Originally posted by manta78
reply to post by JR MacBeth
Interesting conversation today with a coin dealer. He has been around a long time, and is firmly convinced that silver will be around $50 per ounce by
the end of this year, and over $100 per ounce sometime in 2012....
edit on 3/11/2011 by manta78 because: (no reason given)
I'll go out on a limb here a bit. Based on what I see going on, I wouldn't be surprised if silver hit the $50 mark by June
I know that it may sound way too bullish, especially considering the big run it's already had over the past 6 months, but the USD, the Euro, and now
quite likely the Japanese Yen, are going to be fighting tremendous headwinds. All commodities are going to appear to rise, in terms of the various
PLUS, precious metals are still in their seasonal up-swing (as much as anything can be "seasonal" in this chaotic environment).
Some may have noticed that silver was down rather a lot this morning, but it was a fake-out (I took advantage of the big down yesterday, was at the
biggest dealer in town right at opening, and cleaned up...I'm into the physical). It ends UP 60+ cents. What I think may have happened was that the
shorts were in the process of their almost predictable two-day attack (always a Thursday, with a concentrated follow-up to kill the close for
But the earthquake in Japan screwed up their timing!
No one seems to be talking about this issue (yet), as it relates to precious metals.
I have no idea how powerful the combined efforts of JP Morgan, and the Fed are, but Mother Nature isn't exactly powerless. (I know, someone will be
here soon saying it was HAARP...maybe, but I still think "real" earthquakes happen!)
ANYWAY, make no mistake, there are going to be repercussions. Read your MSN, they're already saying the "most expensive" earthquake ever, kind-of
sort-of thing. How will that be paid for? FIAT. Does the world really need more fiat right now? Couldn't Mother Nature have been more polite,
realizing that the Fed already had the presses running at maximum?
For those who read the usual Kitco articles (normally good for contrarian purposes), notice how they're trying to diffuse this thing, acknowledging
that precious metals are going to be up next week, but ignoring the elephant in the living room, the quake. Their top headline, "Gold Expected
to Stabilize, Work Higher Next Week; Mideast Crisis, European Debt to be Keys..."
Sort of sounds like, "Don't you DARE think gold will get too crazy next week! Sure, it will go up, but think in terms of namby-pamby
"stabilize"! Gold will have to WORK higher next week! THAT won't be easy! Oh yes, FORGET the Japan thing, think Mideast! European debt! Go
with our PLANNED program, IGNORE this pesky quake! (And oh Golly, we sure hope the almost certain aftershocks won't really screw the
In my book, when the "official word" acknowledges upward pressure as a virtual short-term given, but makes a firm point of blunting the potential
strength of the up-move, and simultaneously asks you to look at the "other hand" (ignoring something major and unexpected, like the quake), you
almost can't get a more bullish signal than that. I could be dead wrong, but we'll see soon enough.
As for you traders out there who were long, you might thank Mother Nature on this one. Things looked as if the Big Boys were about to stick it to you
(again). ACTUALLY, they DID stick it to a whole lot of traders who bolted yesterday, but for those who held on...If I was to guess, next week your
fortunes are looking rather bright.