**Silver**

Katz:

http://www.kitco.com/ind/katz/dec212010.html

It would be nice to have some mega bucks to play with this:

http://www.kitcosilver.com/charts/24hoursspot.html

Buy some puts, sell lots of silver to force the price down, sell the puts and buy calls, buy lots of silver to force the price up.

Then make a donation to your favorite charities, of course!

In my opinion, gold and silver have been consolidating nicely since their hot runs ended about December 6th. They've cooled off quite a bit. Possibly they are going to start another run soon.

"Will Jim Sinclair lose his bet?
Shelby Today at 6:03 am

http://www.google.com/search?q=Jim+Sinclair+bet

Jim Sinclair Bets a Million Dollars Gold Price Will Hit $1650 before the 2nd Week in January 2011

http://jsmineset.com/2010/12/11/imitation-is-the-sincerest-form-of-flattery/
http://jsmineset.com/2010/12/28/in-the-news-today-741/

I think we might get close. I figure $40 silver by March, so that would be double the appreciation required to take gold to $1650, which is about the rate silver is appreciating relative to gold lately.

Shelby"


If he does win, we're in for quite a ride the next couple of weeks. Could be very interesting. Especially considering a lot of people are selling and taking their profits for the year, and yet the markets stay strong.

Yup, looks like Bix Weir is still bullish on silver:


"Just a quick note to end the year....silver is up 80% in 2010 but STILL not even close to it's true "Fair Market Value".

Earlier this year I wrote an article and plugged a number in that made sense using a very simple formula...

$6,000 Silver and One Bank!
http://www.roadtoroota.com/public/94.cfm

So here is the same formula today to determine the Fair Market Value of Silver....

1) I know silver has not been freely traded in 40 years so today's price if irrelevant.

2) I, like many, estimate there is only about 1B ounces in above ground physical silver for investment purposes.

3) I, like many, estimate there is only 5B ounces of above ground physical gold for investment purposes.

4) If the price of gold is not manipulated, like the banks claim, then the price of silver should be 5x the price of gold due to its supply/demand fundamentals.

CONCLUSION: The price of gold is around $1,400/oz so the true Fair Market Value of Silver should be around $7,000/oz in a FREE market!


* I am a strong believer in the theory of Occam's Razor which states that in a complex world (such as silver price analysis) the SIMPLEST analysis with the least amount of variables is usually the correct one!

We end 2010 on a very high note...but the future is MUCH brighter for all of us. Yes, there will be major BUMPS in the road getting there but in 2011 WE WILL BECOME FREE PEOPLE AGAIN!

Happy New Year to All you "Road Warriors" and rest up because January 1st we're gonna hit the ground running!

Bix"

Check out the "ping test."

Well, it looks like our Silver Bug community is starting to understand just what the future of Silver may look like. The US Mint has posted the stats on US Silver Eagle sales this week and January 2011 is ALREADY the largest sales month EVER for this beautiful coin!

http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=sales&year=2011

Why? Here's what I think. Silver Bugs are starting to get SCARED about which format their physical silver is in. Not all Silver is created equal and as the price of silver rises the amount of FAKE SILVER coins and bars is naturally increasing. Back when silver traded for $5 an ounce there was not much of a worry. Oh, there were fakes out there but they were easy to resell because hardly any retail dealers checked for fraud.

Now we have $30/oz silver and a 100oz silver bar is worth $3,000 which makes it a lot more worth while to make silver plated lead or molybdenum bars. Yes, it happens and unless you know how to determine the purity of your silver YOU ARE AT RISK. Short of having your silver assayed I'd suggest doing the "Ping Test" which is demonstrated here:

http://www.silverbullionbars.eu/silver-bullion-bar/silver-bar-ping-test

Although each bar won't sound exactly the same, you will recognize the distinct high pitched "ping" of silver.

So why are US Eagles flying off the shelf? I think it's because it is much harder to produce quality fakes, the 1 oz format makes them more costly per oz to fake and US Silver Eagles are "denominated" as $1 US and thus fall under the more strict currency counterfeiting laws.

A few thoughts on this angle. Those who don't buy US Eagles do to the higher premiums over the price of silver you need to understand that premiums are added to both the buy and the sell side of the equation.For example, you may pay $3 over spot but you can also sell them for more than other 1 oz rounds.

So 1 oz US Silver Eagles, in my opinion, are one of the very BEST investment formats if you are investing in physical silver. Before you say it...that goes for pre-1965 silver coins also but many don't want to hassle with the silver content calculations.

Watch for the 1 oz Silver Eagles to continue to fly off the shelves in ever increasing numbers as more and more people start to get concerned about fake silver... ALSO this should lead to further delivery problems from the US Mint which will increase the price of Eagles even more!

We have worked too hard and long to be caught in the wrong form of silver when the rockets take off. Be safe...1oz rounds and coins with a penchant for US Silver Eagles and you will be properly positioned.

May the Road you choose be the Right Road.

Bix Weir
www.RoadtoRoota.com

PS - Those of you wondering about silver mining stocks, ETF's and 401k silver need to read the Road to Roota ARCHIVES!

http://www.roadtoroota.com/public/department36.cfm

China silver imports, 2010:

http://www.commodityonline.com/news/China-Silver-imports-hit-record-3500-tons-in-2010-36266-3-1.html

More gold and silver discovered in Peru:

http://www.mining-technology.com/news/news109540.html

http://stockcharts.com/freecharts/gallery.html?$SILVER

The silver "trix" is looking good also.

http://stockcharts.com/freecharts/gallery.html?$GOLD

Gold "trix" is looking good also.

Onward and upward. Time to stay alert, eyes wide open.

Shelby quote:

"I do expect the silver price rise remain limited to 30+% per year, and not accelerate."

That's about the top rate charged on credit cards.

Analytical charts:

http://www.kitco.com/reports/template_jimw.htm

$gold:$spx

There's a gap that probably needs to be filled in:

http://stockcharts.com/freecharts/gallery.html?$GOLD:$SPX

$silver:$spx:

http://stockcharts.com/freecharts/gallery.html?$SILVER:$SPX

How has the S&P 500 been doing in relation to gold and silver?

The S&P 500:
http://stockcharts.com/freecharts/gallery.html?$SPX

The S&P 500 vs gold:
http://stockcharts.com/freecharts/gallery.html?$SPX:$GOLD

The S&P 500 vs silver:
http://stockcharts.com/freecharts/gallery.html?$SPX:$SILVER

Silver moving up today:

http://www.kitcosilver.com/charts/24hoursspot.html

April 4, 2011

From Trader Dan:

http://3.bp.blogspot.com/-SPq4AGT70tQ/TZnmrBcV8nI/AAAAAAAAASE/0OH8n3DG8b8/s1600/snapshot-592.png