The Mission Of The Silver News Surfer Has Always Been & Will Always Be – To Preserve Your Wealth, Protect Your Purchasing Power and Create Generational Wealth!
May Health Wealth And Success Be Yours!
On to the business of protecting your wealth…
If you didn’t get a chance to see the contest I put together for all of you Monday, View it Here. I did this so we could have some fun. Life can’t be all business right?
There will definitely be some itchy trigger trading fingers today with Bernanke testifying in front of Congress, so expect volatility all day.
Either this is the bottom for gold & silver or we are going to re-test the lows – and the answer all depends on the FED meeting today.
Allow me to assist you in understanding these ever changing and challenging financial markets and more importantly, how you can profit on the upside potential and protect yourself from the downside risks….
Now, onto the breaking news that matters…
John Embry: The Price Of Silver Is Set To Soar As Inventories Collapse – I am becoming far more comfortable with the gold and silver markets after what can only be construed as an extraordinarily ugly few months. These violent takedowns in the paper market, which bore no relation to what was going on fundamentally, have discouraged so many people. I am getting extremely excited about silver.
Eric Sprott’s revelation about all of the silver going into India because of the difficulty in that country obtaining gold due to official impediments, I think it’s a classic case of unintended consequences on the part of the Indians. The last thing the silver market needs is a huge new demand source in terms of trying to keep the price under control.
I am also seeing that JP Morgan is feverishly trying to acquire as much physical silver at the same time they are reducing their paper short position. So I don’t think we have much longer to wait for a real explosion in silver prices. And if I’m right on both gold and silver, this will be seen as the single finest buying opportunity in the entire bull market, which is now in its 13th year.
Silver To Eclipse $100 On Skyrocketing Chinese Demand – Acclaimed Money Manager Stephen Leeb told King World News that silver is now setting up to eclipse $100. Leeb believes that China, which has been the primary driver in the gold market, is now going to push the silver price over $100 as their consumption of physical silver is poised to skyrocket. As we speak, China has just raised their target for solar power. This is an incredibly important event for the silver market. That means more silver demand. They have just raised their target to more than 35 gigawatts by 2015, up from the current level of 7 gigawatts. China’s previous target was 21 gigawatts by 2015, so that’s a stunning increase of 67% above their previous target. All of this is going to require more physical silver.
There is simply not enough silver in the world to accommodate the demand for photovoltaics going forward. As I mentioned, photovoltaics is already using 10% of the world’s silver supply, well, look at what China has just announced and all of this means you are going to literally see an explosion in the price of silver in coming years.
All of this means more and more demand for physical silver. The message here for investors is not that silver will go from $20 to $50, but instead that silver will trade in the hundreds of dollars an ounce in a matter of years.
Yesterday was three and today it is… 6 Signs That The Silver Price Has Bottomed – Both from a fundamental and technical perspective, silver looks to be oversold at current levels. The metal was due for a correction after the overblown move towards $50 in 2011. But just as it overshot to the upside, I believe it has now overshot to the downside. This is even more apparent with mining stocks, which are more undervalued relative to the metals than at any point during the current bull market. These companies may see more downside as Q2 earnings disappoint, but I believe much of this risk is already baked into current valuations.
I never advocate going ‘all in’ at one juncture, but I believe this is an excellent opportunity to start scaling into new positions or adding to current positions. I like to do this in tranches, buying a set amount of both physical silver and best-in-breed mining or streaming stocks every few months. This ensures that you don’t deplete all of your cash just prior to another move lower, while also allowing you to get ‘skin in the game’ at levels that appear to be near the bottom of this prolonged correction.
“This Will Trigger A Tidal Wave Of Short Covering In Gold” Right now the gold price is like a submerged beach ball. At some point the shorts will lose control and the price of gold will come shooting back up to the $1,600 level. There is so much aggressive buying of gold taking place around the world right now that it is almost mind-boggling.
I’m in rural Montana right now and I was just in a coin shop. The proprietor told me that no one is selling to him and everyone is buying. I can guarantee you that this is what you are seeing around the world right now. He let me know that it is taking a month for his buyers to get a box of silver eagles as an example.
He also told me that this is what small investors are doing right now to keep their savings intact — buying physical silver. Gold has already moved past their range and so some of them have been buying silver now for a very long time. This guy just can’t keep the silver in the shop. As soon as he gets it in the front door, the silver immediately goes out the back door to a buyer. I promise you this will all end in a panic at some point for the shorts.”
You’ve got to see this – Things that make you Go Hummm. Like Gold – As we have exhaustively noted, given the various macro factors bringing influence to bear on the yellow metal, the bizarre price action of the last six months has run counter to most logical assumptions and has been a source of great frustration to many – including Grant Williams. Cyprus should have been a hugely positive tailwind for gold. But it wasn’t. The ongoing money printing should have provided support for gold. But it hasn’t.
The talk of tapering should have had a minor but noticeable effect on gold, given its healthy recent correction. But it didn’t. Sustained data suggesting a voracious appetite for the physical metal not only in Asia but in Western countries, too, should have led to a bounce on the COMEX. But it hasn’t. The whole thing is as baffling as Kim Kardashian’s fame.
Investing in Silver a Winning Move as India’s ‘War’ on Gold Continues
By TONY DALTORIO, Contributing Writer, Money Morning
There’s a major government move right now that’s giving a huge boost to anyone investing in silver…
You see, when things go awry, governments have a tendency to pin the blame away from the government and on a convenient scapegoat.
Take India, for example. It faces a record current account deficit and its currency, the rupee, continues tumbling to record lows against the U.S. dollar.
But it’s not government policies that are the culprit here, says the Indian government and central bank. They say the blame lies squarely on Indians’ centuries-long love affair with gold.
Gold imports into India hit a record 162 tons in May.
The government says that if only the populace would quit buying so much gold, all the problems would be solved. That is laughable, but the Indian government has implemented measures to curb imports of gold into the country.
It has raised the tax on gold imports to 8% from just 2%. India also put measures into place like stopping banks from making loans against gold jewelry and coins weighing more than 50 grams.
The government has also roped in private entities to help it wage its ‘war’ on gold. A major financial institution, Reliance Capital, has suspended sales of its gold-backed funds. In addition, India’s largest jewelers’ association – the All India Gems and Jewelry Trade Federation – has asked its members to stop selling gold bars and coins. This accounts for about 35% of Federation members’ sales.
It remains an open question as to whether these measures can curb, in more than a very temporary fashion, India’s cultural affinity for gold.
But it does seem that another shiny metal will emerge a winner here. . .silver.
This precious metal also has been a part of Indian culture for centuries. And like gold, many Indians use silver as means of saving. Not a bad idea either with the rupee plunging.
Wealthy Indians may have moved their gold buying offshore to places in the Middle East like Dubai. But for average Indian citizens being shut out of the gold market by the government, they have quickly turned their attention to the silver market.
Just look at these astonishing numbers…
In 2012, India imported about 1,900 tons of silver. But through May of this year, imports have already surpassed last year’s total at 2,400 tons.
India’s record annual imports of silver occurred in 2008 with imports of 5,048 tons. But that record may be broken this year.
What is really impressive are the import totals after some of the government restrictions on gold started to bite. In April, imports were 720 tons. That was nearly the first quarter’s entire total of 760 tons. And in May, silver imports surged to 920 tons.
One can only imagine what the demand for silver and the imports will be now that the government has really clamped down on sales of gold in the country. Especially when one considers that Indians in May spent more than 10 times as much on gold as silver.
A report from Sprott, using figures from the Silver Institute, gives us some idea of the magnitude of these numbers.
In 2012, there were 24,478 tons of silver mined globally. That means India so far this year imported roughly 10% of world production. If the country continues on its current pace of silver imports, over the next 12 months, it will import nearly 50% of global silver production.
That would be a titanic change in the supply/demand equation for silver.