«-- Asteroid or Comet Impact in 2012?, by Rourke | Main | Note from JWR: --»
The Silver Bull Gains Speed
Just over a month ago we were marveling at the fact that silver was solidly
over $10 per ounce. I just checked the charts at kitco.com, (see: http://www.kitco.com/charts/livesilver.html)
and spot silver was at $12.80 per ounce! (As a data point: The New York close
was at $12.05 just four days ago--Friday April 7th. Quite a change since then!) At
the current spot price, means that a $1,000 face value bag of pre-1965 circulated
("junk")
silver U.S. coinage worth $9,152 wholesale. (Assuming 715 ounces in
a typical bag
of well-worn coins.)
The silver market is showing all of the signs of a major long-term
bull. Rather than the typical rallies and pull-backs, it is now "stair-stepping" upward.
Thus, there is presently no chance to "buy on the dips" unless perhaps
you buy
on intraday dips.
The word on the street is that if New York spot silver closes
at over $12.50 an
ounce for three days in a row, then there will likely be a big short
covering rally, or perhaps even a full scale "short squeeze."
As the short sellers scramble to cover their positions, we may see silver
to
zoom up to
$16 an ounce,
or higher. I'm still predicting $20 silver by next February ('07), and perhaps
even $40 silver by the end of Aught Eight.
