Silver breakout to the topside?

Silver chart showing that we may have finally seen the bottom in silver.

I like these long-term trend lines, since I believe that is where the truth of it all lies.

When things go full on hot in both the ME and Eastern Europe, and rest assured they will pretty soon, we'll have the necessary wars for the military industrial complex to supply bombs and weapon systems to. Until shit gets wide spread and shooting hot, expect the cap to remain on this bottle top.

When we went sub 19 I had a feeling it wouldn't last.

I would call that a nice retest of the last 12 months.

Looking for a 20-30% jump from this years lows now.

-Q

Interestingly enough, the charge higher seems to be sticking around for Quad Witching today. This would go counter to what we've seen for years now, although trading is just getting going. We'll see.......

Developing.....

ancona said:

Interestingly enough, the charge higher seems to be sticking around for Qued Witching today. This would go counter to what we've seen for years now, although trading is just getting going. We'll see.......

Developing.....

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You've been conditioned to think that way because of the abuse over the past 3+ years. If this was a mid-cycle correction (which i believe to be the case) people are going to be very surprised by the price action over the next 6-18 months and be very disappointed that they didn't act. When guys like Sinclair say things like "1900 by year end", he has historical examples to look back on and not just with gold. The same pattern has occurred with every other asset class.

Just keep stacking..

DSAbug said:

Just keep stacking..

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Absolutely.

See my post here, also.

mmerlinn said:

Absolutely.

See my post here, also.

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Just offering encouragement

Silver is cheap all the way up. When the balloon finally lifts off, it will be like nothing we've ever seen. The great decoupling of the worlds economy from the almighty dollar is now underway, thus, gold and silver will no longer be controlled. When prices start to get real, paper will become meaningless and physical will be all that matters.

I'm certainly no expert, but even a six year old can see the writing on that wall.

I will remain endlessly suspicious; inflationary correlation: PM accelerated "dollar value" with dollar collapse intentionally controlled. None of the small investors will be given fluidity or leverage beyond sustainment. Even though such will be an advantage. One I will be appreciative thereof, not gainfully optimistic.
Wishful to some degree, with historic empire crumbling caution. To paraphrase,
the oligarchs have no intention of generosity this time. There is no New World to conquer through occupation, fueled with voluntary fodder.
Prepare for the worst and hope for the best.
Without dochen ownership of asset proclamations here or zerohedge, here or S. America. Have a target, do not BE a target. No offense.

LCS continues to sell junk silver @ spot. Bullion, foreign coin & rounds @ $1 above spot. Eagles $2 - $3 over spot condition measured. They traded @ refinery all scrap gold for silver round payment. Nice BIG boxes of tubes, a buck over spot no tax. Send donations to...

Gosh, that graph is interesting. I honestly don't know how to read these, but that triangle means we've reached the bottom?

Could the current price increase be the first phase of the next climb?

Potemkin said:

Gosh, that graph is interesting. I honestly don't know how to read these, but that triangle means we've reached the bottom?

Could the current price increase be the first phase of the next climb?

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It does NOT mean we have reached bottom yet, although we could have. What it does mean is that the downtrend has been broken to the upside with a fairly solid base. Now it is just a matter of time for the bottom to form, then best guess is $100 silver in 2016 or so.

In the meantime your dollar will continue to lose value, probably by half, so based on that the purchasing value at your local stores of $100 silver in 2016 would be the same as $50 silver is today.

It sure does look like we're being carefully capped under 21. For whatever reason, that seems to be "their" line in the sand.

As I write this silver is at $19.55, slightly LOWER than the price ($19.58) that is shown at the breakout on the above chart. Lots of support here, so prices MAY stop around $19, however we are entering the weakest point of the year for prices, so $18 or lower is looking more feasible all the time. Regardless. I can't imagine prices staying that low for more than a few months.

Silver is REALLY looking very WEAK. Not so much by the price (around $17.50 now), but by the price action.

Silver, week over week, has been down now for TEN (10) straight weeks and is on target to be down an eleventh week! That is almost unheard of in ANY market. Seldom do markets exceed 6 weeks down without an intervening week up before going down some more.

I have been watching charts now for about 50 years, and I do not EVER remember seeing ANY commodity going straight down for TEN weeks in a row without an intervening up-week breather!

That, to me, is unprecedented! And very very indicative of a very weak silver market.

This seems to be indicative of silver staying BELOW $19 for the forseeable future. With such a long term week over week downtrend, we could see an explosion to the upside in the near future, but because of the weakness, silver is not likely to go much past the $19 mark to the upside.

Based on this current action, it is extremely possible that we may see TEN DOLLAR silver again in the next few months! Time to make sure your powder is dry should that happen!

Coupled with the weakness in gold, this could spell the end of the endless PM dealers that I see everywhere I go.

Oh man. $10 silver? I need to clear out some storage room ...

At ten dollar silver, I'm taking out a note on the house so load up the truck.

It's official. ELEVEN consecutive weeks with a lower weekly close in silver. UNHEARD OF!

Will it make twelve? I doubt it. We have a full fledged bull trap here waiting to catch the bulls unawares. So, I expect silver to now rocket to $19 before going down even more.

So we're at nearly half a buck up on the day, however we'll need to wait a bit and see if it can hold.

Silver dipped under $16 today. Very tempting to make a run to my LCS.

I already ran to my LCS, and spent all three hundred dollars I scraped together on some generic rounds. I wish I had some more jack, but I have a couple of other things popping, so I need significant reserves for that.

I would LOVE to buy some silver, but other considerations are getting in the way. Like rent, food, transportation, expansion of new parts, etc. The bills never end!

Current prices at my local LCS are 13.1 times face for junk silver and $18.20 for generic rounds.

Crash. It's under 16 $ and I'm in pain.

It cut my appetite for silver for a long time.

Wait until it gets near 10 $, I think it won't go below. But what if it does?

Remember, after it crashed and burned the first time it went way back up, then got smashed to 13. The best time to buy is when everyone else is selling.

Potemkin said:

Crash. It's under 16 $ and I'm in pain.

It cut my appetite for silver for a long time.

Wait until it gets near 10 $, I think it won't go below. But what if it does?

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Pain? You should be ECSTATIC!

Waiting until prices recover means you either lose money in the long run or you leave most of your profits on the table for someone else.

The silver/gold ratio is currently 72:1, an unsustainable ratio historically. When silver and gold were used as money before 1965, the ratio was 16:1, which is a TYPICAL monetary ratio for them. Sooner or later gold and silver will again be monetized and when that happens silver will skyrocket. Based on current gold prices ($1200/toz), that would make the value of silver $75/toz, probably far below the value when monetized. Don't you think $16/toz is a BARGAIN???

That does NOT mean that silver will explode to the upside tomorrow, next week, or even next year. What it does mean that you have the OPPORTUNITY OF A LIFETIME to accumulate wealth at a VERY CHEAP price! Instant wealth does NOT happen to most of us, but by passing up opportunities to cheaply increase wealth DOOMS us to poverty in the long term.

NO ONE CAN TELL YOU WHERE THE BOTTOM IS UNTIL AFTER THE BOTTOM HAS HAPPENED! It is then TOO LATE to buy at the bottom, meaning that you CHASE higher and higher prices until you go broke. That is essentially what the Hunt brothers (one died recently) did in the 70's and they went bankrupt bigtime.

It is much better to chase LOWER and LOWER prices. That GUARANTEES that you will ALWAYS buy at the BOTTOM.

Decide what kind of silver that you want and set yourself up a fund to buy it.

Do one of two things (examples):

1) Buy $100 worth of silver (or whatever) ON THE SAME DAY OF EVERY MONTH, regardless of price. The lower the price, the more silver you can buy for your money.
2) Buy 5 American Eagles (or whatever) ON THE SAME DAY OF EVERY MONTH, regardless of price. The lower the price, the cheaper you are buying silver.

Either way, over the long term, you will ALWAYS build wealth. Chasing prices as they go up DEPLETES wealth.

Personally, I would go with #2 and buy one roll of junk silver quarters on the 15th of every month (Current price here).