Next show on the Silver Screen

Is m2 the ultimate denomination of wealth?

A decade ago in 2004 silver was only $6 an ounce then in 2008 $9 now in 2014 you are looking at almost double what it was six years ago.  Even the epic loss in 2011 did not seem to tarnish SLV as an investment.  I would look at these numbers and agree that investing in silver is a sure bet.  Floating rate notes (FRNs) cannot compare to silver trading, when buying silver it’s more of a stack and hold type of investment.  The metals market cannot keep up the lows we see, the production in mining is well above the low numbers that we are trading at currently.  Are industrial buyers just locking in a supply?  We are seeing mass rollover of long contracts, unusual for industrial buyer’s positions.  These seem to be a “deeper pocket” strategy, possibly metal manipulation.  Silver is oversold when looking at a technical picture, last year looking at the RSI you see silver bottoming with lows right before it hit the lows June of last year.  Has the spike in SLV just begun?  We saw record sales last month, with the most volume ever seen in SLV COMEX futures, even shortages in the physical metal.

Could silver go lower?  Some traders predict $15 others see the lows just a way for the SGE to buy discounted metals and horde them until they can control the new fix price.  Who can really predict the drop or rise with all the global entities corrupting the market.  We never thought we would see interest rates at zero, how do we know what is to come?  Well look at history, look at human and market predictability, in no way will they just let metals go lower than we see now.  This is why trading metals is really the way to go; yes holding the physical PMs is a great insurance for your own personal assets.  Trading metal options is a true and complete strategy.  While the cost of silver is so low I personally would stack and hold, however as it gets higher lets say over $49 I would switch to lead.

The Swiss may have the Cheese

Little discussion has been on the important news prior to the referendum on November 30^th regarding the Swiss campaign to “save our gold”

            One of the largest groups of political representatives in the Swiss parliament are considered to be the national conservative members of the SVP Swiss People’s Party.  The SVP filed a initiative on August 26, 2011 with the Swiss government, Titled “Gold Initiative: A Swiss Initiative to Secure the Swiss National Bank’s Gold Reserves”, later changed to “save our Swiss gold initiative” This campaign is to retrieve the Swiss family’s gold and considered to be the peoples gold. The gold was sold off by The Swiss National Bank and the Bank for International Settlements. The initiative states that the physical gold must be stored in Switzerland, and total assets of the SNB must have 20% of assets backed by physical gold and can not sell the reserves. Gold of the Swiss National Bank must be stored physically in Switzerland. The Swiss frank now backed by 25% instead of the 40% that was required back in 1997. SVP blame the devaluation of the CHF on the lack of gold backing. The SVP argue that the FED and CB increasing their money supply has devalued not only the CHF but also the USD and EUR. The SVP say that if they hold gold to back the CHF it would stop the devaluation. This vote will not only would make other countries view gold as a huge monetary and safe asset, we would also see a huge increase on the EUR itself. A few other Countries seem like they are swaying the same way, we see China, Russia and others stocking up on the precious bullion. This could be the biggest global move for gold, as it would drive the gold prices sky high.