▼

Sunday, May 8, 2011

Silver Price Recovery Begins Tomorrow May 9, 2011

Just had a friend in China tell me on the phone that the rumor is that central bank of the Chinese Republic (PRC) is going to start buying heavily into physical silver - and demanding delivery - starting first thing tomorrow am. This rumor is going around financial circles in China, Shanghai and Hong Kong and it is also rumored that this will be a process that starts slowly beginning tomorrow May 9, 2011.



Parabolic rises are traditionally followed by a price drop reflecting the rise. But, traditionally we didn't have massive USD debt, money printing, QE2 (QE3 will be announced before summer) and, the big one; we didn't have a publicly announced policy by the People's Republic of China to buy precious metals.

The resurgence of silver's price could be tomorrow.... At least that's what my little birdie tells me. 

Could it be that I am being manipulated to spread disinformation? I doubt it. There are only 5,000 readers a day to this blog.... You'd think they'd go somewhere else if they wanted to spread hype.... Or maybe they are.

My personal opinion is that it is now the time to get back into the pool and start buying. If the price continues to drop, dollar cost average your price out. Silver is not going too much lower and the fundamentals (since 2008) haven't changed. 

You in the game or not? 
at

6 comments:

  1. AnonymousMay 9, 2011 at 1:54 AM

    still on the fence, but i may buy some AGQ for a weekly lottery ticket.

    ReplyDelete
  2. AnonymousMay 9, 2011 at 3:53 AM

    Hmm.. do not know what to believe anymore. There are some strong cases to be made for silver to increase above the 50 mark, but there is so many other factors including manipulation that the little guy is at the mercy of the powers at be. I am tempted to sit on the fence a bit. COMEC is going to raise margins again on Monday. The physical silver bulls may not be able to stave off this pressure. I am still long on silver though. The fundamentals have not changed overnight nor will they as long as the US dollar is still getting hammered and the Fed keeps spitting out monopoly money.

    ReplyDelete
  3. Hiroshima BillMay 9, 2011 at 7:43 AM

    You bet I'm in! For a Chinese/Canadian silver play I recommend Silvercorp Metals. They mine darn near pure silver. Production cost is $7 an ounce. I don't think silver is going back to $7. Trades in Toronto under SVM. Down 1/3. Planning to ride it back up, making 50% on my money. Yee-hah.

    ReplyDelete
  4. AnonymousMay 10, 2011 at 5:52 AM

    Looks like your little birdie was correct about the bounce today.

    ReplyDelete
  5. Failure, the 1st FreedomMay 10, 2011 at 7:48 AM

    Dear Mike,

    I got clobbered last week and was forced to close my ETF positions after losing 15% on SLV.

    I'm not one of the "speculators" with the "hot money" which the CME's quadruple-hike of margin requirements was supposed to shake loose. I don't even have a margin account. I'm subject to the 3-day buy-and-hold rule which left me with 33 shares of the fund I had bought variously between $37.50 - $44.00 ... I'm not angry at anybody. I consider it an expensive lesson; one which, in the scheme of things, I may one day be able to view with more equanimity.

    Lastly: My highest admiration goes out to you and the millions living on Honshu. After the enormity of the disasters - natural & man-made - the citizens of Japan are exemplars to the rest of humanity. In the incalculable enormity of destruction Japanese society - far from flying to pieces - has given us a hopeful lesson in the meaning of Civilization.

    With the Greatest Admiration Possible.

    ReplyDelete
  6. annikMay 10, 2011 at 8:14 AM

    I've got a ver old, 100% silver (no polishing needed) full silverware set. I could use the $$$ but I'm guessing it's a good time to hang onto it, yea?

    ReplyDelete

Comments must be succinct & relevant to the story. Comments are checked frequently and abusive, rude or profane comments will be deleted. I’m just one of many bloggers who answer questions online and sometimes for the press. I usually handle questions about Japan, marketing or the economy, so in those areas I’m more likely to make sense and less likely to say something really stupid. If I post something here that you find helpful or interesting, that’s wonderful. This is my personal blog. If you don't like what you have read here then, just like when you go into a restaurant or bar that allows smoking, if you don't like it, there's something at the front that has hinges on it and it is called a "door."