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Saturday, November 27, 2010
Crude Modestly Higher ahead of FOMC Meeting
ONG Focus | Insights | Written by Oil N' Gold | Sun Oct 31 10 23:05 ET
Crude oil price climbed higher in Asian session on Monday as USD's decline ahead of the FOMC meeting raised appeal for commodities. Data showing strong manufacturing activities in China also boosted oil prices. Gold kept hovering around 1360. We believe either upside or downside surprise from Fed's QE should benefit positive for gold in the long-term. However, a milder than expected dose of QE may trigger selloff in the metal in the near-term.
Economic data released last Friday were mixed. US GPD grew by an annualized pace of +2% (consensus: +2.2%) in 3Q10, from +1.7% a quarter ago. University of Michigan consumer confidence was revised down -0.2 points to 67.7 in October. While the ‘economic conditions' index rose +3.6 points to 76.6, the ‘expectations index' fell -2.7 points to 61.9.Chicago PMI, however, beat market expectations and improved to 60.6 in October. We believe the set of data should not alter the Fed's decision to announce new QE measure at the meeting this week.
The dollar fell against major currencies with the exception of Japanese yen. The market forecast the size of Fed's new bond-buying program would be $1-2 trillion but it may begin by announcing $500B over several months or $100B per month. Apart from purchasing Treasury securities, the Fed may modify its language used in the accompanying statement. At the Boston Fed conference, Chairman Ben Bernanke said that 'clear communication about the longer-run objectives of monetary policy is beneficial at all times but is particularly important in a time of low inflation and uncertain economic prospects such as the present' and the FOMC will continue to 'actively review its communications strategy with the goal of providing as much clarity as possible about its outlook, policy objectives, and policy strategies'.
China's PMI expanded to 54.7 in October from 53.8 a month ago. This is the fastest growth pace in 6 months and signaled the country's economy can sustain through the government's tightening measures. This is also positive news for the oil market as, according to IEA, China has overtaken the US as the world's largest oil user.
With the exception of gasoline, speculators were bullish on oil sector in the week ended October 26. Net length for crude oil surged +24 441 to 125 271 contracts, the highest level since January 2010. QE anticipations and rise in European oil demand due to strikes in France have helped attracting capitals. Net length for heating oil added +963 to 29 605 contracts but that for gasoline fell -4 404 to 57 683 contracts. Net shorts for natural gas dropped for a second consecutive week, by -8 130, to 165 744 contracts, the lowest level in 8 weeks.
Speculators trimmed long positions in gold and silver but staying positive for PGMs. Net long for gold fell -10 666 to 239 086 contracts while that for silver slipped -2 788 to 26 743 contracts. Prices, however, were a tad higher. Net length for platinum climbed +1 181 to a record of 26 743 contracts while that for palladium gained +851 to 16 134 contracts, only slightly below a record high of 16 185 contracts made in May 2010. Recovery in the auto sector and new emission standard in the US have been buoyant for PGMs as they are mainly used as autocatalytic converters.
Latest Analysis from this Author
Economic Calendar 11/1/10 (Sunday, 31 October 2010 14:44 ET)Weekly Fundamentals - QE2 Decisions the Key Event ... (Saturday, 30 October 2010 12:11 ET)Gold Weekly Technical Outlook (Friday, 29 October 2010 18:03 ET)Silver Weekly Technical Outlook (Friday, 29 October 2010 18:02 ET)Crude Oil Weekly Technical Outlook (Friday, 29 October 2010 18:02 ET)Natural Gas Weekly Technical Outlook (Friday, 29 October 2010 18:01 ET)Sentiment Sours ahead of US GDP (Friday, 29 October 2010 07:07 ET)Gold Soars as ECB Policymakers Warn about Currency... (Friday, 29 October 2010 00:39 ET)Economic Calendar 10/29/10 (Thursday, 28 October 2010 11:43 ET)Gold Daily Technical Outlook (Thursday, 28 October 2010 07:14 ET)The outlook for Silver remains very Bullish
Silver’s short-term uptrend remains intact, notwithstanding silver’s big price drop on Friday. The fundamental factors driving silver higher have not changed. The outlook for silver remains very bullish.
There has been no damage to silver’s technical condition. For example, silver is above its 21-day moving average. Also, silver remains well above $25, its last major resistance level. More importantly, the price drop at the end of the week occurred with bullish sentiment taking a nosedive. These conditions bode well for silver’s short-term outlook, as does the following chart.
The above chart will be familiar because it is the one I used on King World News on October 28 to forecast a $30 silver price in less than 18 trading days. Silver closed that day at $23.871. On November 9, only 8 trading days later, it reached $29.342 – nearly hitting my target. The good news is that my reading of the above chart indicates that silver might yet reach $30 within my 18-day target, i.e, November 23.
Note the new pattern silver has formed. It is a pennant, and these have the same features as the flag pattern upon which I based my $30 forecast. Both are continuation patterns within uptrends. They allow for a short-term consolidation, mainly to work-off some bullish sentiment, which accurately describes what happened in silver as this pennant formed over the past few days. A pennant pattern typically ends with an upside breakout.
My expectation therefore, is that silver will break out of this pennant to the upside, and probably early this week. The demand for physical silver remains very strong, and it is the demand for physical silver, and not paper-silver, that ultimately determines the silver price.
Most trading in physical silver takes place in London and Zurich. The weakness on Friday occurred after both of these centers had closed. That means that prices were driven down in the paper market. We have seen these late Friday raids to ‘paint the tape’ many times over the past decade, so this latest one should not be a surprise. But what is indeed a surprise to me is that the silver shorts would try this gambit now when the physical market is so tight. Lower prices will only heighten the demand for physical metal. Thus, I expect the silver price to rebound sharply this week.
James Turk
Article originally published by the Free Gold Money Report.
James Turk is the founder of the Free Gold Money Report and of GoldMoney.com. He is also the co-author of The Coming Collapse of the Dollar (www.dollarcollapse.com).. Copyright © by James Turk. All rights reserved.
Copyright © 2008. All rights reserved.
Edited by James Turk
This material is prepared for general circulation and may not have regard to the particular circumstances or needs of any specific person who reads it. The information contained in this report has been compiled from sources believed to be reliable, but no representations or warranty, express or implied, is made as to its accuracy, completeness or correctness. All opinions and estimates contained in this report reflect the writer's judgement as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility.
There has been no damage to silver’s technical condition. For example, silver is above its 21-day moving average. Also, silver remains well above $25, its last major resistance level. More importantly, the price drop at the end of the week occurred with bullish sentiment taking a nosedive. These conditions bode well for silver’s short-term outlook, as does the following chart.
The above chart will be familiar because it is the one I used on King World News on October 28 to forecast a $30 silver price in less than 18 trading days. Silver closed that day at $23.871. On November 9, only 8 trading days later, it reached $29.342 – nearly hitting my target. The good news is that my reading of the above chart indicates that silver might yet reach $30 within my 18-day target, i.e, November 23.
Note the new pattern silver has formed. It is a pennant, and these have the same features as the flag pattern upon which I based my $30 forecast. Both are continuation patterns within uptrends. They allow for a short-term consolidation, mainly to work-off some bullish sentiment, which accurately describes what happened in silver as this pennant formed over the past few days. A pennant pattern typically ends with an upside breakout.
My expectation therefore, is that silver will break out of this pennant to the upside, and probably early this week. The demand for physical silver remains very strong, and it is the demand for physical silver, and not paper-silver, that ultimately determines the silver price.
Most trading in physical silver takes place in London and Zurich. The weakness on Friday occurred after both of these centers had closed. That means that prices were driven down in the paper market. We have seen these late Friday raids to ‘paint the tape’ many times over the past decade, so this latest one should not be a surprise. But what is indeed a surprise to me is that the silver shorts would try this gambit now when the physical market is so tight. Lower prices will only heighten the demand for physical metal. Thus, I expect the silver price to rebound sharply this week.
James Turk
Article originally published by the Free Gold Money Report.
James Turk is the founder of the Free Gold Money Report and of GoldMoney.com. He is also the co-author of The Coming Collapse of the Dollar (www.dollarcollapse.com).. Copyright © by James Turk. All rights reserved.
Copyright © 2008. All rights reserved.
Edited by James Turk
This material is prepared for general circulation and may not have regard to the particular circumstances or needs of any specific person who reads it. The information contained in this report has been compiled from sources believed to be reliable, but no representations or warranty, express or implied, is made as to its accuracy, completeness or correctness. All opinions and estimates contained in this report reflect the writer's judgement as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility.
Gold Daily Technical Outlook
ONG Focus | Technical | Written by Oil N' Gold | Fri Nov 26 10 07:42 ET 
With 4 hours MACD crossed below signal line, Gold's recovery from 1329 should have completed at 1382.9 already. Intraday bias is now cautiously on the downside for 1315.8/1329 support zone. Decisive break there will complete a head and shoulder top reversal pattern and should turn outlook bearish for deeper fall. On the other hand, strong rebound from 1315.8/1329 will indicate that gold is merely in sideway consolidation and another would still be seen before topping.
In the bigger picture, rise from 1155.6 is treated as the fifth wave of the five wave sequence from 1044.5, which should also be fifth wave of the rally from 681 (2008 low). Such rally might still continue towards 161.8% projection of 931.3 to 1227.5 from 1044.5 at 1449.6 before completion. Though, we're aware of long term projection target of 100% projection of 253 to 1033.9 from 681 at 1462 and we'd anticipate strong resistance from there to bring medium term correction finally. On the downside, however, break of 1315.8 support will be an early alert of medium term reversal and will turn focus back to 1155.6 support for confirmation.
Comex Gold Continuous Contract 4 Hours Chart
Comex Gold Continuous Contract Daily Chart
Latest Analysis from this Author
Silver Daily Technical Outlook (Friday, 26 November 2010 07:42 ET)Crude Oil Daily Technical Outlook (Friday, 26 November 2010 07:41 ET)Natural Gas Daily Technical Outlook (Friday, 26 November 2010 07:40 ET)Market Sentiment Damped by Macroeconomic, Geopolit... (Friday, 26 November 2010 07:13 ET)China Steps Up Measures to Curb Inflation (Thursday, 25 November 2010 23:55 ET)Economic Calendar 11/26/10 (Thursday, 25 November 2010 12:38 ET)Oil Rallies as Buoyed by Wall Street (Wednesday, 24 November 2010 23:08 ET)Economic Calendar 11/25/10 (Wednesday, 24 November 2010 14:00 ET)Economic Calendar 11/24/10 (Wednesday, 24 November 2010 14:00 ET)Crude Oil Rallies Above 83 Despite Inventory Gains (Wednesday, 24 November 2010 12:06 ET)Inflation grabs a hold of food prices...
From The Reformed Broker:
Hate to say I told you so, but this one could be spotted a mile away. And some of us did. The law of unintended consequences is in full effect as the food price inflation (aka Agflation) I feared is finally here. We're not talking out of control price hikes at this point - but the trend is the trend and our monetary policy is definitely exacerbating it.
From the Wall Street Journal:
Prices of staples including milk, beef, coffee, cocoa and sugar have risen sharply in recent months. And food makers and retailers including McDonald's Corp., Kellogg Co. and Kroger Co. have begun...
More on agflation:
Five dangers to global crops that could send food prices through the roof
AGFLATION: Food prices are exploding higher
The No. 1 commodity story of the next decade may have nothing to do with precious metals
Why You Should Have Silver in Your Portfolio – As Well As Gold
Jerry Western with Lorimer Wilson
Silver has had quite a run the last couple months so it’s no surprise that it has gained much attention and interest from investors – even more so than gold. It is extremely volatile, however, and tends to rise or fall in spurts so I’d like to focus on its attributes as compared to gold, make a case for holding some, and discuss some ultimate price possibilities.
Gold is known as the ultimate form of money; the king of money. Silver is generally thought of as gold’s little brother or ‘Poor Man’s Gold’. It is said that:
Gold is the money of Monarchs,
Silver is the money of Gentlemen,
Barter is the money of Peasants, and
Debt is the money of Slaves.
Both gold and silver have been used as money forever. Historically, the price of gold has almost always been greater than that of silver. This is because silver is ten to twenty times more plentiful in nature.
Should We Only Hold Gold?
I say no for the following reasons:
1. you get more (metal) for your money holding silver.
2. the price of silver has more room to appreciate, both because of its relative low price and because of the current relatively high gold:silver price ratio.
Should We Only Hold Silver?
I say no again – for the following reasons:
1. Gold is highly recognizable and highly coveted in all societies. Most world governments and central banks hold gold but virtually no silver, save a few notable exceptions (Russia, China, and India). They know that gold is the ultimate money.
2. Just as you would diversify your portfolio among asset classes and large/small cap stocks, etc., so too should you diversity between gold and silver. No one knows which will appreciate faster or further and be the superior investment going forward. Therefore, I hold both.
What Are Silver’s Major Attributes?
Silver has three huge attributes that make it special, valuable, and unique:
1. Versatility: silver has many and varied important uses where it is the best solution. It is either the best material to use for a given application or it is the least expensive of all the alternatives.
2. Inelasticity: more silver is not produced as price increases because most silver comes from other-than-silver mines, and less is not consumed as the price increases because there are no less-expensive alternatives.
3. Duality: silver has the potential to do well price-wise in both an up and a down economy. Being both an industrial metal as well as money in and of itself, silver tends to have a market no matter the condition of the economy.
How Do Gold and Silver Compare With Each Other?
Below are 22 things to ponder when comparing and contrasting gold and silver, in no particular order:
1. Gold is hoarded and the above-ground stockpile is continuously expanding. Silver is consumed and is uneconomical to recycle in most uses.
2. There is greater than 300 times the dollar value of gold in above ground form as there is silver. Silver is the smaller market by far.
3. According to the U.S. Geological Survey, there are fewer years of production of silver left in the ground than any other metal or mineral, including gold.
4. Silver is used in more applications than any other commodity (aside from petroleum).
5. About 30% of silver comes from primary silver mines. Approximately 70% is byproduct of other primary metal mines. Most gold is produced from primary gold mines.
6. There is less gold mined than silver, but there is more gold than silver bullion in existence.
7. Both gold and silver have been selling near or even below the cost of production for the last 15 years.
8. Both gold and silver are up over five fold since the beginning of this current bull market.
9. Silver is used in industry and for investment. Gold is used almost entirely for investment.
10 Silver is more expensive or difficult to store (or hide) than gold because you get more for your money.
11. It would be easier for silver to rise higher on a percentage basis than gold due to the ‘law of large numbers’.
12. Only about 2% of the 160,000 tonnes of gold unearthed over the last 5,000 years has been lost and is unrecoverable according to Goldfields Mineral Service (GFMS) and the World Gold Council (WGC) while most of the silver ever mined is unrecoverable and gone for good.
13. Silver supply and demand are both ‘inelastic’. This means that supply cannot be ramped up quickly when its price rises.
14. The National Inflation Association (NIA) picked silver as its investment of the decade in December 2009.
15. The Silver:Gold Price Ratio favors silver appreciation to return to historic norms.
16. Both gold and silver tend to rise and fall in price together but not necessarily in percentage terms. Their price movements are still highly correlated though.
17. In precious metal bull markets, silver always outperforms gold before it is over. Silver has a tendency to underperform gold as a rally in the metals gets going, however, it tends to greatly outperform gold near the market tops. At its peak, for example, gold was up nearly 250% in early 2008 but silver was up well over 300% at the same time from the beginning of 2002. As the metals both declined throughout the remainder of 2008, silver fell farther than gold from peak to trough. Silver fell nearly 60% while gold fell about half as much or 30%. Now on the way back up silver is again leading.
18. Gold and silver related stocks tend to greatly outperform on the way up but terribly underperform on the way down. On the way up, many stocks leveraged the metals 3, or 4, or 5:1 but on the way down some gold and silver stocks lost 90% or more of their pre-crash market value.
19. When the economy is good, silver will tend to outperform and when the economy is bad, gold will tend to outperform. This occurs because silver is also an industrial metal besides being a monetary metal and, [as such,] is in great demand when the economy is rolling along but less in demand when the economy is in recession. Conversely, gold tends to be forgotten when times are good and remembered when times are bad. Even though gold fell substantially during the financial meltdown of 2008, it fell less than did the stock indexes, silver, or oil.
20. I believe silver may outperform gold dramatically before the bull has run its course. Silver rose more than 38 fold in the 70’s bull market; from a fixed price of $1.29 to $50 ($52.50 CBOT). Silver bottomed just above $4 in 2001. 38 x 4 = $152. Not a bad initial target.
21. Interestingly, the Silver/Gold ratio bottomed at ~ 16:1 in 1980. In other words, you could exchange one ounce of gold for 16 ounces of silver near the end of that bull market. Today, the ratio is about three and a half times higher (~56:1). Should gold get to $6375 and the ratio return to 16:1 at the top, silver will reach almost $400 an ounce. That’s a 100 fold increase from its pre-bull low. Remember, we’re only playing with numbers here, the markets will surprise and do their own thing in due course.
22. The following two extremely important and potentially explosive events for silver have happened just recently:
a) CFTC commissioner Bart Chilton, in regards to the trading of silver on the Commodities Exchanges, said; “There have been fraudulent efforts to persuade and deviously control that price”, and “I believe there have been repeated attempts to influence prices in the silver markets”, and “the public deserves some answers to their concerns that silver markets are being, and have been, manipulated.”
b) Two separate lawsuits against JPMorganChase and HSBC for manipulating and suppressing the price of silver futures on the Comex in violation of the Commodity Exchange Act and the Sherman Anti-Trust were filed as class action suits. Any hint that these suits have merit and may be settled in favor of the complainants or a finding of price suppression by the CFTC in its current silver market investigation, could send the silver price sharply higher.
Which is better to own – gold or silver?
I own some of both but I believe that silver will outperform gold in the end.
Jerry Western
Mr. Western teaches classes about sound money and the silver and gold markets. He’s available for hire to speak to your organization
Don’t forget to sign up for the FREE weekly "Top 100 Stock Market, Asset Ratio & Economic Indicators in Review."
Jerry Western is the author of the newly published “Got Gold? Get Gold!: The Everything Gold Book” on how to protect one’s wealth in the 21st century gold rush. Buy it on-line or at your favorite book store.
Jerry Western (westernoutlook@yahoo.com ) is a guest contributor to www.FinancialArticleSummariesToday, “A site/sight for sore eyes and inquisitive minds” and www.munKNEE.com of which Lorimer Wilson is editor (editor@munKNEE.com)
Silver has had quite a run the last couple months so it’s no surprise that it has gained much attention and interest from investors – even more so than gold. It is extremely volatile, however, and tends to rise or fall in spurts so I’d like to focus on its attributes as compared to gold, make a case for holding some, and discuss some ultimate price possibilities.
Gold is known as the ultimate form of money; the king of money. Silver is generally thought of as gold’s little brother or ‘Poor Man’s Gold’. It is said that:
Gold is the money of Monarchs,
Silver is the money of Gentlemen,
Barter is the money of Peasants, and
Debt is the money of Slaves.
Both gold and silver have been used as money forever. Historically, the price of gold has almost always been greater than that of silver. This is because silver is ten to twenty times more plentiful in nature.
Should We Only Hold Gold?
I say no for the following reasons:
1. you get more (metal) for your money holding silver.
2. the price of silver has more room to appreciate, both because of its relative low price and because of the current relatively high gold:silver price ratio.
Should We Only Hold Silver?
I say no again – for the following reasons:
1. Gold is highly recognizable and highly coveted in all societies. Most world governments and central banks hold gold but virtually no silver, save a few notable exceptions (Russia, China, and India). They know that gold is the ultimate money.
2. Just as you would diversify your portfolio among asset classes and large/small cap stocks, etc., so too should you diversity between gold and silver. No one knows which will appreciate faster or further and be the superior investment going forward. Therefore, I hold both.
What Are Silver’s Major Attributes?
Silver has three huge attributes that make it special, valuable, and unique:
1. Versatility: silver has many and varied important uses where it is the best solution. It is either the best material to use for a given application or it is the least expensive of all the alternatives.
2. Inelasticity: more silver is not produced as price increases because most silver comes from other-than-silver mines, and less is not consumed as the price increases because there are no less-expensive alternatives.
3. Duality: silver has the potential to do well price-wise in both an up and a down economy. Being both an industrial metal as well as money in and of itself, silver tends to have a market no matter the condition of the economy.
How Do Gold and Silver Compare With Each Other?
Below are 22 things to ponder when comparing and contrasting gold and silver, in no particular order:
1. Gold is hoarded and the above-ground stockpile is continuously expanding. Silver is consumed and is uneconomical to recycle in most uses.
2. There is greater than 300 times the dollar value of gold in above ground form as there is silver. Silver is the smaller market by far.
3. According to the U.S. Geological Survey, there are fewer years of production of silver left in the ground than any other metal or mineral, including gold.
4. Silver is used in more applications than any other commodity (aside from petroleum).
5. About 30% of silver comes from primary silver mines. Approximately 70% is byproduct of other primary metal mines. Most gold is produced from primary gold mines.
6. There is less gold mined than silver, but there is more gold than silver bullion in existence.
7. Both gold and silver have been selling near or even below the cost of production for the last 15 years.
8. Both gold and silver are up over five fold since the beginning of this current bull market.
9. Silver is used in industry and for investment. Gold is used almost entirely for investment.
10 Silver is more expensive or difficult to store (or hide) than gold because you get more for your money.
11. It would be easier for silver to rise higher on a percentage basis than gold due to the ‘law of large numbers’.
12. Only about 2% of the 160,000 tonnes of gold unearthed over the last 5,000 years has been lost and is unrecoverable according to Goldfields Mineral Service (GFMS) and the World Gold Council (WGC) while most of the silver ever mined is unrecoverable and gone for good.
13. Silver supply and demand are both ‘inelastic’. This means that supply cannot be ramped up quickly when its price rises.
14. The National Inflation Association (NIA) picked silver as its investment of the decade in December 2009.
15. The Silver:Gold Price Ratio favors silver appreciation to return to historic norms.
16. Both gold and silver tend to rise and fall in price together but not necessarily in percentage terms. Their price movements are still highly correlated though.
17. In precious metal bull markets, silver always outperforms gold before it is over. Silver has a tendency to underperform gold as a rally in the metals gets going, however, it tends to greatly outperform gold near the market tops. At its peak, for example, gold was up nearly 250% in early 2008 but silver was up well over 300% at the same time from the beginning of 2002. As the metals both declined throughout the remainder of 2008, silver fell farther than gold from peak to trough. Silver fell nearly 60% while gold fell about half as much or 30%. Now on the way back up silver is again leading.
18. Gold and silver related stocks tend to greatly outperform on the way up but terribly underperform on the way down. On the way up, many stocks leveraged the metals 3, or 4, or 5:1 but on the way down some gold and silver stocks lost 90% or more of their pre-crash market value.
19. When the economy is good, silver will tend to outperform and when the economy is bad, gold will tend to outperform. This occurs because silver is also an industrial metal besides being a monetary metal and, [as such,] is in great demand when the economy is rolling along but less in demand when the economy is in recession. Conversely, gold tends to be forgotten when times are good and remembered when times are bad. Even though gold fell substantially during the financial meltdown of 2008, it fell less than did the stock indexes, silver, or oil.
20. I believe silver may outperform gold dramatically before the bull has run its course. Silver rose more than 38 fold in the 70’s bull market; from a fixed price of $1.29 to $50 ($52.50 CBOT). Silver bottomed just above $4 in 2001. 38 x 4 = $152. Not a bad initial target.
21. Interestingly, the Silver/Gold ratio bottomed at ~ 16:1 in 1980. In other words, you could exchange one ounce of gold for 16 ounces of silver near the end of that bull market. Today, the ratio is about three and a half times higher (~56:1). Should gold get to $6375 and the ratio return to 16:1 at the top, silver will reach almost $400 an ounce. That’s a 100 fold increase from its pre-bull low. Remember, we’re only playing with numbers here, the markets will surprise and do their own thing in due course.
22. The following two extremely important and potentially explosive events for silver have happened just recently:
a) CFTC commissioner Bart Chilton, in regards to the trading of silver on the Commodities Exchanges, said; “There have been fraudulent efforts to persuade and deviously control that price”, and “I believe there have been repeated attempts to influence prices in the silver markets”, and “the public deserves some answers to their concerns that silver markets are being, and have been, manipulated.”
b) Two separate lawsuits against JPMorganChase and HSBC for manipulating and suppressing the price of silver futures on the Comex in violation of the Commodity Exchange Act and the Sherman Anti-Trust were filed as class action suits. Any hint that these suits have merit and may be settled in favor of the complainants or a finding of price suppression by the CFTC in its current silver market investigation, could send the silver price sharply higher.
Which is better to own – gold or silver?
I own some of both but I believe that silver will outperform gold in the end.
Jerry Western
Mr. Western teaches classes about sound money and the silver and gold markets. He’s available for hire to speak to your organization
Don’t forget to sign up for the FREE weekly "Top 100 Stock Market, Asset Ratio & Economic Indicators in Review."
Jerry Western is the author of the newly published “Got Gold? Get Gold!: The Everything Gold Book” on how to protect one’s wealth in the 21st century gold rush. Buy it on-line or at your favorite book store.
Jerry Western (westernoutlook@yahoo.com ) is a guest contributor to www.FinancialArticleSummariesToday, “A site/sight for sore eyes and inquisitive minds” and www.munKNEE.com of which Lorimer Wilson is editor (editor@munKNEE.com)
The No. 1 reason the price of silver will rise
By David Galland in Casey’s Daily Dispatch:
Last month, gold broke into new record territory – reaching an all-time high of $1,387 on October 14.
A new record in nominal terms, that is. To top the previous high in inflation-adjusted dollars, gold will have to approximately double from there.
Silver, however, has barely made it halfway back to its prior nominal high of $49.45 an ounce, achieved on January 21, 1980. In order to break into new territory in inflation-adjusted dollars (using the same CPI calculation methodology used in 1980), silver would have to rise to over $250 an ounce – more than 10 times where it is today.
Here are some other useful facts about silver…
Read full article…
Crux Note: Each day in Casey's Daily Dispatch, David Galland brings you an informative and entertaining overview of the markets, the economy, and politics... all from his unique and often contrarian perspective. Casey's Daily Dispatch is absolutely FREE and comes right to your inbox, five times a week. To sign up, click here.
More on silver:
The worst silver trade you could make right now
Top resource investor Berry: Silver could triple in the next five years
Three new reasons to buy silver that many investors aren't aware of
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