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.
COT Silver Report - February 17, 2017
After a slow start, gold and silver resumed their uptrends this week, with both metals edging into new high ground. Gold rose slightly from $1233.5 at last Friday’s close to $1237, and silver from $17.95 to $18.03 in early European trade this morning. It has been the pattern for the last month that instead of drifting lower over the course of Fridays, precious metal prices have rallied in US trading hours, so this week’s uptrend may have further to go before the week is out.
It’s been more than three months since the “Dow Jones Propaganda Average” declined more than 1% in a day, and a year since a 5% correction – BrExit, Trump, and all. According to “soft data” surveys like “consumer sentiment,” Americans have never been more “bullish.” Moreover, equity valuations are at all-time highs – despite six straight quarters of declining year-over-year earnings; the weakest “hard data” since the 2008 financial crisis; a surging dollar that is destroying America’s competitiveness – to the point that the President himself is complaining, and accusing our leading allies of currency manipulation; whilst bonds are as well, despite all-time high, parabolically spiraling debt; a five-year high in (government-reported!) inflation, both here and overseas; and consensus estimates that the Fed will raise rates further.
Precious metals expert Michael Ballanger ponders the timelessness of Hunter S. Thompson's "blistering attacks on the status quo" and their applicability to today's political landscape. He also reminds us of the "incredibly bullish" fundamentals for silver and lays out the evidence for why this precious metal is on its way to $25/ounce by mid-year.