Let us keep in mind the 200dayMA is now around $36.00

During the May crash, the 200day was around $27.50

The way I see it, our economy is completely different than Japan's. Their bond demand comes from savers while ours comes from QE, open-market operations, and other Fed policies.

The federal government has shown absolutely no inclination to reign in deficit spending so how are they going to prevent inflation? Even if the current amount of money printing isn't enough to trigger massive inflation, how are they going to stop printing? They need to finance their deficit spending and do so while the Fed sticks to their plan of holding interest rates at 0 until 2013.

Are a bunch of new investors going to suddenly show up from somewhere to buy Treasuries? Is the Fed going to reverse course and extract all the money they have injected over the last few years and allow interest rates to rise to a level where the US defaults? Or perhaps there will be a sudden boom where production increases so much that the deflationary forces of increased productivity counterbalance the inflationary forces of the increased supply of money (despite the prohibitive regulatory environment).

Please explain the mechanism by which the excess liquidity in the system will be extracted, or if you don't believe there is excess liquidity, how the Fed is going to find a way to stop expanding the money supply while keeping interest rates low and Washington continues it's deficit spending.

Euros silver was down €0.10 and closed at €22.91.

In Canadian dollars silver closed at 31.78 down 0.15 CAD on the day.

Silver in Australian dollars: close 31.62, down 0.13 AUD.

In Pounds sterling, silver closed at ₤20.00, down ₤0.09 on the day.

Silver in Japanese Yen: closed at ¥2367.85, down just ¥9.00 on the day.

Silver in Swiss Francs: closed at 28.00 and was down 0.10 CHF on the day.

This "discount" is currently ours China's and India's.

Just a little perspective, that's all.

I can't say we won't sell off a bit further, with a (95% chance 26 will hold) maximum downside of $26.00/oz. I don't expect to see much from here from the bears, they were already over-extended.

The game is certainly not over, by any reasonable stretch of the imagination.

Physical flows into gold and silver right around 1:1. With the GSR up in the 50's, I will be jumping back in next week creating a what I call a huge fING position.

While I am also very positive about the outlook for silver, I think the above post is misleading. Those changes reflect different time periods due to different trading times in different regions. If you compare apples to apples (from londonfix time generally), the drops in silver price are very similar, since the daily changes in currencies are only a fraction of a percent.

lol, I think the Euro started at 28.00ish

I didn't intend it to be like that, under-utilizing wink smileys again. (place one after "that's all" in the other post.

The market was bung raped, everyone knows that.

And when I say bung raped I mean butt raped.

Forgot my wink smiley again.

The most important thing about a moving average is where you are in relation to it. Now silver is well below the 200 day where in May it never penetrated it. Those who pay attention to such things will view silver much more nagatively now. I have no opinion but it sure is volatile.

Absolutely, I know it will be seen as weakness, I see it as value, like the 22day is shorter term.

The last time the value presented itself was after Lehman, which provided the best entry points in decades. I feel we are seeing that play out again.


Yeah, a rough hit for the longer term channel which has now been broken. I really wanted to see a close above 32.50, no matter the intraday... I even threw some money at it. I will say (jokingly) that I helped save $30.00 silver if she holds Monday.

CME raised margins after the massacre, 16.15% initial and 11.96% main... effective at Monday's close. Should push some traders into gold honestly... if a gold contract is offering more than double the leverage of the 5000oz.

They aren't enforcing it Monday to screw anyone over Monday morning like they did in May (which as you may remember I took issue with).

Honestly, I wouldn't expect much less out of this raging psychotic bull market in silver.

Important to note, despite the savage beating and very busy week, tonight I went to a party, got half-drunk, met some cool people and had a great time.

I was going to say the same thing as mr baseball regarding breaking the 200 day. That should bring in some more selling, or at the very least, rallies getting closer to 36 should be sold off for the time being. I'd say the short and medium term outlook for silver is bearish. Support in the 25-26 area and then below that in the 18 area. I doubt 18 will come in to play, but who knows.

http://www.flickr.com/photos/30136394@N04/4645129000/#/

Typical silver bull

Or you could have bought silver in Feb. 2010 and got your same 100% percent return and save 19 years.

Or yeah, hold your 20 years until maturity. Send in the clowns.

Nice, read the comments.

I think most people don't even realize how volatile a market silver is....

I'm not sure but I bet this isn't even that many standard deviations away from "normal". I would be interested if somebody knew that. Silver makes 5% intraday ranges all the time it seems like.

Oh and I can hear musicrecorders truck backing up to buy. BEEP BEEP BEEP

If you erase the 1970's or Zimbabwe from history.

lol at gold and silver bears trotting out victory when gold is still up 26% on the year and silver is up 41% on the year. Ridiculous, you can claim victory when they are down on the year or maybe even less than 5% on the year would be somewhat reasonable.

this is intersting though not really that helpful. we are having a global market here so what would help would be global supply and demand. Global primary production and recycling etc.

sigh, i decided to start investing at ~43.50 less than a month ago. double sigh.

+1
I agree with you Fedorfan. Haters are gunna hate.
Im sure some people are happy with their lame "slavings" accounts,401k's or CD's that grandma gave them.
Im still bullish on PMs and will be for a very long time.

me too. I couldnt pass up on this chance to average down my cost. Im in at 38 now. Luckily I additionnaly have a decent amount that was given to me in the form of coins, so ill still be freerolling for a long time.

also- I dont know what you guys use to track your profit/loss but here are a few Google Docs templates I discovered recently which I really like.


Gold and Silver Coin calculator (doesnt have to be coins, u could simply put in 1 oz etc)
https://docs.google.com/spreadsheet/...QcjQ2LWc#gid=4

Precious Metals Coin and bullion live portfolio

https://docs.google.com/spreadsheet/...oMm8tc2c#gid=0

the second one is much more extensive and sexier, and includes other stuff such as stocks if you want.

Silver getting plowed again on Sunday night open down about another buck and a half but it's extremely volatile and swinging wildly. Gold down too but only about 10-15 bucks while most other stuff relatively unch. But its early.

+eur/usd up .. (after 1.34)

LOLOL sorry was in Europe this week so missed this gem

what happened to central banks buying silver and the alleged inventory correction that was supposed to have been smoothed out by now?

wait, I know ur rebuttal will continue to be how clueless I am yet every ***** call youve ever made has been wrong other than hold silver forever and every single call ive made has been right. every single ***** one. its amazing.

keep up the good work. $26 is the new absolute low right?