This might mean PMs have farther to fall?

[jim4silver]

In my "quest" for knowledge on PMs I will read just about anything. One interesting thing I read today is that the dollar chart recently (this week) exhibited something known as a bullish engulfing pattern. This is related to the Japanese candlestick charting method. Now, I know nothing about such method but I have heard of this method for years. What is interesting is that many swear by this method of charting. Personally, I do not buy into the Elliot wave type stuff, but I do think chart patterns (technical analysis) can be important signals that should be just a part of one's analysis--such as head and shoulders, cup and handle, etc.

Anyway, just for fun it will be interesting to see if this "candlestick" stuff is right. Supposedly the bullish engulfing pattern is very very bullish and means at least a couple (maybe more) weeks of gains for the dollar. If this is true then perhaps the PMs will have the opposite movement, even though in this past bull market there have been times the PMs moved in the same direction as the dollar.

Personally I think silver has farther to fall in the near future not because of any charts per se.

Just something to watch and see if it pans out.

Jim

 

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[JD-GA]

I still cant find any reason why silver would fall other than the government manipulating like this past week raising margins purposely. The white house is patting themselves on the back through the media talking about the 175,000 private sector jobs created this last month yet failed to mention that unemployment rose to over 9% again. Ben Bernanke spoke again this morning and like clockwork precious metals rose due to the fact anytime he speaks nothing good comes out. Silver may still fall some more but every thing I hear and read says this is just people holding back the slingshot as long as they can and we know what happens when they let go. Weeeeee.

 

[jim4silver]

I still cant find any reason why silver would fall other than the government manipulating like this past week raising margins purposely. The white house is patting themselves on the back through the media talking about the 175,000 private sector jobs created this last month yet failed to mention that unemployment rose to over 9% again. Ben Bernanke spoke again this morning and like clockwork precious metals rose due to the fact anytime he speaks nothing good comes out. Silver may still fall some more but every thing I hear and read says this is just people holding back the slingshot as long as they can and we know what happens when they let go. Weeeeee.

I am with you in that I cannot see why "logically", but I have learned that markets often defy logic. I think the recent downward movement has scared off many of the "weak hands" who get on board after a run up but bail as soon as something goes south.

I try not to let my personal "bias" get in the way of how I think a market or stock is gonna perform short term--better to listen to the what the market (price plus charts, etc) is telling me. Long term I see silver at $100 plus and maybe more. But for now it might be possible to get one last cheap silver grab before the train leaves the station. At least that is what I hope.

Jim

 

[jeff of pa]

Several Big Players, Because of rules Had to Cash in.

The Truely Paranoid, Thought the Bubble Popped
& Followed like Lemmings



Back in January 1980, when the Hunt brothers pushed up the price of silver to $50, many politically well-connected Wall Street firms were facing massive losses. Suddenly, the COMEX changed the rules for trading specifically to punish the Hunts and help these Wall Street firms recoup some of their losses

Among the most outrageous rule changes was a prohibition against new purchases of long silver contracts on the COMEX. Parties who already owned long silver contracts were restricted to only one option—to sell it to a party holding a short position. Prices quickly collapsed.

http://news.coinupdate.com/by-using...ake-bad-decisions-about-gold-and-silver-0814/

 

[JD-GA]

That is exactly what is happening right now only Joe Public has gotten involved in buying physical silver on a massive scale and in other countries where its never been purchased and hoarded before. The cat is out of the bag now. Like you I totally agree many people ran scared at first glimpse. The problem the govt and jpm and the powers that be do not seem to get is silver is used now in so many areas that there is no manipulation that can last long enough.

Back in the 80s we used silver too mostly in this country and a couple of others for several tasks. Today however we have what.... 3 times the population as the 80s? And almost all countries using technologies that require silver that never used it in the 80s. Add to that these countries have tons more people than us and cell phones, computers, the medical industry etc will continue to require physical silver at a rate faster than it comes out of the ground. A decent percentage of this silver does get totally consumed thus lowering the over all supply and leaving the demand the same or growing. As more people especially in developing countries like china realize this and start to hoard physical silver as well the supply will continue to go down for the industries who use the metal. At this point obviously the prices will go up as people are coaxed to sell silver.

Really the only things that can stop this is finding a new metal that does what silver does. Of course this would probably take space exploration haha. A monsterous silver vein would have to be found very soon and worked hard. Or economies would have to collapse so deeply that bullets would be worth more than metal. I am biased and I have been wrong on more than one occasion, daily in fact haha, but seriously there is nothing stopping this choo choo long term at this point.

 

[jim4silver]

Looks like the candlestick charts were correct with respect to the dollar as I put in the first post. What is good news for now at least is that gold and silver have been staying in place even though the dollar is rising. I expected them to correct more if the dollar went up.

Hopefully gold and silver can ride out the summer without giving up too much if the dollar continues its short term (I believe) rise. I think the problems with Greece and other EU debt is causing certain investors to go into dollars.

Jim

 

[FreedomUIC]

Currently 6:45 a.m., All PM's are up across the board. Silver is up .67 cents. Seems that 34 - 35 dollars might be the new norm for silver in the short term. My gut tells me that Silver is going to continue rise in the long term and should broach the $100.00 mark within the next 10 - 12 years. I am very bullish on Silver and grab Gold when I can get it.

 

[StevoCBR]

I still cant find any reason why silver would fall other than the government manipulating like this past week raising margins purposely. The white house is patting themselves on the back through the media talking about the 175,000 private sector jobs created this last month yet failed to mention that unemployment rose to over 9% again. Ben Bernanke spoke again this morning and like clockwork precious metals rose due to the fact anytime he speaks nothing good comes out. Silver may still fall some more but every thing I hear and read says this is just people holding back the slingshot as long as they can and we know what happens when they let go. Weeeeee.

That's because there are none