www.ConspiracyPenPal.com

 Will the Silver Market Pull Up its Shorts to Cover its Growing Crack?
Market Update 8-2
by Edgar J. Steele

February 8, 2008  

Downloadable audio file of The State of the Revolution:
streaming mp3  (5 mb, 47 min)  
http://www.conspiracypenpal.com/audio/state1.mp3

Latest Nickel Rants:
1/30/08 - YOU (yes, you) Can Make a Difference   mp3 audio
1/14/08 - The R3volution is Dead - Long Live the Revolution!!!  mp3 audio
1/7/08 - F**k Fox!  mp3 audio
12/16/07 - Ron Paul or Revolution!  mp3 audio
12/5/07 - BernieBucks  mp3 audio
10/29/07 - Lead - The Other White Metal  mp3 audio
Latest Columns:
2/8/08 - Will the Silver Market Pull Up its Shorts to Cover its Growing Crack?  (Market update 08-02)

1/22/08 - Snuck Up on Me  (Market update 08-01)
12/31/07 - Fairly Unbalanced
12/28/07 - Fox Excludes Ron Paul
12/23/07 - You Only Think You Own Much of Anything
12/14/07 - The New Dollar  mp3 audio

 

My name is Edgar J. Steele.

Take a look at this second chart from "Surrender of the Silver Shorts" by Roland Watson (http://seekingalpha.com/article/63727-surrender-of-the-silver-shorts?source=d_email):

(Green is the price of silver and black is the level of outstanding silver short sales) 

The more I look at it, the more clear it seems to me that silver is about to jump straight up into the air. Of course, that is the danger of technical analysis (chartism done in the absence of fundamental analysis). However, fundamentals all point to the death of the dollar, and in short order (well, during the next 2-4 years, anyway).

Note that, almost every time the price of silver rises dramatically and creates a serious divergence, the shorts get pulled, which accelerates the silver price even more, in a whiplash sort of effect. For example, in July '05, the divergence led to some massive short covering, causing the silver price, which had paused after a healthy upleg to about 6 or 7, to jump in a matter of weeks to nearly 15.

Not always, though, as we had a similar situation setting up in early 2007 that resulted in a simple sideways movement of the market for most of the year.  The divergence this time seems more serious, though.

Things move quickly in the silver market when they do move. This is kind of like earthquakes, where tension builds up until a fault line finally breaks, creating a pressure equilibrium via an earthquake.  Right now, the tension from the divergence in the silver price and the total outstanding shorts seems almost unbearable.  The establishment has been moving heaven and earth to keep the dollar above 75, a losing proposition in light of the amount of "liquidity" (that's Fed-ese for counterfeit money) being spewed by the Federal Reserve in order to prop up banks, hedge funds, mortgage companies and their insurers.

Bottom line:  I see a major break coming in the near future, forcing silver upward in a rush to, perhaps, $25 - 30 per ounce.

I'm not prescient enough to want to say this too loudly, not after touting $20 silver "by the end of the year" back in mid-2005, but you have to admit that the chart is quite suggestive. And the price of silver did double in the winter of 2005/2006 - had I forecast merely $15, I'd be the King of Silver today.

If this happens and I mention it to just a small inner circle, then I'll feel guilty for not sharing it with my whole list, won't I?  On the other hand, if it doesn't happen, chances are pretty likely that silver will hold its value vis-a-vis inflation, which is saying quite a bit these days, anyway, so I might as well just say it right out loud. 

Likely, there will be yet another doubling opportunity in the next year or two, as well, as silver repeats this process again and again (inevitable, in the face of the death of the dollar).

-ed

Copyright 2008, Edgar J. Steele

Forward as you wish.  Permission is granted to circulate both the written and audio version of this Nickel Rant among private individuals and groups, post on all Internet sites and publish in full in all not-for-profit publications.   The audio version of this Nickel Rant may also be freely used in its entirety by for-profit broadcasting entities, but is not to be included in any recorded format which then is sold to others.  The audio version may be rebroadcast, either live or archived on the Internet, either copied or linked directly to my web site, profit and nonprofit alike, so long as it is used in its entirety.  In fact, I encourage any and all radio hosts to use it freely.  Contact author for all other rights, which are reserved.

 

On-Line link to this rant in HTML format: http://www.conspiracypenpal.com/columns/update0802.htm 

 


Subscribe:  Click here
To Unsubscribe or change your email address or add your contact information, please use the personalized link appearing at the very bottom of this rant...otherwise:
Change your email address or other list data:  Click here
Unsubscribe:  Click here


Note:  One or both of the following buttons may not work with your email program or browser.  If so, then please visit www.DefensiveRacism.com and make use of the order buttons there, which should work with your browser...
 

Buy copies of Defensive Racism - An Unapologetic Examination of Racial Differences, which extensively addresses the problems confronting America, now is available through www.Amazon.com (please consider going there and posting a review if you already have read it), though you can get a $5 discount by ordering directly from the publisher.  Additional significant quantity discounts will be applied during the order process. Visit www.DefensiveRacism.com for more information and on-line ordering information or simply click below (for an autographed copy, simply write in "Sign mine" in the comments section of the on-line order blank): 

Quantity:


Make a difference by contributing to the support of my writing, lecturing, lobbying, activism and pro-bono legal defense efforts:  Your donation will gratefully be applied to my extensive efforts in support of our mutual cause, rest assured.  You will be able to use a credit card in making this donation on line.

Enter Donation Amount $

Donations to help with the cost of our efforts may also be mailed to Edgar Steele, PO Box 1255, Sagle, ID 83860.  Until the politically incorrect begin to get a fair shake in America, and because of unfairly-applied income tax regulations, I regret that your donation cannot legally be deducted on your tax return.  I must also make the following statement, to ensure that I need not declare it as income and pay tax on it and to avoid being charged with misuse of funds, for which some patriot leaders falsely have been charged and imprisoned:  your donation is a gift to me, personally.


Complete archive of past articles, essays, rants, interviews and speeches, including sound files, maintained at:  www.ConspiracyPenPal.com