Silver Prices

Are You Ready for the Next Crisis?

As quickly as hurricanes and wildfires pop up, a financial or other crisis could hit unexpectedly at any time. It’s always good to be prepared.

Silver prices could move up significantly anytime due to shortages or just because it becomes a more recognized “asset class” and an alternative to stocks, bonds, cash and real estate. We probably will not see prices hitting new all time highs right away. In fact, prices are in a downward trend right now, allowing us more time to steadily build enough silver reserves for possible currency defaults in the future.

Some folks in countries where their currencies are being downgraded are already in rapid decline toward default, and it may not be far off here in America. That’s why it’s always better to be early in converting at least some paper currency into silver.


Earn Silver

Why Gold and Silver are Collapsing

Recent history proves the point that the precious metals markets, especially Silver, is very volatile. In a Kitco Commentary titled “Deflationary Collapse Crushing Gold and Silver“, Jason Hamlin writes:

“Gold is down more than $300 or roughly 16% in the past few weeks. Silver has lost nearly 40% in the same time period and the mining companies have also been hit hard. This decline in precious metals has been driven by funds scrambling for liquidity, the CME hiking margin rates and a stronger U.S. dollar. Many also suspect that the banks helped to manipulate the price lower in order to cover as many of their underwater short positions as possible. JPMorgan and their cohorts control the paper markets and can use their leverage to manipulate the spot price to whatever level they want in the short term. This is done via “stuffing” trades and using a variety of other methods to make the markets believe that there is considerably more selling pressure than actually exists. This is particularly profitable as options expiration is this week and the current smack down will leave most options expiring worthless, in addition to providing an opportunity to exit short positions.

But despite the apparent manipulation, JPMorgan has been woefully unsuccessful at suppressing the price in the long term. After all, gold is still up 25% and silver 40% in the past 12 months!”

As The Dollar And The Euro Continue To Collapse, How High Is That Going To Push The Price Of Gold?

Right now, the global financial system is facing a crisis that is really unprecedented. The reserve currency of the world (the U.S. dollar) is collapsing and the second most powerful currency on the planet (the euro) is also collapsing. As the major paper currencies of the globe crumble, the hunger that investors around the world have for gold continues to grow. Today, the price of gold hit an all-time record of $1607.90 an ounce. But that record surely will not live for long. The truth is that gold has been steadily climbing for quite some time now. A year ago, the price of gold was hovering around $1200 an ounce and and many “mainstream economists” scoffed at the idea that the price of gold could go significantly higher. Well, nobody is laughing now. As colossal debt loads continue to crush both Europe and the United States, the euro and the dollar are going to continue to collapse. There are going to be more bailouts and central banks are going to be doing more money printing. So how high is all of this going to push the price of gold?

That is a very good question.

At the moment, the price of gold is experiencing its longest rally since 1980. As the financial markets become increasingly unstable, investors are looking for security, and security is not to be found in anything denominated in dollars or anything denominated in euros.

Continue reading As The Dollar And The Euro Continue To Collapse, How High Is That Going To Push The Price Of Gold?

Gold is hitting record highs; Silver is climbing

Ongoing concerns over stalled U.S. debt ceiling talks, as well as fears of debt contagion in Europe have fueled the rapid increases in Gold and Silver with investors seeking a safe haven in precious metals. Forex.com Analyst Kathleen Brooks noted, “Recently, Gold has outpaced Silver; however, with Gold reaching a record … we think that Silver may play catch up.”  Gold’s appeal as a safe haven and hedge against inflation are shining through in this time of global economic uncertainty. In addition, analysts suspect the price of Silver to continue its rise as investors seek an alternative to Gold and as demand from emerging markets begins to outpace the world’s limited Silver supplies.

The prices of Gold and Silver may only continue to rise if:

  1. there is a continued lack of progress on the U.S. debt ceiling talks with an August 2 deadline looming,
  2. European Union leaders seek solutions to bail out Greece again while trying to stop the crisis from hitting Spain or Italy, and
  3. investors worry about rising U.S. inflation with a possible third round of quantitative easing, known as QE3.

If you have been waiting to make your investment, don’t put it off any longer! CitiFX’s Chief Technical Strategist, Tom Fitzpatrick, said the next Gold rally should be similar to the July through December 2010 rally. Some experts say the technical charts for Gold based on past rallies see the precious metal reaching $1,750 an ounce or higher.

Recently, investors have been particularly interested in the following precious metal investments.

Gold American Eagles1 oz. 2011 Gold American Eagles

Since the Gold American Eagle was introduced in 1986, it has been in high demand. Its stately appearance and proud symbolism make the Gold American Eagle one of the world’s most popular forms of personal Gold ownership.

Buffalo Silver Rounds1 oz. Buffalo Silver Rounds

This .999 fine Silver bullion coin is a beautiful example of James Earl Fraser’s classic Buffalo design. Investors and collectors alike treasure this popular and easy to store coin.

Strike while the market is hot and take advantage of growing investment opportunities.

Don’t miss your chance to lock in your Gold and Silver position. Concerns over QE3, the ongoing European debt crisis and the looming U.S. debt ceiling may cause prices to increase even more.


Earn Silver

Manipulation of Gold and Other Precious Metals

The following is excerpted from a longer article by Alex Newman called Fed Manipulations in the Crosshairs.

Whistleblowers, and even some government officials, are now taking aim at “irregularities” in the precious-metals market being orchestrated by the banking cartel and its government allies.

An ex-Goldman Sachs employee and veteran metals trader in London shocked the world in April when he went public with startling allegations. “JPMorgan acts as an agent for the Federal Reserve; they act to halt the rise of gold and silver against the US dollar. JPMorgan is insulated from potential losses [on their short positions] by the Fed and/or the US taxpayer,” Andrew Maguire told the New York Post. After sharing information with government investigators and accurately predicting events in the metals market, Maguire was supposed to testify before the U.S. Commodity Futures Trading Commission (CFTC). However, a few days after his identity was revealed, Maguire and his wife were struck and injured by a car in a hit-and-run accident. Details about any investigations into the event have not been made public yet, sparking a tornado of conspiracy theories.

The CFTC did hold a hearing on precious-metals market manipulation nevertheless, which included other speakers with similarly powerful accusations, including the Gold Anti-Trust Action (GATA) Committee’s Bill Murphy. He told The New American that GATA tried to find out what role the Fed was playing in the gold markets, but his FOIA request for information about the Fed’s “gold-swap” agreements was denied. The organization then filed a lawsuit against the central bank in federal court. “[The Fed] came back and said they didn’t have to tell us anything — that they were exempt from telling us and that it was secret information,” he said in a telephone interview. “So then, we filed a suit in District Court in Washington to compel them to give us the information.” The suit is in progress, and GATA has high hopes for it.

Murphy said his organization wants to find out exactly what the Fed and the Treasury have done with America’s gold. “It’s the people’s gold, not their gold,” he said. The manipulation of gold prices is very serious and is part of the U.S. “strong dollar policy,” Murphy explained, pointing to the relationship between gold and interest rates.

“By suppressing the gold price, they can keep the dollar stronger than it would be and keep interest rates less than they would have been,” he said, noting that this manipulation played a pivotal role in the current economic meltdown. “What happens is every time gold prices soar, what do you hear? Too much inflation? Crisis? It’s always bad for the Wall Street crowd and the incumbent politicians.… If the gold price had been allowed to trade freely, interest rates wouldn’t have been kept too low for too long,” and the natural warning system would have kicked in.

Jeff Christian, founder of CPM Group, a trading firm dealing mostly with commodities, also spoke at the CFTC meeting. In his testimony, he revealed that bullion banks had leveraged their physical metals by as much as 100 to 1, essentially selling 100 times the amount of actual bullion they possessed, a fraudulent process known as “naked short selling.” Morgan Stanley was sued for similarly fraudulent activities in 2007 by clients who were led to believe that the institution had purchased and stored bullion on their behalf. The clients even paid storage fees, only to discover later that their alleged bullion did not even exist. Morgan Stanley settled the multi-million dollar class-action suit “to avoid the cost and distraction of continued litigation,” it claimed in a statement.

The allegations of gold price suppression seem to have been confirmed by the Fed itself. “Central banks stand ready to lease gold in increasing quantities, should the price of gold rise,” then-Fed boss Alan Greenspan told the House Banking Committee in 1998. In other words, if gold prices go up, the central bank will make sure they come back down.

Even before Greenspan’s infamous admission, a “confidential” Fed document dated April 5, 1961, available in the Federal Reserve Bank of St. Louis’ archives, revealed the central bank’s hand in the metals market. “Monetary authorities in the United States … have maintained the stability (and primacy) of the dollar in the international currency structure by standing ready to buy gold from, and sell it to, foreign monetary authorities who either need or acquire dollars for exchange purposes,” reads the paper, entitled “U.S. Foreign Exchange Operations: Needs and Methods.” The minutes from Fed “Open Market Committee” meetings showed the central bankers jubilantly admitting that even mentioning a possible gold sale would drive the price down.

The manipulation process today works something like this: When gold goes up in value relative to Federal Reserve Notes (what Americans today call “dollars”) and other fiat currencies, the central bank “leases” out some of its holdings to other institutions at a relatively low interest rate. These firms then sell the borrowed gold, driving down the price of the metal relative to fiat money. The companies then invest the cash into other assets with a higher rate of return, allowing the Fed to keep gold prices down while providing banks with an opportunity to earn more money.

The scheme involves a number of other players too. “It’s not only bullion banks like Goldman Sachs and JP Morgan Chase and HSBC, but also — we call it a gold cartel — it’s also the Fed, the Treasury, the U.S. government, and the [central] Bank of England,” Murphy explained, adding that some of the conspirators had likely broken laws and probably belonged in jail. The suspicions have also been recently confirmed by whistleblowers within the system.

But despite the deliberate suppression of gold and precious-metals prices, their value continues to rise as the Fed adds trillions of new dollars to the money supply. “Gold measures the value of currencies. And right now gold is telling us, in spite of the fact that the gold price is rigged by central banks and various entities, gold is telling us that the dollar is in danger — great danger,” explained Fed foe Representative Ron Paul during a recent interview with CNBC. “We’re in worse shape than we were in the 70s, and it was rather chaotic then. So we’re moving into a very dangerous era according to what the gold price is telling us.”

The manipulative system remains intact. But there are signs that some minimal government action is finally being taken regarding manipulation of metals and commodities markets. The CFTC recently slapped multi-million-dollar fines on Morgan Stanley and a large hedge fund for just such activities. Various news reports also claim the Department of Justice’s anti-trust division is investigating alleged silver price manipulation by JP Morgan Chase.

Biggest Names Discuss Silver

A great discussion about silver from some of the biggest names in the industry.

David Morgan is a precious metals aficionado armed with degrees in finance and economics as well as engineering. He created the Silver-Investor.com website and originated The Morgan Report, a monthly that covers economic news, overall financial health of the global economy, currency problems ahead and reasons for investing in precious metals. He is one expert I follow to keep abreast of the silver and gold markets. I have posted on a special video page a number of videos that feature David Morgan.

Regarding Silver Prices from NIA

Following is a message received from NIA (National Inflation Association) regarding the recent volatility in silver prices.

This past week’s dip in the price of silver from nearly $50 per ounce down to below $37 per ounce is exactly what we predicted would happen a week ago on NIAnswers.

A week ago on NIAnswers we said, “The gold/silver ratio has declined during the past year from 70 down to 32. We projected it to decline to 38 this year, so there is a chance silver has run too far too fast. It wouldn’t surprise us to see a large dip in silver prices with the gold/silver ratio bouncing back up to 40. However, we are 100% sure that the gold/silver ratio will decline to at least 16 this decade. Therefore, we think silver is a buy here for the long-term, but it is probably best to be buying gold here even more heavily than silver so that if silver dips in the short-term, you can sell some gold to buy more silver.”

With gold now at $1,503 and silver at $36.81, the gold/silver ratio is now back up to 40, which is exactly what we predicted would happen a week ago when the ratio was 32.

With a gold/silver ratio of 40, silver is starting to once again become very attractive. Silver will likely remain very volatile in the short-term, but it is best for us to ignore this short-term noise and focus on the long-term. There is simply no better asset to own during hyperinflation than silver. We are 100% sure that the gold/silver ratio will return to its historical average of 16 within the few years, which means that those who buy silver today will see a 2 1/2 increase in their purchasing power.

Most of the people who are taking profits on silver today are going long U.S. dollars, which is the riskiest asset of all. Even though we knew silver was going to dip, we didn’t sell any of our silver. We simply stopped buying silver in recent weeks and focused on accumulating gold. If silver continues to dip in the short-term, we will strongly consider selling some of our gold and using the money to buy a lot more silver.

It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us

Silver: From $30/oz to over $500 by 2020

Here’s a super bullish article from silver expert Jason Hommel:

Silver: From $30/oz to over $500 by 2020
(And from $500 to $5000 by 2030!)
Silver Stock Report
by Jason Hommel, January 12th, 2011

Silver: From $30/oz. to over $500 by 2020. In under a minute, I can tell you why that price must happen, and likely when. It seems to me that the public will one day wake up and start buying silver to protect from inflation. Thus, long before, say 10-20% of people buy silver, at least 1% of the American public will buy silver. We can calculate what might happen to the silver price when that happens.

The amount of money in US Banks is about $18 trillion. 1% of that is $180 billion.

Very little silver is left; it’s mostly all been consumed, so most of what is available to buy is the annual new mine supply which is 700 million ounces.

$180 billion is $180,000 million. Divide that by 700 million, and we get an implied price of $257 per ounce. Do the math yourself. I’ll wait.

But that price would mean that there is no newly mined silver left over for any industrial use, and that nobody else outside of the USA could buy any of the world’s newly mined silver. Clearly that can’t happen; those two groups would continue to buy silver, competing to buy, and driving up the price even more.

Thus, silver is very likely to be about $500/oz., by about the time that 1% of the American public wakes up and starts to buy silver. That will be the very beginning of the bull market in silver, when measured by “popular demand” — and at that price, silver would still be very unpopular.

Just remember these key facts, and don’t let anyone, or even yourself, trick you out of this developing bull market in silver. Don’t try to time the peaks, don’t wait for dips, just buy and hold real silver, not any kind of paper silver promise.

What kind of annual gains will that be? Let’s see, if silver goes from $30 to $500 in ten years, the compound interest rate calculator tells us that will be an average annual gain of 32.49%, which is about the same as what silver has done in the last seven years, from $4.15 to $30, which is a gain of about 32.66% per year, on average.

Oh, by the way, the 1980 high for silver was $50/oz. That was when M3, money in the banks, was about $1.8 trillion. Today, the monetary base has increased about ten times higher. Thus, the true inflation adjusted peak for silver would be $500/oz. That just further confirms this $500 estimate.

But there are many reasons why silver should surpass the former highs.

Key reasons to surpass the former 1980’s peak:

  1. Silver is more scarce due to 30 more years of industrial consumption.
  2. Paper silver scams are more abundant.
  3. Baby Boomers will be retiring, cashing out stocks and draining pension plans that have not yet invested into silver, causing other investments to vastly under perform silver, making silver ever more attractive.
  4. More trend investors today will notice the silver bull market and continued gains in the silver price, and invest in it, and carry it to further highs.
  5. The US government and political leaders are spending like never before, and the people, even the world over, lack the political will to control government spending which will ruin all currencies.
  6. There are no “safe” currencies to run to, leaving gold and silver as the only alternatives; and gold and silver have been in bull markets in all major currencies for 10 years now.

I’m sure you can think of many other reasons, but that’s enough for now.

So, the true skeptic may ask, “Yes, but this guy is a coin dealer, he’s just pushing his product because he has plenty of silver he wants to dump. Besides, what kind of argument will he come up with to sell silver after it hits $500/oz.?”

Let me answer this two part question. Yes, I do have silver! I have it, because I believe that the price will go up a lot, thus, it makes perfect sense for me to carry it as inventory. I sell it, because few people are able to buy it in bulk like we can, so I use my own stash, and industry connections, to enable others to buy it.

But what will I say after silver hits $500/oz., or nears that price?

I’ll say, “Obviously this bull market in silver is just getting started. Only 1% of American public money is buying silver per year. Just wait until at least 10% of US money is buying silver in a year, the price will be well over $2500 to $5000 per oz. for silver.”

But I would never make that argument now. Too few people would believe me, and they would think I’m some kind of kook. And people never do business with kooks.

And what will I say when silver nears $2000/oz.?

I’ll say, “Everyone knows it only costs 4 cents to print up a $100 bill, and everything returns to its intrinsic value. But used paper, particularly smelly paper, is worth even less, which is useful only for things like lining the bottom of the cages of birds, or burning in the fireplace. Thus, the price for silver will soon only be quoted in terms of gold, and certainly not quoted in terms of any kind of paper money at all.” But again, I’d never say that today, everyone would think I’m crazy.

Oops. Too late for me. But it’s not too late for you to buy some silver!

I strongly advise you to take possession of real gold and silver, at anywhere near today’s prices, while you still can. The fundamentals indicate rising prices for decades to come, and a major price spike can happen at any time.

Crash JP Morgan, Buy Physical Silver

Over the past 11 years, the Gata (Gold Anti-Trust Action) committee has worked to reveal the silver/gold price suppression scheme; thanks to whistleblower Andrew Maguire in London, an investigation has been opened. As part of the ongoing exposé, it has now become clear that JP Morgan is sitting on what is estimated to be 3.3bn ounce “short” position in silver (which they have sold short, meaning they don’t own it to begin with) in an attempt to keep the price artificially low in order to keep the relative appeal of the dollar and other fiat currencies high. The potential liability for JP Morgan has been an open secret for a few years.

Why it did not work in 1980.
In 1980, the Hunt brothers bought silver contracts on leverage. They also borrowed money against the value of their real silver. When silver values were manipulated lower, the Hunts were bankrupted, and they lost their silver hoard back to the manipulators. Also, interest rates on paper money were high enough to trick people into going back into paper. If people continue to try to buy paper silver, or buy silver with borrowed money, or let their silver be stored with the bankers and brokers, it will not work. People must be responsible enough to take possession of their silver, and they must choose to avoid borrowing money.

More effective than urging all people to buy 1 oz. of silver, would be to urge only a few people to buy all the silver that they can afford.

How many people? Perhaps it will only take reaching 1% of people in the USA with this message, or even less!

As it is, about 100 million oz. of silver per year are being purchased for investment. With silver prices at $26/oz., that’s barely $2.6 billion invested into silver per year. Even the purchase of silver by any one of several thousand billionaires could be enough to reach a major tipping point. Silver demand by investors is increasing naturally anyway, as the effects of the bail outs are obvious. Buying silver for protection is the less obvious choice, but more and more are seeing the need to buy silver.

Right now, silver eagle sales for the month of November hit an all-time record high and the availability of silver on a wholesale level is drying up. The most important indicator is the price itself – holding just under a 30-year high. With each uptick JP Morgan gets closer to going bust or requiring a bailout.

Crash JP Morgan, Buy Physical Silver

Here’s how the campaign works: wealth tied to a fiat currency is easily overwhelmed by wealth tied to silver and gold. And the world is waking up to the fact that they have the ability, without government assistance or other interference, to create a new precious metals-based backed currency system by simply converting their fiat paper into real money.

This campaign has 100% chance of working; it falls into the category of a self-fulfilling prophecy. As more individuals buy silver and gold, all attempts to replenish the system with more paper money will only cause the purchasing power of the silver and gold to increase – thus prompting more people to buy more. Any attempts to bail out JP Morgan would have the same effect. If the US Fed was to flood the system with bailout money for JP Morgan to cover their silver short position (as they did after the collapse of Long-Term Capital Management), more inflation will ensue and the price of silver and gold will rise more, triggering more purchases. A virtuous circle is born.

Silver VS Gold – Disconnected price ratio

Silver, at its current price is trading for only 1.78% the price of gold. We have a gold/silver ratio of 56, despite the fact that only ten times more silver has been produced in world history than gold.

On December 11th, 2009, NIA declared silver the best investment for the next decade. On December 21st, 2009, in NIA’s top 10 predictions for 2010, NIA predicted a sharp decline in the gold/silver ratio, which was 64 at the time.

NIA was right, the gold/silver ratio has declined by 12.5% so far this year.

Silver should be selling for over $80 per ounce right now with Gold over $1300 per ounce.

The time is RIGHT to be accumulating more of this precious metal. I really like Silver Snowball for accumulating silver because with it’s incredible affiliate program, you can actually get your silver at below spot prices. I recommend it.

Silver Eagles – Get ’em while you can 🙂

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Silver Shines as an Economic Solution

Here’s another interesting article written by Cassandra Anderson and posted on MORPHcity of another State government working towards bringing back Constitutional money into our economy.

Idaho State Representative Phil Hart authored the Idaho State Silver Gem Act earlier this year which allows for the Idaho State Treasurer to issue silver medallions and make them available to the public; people may use them for any purpose they want and will have the option of paying their State taxes with the silver. The benefits of the Silver Gem Act are:

  • Silver can be used as an alternative currency, outside of the banking system
  • Jobs will be created in the metal refining industry in Idaho
  • Silver- and gold- are a protection against inflation for both the public and Idaho State

The Idaho Silver Gem Act serves as a model that other states and local governments can use. If the bill passes, people can use silver with confidence because the government of Idaho will accept it, too. The Idaho Silver gem Act will also help to prevent possible federal precious metal confiscation.

According to G. Edward Griffin, America’s monetary system is based on fiat money, it has no intrinsic value and it is not asset- backed. Federal Reserve notes have value because of government regulations (the Legal Tender laws) that mandate their use under the threat of fine or imprisonment. The Legal Tender laws require people and businesses to accept Federal Reserve notes for payment, if Federal Reserve notes are offered as payment. However, people, businesses and even governments can also accept payment in the form of gold, silver or any other thing of value- they are not tied to accepting only Federal Reserve notes.

Mr. Griffin said that the bankers DO NOT own most of the gold- most of the gold is still in the ground! And even if the bankers did own all of the gold, but the monetary system was based on gold, such a commodity backed money system would prohibit the bankers from using fractional reserves to make loans and collecting interest on money created from nothing, thus limiting their primary stream of income.

Representative Hart’s Idaho Silver Gem Act, fully endorsed by G. Edward Griffin, is a first small step toward a competing currency. Instead of creating sweeping banking reforms Hart’s legislation is practical, incremental and it can be put into place immediately. For example, Georgia had a bill that would have made it mandatory for silver and gold to be used in all State business. Georgia’s bill failed because the implementation of the bill would have been monumental- imagine the difficulty of all businesses and entities trading with Georgia State’s government having to convert all payments into precious metals.

Representative Phil Hart’s Silver Gem Act passed the Idaho House vote (51 to 14) but it died in a Senate committee earlier this year. Two of the senators who were outspoken critics of the legislation were defeated in the 2010 primary election, improving the bill’s chances for next year. The Silver Gem Act is the only competing currency bill to get this far and Phil Hart will re-introduce it again next year if he is re-elected.

Click here to read the Idaho Silver Gem Act

Representative Phil Hart

Gold Leaps to New High

Gold prices shot to their highest level in history today touching a high of $1,297.40.

As you may well be aware of, the gold prices that you are quoted is heavily dependent on the fluctuations in the demand for this precious commodity and the future seems rosy because there are increasing numbers of people investing their money into buying gold. The reason why you should also consider putting your money into buying gold is that it becomes an asset that is solid, and which has bright chances of appreciating which will make your money grow for you.

Effect Of Weakened Dollar

What’s more, things are even more interesting with the gold prices as the relative weakness of the US dollar has impacted these prices. That means that investors are turning to buying gold in order to offset the weakened dollar’s impact on gold prices which has only pushed these prices northwards.

The U.S. dollar has been hit hard by Tuesday’s Federal Open Market Committee meeting statement from the Federal Reserve. While the Fed did not specifically detail quantitative easing measures, most analysts said the statement strongly suggests such due to the very accommodative stance of the Fed, amid a still-anemic U.S. economy. Fresh quantitative stimulus from the Fed, which basically means increasing the U.S. money supply by buying of U.S. securities by the Fed, is significantly dollar-bearish.

And, given that oil prices too are heading north, the fear that inflation will also show no signs of abating which will have the effect of eroding the value of your money; it means that buying gold is a good safeguard for the future.

As we’ve seen in recent weeks, gold prices have been soaring, and with the ever looming threat of a currency crisis, investors are finding it expedient to put their money into assets such as gold that are solid and good value for the future as well. A reason for such thinking is that gold prices will ride over any turmoil in the US economy which may come about as a result of a war in Iran which could otherwise bring stock and property prices crashing down.

Silver prices also hit another fresh 30-month high of $21.26 an ounce. The sinking U.S. dollar and the record-high gold prices have boosted silver. Prices are still in a steep four-week-old uptrend on the daily bar chart and there are still no early technical clues to suggest a market top is close at hand.

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Gold and Silver Explode as Banksters Abandon Market Manipulation

Gold has surged to a new high as the prospect of inflation reared its ugly head in the United Kingdom on bad news from a report indicating a weaker-than-expected eurozone industrial production. Germany and France, despite sovereign debt fears, have been able to manage anemic growth but today’s data signals a slow down.

On Tuesday the gold price traded as high as $1,261.90 and as low as $1,246. “The U.S. dollar index was adding 0.03% to $81.90 while the euro was losing 0.19% to $1.28 vs. the dollar. The spot gold price was rising $14.30, according to Kitco’s gold index,” writes Alix Steel for The Street.

Silver also experienced a boost today. The precious metal was up 14 cents to $20.31. Earlier this month, spot silver trading reached its highest point since March 2008.

“While silver has many of the same investment attributes as gold, it enjoys the added advantage of industrial demand. And as a currency alternative, silver is more practical. It’s been used as a currency, most notably by the United Kingdom (pound sterling). The French word for money is argent, or silver. In fact, the United States and Great Britain were both on a silver standard up until the 1800’s,” explains Gabriel Wisdom, writing for Forbes on September 8.

Market observers believe silver prices will soon rise on speculation that JP Morgan is in the process of winding down its proprietary trading operations. “In the past years, compelling evidence of silver and gold price manipulation by JP Morgan has been found,” writes Elisheva Wiriaatmadja.

“JP Morgan was not just an accommodative good corporate citizen in the illegal transfer of the manipulative silver (and gold) COMEX short position. In addition to undisclosed government guarantees against loss, JP Morgan was given free reign to liquidate the COMEX short position at their discretion, knowing full-well the regulators would look the other way, no matter what dirty tricks were necessary to cause the price to collapse,” MarketWatch noted over two years ago.

Now that the banksters have decided to abandon their artificially low price scheme, the price of silver will rise, making it an excellent investment.

Article written by Kurt Nimmo
Infowars.com

The Case for Buying Silver

The first paper currencies were notes redeemable for gold or silver, or warehouse receipts for stored gold. Eventually, the receipts themselves were exchanged, and became currency in common usage.

Invest In Silver American Eagles NowThe link to precious metals became less concrete. As governments needed to buy votes or finance wars, they yielded to the temptation of printing more notes than there was gold or silver to back them, and inflation resulted.

The process of currency destruction has accelerated, particularly since 1971 when the US closed the gold window, and stopped exchanging dollars for gold. In the last 10 years, the Fed has printed trillions of dollars backed by nothing at all at the fastest pace in history, a move that has driven the prices of precious metals skyward.

Meanwhile, gold and silver are in short supply. Twenty-two years of low prices has resulted in a dearth of production and exploration, while industrial applications for silver have soared.

China and India are enjoying a burst of capitalist prosperity, and have historically turned to precious metals for wealth preservation.

COMEX futures positions in silver, much of which must be covered by deliveries or purchases, are estimated to be equal to or greater than all new productions.

Think of gold as large denomination money, and silver as small change: while a 1-ounce gold coin now costs about $650, a roll of 90% silver dimes is a mere $50. Ruff predicts that silver will eventually be more profitable than gold by at least 100%.

Read The Case for Buying Silver: A History of Paper Money by Howard Ruff

NIA on Silver Short Squeeze

How much over spot is a good price for silver and gold?

A good price for a 1 oz silver coin like an American Eagle or Canadian Maple Leaf is 12% over spot, and a good price for a 1 oz silver bar is 6% over spot.

For gold, a good price for a 1 oz gold coin like an American Eagle or Canadian Maple Leaf is 4% over spot, and a good price for a 1 oz gold bar is 2% over spot.

The larger premium for silver compared to gold indicates a shortage in the physical silver market.

Now that GATA has blown the doors off the LBMA ponzi scheme, and we know there is only 1 oz of silver for every 100 oz represented on paper, why hasn’t there been a panic to dump paper and go into physical? What will it take to trigger a short squeeze?

We don’t believe there is only 1 oz of physical silver for every 100 oz represented on paper. Most likely, there is 1 to 3 times more paper silver than physical silver. This is still a major problem that will ultimately result in a major silver shortage and short squeeze, once a large number of COMEX holders begin to demand physical delivery of silver. This is a topic that we will be covering extensively in our new documentary coming out next month.

If the silver market is controlled by JP Morgan and others, how does the little guy stand a chance of making money?

The manipulation by JP Morgan through naked short selling is providing an opportunity for normal everyday investors to purchase silver at dirt-cheap prices. Without JP Morgan’s naked short selling, it’s possible silver would already be well above $30 per ounce right now.

Remember, JP Morgan is not manipulating silver up, they are manipulating it down and the manipulation can’t last forever. When investors around the globe call for physical delivery of their silver, there will be a shortage of physical silver and JP Morgan will be forced to cover their naked short position, causing silver prices to explode to the upside.

NIA believes silver will eventually see the biggest short squeeze in the history of all commodities.

http://www.inflation.us/


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This Could Be the Largest Fraud in History

Have you heard about the GATA thing and the whistle blower trader in gold and silver? Here is the link to the interviews:

Largest Fraud in History

This could very well send silver flying.