Tuesday, July 27, 2010

Silver & Gold Manipulation To End In 174 Days Or Less?

Position limits are coming to the silver and gold markets within 174 days or less.  President Barack Obama on Wednesday, July 21, 2010 signed into law the most comprehensive financial regulatory overhaul since the Great Depression.

Interestingly, one part of this law may have some teeth to it.  Of course, once the big money interests get their two cents in, maybe it won't.  But on the surface and actually quite clearly stated by Bart Chilton of the CFTC, there will be position limits in the precious metals markets for gold and silver.  This legislation will impose position limits on the amount of contracts that an individual trader can hold. 

Not only that, but Bart makes it clear in a video that he produced (watch it at the end of this post) that the new law give the CFTC some real ability to go after and prosecute companies and individuals that manipulate the markets.  He specifically mentions "concentration" of positions and manipulation together stating that concentrated positions need to be stopped and that the current CFTC "manipulation standards" are "broken".  The new legislation will fix this broken mechanism and allow the CFTC to regulate these limits to ensure free trading markets free of manipulation.

He also talks about how "dark markets" where commodities are traded outside of regulated areas have an important impact on the prices of these markets.   He says that traders have been running roughshod over these markets for years and that it has to end.

Saturday, July 24, 2010

Copper Price Chart At A Turning Point?

Is the copper price setting up for a run toward the old highs? Copper chart says maybe.  Does this have any forecasting relevance to the stock market?

Check out Eric DeGroot's copper chart and analysis here for a better perspective.

ETF Daily News give a good analysis as well here.

Ron Paul Speaks To Helicopter Ben - Asks Will There Ever Come A Time When You Admit This Isn't Working?

Ron Paul questions Ben Bernanke regarding flawed monetary policy and the moral consequences.  Worth a look.

Friday, July 23, 2010

Silver : Gold Ratio Chart Updated For Friday

Silver in terms of gold touched the 1st of two downtrend lines today and then retreated back from it.  Silver will need an extremely strong push through this are if it is to have a chance of appreciating against gold in the near term. 

If silver in terms of gold continues to be rejected to the downside of the trend line, then any possible significant rise of silver in terms of gold will remain muted until a future time.

Battle Of The Silver To Gold Ratio Rages On!

Things continue to stay interesting in the heated battle of Silver in terms of Gold.  The ratio continues to favor gold but for how long?  Can Silver finally shake off this trend and break higher in terms of gold?  If so, it has some stiff resistance to clear but if it did, it could really be explosive.

Here are some updated charts showing how the battle is progressing.

Daily Silver Gold Ratio Chart 1

Daily Silver Gold Ratio Chart 2

Weekly Silver Gold Ratio Chart

Tuesday, July 20, 2010

Is Silver About To Crash Or About To Soar?

Things are getting interesting here. Clive Maund of www.clivemaund.com is predicting a general market crash based on deflation. He is looking for a massive sell off in the stock market as well as in the precious metals shares and metals in general. On silver he is looking for a massive sell off as well and expects silver to be treated as a base metal instead of a precious metal. Clive is even looking for gold to drop precipitously. When does he expect this? Soon. Very soon. Read more here.

Then we have Eric De Groot  of http://edegrootinsights.blogspot.com/ looking at gold and even the stock market being in a bullish set up.  Check out Eric's excellent review of gold and paper gold (GLD) here.

James Turk has been watching for an upside breakout in silver for months now and thinks the next couple of weeks are going to be critical.  See James Turk's silver consolidation chart and predictions here.

There are lots of other opinions out there right now as well.  The opinion I am betting on above all is Jim Sinclair's prediction that gold will reach $1650 per ounce by January of 2011.  If this happens, and Jim gets it right like he seems to always do, I expect silver will trade higher as well and not crash.  I don't expect silver to all of a sudden be treated completely as a base metal instead of a precious metal.

So ladies and gentlemen, what will it be?  Up, down, sideways. Gold, Silver, Stocks or Bonds?  Place your bets now.

Thursday, July 8, 2010

What If The Silver to Gold Ratio Did This? (It could happen)

Gary T. At Biiwii.com is looking at this scenario. 

 My alternate scenario is posted below.  What if it goes like this instead?   It could happen couldn't it?