Thursday, March 24, 2011

The Pictures Tell The Story

My friend and colleague "Jesse" posted this commentary on his site yesterday.  I wanted to link for the benefit of anyone who has not yet seen it.  This pictorial explains why you need to move as much as you can into gold and silver. Here's the LINK I would also suggest reading his "Money Supply: A Primer" link as well.


  1. Did you manage to high-five the Dark Riders when they came through today? Miners took the brunt of it. I was hoping for a little more of an opening in silver. But I'll take what I can get. They might take another run at it tomorrow or Monday, but I'm not gonna bet my position on it.

  2. Thank you for the link. The spike up on the top chart follows Silver's spike (since august).

    For those who keep saying, "the price of Silver can not continue to climb the way it has recently been doing," I will show them Jesse's chart.
    And while we are on the subject of PM's, take a look at the price of Gold today. Once it crossed above $1,449 - WHACK!

    Algorithms in action, I assume.

  3. We raised a lot of cash in the fund first thing this morning by selling mining stock positions. Left our juniors in place, though.

    We may get a vicious attack here in order for JPM to further loosen up the April silver long positon.

    The fact that JPM was surrepetitiously approved to be a vault for the Comex tells you they still have tricks to use to avoid default. MOre on that tomorrow if I have time

  4. This afternoon doesn't qualify as a vicious attack in your frame of reference? Looked pretty vicious to me. Are you thinking they could take out the Japan lows from last week? Seems unlikely unless the spx cracks hard.

  5. Margin for Futures will rise slightly.

    "Margins for silver futures will rise at the close of business Friday, CME Group said Thursday.

    CME Group also said it will change margins for a number of other commodities, including cheese, cattle, cocoa, coffee, uranium, propane and gasoline. The stated purpose of the margin changes is to “ensure adequate collateral coverage,” said CME Group, which operates the Comex division of the New York Mercantile Exchange, where silver trades.

    The “initial” margin for speculators in the 5,000-ounce silver contract will rise to $11,745 from $11,138. The margin for hedge/members and “maintenance” of speculative positions will rise to $8,700 from $8,250.

  6. Josh, today's move in silver was predictable and not really vicious. The move we had a couple weeks ago or last week that hit silver for nearly $2 and started after the NYSE closed was vicious.