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.
Good morning friends-
After spending the weekend researching and trying to determine the next move for silver and gold, I have this to share with you… If you remember back in April, before the big one day drop in metal prices I share with you a story from Bo Polny who is one of Jim Sinclairs chartists.
He described how the silver and gold correction was over and that the price was irrelevant, but the date was something to mark on your calendars (see story here) Well, we all know what happened next, we saw the biggest one day drop in over 30 years.
Over this past weekend, he released another story stating “Gold has bottomed at $1,321, to rise into June 5th turn date” Now, just because Bo was not accurate in his first forecast, I will commend him for not hiding under his desk until people forgot his bold call…
Just because someone see’s a type of action getting ready to happen and manipulation takes over, it doesn’t mean that the particular event will not happen and that’s what he goes on record to explain… The evidence will remain to be seen – But regardless of his accuracy this time, there is something in the air that makes me feel that the equities will fall this month and the flight to safety will be one that is lined with silver & gold.
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The Silver News Surfer
Now, onto the business of protecting your wealth…
One thing is for sure, that is the fact that there are a lot of geo-political tensions across the globe today – and people are revolting against their governments in the form of civil unrest as you can see by the Anti-government protests spread across Turkey (Warning: The pictures are quite graphic, viewer discretion is advised) and read more here.
Also,AlQaeda chief warns attacks on US in ‘everyone’s reach‘ The reason that this is so important to read and understand is that we know that silver and gold are just waiting for a catalyst and other than waiting for “real data” to come out of the FED for inflation, we all must count on the FED’s inflation numbers which we know are bogus, in fact, the inflation numbers coming out of Shadow Stats are more accurate with an inflation reading of about 8.7% as of May 2013 a far cry from the 2% the FED suggests.
Another catalyst for the launch of silver and gold would be debasing currency. With the FED buying up $85 Billion a month, every month of treasuries we can sure count on less purchasing power of our currency regardless of what “they say”.
Sometimes we have to stop and really think this through guys – What would really happen if the FED stopped the big print? If they said that in September, they will shut down and auction off the printing press, how do you think the markets would react?
My thinking is that it wouldn’t matter, because according to the US Debt Clock we are still a staggering $16.8 Trillion in the hole!
Do me this one favor – Take just 2 minutes and look at the US Debt Clock watch all the numbers screaming higher by the nano-second – Now what would change if the FED stopped printing? Would the clock stop? Would it start to reverse? Would the debt start to shrink?
I hope I’ve made my point at least somewhat clear – There will always be a need to have a portion of your assets held in silver and gold and at these prices, you will fair much better in the long term, just as silver and gold should be looked at – a long term investment!
Now, on to the breaking news that matters…
Fed’s Advisory Council Admits We’re Screwed – Most shocking of all, the Fed admits there may be no easy exit from QE (“It will likely be difficult to unwind policy accommodation, and the end of monetary easing may be painful for consumers and businesses.”)
Dave Morgan: On The Gold & Silver Roller Coaster – Time Will Show and Physical Will Explode –
Mr Eric Sprott was on fire this weekend as he explains that Gold Raid Has “Unleashed A Torrent Of Buying” and he goes on to explain that A Mega-Panic Is Coming & Here Is The Reason Why He also shares his thesis on Why There Is Such A Massive Shortage Of Gold and it’s not what you would think.
The Current Level Of Physical Gold Being Traded Is Shocking – The LBMA reported record gold transactions in April, of plus 25%. This is the highest level since gold peaked in September of 2011. So physical trading is at the same level where it was when gold was at its peak at $1,900. That’s extraordinary.
The level of physical gold trading is incredible. We are seeing the same activity now as when gold was at its peak. And it proves that all of the selling is in the paper market. Remember, these were April figures. We have seen, and also refiners have seen much higher activity in May. So demand is even greater right now. I believe that we have seen the gold market finally turn to the upside, despite today’s pullback. It’s possible to see some consolidation before gold takes off, but the real move, when it starts and it won’t be far away, that will be massive.”
Silver shorts play a dangerous game – One of Wall Street’s many witty quips recommends you buy when there’s blood in the streets. Well, these days, the blood in the streets isn’t red — it’s silver. If investors get nervous over a spike in bond yields in the world’s third-largest economy, or if any number of other outliers or “black swan” events cause a flight to quality in precious metals, then the silver shorts will be caught with their pants down. The ensuing race to cover will undoubtedly cause massive short covering to take place, and that means a big spike in silver prices.
Finally, ask yourself this question: When it comes to silver, who is left to sell? Basically, everyone who wants to sell silver has largely already done so. Moreover, the high level of short contracts out there means silver prices could explode higher on any exogenous event that prompts short covering.
Silver Short Squeeze Scenario – The price of silver is currently at least five or six times below most conservative, inflation adjusted estimates of its fair value in U.S. Dollar terms. If large buying interest suddenly emerged overnight, the first set of speculators would cover violently as their buy stops get triggered in classic HFT fashion. The large commercials would then follow, thereby drawing in more widespread buying interest as prices move up and are publicized by the media.
While you admittedly cannot eat an ounce of silver in a crisis, you also cannot eat paper money. Furthermore, an ounce of silver will very likely buy you more food in times of financial trouble than you will then be able to purchase with its current equivalent dollar amount.