Warning Fools! Silver Will Fall by 66%

Peter Schiff - Silver to Take Out $50, New Shorts are Suckers

With gold off the lows and silver trading higher, today King World News interviewed Peter Schiff CEO and Chief Global Strategist of Europacific Capital. When asked about the pullback in gold Schiff remarked, “I think it’s a buying opportunity...I do believe the US economy is slowing down, in fact I think it’s going to slow a lot more than people realize. But for that reason I think that quantitive easing will not end over the summer, in fact I think the Fed is going to step it up. QE3 could be even bigger than QE2 and that’s very bullish for precious metals and very bearish for the dollar.”

When asked about the Mexican central bank purchase of 100 tons of gold Schiff replied, “What surprises me is that more central banks aren’t buying even more gold. Central banks are loaded up with depreciating dollars, they need to buy gold instead. The crazy thing is that I’m even hearing talk about the US selling its gold to help fund its debts. That would be the worst thing we could do. The last thing we would want to sell is our gold, I mean if we sold that then that would be it, we would have nothing. The dollar would just become complete confetti.”

http://rp12.us/aIUOT
 
Hedge Funds Show Lowest Net Long Silver Positions since February 2010

HOUSTON -- Although the data is now fully one week old, last week’s disaggregated commitments of traders (COT) report issued by the Commodity Futures Trading Commission (CFTC) showed that traders the CFTC classes as “Managed Money” (hedge funds, commodity trading advisors, etc.) held 22,250 COMEX silver futures contracts long and 4,973 short for a combined no-spread net position of 17,457 contracts long (about 87.3 million ounces). The COT “evidence” is contrary to the notion that silver has already peaked and instead supports the idea that silver has merely corrected.

That is the least amount of net long exposure for Managed Money since February 23, 2010, when the veteran speculators then held 12,624 contracts net long with silver then trading at $15.85. Just below is a graph showing the net long positioning of traders classed as Managed Money as of Tuesday, May 10 as the price of silver closed at $38.47.

http://www.gotgoldreport.com/2011/0...-silver-positions-since-february-2010.html#tp
 
Gold and Silver Ratio in History



The price of silver has been notoriously volatile as it can fluctuate between industrial and store of value demands. At times this can cause wide ranging valuations in the market, creating volatility.

Silver often tracks the gold price due to store of value demands, although the ratio can vary. The gold/silver ratio is often analyzed by traders, investors and buyers. In 1792, the gold/silver ratio was fixed by law in the United States at 1:15, which meant that one troy ounce of gold would buy 15 troy ounces of silver; a ratio of 1:15.5 was enacted in France in 1803. The average gold/silver ratio during the 20th century, however, was 1:47. The lower the ratio/number, the more expensive silver is compared to gold. Conversely the higher the ratio/number, the cheaper silver is compared to gold.

Silver price manipulation is evident in the gold to silver price ratio which should average between 10 and 20. That is, for every ounce of gold, you should be able to buy 10 to 20 ounces of silver.

http://silver-shortage.blogspot.com/2011/05/gold-silver-ratio.html
 
Silver crash not a correction but a ‘drive-by-shooting' and ‘criminal act'

LONDON -

Silver followers with an hour to spare - or those just interested in the junior precious metal - might benefit from listening to a round table discussion on You Tube, put together by silver guru David Morgan. Admittedly all those involved are from the bullish side of the silver investment scene, but all the points made on the discussion constitute an imposing case for investment in the precious metal. No doubt there are others who might disagree, but the people involved in the round table are all specialist followers of silver whereas many of the silver bears out there are non-specialist analysts who next week may be commenting on markets in hogs or soya beans and do not have the in-depth knowledge of those participating.

http://rp12.us/aIUOL
 
Silver Price to Move Forward Despite Current Volatility: Silver Standard CEO

MONTRÉAL—(Kitco News) Despite silver prices dropping drastically over the last few weeks, after flirting with the $50 mark in late April, John Smith, President and CEO of Silver Standard Resources said silver prices will bounce back.

“I try to look at more fundamental long term views around silver than the specifics of what’s happening day to day in the market,” said Smith.

Smith still thinks that the fundamentals which saw the white metal soar in price over the last year are still in place and the current correction was bound to happen.

“I think we’ve seen a fairly aggressive run-up in silver price and I think there’s a bit of the market drawing its breath, but at the end of the day there’s still something like 60 odd trillion in cash looking for an investment home,” Smith said.

http://www.kitco.com/reports/KitcoNews20110520AL_silver_standard.html
 
bobbyw24 said:
Silver price manipulation is evident in the gold to silver price ratio which should average between 10 and 20. That is, for every ounce of gold, you should be able to buy 10 to 20 ounces of silver.
Click to expand...

I'm not sure I entirely buy that argument. The use of silver has changed over time, from a store of value to primarily used in industrial production... while gold is still primarily seen as a store of value or used in jewelery.

In other words, why should this ratio be the same or similar to the 19th century, when silver usage has changed dramatically since then, while gold hasn't?
 
UK4Paul said:
I'm not sure I entirely buy that argument. The use of silver has changed over time, from a store of value to primarily used in industrial production... while gold is still primarily seen as a store of value or used in jewelery.

In other words, why should this ratio be the same or similar to the 19th century, when silver usage has changed dramatically since then, while gold hasn't?
Click to expand...

Right, the article said the gold/silver ratio was 1:47 for the 20th century, but should be around 1:20 in today's world. But its 1:43 right now so that either means gold is overpriced or silver is undervalued.
 
The ratio used to be related to the amount of metal that was available. Most industrial silver is unrecoverable (at least economically) in landfills. The amount of available mined silver is now much less (rarer) than it used to be. As investor demand for silver increases, it will drive the ratio back towards the 10-20 range (IMO).
 
Silver is back--over $37/oz.

AG-24HR-SM.png


Bid|Ask 37.25 37.27
 
Silver's tightness could take it to $125, Embry tells King World News

When asked about the action in silver specifically Embry remarked, “Let’s face it, silver needed a correction because it had gone up in almost a straight line and people were talking about parabolas and what have you. But the correction was amplified by the CFTC allowing or sponsoring five margin hikes in eight days. Every time the price was getting pounded they put in another margin hike, so anybody that was long and didn’t have extraordinarily deep pockets had to puke the position.


http://kingworldnews.com/kingworldn...ket_Extraordinarily_Tight,_Look_for_$125.html
 
Stephen Leeb - Silver Should Be $150 Today

With so much volatility in the gold and silver markets, today King World News interviewed one of the top ranked money managers in the country, Dr. Stephen Leeb, Founder of Leeb Capital Management. Dr. Leeb’s comments surprised KWN in many ways, here is how he started the interview, “I think the United States has been asleep at the switch for a long time, and I think the Chinese in contrast have been wide awake to an emerging problem in the world and it’s one called resource scarcity. We’ve heard a lot about resource scarcity and mostly the reaction in the US is just to shrug their shoulders, we’ll figure out a way around it. Well, there really is not a way around certain kinds of scarcities.”

Stephen Leeb continues:

http://kingworldnews.com/kingworldn...ephen_Leeb_-_Silver_Should_Be_$150_Today.html
 
I hope it does,

I just sold my house and am looking to buy as well as gold to put my liquid cash.

"Sell in May and go away", isn't materializing like I hoped it would

I really am hoping for a big pullback in June, even if short lived and manufactured by paper shorts. I don't know if it will happen.
 
There was a big pullback in may: 49 to 33. Why do you expect to have another one? Bull markets don't roll that way.
 
Richard Russell - Subscribers Should Buy Silver Once Again

shapeimage_24.png


With the US dollar attempting to stabilize and gold and silver off the recent lows, the Godfather of newsletter writers Richard Russell had this to say in his latest commentary, “Europe -- Aside from France and Germany, Europe appears to be falling apart. First it was Portugal, Ireland, Greece that were in trouble, and now you can add Italy, Belgium and Spain. Wait Spain? Spain is the fourth biggest economy in Europe. Thus the US dollar and the euro are perched on a see-saw, juggling back and forth, first one is up and the other is down, then it's vice versa.”

Russell continues:

http://kingworldnews.com/kingworldn...Subscribers_Should_Buy_Silver_Once_Again.html
 
bobbyw24 said:
shapeimage_24.png


With the US dollar attempting to stabilize and gold and silver off the recent lows, the Godfather of newsletter writers Richard Russell had this to say in his latest commentary, “Europe -- Aside from France and Germany, Europe appears to be falling apart. First it was Portugal, Ireland, Greece that were in trouble, and now you can add Italy, Belgium and Spain. Wait Spain? Spain is the fourth biggest economy in Europe. Thus the US dollar and the euro are perched on a see-saw, juggling back and forth, first one is up and the other is down, then it's vice versa.”

Russell continues:

http://kingworldnews.com/kingworldn...Subscribers_Should_Buy_Silver_Once_Again.html
Click to expand...

Pff, the situation in europe is bad, yes. But it is not as bad as the states. Germany has the lowest unemployment since the reunion of east and west and Belgium had one of the highest gdp growths of the EU in the first Quarter, so the only legitimacy to put them into that list is the fact that they only have 5 governments functioning instead of the usual 6. The big difference between EU and US is the total deficit. For the EU if you add them up you have something like 7 percent of GDP the us has something of 13 percent (including states). All the while taxes are much lower in the US as a proportion to the economy. Europe might have a wrong socialistic policy, but the US claims to be capitalists and taxes as if they are, but spends like socialists. In the long run the euro is going to 2 dollars if you ask me.
 
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