Silver Price Could Double by Year End

Feb 19, 2012 – 08:54 AM

By: Jason_Hamlin

Were you cursing at your computer screen when silver nearly tripled during the short 9 months from September 2010 to May 2011? Silver at $20 seemed like an insurmountable threshold for quite some time. This caused many silver investors to give up just prior to the ascent, completely missing the ride towards $50. I believe silver is about to offer a similar ride. While it is unlikely to match the 180% advance mentioned above, look for silver to make new highs in the coming months, with the potential to double to $65 by year end.Following the record gains in silver during late 2010 and early 2011, the metal crashed towards $25 and has since rebounded to around $33. Investor sentiment has crashed along with it. The threat of Euro nations defaulting, banks announcing they are, well, bankrupt, and a series of other factors have scared away many of the Johnny-come-lately silver bulls.I think too many investors are underestimating the power of the central banks. While I agree they are running out of options, it seems that their ability to kick the can down the road has yet to expire. Given that the United States is heading into election season and President Obama is in full campaign mode, I expect the administration to pull out all stops in order to continue the illusion of economic prosperity a while longer. Every economic fire of consequence is being extinguished with fresh liquidity, more funny money or new legislation. In case you missed it, QE3 has been in full force for quite some time, albeit executed in a somewhat stealth manner.

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via Silver Price Could Double by Year End :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website.

I Stand By $140 Silver In 2012

There is a well-established relationship between how silver and gold trade. They often trade similar in the same time period, but also at similar milestones, although those milestones are sometimes reached at different times. This can cause silver or gold to be the leading indicator, depending on the particular milestone.

I have previously used this relationship to predict how silver will trade. Below, is an extract of that update:

Currently, there is another situation in the silver and gold market that provides an opportunity to predict how silver prices might trade over the coming months. I have pointed this out before, in a previous article. Here, I would just like to provide an update, and add a few more thoughts.

This situation or opportunity revolves around the 1980 all-time high for both metals. Gold passed its 1980 all-time high during 2008, while silver is yet to do so. By looking at the pattern of how gold passed its 1980 high, we can predict how silver might do it as well.

Below, is a comparison of silver and gold around their respective 1980 highs:

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I Stand By $140 Silver In 2012 | SilverSeek.com.

Another Chance to Sell Common Stocks and Buy Precious Metals

By Jordan Roy-Byrne, CMT

It has been a tough last year for precious metals investors but not so much for common stocks. Sure, the Euro crisis benefited Gold initially but as the panic has abated, stocks are rallying back to their highs while Gold has sold off and the gold stocks are trying to hold their lows. What is going on? Are we in the twilight zone?

Bull and bear markets are long lasting, providing ample time for trends and counter trends to continually reappear and redevelop. The long-term activity of precious metals and common stocks is not a mystery. Gold has continued to hit all-time highs while the gold stocks eclipsed and maintain 2008 highs as support. Yes, common stocks are rallying but are nowhere close to seriously testing 2008 highs. Recently, we noted a potential major bottom in both the metals and the mining stocks. With common stocks nearing major resistance, it is no surprise that we are nearing a point where the secular bull trend is ripe for reemergence.

The chart below shows Gold against the S&P 500. Note the similarity between 2003-2006 action and 2009-2012 action. After surging higher, the ratio retreats quickly but then forms a bottom and builds a base. The ratio has found strong support and won’t be going lower anytime soon. Stocks have had a nice relief rally against Gold but it looks to be all but over.

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via Another Chance to Sell Common Stocks and Buy Precious Metals.

Alf Field: Correction in Gold is OVER and on Way to $4,500+! | munKNEE.com

There is a strong probability that the correction in the price of gold [down to $1,523] has been completed. The up move just starting should be…the longest and strongest portion of the bull market…at least a 200% gain… [to] a price over $4,500. The largest corrections on the way to this target, of which there should be two, should be in the 12% to 14% range. [Let me explain how I came to the above conclusions.] Words: 760

So says Alf Field in edited excerpts from his original article*.

Lorimer Wilson, editor of http://www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and http://www.munKNEE.com (Your Key to Making Money!) has edited ([ ]), abridged (…) and reformatted (some sub-titles and bold/italics emphases) the article below for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

Field goes on to say, in part:

There is a strong probability that the correction in the price of gold has been completed. In EW terms, [read Gold Bounce Confirms Bull Market Intact on Its Way to $3,000 – $10,000 for another analysis] the correction consists of three waves, an A wave down, a B wave rally and a final C wave decline. There is usually a relationship between the A and C waves. Often they are equal or have a Fibonacci connection. The chart below is of the gold price using PM fixings:

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via Alf Field: Correction in Gold is OVER and on Way to $4,500+! | munKNEE.com.

via Alf Field: Correction in Gold is OVER and on Way to $4,500+! | munKNEE.com.

We are Witnessing a Historic Bottom in Gold: London Trader

¤ Yesterday in Gold and Silver

Once the gold price broke through the $1,600 level shortly after the London open yesterday morning, it never looked back.  The rally moved along in fits and starts until 11:15 a.m. Eastern time.  Then it more or less traded sideways for the rest of the New York trading session.

Gold closed at $1,615.20 spot…up $21.30 on the day.  Volume was pretty light…around 107,000 contracts.

The silver price basically followed the same type of trading pattern as the gold price.  Silver closed the day at $29.56 spot…up 76 cents.  After a monstrous 50,000 contract volume day on Monday, silver’s volume on Tuesday was a much more subdued 23,500 contracts.

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We are Witnessing a Historic Bottom in Gold: London Trader – Ed Steer’s Gold & Silver Daily.

Euro solution will fail!

By the time you read this e-mail, Europe’s leaders will likely have agreed to some sort of solution to its harrowing financial crisis. But whatever their proposals are, they are not likely to work. Not for long, at least.

You’ll want to know why I say that.

Naturally, you’ll also get my latest views on the key markets: Gold, silver, the dollar and the Dow Industrials.

Best wishes

Larry

P.S. Everything I study … every indicator … every trading system I monitor — tells me that 2012 will be one of the most violent, treacherous years for the financial markets, ever. But it also can be one of your most profitable years yet!

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via Euro solution will fail! | Uncommon Wisdom Daily.

Deja Vu? Is Gold Just in a Correcting Phase on Its Way to Parabolic Peak of $4,294?

The current volatility in the precious metals market doesn’t necessarily indicate a change in secular direction. [In fact,] if today’s gold price was to rise by the same degree over the next 14 months [as it did from the beginning of 1979 into 1980, it would hit $4294/ozt. by Jan 2013! Let me explain.] Words: 420So says Plan B Economics http://www.planbeconomics.com in edited excerpts from his original article. Lorimer Wilson, editor of http://www.FinancialArticleSummariesToday.com A site for sore eyes and inquisitive minds and http://www.munKNEE.com Your Key to Making Money! has edited [ ], abridged … and reformatted some sub-titles and bold/italics emphases the article below for the sake of clarity and brevity to ensure a fast and easy read. The report’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement. The article goes on to say, in part:The following chart is a snapshot of gold prices during the 1970s. Between January 1971 and November 1978, gold experienced a number of whopping corrections that sent the weak hands scrambling to cash. Many levered players saw their margins decimated and called it quits…

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via Deja Vu? Is Gold Just in a Correcting Phase on Its Way to Parabolic Peak of $4,294? | munKNEE.com.

James Turk: Expect A Violent Move Higher In Precious Metals, Especially Silver

Dominique de Kevelioc de Bailleul: While the silver price (NYSEARCA:SLV) moves higher with the gold price (NYSEARCA:GLD) during this latest consolidation phase in the bull market for precious metals, Goldmoney’s James Turk expects another violent move higher for the metals, especially the price of silver.

“This move [in the silver price] is going to catch a lot of people by surprise as evidenced by the extremely low sentiment readings,” Turk told King World News, Monday, pointing to the lack of overall enthusiasm in the precious metals market of late, with a relatively steep contango in the silver futures market chain serving to support his thesis. “Those low readings are a clear indication that there is a lot of money on the sidelines that is waiting to jump on board.” Get my next ALERT 100% FREE

Such low sentiment readings and steep contango prices in the silver futures haven’t been seen since the first quarter of 2010, when problems in the Greek sovereign debt market first emerged. At that time, fears of another Lehman event, this time from Europe, took the DJIA sharply lower from its intermediate post-crash peek of 11,250, down to 9,600, a nearly 15 percent correction in the 30 Industrials.

In contrast, after trading between the $15 and $18 range during a nine-month period of September 2009 and June 2010, the silver price climbed higher in the face of a risk-off-then-risk-on-again trade in stocks of 2010 as the white metal never looked back, soaring to just shy of $50, from the $15 base of the previous flagpole pattern.

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via James Turk: Expect A Violent Move Higher In Precious Metals, Especially Silver.

More Declines Coming!

More Declines Coming! | Uncommon Wisdom Daily.

via More Declines Coming!.

Major Catalysts Ahead to Trigger Next Breakout in Gold Market

By Jordan Roy-Byrne, CMT

In bull markets, corrections and consolidations are needed to periodically cleanse the market of extreme optimism and an overbought condition. After a market has strong run it inevitably reaches a point of resistance. This is where there are more buyers than sellers. A market can correct in two ways. Either it declines and retraces much of the preceding gains relatively quickly or a market will consolidate near its highs for a long period of time. The first correction is a function of price while the second, time. The correction or consolidation ends when a fundamental catalyst emerges which triggers greater demand that overwhelms current supply.

The consolidation has endured due to a working off of the overbought condition from 2009-2010 gains as well as the lack of a real catalyst. The Fed, though accomadative has been on hold while emerging markets turned their focus to inflation. European bond markets were in fair shape into the summer. However, the good news for gold investors is that a trio of major catalysts lie on the horizon and should easily trigger the next breakout.

The obvious catalyst is a massive bailout of European nations and European banks through a $3 Trillion debt monetization (the figure stated by many). Until last month the European crisis was limited and a hope of being contained. Since then interest rates on French bonds, which had been following Germany began following Spain and Italy higher. The 10-year yield on French bonds has surged in the past six weeks from about 2.50% to nearly 4%. Meanwhile, Ambrose Evans Pritchard, the intrepid reporter wrote that Asian investors are pulling out of German Bunds and Europe all together. Bund yields (10-year) look to be forming a double bottom just below 2%. Bunds stopped rising in last month as yields surged in Spain, Italy and France. Understandably, Germany has stood in the way of an ECB bailout. However, the sooner the crisis spreads to Germany, the sooner we can expect a German-led ECB bailout.

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via Major Catalysts Ahead to Trigger Next Breakout in Gold Market.