bigger fish to fry here. They're saving their ammunition for something more significant than just the 50 day moving average."
In this case it was Mr B who got the down-ball rolling, by telling everyone that QE3 was off the table. You must admit, the guy has real guts to say something like that with a straight face on camera! He had just prevented a total EU meltdown by printing up half a trillion new dollars and swapping them for an equal amount ECB funny money!
It's like a fat man licking the plate after a ten-course meal discussing the success of his ongoing weight loss program.
But the really 'big fish' this time was LTRO - the ECB announcement that they had just found another 530 billion euros for anyone who might be interested in a 1% loan.
(I put my hand up of course, but I was beaten to the honey pot by 800 bankers who got there before me. They must have pretty big mortgages...)
This event should have been like R.U.M. in the outboard motor, but even as it was being announced the silver price was already on the way down just in case anyone put 2 and 2 together (or in this case, put US$600,000,000,000 and US$500,000,000,000 together) and worked out that this new money just might make the price of EVERYTHING go up. The fact that JPM waited patiently until this big event clearly indicates that they were scared they'd see another PM rally like we saw with LTRO part 1.
(It's good to remember that the inflationary impact of money printing can take 1-3 years before really showing up - and by that point it's VERY hard to stop. Recently the Fed actually said "Look! We can see no real inflation in the numbers today!" even though they know it always comes in much later than this timeframe)
So now we have to wait another week or so for this dust to settle before we set off again on our now-guaranteed journey to much higher prices! Overall, this has been a mild pullback - especially because silver has been stubbornly rising again every time they hit it.
Must drive them crazy!
"Nail it down Jamie. Use the glue if you have to!"
We're now getting down to an area of strong price support - even though the price is dropping as I write. (But it's a Friday night after all, and we know how these guys like to spend their Fridays)
Nevertheless, if this were a football game I'd be jeering the opposition team right about now. The tables will soon be reversed again. Let's let them have their fun - although really, they all should get out more.
One last thought to ponder. We all understand that silver and gold are highly undervalued right now. They are worth much more than their 'price' suggests. But it is quite the OPPOSITE with the U.S. dollar - the same schemers and manipulators are working overtime to make it look valuable.
So - if 'valuable' silver is currently artificially cheapened by perhaps an order of magnitude, then...
... HOW MUCH IS THE U.S. DOLLAR *REALLY* WORTH TODAY?
(Sorry Ben, was that a question we weren't supposed to ask...)
SPOT : USD $32.20 and declining into the N.Y. open