Silver is a critical decision point and the pressure is building
Some very interesting comments on silver (and gold). The chart below shows just how close we are to the upper and lower resistance in silver. It will be very telling if the metal can break out to the upside, potentially leading the way for gold. So far in 2014 I think silver has been very disappointing, that said, a number of mid-tier producers have performed well.
As the author says “The chart above shows a huge pressure cooker building, with resistance only a dollar on the upside and support about a dollar on the downside.”
By the way….did you catch this story, Cory? Not related to metals for a change. Anyway, the new H7N9 Birdflu in China has just blasted off and it is killing one in four people it infects. Frome the article….”Cases of the new H7N9 avian influenza in China are surging alarmingly” reported the Wall Street Journal yesterday. Flu experts warned this week that is has now appeared in 10 Chinese provinces and is now at borders of Vietnam, Cambodia and other poor Southeast Asian states. For reference the Spanish Flu killed a mere 1 in 5 of its victims and the Black Death which incidentally also originated in China reduced the global population by roughly 28 to 30%. So there you go…..the pension crisis is solved and all you young ones can soon enjoy an inheritance if this thing keep getting traction…….of by the way….have an exit plan!
Cases of New Deadly Bird Flu Surge in China, Experts Say
http://www.nytimes.com/2014/02/05/health/cases-of-new-deadly-bird-flu-surge-in-china-experts-say.html?_r=0
Wow that sure is scary Birdman. 1 in 4 people dieing! What I found interesting is that this virus does not make chickens sick so it is hard to detect early.
I hope everyone stays safe and this passes soon.
I have got a really bad feeling about this one Cory. Black swan here we come. At least we won’t fret about stock markets for a few years since we will all be so busy trying to avoid all group events and bunker down. We have waaaaay too many chickens in my neck of the woods. I am a goner for sure. Every damn neighbor has a flock. You won’t have to listen to too much more blithering from me if it gets here anytime soon, I am certain of that.
germs can not live on silver…………so, start eating with the silverware…………
It is an airborne virus. Won’t help you.
When they design the flu shot every year it is based on evidence that is collected from China, all bird flu’s that are transmitted to man originate in China. They have a terrible record for preventing disease, because of the conditions they allow poultry to interact with humans. DT
Bird:
My Father got caught up in the Spanish Flu epidemic in the early 20’s. He was hospitalized for 3 months but pretty much recovered and died at age 84.
Cory has an excellent point here… while gold had a strong January, silver is actually trading now below where it was during the last week of December and has not participated in gold’s recent rally. It has reached a point where something has to give, to adjust upward to a more appropriate gold/silver ratio, which it may have started to do today, or to hover below where it deserves to be if gold isn’t going to take another leg up. My bet is that during February silver will out-perform gold.
The last time the price of Google was near parity with the price of gold was late 2007. That was a great time to short GOOG and buy gold and silver. Those who did saw Google plunge 60% against silver (silver gained 150% against GOOG) in just a few months.
Now, more than 6 years later, the same trade looks even more appealing as GOOG and gold are again near parity while GOOG is extremely overbought.
This statement is for Birdman. Now that 2013 is over we do not have a period of grave concern. American business is steadily coming back to a normal level of prosperity.
Common stocks have not lost their lure, the stock market will soon begin a new advance, prosperity was coming once more and it would be well to get in on the ground floor.
Be a Bull on America. DT
It’s nice that some people can be used as sounding boards. DT
I am very bullish on America actually, DT. One thing we can perhaps appreciate is that all the bad news we are hearing now is typically more associated with low points in an economy and not peaks. The other thing we need to get straight is that what the economy does and what the stock markets do can be completely different animals. Stocks crashing is more an investor event than an economic event……..
Sorry….were you waiting for me to say something crazy?
Here’s good article by the guy who schooled Mish a few years ago when they debated inflation and deflation. Amerman thoroughly knows what he is talking about.
Deadly Deflation Myths
http://danielamerman.com/articles/2014/4myths1C.html
Thanks Matthew!
ditto………..great article…………thanks……..Matthew…..
Gee Matthew. We just had a selection of the worlds top economic thinkers, bankers, finance ministers and business leaders pretty much come to a consensus at Davos that the real threat to the global economy is indeed deflation. But what the hell do they know? We have Amerman preashing to Mish that which he knws not.
Do you know what propaganda is? How about indoctrination?
Btw, this was good: “We have Amerman preashing to Mish that which he knws not.” –I think an “LMFAO” is appropriate here.
This gem of yours from two days ago was funny too…
“The days metals rout has just begun as far as I can see. Vertical drop so far. Like I said. It was a short setup too easy to spot.”
Indeed, what the hell do you know?
I was exactly correct Matthew. As you know by now I trade short term so I don’t give a shit if there is a reversal after I have closed a position. You need reading glasses. Once you put them on why don’t you lecture us all about your inflation theories. I am curious to hear what Matty thinks (not what other people are saying). Wee can be parrots or thinkers buddy. Tweet tweet!
You said the “metals rout has just BEGUN” at 6:14 am on Tuesday. Gold then went UP from there and remains higher yet you claim to have made a good trade. Sure, whatever you say.
I have to correct you again Matthew because you are wrong. First, my comments were made during the premarket and gold was indeed in a steep decline. Secondly, gold did not “go up” as you portray here but in fact opened the day down. You are looking at closing days numbers I presume and don’t have a 5 minute in front of you of the days action. At 11:00 AM when Al recorded Docs interview gold was still down over 8 dollars although it was recovering. There was not a rout as I had anticipated but it was indeed a short until noon. It is a dissapointment you keep making incorrect statements in reference to my remarks and you keep being wrong which is evident to everyone on the site. I usually assume you to be an intelligent person but perhaps I have set the bar too high in your case. I love to be quoted by the way……. but lets keep the conversation honest.
Yeah sure, but more importantly, have you figured out why you should care if the Chinese import more gold? I think it’s clear that everything gold is over your head.
All one needs to do is refer to The Book Of Revelation last chapter in The New Testament.
If you really want to know the truth about where this world is headed.
First, food is going to cost a fortune in these days going into 7 year Tribulation.
The bad news is at the end of the 7 year period the moon and sun will be darkened.
The good news is those that are saved will not be here and not be subject to Gods wrath.
STRONGLY SUGGESTED : Don’t lose your inheritance in The Kingdom Of God. Those of you
may not know this but you are royalty in his kingdom and served by the angels for eternity.
The difference between this world and The Kingdom Of God is………
Door #1 this world is….. like a cow patty in the middle of a pasture.
Door#2 The Kingdom Of God is ………a very large treasure chest loaded
with fine rare diamonds and jewels with the rarest of precious metals.
This comparison maybe cheezy but I had to think of something.
Anyway, this world and life does not compare to what God has waiting
for those that believe.
JUST DON’T BE LEFT BEHIND. We all have a responsiblity to choose.
From what I have been taught about chart formations the break out from the triangle has a 75% chance of going the way of the trend that formed it. Hope that I am either wrong or this is one of the 25%.
Interesting point Jerry. Thank you.
You folks who fixate entirely on gold and silver are seriously missing the action elsewhere. One of these days you just might pay a little heed to what is happening in many other commodities that are showing real life right now. Precious metals are just laggards compared to others.
I bet you CFS is spending a lot of time ceaning his glasses this week. His eyes must be deceiving him about what is happening to coffee. It is a rocket ship boys and it portends so pay attention.
Inflation is coming and damn the torpedoes. If it won’t generate organically it can always be pushed along a little. I suspect decisions have been made already. This is a war that cannot be lost. We simply CANNOT slip into a global deflation because the outcomes that follow are just too dangerous to fathom.
Coffee is going up………because the American unemployed have more time to go to STARBUCKS and set around and BS with each other. Human nature cause different actions……….plus, they will drink more coffee because they have more time on their hands……….the only other thing TEA HOUSES may come into the market, causing a supply shortage of tea pickers, to overcome the future demand ……
Jerry,
Coffee is going up because of cold weather crop damage.
Same for OJ
cfs…..I thought you were taking off for awhile…….sorry, I was just joking with Bird,
Bird an,
For the record.
it was I who suggest to this site, over a.week ago, watch Jo and Cafe Take off
You are on fire today Cory! If gold and silver really take off I won’t find time in the day to read all your articles and links.