Massive Raid on Silver/open interest in silver remains high.

Broad Dollar Index at a 13 Year Low; USDX at a 32 month Low

posted by Trader Dan at Trader Dan's Market Views - 39 minutes ago

Harvey Organ Tuesday, April 26, 2011

Massive Raid on Silver/open interest in silver remains high.

 

 

Silver coin demand outstripping supply

posted by Eric De Groot at Eric De Groot - 1 hour ago

The public is just beginning to realize undeniable change has occurred in the silver market. Following yesterday’s spike up to nearly $50 per ounce, the silver price has declined and is currently trading a...

Simon Black Answers The Question Du Jour: "Should I Sell My Silver?"

Submitted by Tyler Durden on 04/26/2011 11:53 -0400

Silver's rise (in US$ terms, at least) over the past several weeks has been nothing short of phenomenal. The chart has effectively "gone parabolic," and people I've never met have started to e-mail me (in my capacity as a registered investment advisor) for advice on silver. It doesn't matter whether it's silver, tech stocks, emerging markets currencies, or pork belly futures... any time these two events coincide (a parabolic chart pattern, and strangers asking me for advice), it sets off ALARM BELLS in my head. I'm going to go out on a limb and say that right now, the fundamentals for silver DON'T matter. Many of the latest crop of silver "investors" have no clue about the fundamentals.

The Rules Are Changing In Gold And Silver

posted by Eric De Groot at Eric De Groot - 6 hours ago

Possibly title rewrite to the headline below could be "Silver surges to All-Time high on Inflation Hedge, Industry Use, Then Gets Bombed Ahead of Two Day Fed Meeting." The disruption of (paper) control has...

In The News Today

Posted: Apr 26 2011     By: Jim Sinclair      Post Edited: April 26, 2011 at 4:08 pm
Filed under: In The News

Thought For The Afternoon

Will they or will they not continue QE is not the question. They must, be it through the front or back door. The future of the dollar is what you need to know if you are to navigate this, the most violent upcoming part of the gold drama.

The dollar situation is damned if you do and damned if you don’t. A suspension of QE is negative MOPE that would impact the equity market, therein destroying the liquidity rally from March of 2009. The recovery is not getting serious traction regardless of the bliss of the media.

The US dollar would be hit hard by a collapse of this modest recovery that a suspension of QE would mandate. If QE is to continue, either front or back door, the dollar will remain under pressure.

Forget the media and blog commentary. The future of gold is all in the dollar. The US dollar has no future under present conditions.

Silver – 8 Hour Chart Update

Posted: Apr 26 2011     By: Dan Norcini      Post Edited: April 26, 2011 at 6:25 pm
Filed under: Trader Dan Norcini

Dear CIGAs,

Based on open interest numbers from yesterday’s price action, we had a significant number of fresh short positions instituted in Silver on its run towards $50. Combined with record volume ( a mind boggling 319,024 ) it looks like we had a blow off top in silver for the time being. That high near $49.80 will now serve as the new resistance level beyond which silver is going to have to move before we can get a fresh leg higher in this market.
The market is now in the process of probing lower seeking to uncover support. Precisely at what level that will arise is unclear. It has found a bit of a respite from the selling near $44.60 but that looks fairly flimsy at this point. More substantial support lies closer to $43.50. Beyond that it looks as if $42 will be the next level.
To have a shot at making another run towards its recent peak, silver will have to close above $47.25, or the gap left from its Sunday evening open.

Click chart to enlarge in PDF format with commentary from Trader Dan Norcini
For further market analysis and commentary, please see Trader Dan’s website at www.traderdan.net

Tricky Tuesday

posted by Turd Ferguson at Along The Watchtower - 1 hour ago

First of all, two headlines from ZH that I think are fantastic. First, where have you heard this before? "Pimco's Observations As The US "Reaches The Keynesian Endpoint" Next, you gotta love this, don't...

"Gold Glitters Amid Economic Woes" - A Reuters Special Report

Submitted by Tyler Durden on 04/26/2011 17:16 -0400

Gold and silver dip modestly from near all time highs and the momentum chasing brigade is screaming it's the end of the world and all ___bugs should take cover. At such a point it is useful to reanalyze the fundamentals that have brought the two key precious metals to such astronomic heights. Attached, we present a 40 pages special report from Reuters, summarizing all the recent developments in the area, for all those who still may be unsure about the alternatives provided by the metal to the traditional fiat-based monetary system.

Martin Pring On Why The Libyan No Fly Zone Has To Be Extended To Bernanke's Helicopter

Submitted by Tyler Durden on 04/26/2011 16:48 -0400

There has been a lot of talk about the excessive loose monetary policy coming out of the Federal Reserve. However, most of the arguments concerning the implications take the form of generalizations as opposed to quantifiable relationships. Our objective here is to show, through the historical relationship between short-term interest rates and the economy, that the Fed has been overly generous. Moreover, we will see that the data call for much higher industrial commodity prices before this cycle runs its course. In retrospect, they will make today’s elevated levels look benign by comparison. There are two inescapable conclusions from this data. The first is that interest rates and commodities are headed much higher. The second is that the Libyan no fly zone needs to be extended to include Ben Bernanke’s helicopter.

USDA Says Meat Prices to Soar

posted by Eric De Groot at Eric De Groot - 7 hours ago

Source: finance.yahoo.com [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Guest Post: For A Few Dollars More - Part 1

Since I’ve identified four major rationales for our impending doom, I’ve decided to write a four part series that can be read in small doses, rather than one enormous article. I don’t want anyone to miss tonight’s episode of Dancing With the Stars, get distracted from the Royal Wedding preparations, or skip the best reality TV show ever – Ben Bernanke’s press conference, while reading an 8,000 word article about the end of America. The four part series will have a Clint Eastwood theme. For a Few Dollars More will address the Baby Boomer impact on America’s decline. A Fistful of Dollars will examine how the creation of the Federal Reserve and the income tax in 1913 set us on a path to ruin. Outlaw Josey Wales will scrutinize the looting of America by a small group of powerful, connected, super rich men lurking in the shadows, but pulling the strings on our puppet politicians. Lastly, Unforgiven will detail the impending collapse of our economic system and the retribution that will be handed out to the guilty.

Guest Post: Gold As a Hedge: A Back-of-the-Envelope Calculation

Submitted by Tyler Durden on 04/26/2011 11:23

How much gold would an individual investor need as a hedge against the total depreciation of fiat currencies? Here is a back-of-the-envelope calculation...There are about 5.3 billion ounces of gold "above ground," roughly 160,000 tons. At the current price of $1,500 an ounce, all the available gold is worth about $8 trillion. About half is in jewelry, 10% in industrial uses and 40% as central bank reserves and investment. If gold took the place of fiat currencies as "money," the available gold would have rise to about $140 trillion in value. In today's dollars, that's about 18 times its current price. So $1,500 X 18 = $27,000 an ounce...To hedge $250,000 in paper financial wealth (recall that productive real estate, windmills, factories, etc. would still retain their productive utility value after currency depreciation), you would need 10 ounces of gold, or $15,000 worth at today's prices.

The Heroin Addicts Are Out, And They Are MAD, Warn Of "Another Catastrophic Financial Crisis"

Submitted by Tyler Durden on 04/26/2011 10:26 -0400

Today's dose of Mutual Assured Destruction brought to you by Reuters:

• Chairman of US Treasury borrowing advisory committee tells Geithner in letter there is an "urgent need" to raise debt limit
• TBAC says any delay in Treasury on making interest, principal payments could trigger "another catastrophic financial crisis"

Apparently, we now have at most 3 weeks before America, if the TBAC is correct, launches a suicidal nuclear attack on itself. Because as you recall the world ended when the Fed released its uber top secret classified docs.