First of all, there's always some contingent of people that are looking for a safe haven or a hedge, and of course that ebbs and flows with market conditions and perception. However, long term investors realize that the financial situation on a global basis, the debt structure, is unsolvable. So, I think there's that and there's always people that are adding to that. There's people that invest too much or expect the market ... the gold market or the silver market to move at a certain place, and it doesn't. So again, it ebbs and flows.
COT Silver Report - February 24, 2017
The next leg up in a new daily cycle for the precious metals has begun. Silver is breaking away above its 200 dma with little resistance now until it reaches $19. Gold is approaching its 200 dma and once it breaks through that resistance is expected to top somewhere above $1300+.
Gold and silver broke out on the upside from a two-week consolidation yesterday, with gold breaching the $1250 level, and silver clearing $18.00. Comex volume has picked up on these break-outs, characteristic of a bullish move. In early European trade this morning, gold was trading at $1254, up $19 since last Friday’s close. Silver was at $18.26, up 27 cents on the same timescale.
Lately, the Cartel has been throwing everything – including the kitchen sink – at Precious Metals; in silver’s case, vigorously defending its latest “line in the sand,” at the 200 DMA of $17.96/oz; and in gold’s, at its 200 day and 200 MONTH moving averages, both of which are roughly $1,266/oz. And despite, as I mocked yesterday, the dollar index “rising” this week – due to heightened fear of a Eurozone breakup – they’ve been having an immense amount of trouble holding them down.
An incredible amount of fraudulent, virtual silver is being created in order to cap price and paint the chart. Will JPM and the rest of The Evil Empire be successful once again in capping price and routing the Specs. The reaction to today's FOMC minutes may help to determine the outcome. Again, I can't stress enough the devious and fraudulent nature of this latest attempt to contain and cap price. The past four days have seen the price of Comex Digital Silver pressing up against the key resistance of $18 and the 200-day moving average near $17.93.
It’s Tuesday morning, and the Euro was crushed overnight – to within less than a percent of the 14-year low of 1.047/dollar set earlier this year; in turn, causing the cost of living for hundreds of millions of Europeans – and millions of other people whose fiat toilet paper is pegged to the Euro, to instantaneously surge. Not to mention, billions of people the world round, whose currencies also plunged – which quite obviously, caused a positive “net change” in physical gold and silver demand.
The annual silver production estimates for 2016 were published by the United States Geological Survey (USGS) recently and I have gone over the figures country by country in my latest newsletter. The upshot was that the USGS estimated another record year for global silver production in 2015, but this turned into an epic fail as global silver was down on 2014 by 5%.
As I sit down to write on this “President’s Day,” I can’t help but consider how diluted the stature – and goodness – of the Presidential Office has become. And this has nothing to do with Donald Trump personally, but the fact that essentially everything the post- Financial Crisis government has done has been detrimental to the public, causing the office to lose the admiration – and cache – it had when America was indeed “great.”
I have spent most of my life watching, writing, speaking, trading, investing, and listening to almost any and everything to do with the silver market. Given this, there are several insights that you (the market) have provided me over and over again, at a level rising to conviction about many retail silver market participants.
Although what is written from this point forward will be opinion only, some readers might interpret it to be factual - or at least based upon much experience. Silver Investors - just like the metals themselves - are far more volatile than gold investors. To some people, silver can become a religion. The conviction of a true silver-bug is often comparable to that of a pit-bull. Being open-minded is not always the most highly-rated quality for this type of person.