Silver Phase Transistion

Silver has made a move... what's next?

In my YouTube video on the 1st of August, 2010, I stated that over the coming weeks we'd see explosive action in the price of silver, taking out previous highs. (You can find that video here).

The action we've seen since then has been nothing short of explosive, Silver is outperforming every other commodity or investment class that I can think of. Here are the prices in various Currencies:

USD: 19.85
AUD: 21.65
EUR: 15.38
GBP: 12.84
CAD: 20.62
CHF: 20.17

Can The Rally Last?

I like to send emails to this database sparingly and only at what I believe are poignant moments in the silver market. As such, I'm writing this email because I believe silver is entering the second phase of its bull market and we have a few indicators to prove this:

1. The gold:silver ratio is closing in at 65:1. Silver is outperforming gold considerably.

2. The usual silver "shenanigans" such as options expiry, non-farm payroll etc are simply not effecting the silver price negatively as they have in YEARS prior.

3. JPM is closing its London prop trading desk to comply with the new financial services regulations out of the US. Although this is just my pure speculation, I believe the reason why they are doing this is for legal reasons, not merely to just comply with regulations (Since they are some 12 months too early and so why would you close a prop trading desk that's making good money 12 months before you have to?) I believe my suspicion will become evident in coming months. For those unaware, it was this very same prop trading desk Andrew Maquire blew the whistle on earlier this year.

4. Silver has dislocated from the dollar. The dollar can be up or down, doesnt matter, silver is just up up up.

5. There is very little hype surrounding silver at the moment. Remember when gold first went to 1225 - the media was all over it... Silver breaks it's two year high and your lucky to hear about it on the gold bug websites! ;)

6. Silver stocks are breaking out.

In my last email to you - below is what I wrote when silver was getting hit hard...

When Silver is Priced as Money.
The reason why silver gets hit so hard in times like this is because its still being priced as an industrial metal. Which is great... it allows investors to stockpile silver as an industry metal and wait for it to be priced as money for maximum gain. Gold is priced as money because that's really its only utility, however, throughout history, even up to a few decades ago - silver has been used more as money than anything else (including sea shells ;)

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Well it seems now silver is being priced as MONEY. and this is what will take it into the next phase of its bull market. Corrections will happen in all markets but the bias from here on is the explosive upside in my opinion.

Keep Stacking.

John Christian
MetalsLeasing.com




http://www.youtube.com/watch?v=ajltqYb_vCo

http://www.youtube.com/watch?v=0UEYa3y7SsE

Yup, I agree with the guy in the first video. I think is analysis is largely correct. However, I predict that traders like him will get hammered. We probably won't be seeing videos from him in a year if he doesn't own physical. If you own physical, you probably are in it for the long long haul. Why sell out at the sign of the FIRST significant breakout? It is way to dangerous a wager if you think you will be able to buy it back lower. The ETF traders with get toasted as the likes of JPM change the medium of their action to the ETFs. The ETF prices will be much more volitile than the physical prices which will go high and stay there. JPM will simply poach the ETF fools on volitility. There really is no need to supress the price as long as they can win on volitility. Perhaps silver will reset to $100-$200 and then simply shadow gold's moves from there until the monetary system implodes, then all bets are off.

http://www.youtube.com/watch?v=16aT9...eature=related

http://www.youtube.com/watch?v=6p893oB7rfQ

http://www.youtube.com/watch?v=o018o...layer_embedded

....

http://news.silverseek.com/SilverSeek/1285605011.php

..

28th September 2010 | SilverForecaster.com

After 18 months of work, the silver price has broken to new highs breaking past $21-$21.25 and is set for a significant run to much higher levels with expectations to hold new high levels at around $24-$29 in the first run up.




For all of this year, the silver price has worked hard to overcome resistance just below record highs. The build up of support has set the stage for a breakout of eventually $30 then $50 an ounce.



The fundamental picture of silver is a combination of three silver-positive forces:



1. “Official” selling by China India and Russia has now ceased, sending the buyers of that silver into the open market.

2. New uses for silver in rfid’s, solar panels, electronic uses, clothing and in medicine have filled the gap left by photography demand.

3. As the gold price is moving out of the range of the smaller buyers in Asia silver is becoming the ‘poor man’ gold and demand is rising fast.

4. Developed world monetary problems have not been solved. With extremely low growth expected for a long time, further structural problems will suppurate at some point in the short, medium or long-term. This is enhancing not only the wealth protective demand for gold but underpinning that for silver too. We believe silver’s monetary value will grow in the years to come.

http://news.silverseek.com/SilverSeek/1285780689.php

Gold Silver Spot Prices Are Rising - But Are You Missing the Silver Boat?

http://www.silver-coin-investor.com/...lver-boat.html

Historically, many people preferred to invest in gold rather than silver because of its rarity. This is about to change so drastically that I decided to seed this page by mentioning gold silver spot prices as if one meant another and I couldn't decided which to go with.

Yes, silver and gold will eventually trade much closer to 1:1.

While gold's main function is used for monetary purposes silver is much more multi faceted. Silver is demanded in various industries including the electronics industry, the jewelry industry, photography and finally in the financial industry with demand percentages as follows 45 percent, 30 percent, 20 percent and 5 percent respectively. Recently gold silver spot prices have been up and this begs the question, are you missing the silver boat?

Another reason why gold has been so popular in the precious metal investment is because silver has been historically easier to mine. Although this is a lesser known fact among investors, silver production is almost now solely dependent on the mining of other metals.

By taking a look at the gold silver ratio, and then the current gold spot prices, it seems that silver must be tremendously abundant. Interestingly enough, over the past 30 years, silver has been used up leaving very few stockpiles left on earth, begging analysts to reassess what the true ratio should be. Recently, many people have been learning that silver is actually much less abundant than gold.



In reality, both gold silver spot prices have been increasing. However, the reason why many people believe that silver may be at the advantage is because silver has not come close to it's inflation-adjusted high. And Silver is more affordable for those who do not have a large amount of investment power. AKA, the masses.

Considering gold prices are now well above $1000 per ounce of gold, indeed, Silver at less than $100 per ounce is increasingly the modest man's investment choice.