Silver Below $14

Well, there goes more than half of Friday's bump. Maybe the traders re-read Keynes over the weekend, huh? Well, at least the Sunday flea market dealers enjoyed a few extra points of markup.

 

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They forgot to release the Big White Rabbit this morning.

 

Many of you probably will not agree, but there is absolutely no discernible floor on the price of oil now that OPEC has dumped production quotas. All of the pressure is downward on prices. That will - and already has translated to a stronger dollar - and lower PM prices.

 

One of my own personal truisms is when gold is trading higher than platinum, there's speculative fluff in gold and perhaps silver too. The past seems to bear that out.

 

If OPEC were playing baseball, it would be called a suicide squeeze

 

High stakes poker trying to force the short stack (Texas and shale oil) from the table by forcing them all in.

 

The price of platinum is puzzling. It may be that manufacturers are turning toward iridium as a suitable replacement.

 

Yup, or some other PGM, depending on the application.

 

A lot of us do agree The more oil drops, the cheaper it gets to pull Gold and Silver out of the ground.

 

If the weather changes being predicted come true, mining may be difficult to do. Too much or too little water weighs on the mining process. The creeks of the 49ers may rush again , but there are more laws now, and many 3rd world (and some in US and Canada) open pit mines are subject to flooding. I think Australia and Africa/India region are predicted for drought, so gold should be watched with the weather map Gold options paper should drive the physical.

 

I'm not sure that the mining companies will be jumping in with their money in their fists. If you survey the publicly traded ones, you'll find that many are in fiscal straits. One thing that amazed me during the gold boom was how few -- with the notable exception of Freeport McMoRan -- actually prospered. And even Freeport is in the tank now.

Commodities producers need sustained prices above their margins to succeed.

 

If a stregthening USD causes Mexican and South American currencies to fall, doesn't that raise the price of gold and silver in those countries and encourage more production?

 

I honestly have no idea how anybody tells the difference between a change in PM's and the opposite change in the currency being looked at. There is NO fixed yardstick by which to measure things, and that takes some getting used to. More art than science.

 

... and the rest of last Friday's run up is now gone. Yup, the bear market was ended last week. Lesson: nothing that ever happens immediately after a major economic announcement (Fed, Dept. Of Labor) can be trusted to be the definitive word of the market. Metals are a "thin" market, with relatively few extremely big positions held by market makers. Sometimes their moves are "regular", and sometimes they're strategic games.

 

Depository for ETF's?

 

I am going to hammer one thing in to Mr. Button Up Bellman, the Dollar is weak. Now I am going to tell you this because it is True.

Not only is the Dollar weak it holds no gains either for very long.

You want to ramble over and over about False fronts the Dollar does go for it all day.

The bottom line the Dollar is attached to way to much Debt, Crooks and Phony Pony Countries.

China is a 100% screw up. Russia can only fight battles or wars, Middle East is oil pumping puppets. Shame on the US Folks for not seeing the light and only the Cell Phone shame on you.

 

Sunrise, I can't help that you're such a rah-rah über-salesperson for a losing asset like metals. That's YOUR problem. What I CAN do is warn the unwary and not yet brainwashed that you're full of [stuff that if I type it here, I'll have moderator trouble.] When I talk about abjectly EVIL people in the metals game, I'm talking about your ilk. This isn't the dollar's 5-year chart, you loser liar, that's SILVER'S! You must NEED "strong hands" to balance your weak intellect.