Thursday, February 17, 2011

Silver-DO NOT celebrate yet

This is NOT a confirmed break out yet, do not think for one second Blythe is not shorting into this. I will have more info after the metals reports tonight. I repeat don't get excited, YET.
On the only hand if you do find yourself jumping in irrational exuberance, keep jumping...feels good doesn't it?? Anyone who took my strong BUY signal last week has gained over 15%, not bad.
Problems ahead: Rate hike out any second, and a reversal to the 'reverse head and shoulders' pattern to confirm more strength at the $29.50 bottom. The train may sail to $35 if these events do not play out (Captain obvious I know)

Just wanted to give a shout out to Blythe, Hi! (I'm laughing my ass off over here)

I just wanted to thank my sponsors for making this blog is what it is!



    If we consider that so far the US MINT has sold 8,152,500 silver eagles and we times that by the average price of silver according to KITCO at $28.81 in 2011, we get this:

    8,152,500 X $28.81 = $235 million

    Compare that to US gold eagle sales at 189,000 total ounces times $1355 we get this:

    189,000 X $1355 = $256 million

    That is nearly a 1 to 1 RATIO.

    Just as SGS states...the PAPER PRICE is not's how many ounces you hold. In the end, you will be able to by a modest home for a few hundred ounces of silver.

  2. You keep saying "rate hike" but I assume you mean "margin hike" once again? :)

  3. Take a hell of a lot of shorting to break down this uptrend. Where does JPM get their cash? I just can't see them making money shorting into this kind of action?

  4. Man SGS your are right on re. celebrations. Just a little backing and filling would be nice (but maybe those rules don't apply for PMs?).

    ?). Is there an OI number to look for to see we are "losing steam" or just watch for significantly less volume in next few days, i.e. any clues we can use to better determine a Short Term i.e. days/few weeks top. I have the March SLW CALLs and sitting w/ good profit but if it pulls back the time element starts to compound as you know.

    Thx much.

  5. SRSrocco, that is one hell of a post. Well done.

    Go silver.

  6. I sure do hope we do have a pullback, since I want to get in with my last buy of physical!!!!!

    I guess I missed your buy rec last week, just really started following you closely!

    I do remember a margin rise a couple of months ago and I managed to be at the computer and swoop in to buy some SLV for about $2 bucks off!
    Next week, I get very busy, so my luck... I'll miss something

    By the way....I did talk to my dealer yesterday (CMI) and he figured junk was the way to go at this point...I'm pretty diversified in other forms, halve some junk, but the lower premium and also possible use value seems to make sense to me...
    Anybody have any insight into this???

  7. Hey insightanalytical,

    Another option for "less bulk", but still a low premiums is the 10oz. bars, eg.

    I am associated with them just have had good transactions.

    The 100oz bars longer lead times.


  8. Update to previous, I am NOT associated w/ G-Ville Coins, sorry 'bout that.

  9. LOVE the piture of Blythe!

    20kg of physical bought yesterday.
    50kg more today!

  10. anyone know what's wrong at the Watchtower? no comments for over two hours.

  11. Rick - I tried posting on Watchtower - not working, Hendrix is busy stuffing Blythe.

  12. "Where does JPM get their cash?"
    They call up Ben. Easy as 1-2-3.

    Yes I mean margin hike, sorry not rate.

  13. Rick, be sure you click on "newest" or "newer" to get to the continuation of a thread! I only just realized it myself...

  14. yeah, I finally figured that out too, insight, but thank you.