On a Personal Note…
Just FYI – In case you were not aware – Aside from great advice and good reading… The Silver News Surfer does sell silver and gold also.
I needed to point out two different pieces that I have discovered this morning and they come from two very well know and trusted sources – The question is… which one is right and does it really matter with regards to your investment strategy… Absolutely!
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Now, onto the business of protecting your wealth…
Take note that Jim Sinclair’s chartist is calling for a re-test of the lows over this weekend and into Monday. Meanwhile, Steve Thompson says that silver will grind higher as the bears are waiting for $18. As noted in my report the other day “Don’t wait for the bottom, average down” this is still the optimum strategy. Because again, if this recent price decline caused such a massive physical demand where premiums exploded and the metal his hard to come by, what will happen if it does go to $18 – I mean everyone has $18 bucks in their pocket virtually everyday right?
What is interesting to me is that when we were up at the $28-$30 handle, the bears were coming out of their caves and calling $22-$23 silver and now that we are there, they want to call for $18. If we go to $18, they will be calling for $15 or even $0 – Not sure why bears hate silver and gold so much, but I can bet you that when the dollar gets crushed and the spit hits the fan, they will be jumping on board the metal train saying… Oh, that’s why we need silver and gold, I’m sorry, I didn’t understand!
Stay with me folks… The other news on this report is about the equities at all time highs and are in extreme overbought conditions more than in the past 4 years – AND WE ARE IN MAY! Remember “Sell in May and go away”? Do you want to hang tight and hope things will be different this time? Can you think back to a time when this expression did not hold its truth? I cannot, because it won’t be different -it never is! The time to shift your portfolio is now!
If I were you and as your trusted adviser, my recommendation to all of you would be to get ready – Get ready to shift your asset classes out of the equities and into hard assets and should this conflicting information be accurate, there would be NO BETTER TIME to do it than now!
To recap once again – We are at an all time high in the equities with extreme overbought conditions in MAY – On the other side we are at a 3 year low in the price of silver with extreme oversold conditions… Which makes more sense to you? Which of these classes has the most upside potential to offer?
Just a quick reminder about my previous post “Do you like the sound of a 25% return?” Well, if you jump in now, that could be yours – If it goes down to $18 and you cost average down you heighten your chances for a massive 56% return – but believe me when I tell you, you have to act now! Refer back to some of my previous research, especially “A detailed strategy to protect and preserve your wealth”
IMPORTANT: What I mean is that IF silver breaks down the way that a selected few are talking about and your account is not open and funds are not in house – how would you expect to buy silver at $18 – $20 – $22 or any other price?
Because time is of the essence, I will be available for you for the balance of the week and into the weekend – If you have questions, concerns or anything else on your mind… pick up the phone and call!
My promise to you: I won’t bite! I might growl a bit, but I definitely won’t bite! Take the time to call – Don’t be like the FED and keep kicking the can down the road… They’ve already proven that this strategy does not work and it always ends badly!
Now, on to the breaking news that matters…
Silver To Grind Higher As Bears Look For Collapse To $18 Handle – Obviously, the decline from $1500 to $1320 has left a lot of gold investors stunned. In a situation like this, I think it’s important to keep things very simple, or you can create a panic in the “gold building”, when there is no fire. The media has reported substantial “mom and pop” gold buying, around the world. Chinese, Japanese, and Indian households are accumulating gold, but so are households in America, Canada, England, and Australia.
That buying is being countered by ETF selling, and this “battle” is likely creating the range between $1440 and $1480. The price action of gold will likely determine the next big move for silver. I think that silver will grind its way higher, towards the $27 area, while many bears think it is headed towards $18. Here are 24 reasons $18 isn’t going to happen…
Friday through Monday is a period for extreme caution in silver as the final bottom will be placed – With regards to silver, this is a time for extreme caution! What is next? May 9-10, 2013… the drop! The question is how low will it go? The bottom comes in either Friday May 10, 2013 or Monday May 13, 2013. Will support at $22 hold or not? That is the big question. Again until May 13, 2013 has passed, silver is extremely vulnerable to a support break!
Are We On The Verge Of Witnessing The Death Of The Paper Gold Scam? – The legal claims on physical gold far exceed the amount of physical gold that the banks actually have by a very, very wide margin. And right now the bankers are scared out of their wits because their warehouses are being drained of physical gold at a frightening rate.
So what happens when their physical gold is gone but they still have lots and lots of people with legal claims to gold? When that moment arrives, it will represent the end of the paper gold scam. Many believe that the recent takedown of the price of paper gold was a desperate attempt by the bankers to put off that day of reckoning, but it appears to have greatly backfired on them. Instead of cooling off demand for precious metals, it has unleashed a massive “gold rush” all over the globe.
The Market is Now the Most Over-Bought In Four Years
Stocks are now beyond overbought. The market ramped on Tuesday (the 17th straight Tuesday rally by the way) because traders are now playing for Tuesday rallies. The financial media is looking for any and all reasons to justify the move, but the fact is that the market had rallied for 16 straight Tuesdays before… so why not a 17th time? Behind this backdrop things only worsen. The divergence between stocks and the economy is growing rapidly. Stocks are now over 4% above their 50-DMAs. Anytime stocks have been this far above their 50-DMAs in the last four years we’ve seen a correction:
The overbought nature of the market is even more obvious when you compare the S&P 500 to its 200-DMA:It is clear now we are in something of a blow off top. How long it will last is anyone’s guess, but investors are far too bullish given the fundamentals. The long, “risk on” trade is so lopsided it’s not even funny.
Maybe this time is different… maybe stocks will only go straight up forever. Maybe this bubble, unlike the last two, will not burst. Or maybe it’s time to start prepping for the next stock collapse. Investors take note, the market may be hitting new highs thanks to traders’ games, but the real economy is contracting sharply. This is precisely what happened during the market peaks before the Tech Crash and the 2008 Collapse. We are getting precisely the same warnings this time around.
If you are not already preparing for a potential market collapse, now is the time to be doing so. As this piece is written, all of them are SOARING.
Are you ready for another Collapse in the equities markets?
Could your portfolio stomach another Crash?
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