How About That PRICE ACTION!!

Posted: August 27, 2010 in Precious Metals, Silver

Price action for silver this week was extremely encouraging.  On Thursday we had contract expiration on the COMEX.  Those of you familiar with silver’s price action understand silver typically dips going into contract expiration, then comes back the following week.  The fact that silver did not dip could indicate JP Morgan and other bullion banks continue to cover their short position and possibly adding to their long position.  Make sure you listen to Ted Butler’s weekly summary of the COT report, I will have it linked on Saturday. 

Ben Davies CEO of Hinde Capital had a great interview on King World News Listen Here .  Ben discusses his report Silver Velocity-The Coming Bullet.  For you silver investors this report is worth your time.  Here are several topics discussed in the interview and paper:

  • The unwind of massive short positions in silver could lead to updays of $2 – $4 dollars
  • Gold could be ready to run $400-$500 to the upside
  • Silver above ground inventory has moved from 10 to 6 billion ounces, now we only have an estimated 500 million ounces
  • The price action this summer will be looked at as “the defining moment” .  Precious Metals are typically weak this time of the year yet gold and silver have held up very well
  • We are short 150 to 200 million ounces a year to satisfy silvers global demand.  This explains why the above ground inventories have been drastically reduced
  • Silver price suppression ie. JP Morgan
  • We have not seen the point where paper silver does  not control the price of physical silver.  When physical silver controls the price get ready for a price explosion

These are a few key points.  If you are a silver investor or interested in silver you may want to read this report.

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Comments
  1. Choppy price action continues but with hourly studies overbought risk is for pullbacks again intraday. Savanna Inventory

  2. […] contract expiration may be seen as a key moment for silver.  Other factors can be seen here, here, here, here.   Signs are silver may be ready to […]

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