Monday, February 28, 2011

CNBC: Silver to go to $130?



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  1. Great posts on silver. Very informative.

    I'd tend to view the CNBC clip as an indication that it may be due for a temporary pullback. Bullish CNBC coverage tends to be the kiss of death.

    That being said, I see that silver is up another couple percent again overnight.

    Strange days indeed.

  2. LOL... I agree. It seems that everytime Financial TV (especially Jim Cramer) comes out in favour of Silver/Gold, then it drops.

    Having said that (and I will be making a post on this before too long), after the last run up for the December delivery silver reached a high of $31.75. Then silver came under stiff attack for weeks on end and the price dropped to the low $26 dollar range.

    Many believe JP Morgan drove the price down and simultaneously began buying as much physical silver as possible to prepare for the March assault.

    Make no mistake... they are well aware of what is happening.

    The problem, however, is the massive demand for phyiscal silver. That's why charting the Open Interest for physical delivery and the deposits/withdrawls to the COMEX is so important. The COMEX doesn't have enough silver to offset the short squeezes being created by the physical demand.

    This week is all about settling the contracts of those still standing for physical delivery from the COMEX (full data is only just coming out). Preliminary info indicates the COMEX is extremely tight to be able to deliver on these contracts which means we should see silver continue to rise this week. Much will depend on whether those contracts settle for cash (with high premium) or if they insist on physical delivery.

    More when I have a clearer understanding of where things stand.

  3. Forgot to add... once delivery contracts are settled, I fully expect another month plus of attacks on silver to drive the price down $5 or more like we saw after Dec 31, 2010.