Silver Prices: Near Term Outlook For Gold and Silver

Admin | Silver Bullion, Silver News | September 12, 2011

Everything is lining up once more. On the one hand you have the threat of fiat currencies getting diluted even further in an effort to appease the markets for a short spell. It's easy to want to try to get in before the next big run up on silver prices with the prospects of QE3 looming, however, it would appear that it's also time for a good 15% retracement in the gold and silver prices as they may have overshot just a bit on this last run up. This action, should it occur, will inevitably shake many out of the tree and they'll lose the faith in the power of these sought-after metals. Just as there are those that buy up stocks when the blood is flowing in the street, the same is true when the metals go on sale, especially after an over-reaction which is most common when silver prices begin to move to the downside.

If you have noticed, silver prices often move a full two times the percentage that gold moves in a single day. Personally, I wouldn't sell my metals here if you were thinking of buying them again after any possible dip because we cannot control or predict what will actually happen in the near term future. It's all just an educated guess and those are often far from accurate as I'm sure you've noticed.

I learned that some of the junior silver miners 'might be first' to be hurt in a downturn (if you ask me - that has already started), but they should also be the fastest to recover on any uptick in metals pricing. One thing for sure, the world is in a rough place and as each new day comes we start to hear more people that are willing to state that things will probably get worse before they get better for the global economy.

Will silver prices be hurt in the short term by lagging industrial demand? Sure, but so will the other metals including every other base metal. That doesn't change the fact that the demand and hoarding going on in metals like silver and gold seems to be growing each day. This will eventually precipitate a true shortage in some metals in the coming years on a scale not witnessed before in history.

In addition, the Euro is sinking against the Dollar and the Aussie is also fading against the USD. This is a bearish sign for for commodities as many of us know that the AUD/USD is often an indicator for metal prices direction.

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Silver and Gold… will they continue to glitter?

Admin | Silver Bullion, Silver News | September 9, 2011

Just the other day, I noticed a new phenomenon - Goldline.com starting to push the sale of silver in a big way. Now we have to ask ourselves, why exactly would they be doing this? Do they have a huge load of silver coins that they bought in the $20/oz range and are ready to double up at the $40/oz range where we are roughly at now? Or perhaps they intend on helping YOU, the esteemed client - super rich just like the Govt of China advising it's citizens to load up on Silver? There may be yet still other reasons why they've finally taken to pushing Silver to the mainstream markets - that's hordes that watch CNBC and similar financial shows throughout the day and into the evenings. Whatever the motive, it would appear that they believe there is going to be another run in Silver - whether it's to the top of a bubble or not, only time will tell.

The volatility over the last few weeks indicates that there is MUCH uncertainty and this is all pointing to an unhealthy market (stock market environment around the world). Everything seems to be very reactionary lately. Just as Sino Forest seems to have fallen into the abyss once more, SVM was taken down a few notches by someone that had put on a sizeable load of shorts and then made some claims against SVM that appear to be false. Just take a look at the price action over the last few days - down 10% and now up 10% after the accusations seemed to have been cleared by a 95 page document released by the company. Do a bit of research on SVM - SeekingAlpha has plenty of good things to say about that little pony... as a disclaimer, I do own it and am not recommending it (just saying ya know!).

Back to PM Silver. Lately, I've had some urges to sell some Silver. Nearly every time in the past when I got an urge to sell a stock, it nearly always went up just days later - tell me - has this not happened to you as well? So, I think I'll go against that weird feeling something saying - sell some Silver... Perhaps a bit later in the month when The Bernanke starts to use more of the 'tools' the he often refers to...??? Is that like a cosmic cash printing press?... Can't he just say that? Someone needs to go update the Wiki on the latest meaning or slang for TOOLS. With the threat of an impending QE3, one could surmise that the value of the USD and inflation are going to begin to move apart once more. Regardless of what the EUR/USD does, the price of Silver and Gold should continue to appreciate until someone pulls some magic out of something or other... perhaps, this will be the segue-way into the 'new currency'... yikes, let's not go there just yet.

In the end, are we not all tools for this rerun of a lame puppet show?

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