Silver price watch

Silver closed for the weekend down .80 cents today (to $31.08 ).


For the week silver lost about $1.40 (or just over 4%).


http://silverprice.org/silver-price-history.html

 

Jim Rogers, “You Should Own Silver”

'Fence sitters of the silver market are forewarned: buy more silver. That advice, according to Jim Rogers of Rogers Holdings, is the heads-you-win-tails-you-win investment proposition in the years ahead.

In a Nov. 23 CNBC interview, Rogers has little doubt of more central bank intervention planned in the wake of a global economic slowdown, but if he’s off the mark, silver (and commodities, generally) investors will win anyway, as Asia’s production-export model gears to supply what the world needs—including lots of existing and new products containing silver. Sign-up for my 100% FREE Alerts

“I’m long commodities and currencies, because if the world gets better, the shortages in commodities will make sure I make money,” the 69-year-old Rogers told CNBC. “If the world economy doesn’t get better, I’d rather own commodities because they’re [central banks] going to print money.”



It’s interesting to note that of all commodities investors of which investors can buy, Rogers singles out the ‘commodities’ silver and rice, with the latter, a staple of the Asian diet, and the former, a critical metal used in the manufacturing of alternative energy products—a sector, in which, China has taken an enormous interest and investment due to long-term strategic reasons, according to researcher and author of Red Alert: How China’s Growing Prosperity Threatens the American Way of Life, Dr. Steven Leeb.

Leeb points out in his book that China has invested more $500 billion per year in windmills, solar and other forms of clean energy, not because Beijing is necessarily concerned about the environment as a principal objective use of its $3 trillion reserves, but because it seeks to ween the Peoples Republic off rapidly rising fossil fuels prices while at the same time reducing the odds of a military confrontation with the West over remaining accessible global oil reserves.

“I mean, once the Chinese build out their solar energy, and they haven’t up to this point, but they will, they’ll start accumulating silver,” Leeb said in a September interview with Goldseek Radio. “In fact, I wouldn’t be surprised right now if they weren’t accumulating a lot of silver.”

“And my prediction is that silver will go high enough, and if we recognize it’s so critical, that the government may even ban public ownership of it, like the government banned public ownership of gold during the Depression,” Leeb continued. “I think, well, silver over $100 per ounce—I almost think it’s inevitable, that silver hits three digits to be honest with you.”

Apparently, agreeing wholeheartedly with the Leeb thesis about the future value of silver as a vital metal to alternative energies, Rogers said at a RBS conference on Nov. 22 that he expects wind and solar to be among the leading forms of alternative energy in the 21st century and recommends investing in the sector for its long-term potential.

Given the assumption of China’s planned strategic initiatives in the area of alternative energies, the demand for silver to achieve a China-wide roll out of alternative energy is projected to surpass available silver mine production by as late as 2020, according to Leeb. Rogers sees a similar potential of China’s demand for critical metals.

“I am very optimistic about energy sources, yes wind power, solar power and all alternative energy sources have a good future.” Rogers told the RBS conference attendees. “ . . . the politicians love wind power, they love solar power for many reasons so they would subsidize it.”

And if the global economy takes a turn for the worse, which Rogers said, recently, is inevitable in 2012, central banks will print money to prevent a collapse of the global financial system—a system much too leveraged to weather another slowdown so soon following the Lehman crisis.

In that case, silver’s role as hard money could get another big boost, as previous so-called QEs from the Fed, and now from a Draghi-led ECB, may cause another flee out of paper currencies and into the tiny market of the white monetary metal.

“Throughout history, when things have gone wrong, they print money…when they print money, you should own silver, you should own rice, you should own real assets,” Rogers said, noting previously in the interview that the collapse in MF Global has created some forced selling in all commodities and precious metals.

While the MF Global liquidation plays itself out, how much lower silver and gold will continue to drop in prices is unclear, according to Rogers, but he will be ready with his checkbook if the metals fall further from here. He said the liquidations of gold and silver contracts provide an opportunity for accumulators of the metals to catch better prices.

Roger concluded, “Gold could go down a fair bit more…but I’m certainly going to buy more gold if it goes down and silver.”'



Read more: http://www.beaconequity.com/jim-rogers-“you-should-own-silver”-2011-11-23/#ixzz1esja8zDq

http://www.beaconequity.com/jim-rogers-“you-should-own-silver”-2011-11-23/

 

Some serious action today.

Global Central Banks Ring Gold Buyers' Bell

Peter Schiff nails it on the head (for the longer term picture). But I'm looking at the long term anyway, since I still own a fair chunk of physical. For anything in the short term I don't think this by itself will get us back to the $34+ level, too many people have been bitten and scared by the volatility. Any thoughts if this rally has any legs?

http://www.youtube.com/watch?feature=player_embedded&v=f0gWI31on7Q#!

 

I subscribe to The Peter Schiff show and am a big 'fan' of his. However, I personally do not think this is the beginning of a sustained rally. Just a short to medium length one - if that.

Imho, this rally will only last as long as the central banks and various governments keep throwing money at the economies of the world.

So, my question is will the ECB/the EU get together on bailouts/the debt crisis (as I assume QE3 is still some months away) soon?

If they do, then yes the rally should continue, imo.

If they do not, then no the rally should fizzle, imo.

I do not know which they will do - though after today's joint effort by many countries' central banks...it seems more likely to me that they will then I thought a few days ago.

I am just going to sit and watch for now.


But, as usual, I am NO expert.

So I do not know if this rally will continue.

 

What other choice do they have? Ultimately we are screwed either way. It's either debt defaults and political instability on a massive scale or hyperinflation. Since nobody likes the idea of being strung up from a lamp-post so far they have chose the latter.

 

I agree, but in the short/medium term; Germany seems to be the key in the EU - and they seem to be dragging their feet since my understanding is they seem to think they will be okay whether the EU breaks up or not. So they are not anxious to spend a pile of their dough to prop up what might fail anyway.

And the ECB (European Central Bank) seems to actually be acting - more or less - like a central bank should...and not just 'print' money to solve problems.
Now whether they are doing this out of some greater wisdom then the Fed and many other central banks or just waiting until the last minute before they start 'the printing presses' - I do not know.

 

silver is just resting until its next leg up......it can stagnate like this for 8 months or longer as it has been doing for almost 10 years now.....not to worry...eventually it will make another leap forward

 

Personally, I think that when all these government/central bank band-aids run out that silver/gold will plunge somewhat like they did back in '08 - when silver went from over $20 to under $10/oz....initially.



http://silverprice.org/silver-price-history.html


But when people finally realize that the fiat money system does not work and they run for the cover of hard currencies/commodities (instead of the U.S. dollar as many of them do now)...then I think silver/gold should skyrocket.

My problem is I want to try and get out before that plunge is too far along.

I think in the long run, buy and hold will be fine for silver/gold...as do Peter Schiff, Ron Paul, Jim Rogers, Marc Faber, etc..

But I am greedy and want to try and make even more....LOL.

I'll probably just mess up the timing and end up making less then if I just bought and held...but I want to try.


For me I think the tipping point is $30/oz....depending on the circumstances.

If the price goes to $38-$39/oz. and the plunge has not happened yet...I will probably get out as well (until the plunge ends). Then I could buy even more then if I bought and held...THEORETICALLY.


But, as should be obvious, I am NO expert.

 

Draghi Says ECB Bond Purchases ‘Limited’

'European Central Bank President Mario Draghi said the bank’s bond-purchase program “can only be limited” and that “a new fiscal compact” in Europe will be a better way to stop the region’s debt crisis.

While the ECB is buying bonds to improve the “transmission mechanism” in bond markets, “such interventions can only be limited,” Draghi said in an address to the European Parliament in Brussels today. “A new fiscal compact would be the most important signal from euro-area governments. It would also present a clear trajectory for the future evolution of the euro area, thus framing expectations.”

The euro dropped after Draghi’s comments, which came one day after the ECB joined forces with the Federal Reserve to cut the cost of emergency dollar loans to banks outside the U.S.'

http://www.bloomberg.com/news/2011-...-can-only-be-limited-pushes-fiscal-union.html

 

ECB opens door to action, Sarkozy seeks new treaty

'(Reuters) - The new head of the European Central Bank signaled on Thursday it stood ready to act more aggressively to fight Europe's debt crisis if political leaders agree next week on much tighter budget controls in the 17-nation euro zone.

In France, President Nicolas Sarkozy called for a new treaty incorporating tougher budget discipline, a European Monetary Fund to support countries in difficulty and decisions in the euro area taken by majority vote instead of unanimity.

Addressing supporters in the port city of Toulon, Sarkozy said he and German Chancellor Angela Merkel would meet next Monday to outline joint proposals to put to a December9 EU summit, seen as make-or-break for the 12-year-old single currency.'

http://www.reuters.com/article/2011/12/02/us-eurozone-idUSTRE7AR0P320111202

 

The magic words (for us). But we'll need some more comprehensive action before the metals re-test the highs of earlier this year. I dipped in today for a modest amount, but like 99% of those not in the loop are still waiting to see how it all unfolds.

 

Silver closed out the week at $32.56/oz..

That's up about $1.50 (roughly 4.5%) for the week.

 

I found it rather strange that with the generally good news today that silver actually lost a tad.

Any ideas?

 

Now I think I know why...

Euro Falls on Bets Summit Won’t Stem Crisis

'The euro dropped against the dollar for the first time in three days on mounting speculation that next week’s summit of European leaders won’t be able to stem the region’s sovereign-debt crisis.'

http://www.bloomberg.com/news/2011-...n-leaders-won-t-agree-on-handling-crisis.html

 

Silver closed out the week at $32.16/oz..

That's down $0.40 (roughly 1.2%) for the week.

 

sooner or later silver will make its next big move up!

It may take a few more months but if history is any guide then by next summer there should of been a big move up already!

 

I hope so....

 

Silver is down $1.90 (about 6%) already today.

http://silverprice.org/silver-price-history.html


I was afraid of this - that silver would free fall if the EU didn't get it's act together...which it didn't (apparently).

No reason (IMO) to think silver won't be good/great long term.

But it could be - barring something unforseen - ugly for it (and gold) over the next little while...at least until QE3, the EU/ECB/IMF putting more on the table or lots of positive economic news (and I ain't holding my breath on the latter).


But...as always...I am NO expert.

 

Ooops...make that silver is down $2.21 so far today.

http://silverprice.org/silver-price-history.html


Well, silver IS a roller coaster.

And like all good roller coasters - there are always some big drops.

 

if it goes to 25 I am ready and eager to buy some more

 

Silver is up today 0.48 cents at $29.71.


http://silverprice.org/silver-price-history.html

 

Right now; with a substantial EU agreement/ECB bond purchases or QE3 seemingly a no go (at least for now), I don't see any substantial reason why it will not reach that level...or lower (before it starts to rise again).


I just wish I had the guts to dump my silver and buy it up again when it drops.

But I don't.

So it looks like I will hold it through the roller coaster ride.


But, once again, I am NO expert.

 

Silver closed out the week at $29.71/oz..

That's down $2.45 (roughly 7%) for the week.

http://silverprice.org/silver-price-history.html

 

not sure if you heard this but there are runs on the banks of spain and portugal and even a few in france. Yup.....if this keeps up then the entire EU make implode next year, and yes silver and gold will fall. Mind you so will the DOW and possibly the collapse of many pension funds and banks in the US....so what do you think uncle Bernacke will do?