• Gold: 1,563.25 4.39
  • Silver: 17.81 -0.04
  • Euro: 1.106 -0.004
  • USDX: 97.697 0.197
  • Oil: 55.62 -0.58

Feisty Silver Bulls Face a Key Hurdle

The futures are looking robust for the first time in a long while. Yesterday’s rally generated yet another bullish impulse leg on the daily chart by surpassing an external peak at 19.525 recorded on May 23. A rally that is able to exceed at least two prior peaks with each new thrust, as Silver has been doing, is demonstrating that it is raring to go. If this is indeed so, we should see a surge today that surpasses the distinctive external peak at 19.825 (see inset) from May 22. Night owls looking to climb aboard should look to do so on a resumption of the rally following a shallow pullback of perhaps 15 cents from Thursday’s 19.565 high.

The most damning evidence

This morning, I wrote of how global debt passed $100 trillion last year - and frankly, dramatically more if true GAAP accounting was utilized. This is the most damning evidence that fiat currencies are failing; as ultimately, debt growth turns parabolic at the end. With both gold and silver trading below the cost of production, how much longer can the "New York Gold Pool" keep prices down?

"Abenomics-afied" Japan

The ramfications of last week's ECB decision to take deposit rates to negative 0.1% - not to mention, reinstating the LTRO and unsterilized SMP "backdoor QE" programs - are enormous. In other words, the ECB admitted Europe is in as dire a situation as the "Abenomics-afied" Japan; and it's only a matter of time before Whirlybird Janet announces the same here.

Cataclysmic Central bank announcements

Today, one of the most cataclysmic Central bank announcements in history was made; when not only did the ECB reinstitute the LTRO (thus, admitting its banks remain insolvent); lower the key lending rate to 0.15%; and discuss the potential launch of a new QE program - but took the deposit rate NEGATIVE!

"the Cartel"

All I can say is this; by pushing prices this far below the cost of production, the resulting blowback will indeed be historic - as worldwide, the fundamentals for owning them are strengthening with each passing day.

CME, LME compete to provide alternative to London...

Major metal exchanges emerged as contenders in developing an alternative to the London silver price benchmark, or "fix", after the century-old system for setting the globally recognised price is disbanded in August.

COMEX Options Expiration Day

What more can one expect on a COMEX options expiration day, in the year's lowest volume, post-holiday markets, when a plethora of PM-positive "horrible headlines" ran hot and heavy throughout the weekend?

LBMA extends deadline 1-week on daily silver...

"There are a lot of people who wanted to respond to the survey, but some of them have to take legal advice before they can make a formal response, so we are extending it to next Friday," a spokesman for the LBMA said. "We want to get in as many people as possible."

Silver downside is extremely limited

With prices so far below their respective costs of production, the downside is extremely limited, IMO, no matter what they do. And each day they stay this low, the potential for a Cartel-killing shortage only grows stronger.

Silver Chartology

As you can see this month of May has cracked the neckline but not decisively yet. There is still a week and a half of trading yet before this monthly chart shows the closing price. This is either the best buying opportunity or the greatest short of a lifetime right here and now. You know how I’m positioned. All the best…Rambus