Turk - Record Silver Backwardation Spells Danger for US Dollar

[phideaux]

Turk - Record Silver Backwardation Spells Danger for US Dollar


http://kingworldnews.com/kingworldne...US_Dollar.html

[Cornelius]

Phideaux, does this mean that buying silver now, is without any risk? Like for sure, it is going up?

Just wanna get this right.

[Argent Dragon]

......does this mean that buying silver now, is without any risk? Like for sure, it is going up?

Just wanna get this right.

Silver IS going to break and establish an all-time new high in terms of FRN's. The key is 'when'..........but to be 'right', you'll need patience to wait for it.

I started buying Silver at $6+ per ounce some 6-7 years ago and I'm more than pleased with its performance. Turk always tends to be bullish and even more so than most. Do some research, listen to other experts like David Morgan, Jim Rogers, and others before trusting just one source. IF you're still buying, look for mini-dips to add physical. This is a tough time to buy in right now because of the bull's strength and high premiums. Right now 90% is more attractive than bullion, but again do some research.

Just my 0,02 cents though you didn't ask for it.
~AD~

[phideaux]

Phideaux, does this mean that buying silver now, is without any risk? Like for sure, it is going up?

Just wanna get this right.

There is always risk, in everything. especially when talking about money.

JMHO what the backwardation indicates is that the price of real physical is higher than that indicated by the paper futures market. so there has been a lot of upward pressure on the paper price.

The question is will the backwardation continue, or is over and done with. Who knows..., but I think you've got to stick with "the trend is your friend."

[andial]

Phideaux, does this mean that buying silver now, is without any risk? Like for sure, it is going up?

Just wanna get this right.

We might get some pullbacks but I feel quite certain that Silver will do at least a double from here in 2 years.

[Irons]

Silver has been high for long enough now that if it corrects to anything under $30 you just won't see any for sale, IMO.

Friend of mine that runs a small coin shop ships off his silver almost as fast as it comes in because he has to pay so much for it he doesn't dare get stuck with it.
I'll admit I never thought I would see silver take off like this again, but what the heck, it's fun and I ain't in this game for silver.~

[Spike]

Friend of mine that runs a small coin shop ships off his silver almost as fast as it comes in because he has to pay so much for it he doesn't dare get stuck with it.

Saw the same thing happen on the run up in 2008..dealers were piss'n their pants...as soon as it came in...they locked the price in with whoever they dealt with.

Here's a Ra Ra article...

Are Gold And Silver Prices Ready To Soar In The Next Two Weeks?
By Patrick A. Heller on April 1st, 2011

At the beginning of this year, I forecasted that the price of silver would reach $38 and gold $1,600 by the end of March. During intraday trading on March 24, silver reached as high as $38.17, but did not close above $38.00. Yesterday, silver stopped rising right about at $38.00 before closing in US markets at $37.87, the highest month-end price ever (ignoring inflation, of course)!

In contrast, gold came close to $1,450 during intraday trading on March 24, but never came close to my projected $1,600.

There have been massive efforts during February and March to suppress gold and silver prices. In retrospect, it is amazing that silver managed to sort of reach my forecast (I say “sort of� because I really expected to close on March 31 above $38.00). It is not surprising at all that gold did not make it anywhere close to my prediction.

When the Commodity Futures Trading Commission released its monthly Bank Participation Report in early March, it showed that the largest 1-4 banks with positions in the COMEX silver market had increased their net short position by 30 million ounces (I suspect that all or almost all of this change was caused by JPMorgan Chase)! Further, tens to hundreds of million of ounces silver due for delivery to fulfill maturing COMEX March 2011 contracts were settled with comparatively little silver actually removed from COMEX warehouses. The best information I have is that the parties that were short these contracts aggressively sought to settle these contracts for cash, with multiple reports that the price paid exceeded $50 per ounce!

In the gold market, it has been almost perfectly consistent this year that the spot price of gold is not allowed to rise more than 1.00% in one day. Time after time after time, there has been a wave of selling hitting the gold market almost every occasion where gold’s price rose close to this 1%. Freely traded markets just do not move in this fashion.

Despite the high level of obvious price suppression in the past two months, there is a solid prospect that gold and silver prices could experience major increases very soon.

The major reason that prices could take off is that the mainstream media is finally being forced to pay attention to the damage to the value of the US dollar inflicted by the huge inflation of the money supply (masked by calling it “quantitative easing�). If the Department of Labor statistics are accurate (I’m confident they are not), the rate of consumer price increases has approximately doubled in the past three months (to be clear—I’m not saying that prices have doubled but rather the rate of the increase)!

Two days ago, the CEO of Wal-Mart, which handles about 10% of all retail sales in the US, stated that Americans should expect significantly higher prices soon. Yesterday afternoon, former New Mexico governor Gary Johnson, who is considered a minor prospect for seeking the 2012 Republican presidential nomination, stated in a speech about a mile from my business that the US dollar will collapse and that this collapse “could happen as soon as tomorrow.� Johnson was not trying to speak in a sensational manner when he said this, but rather as simply trying to explain the reality facing the US dollar today.

As the US dollar continues to decline, two of the effects will be much higher interest rates—which will further devastate real estate markets—and soaring prices for consumer goods and services. When the mainstream media starts to talk about these problems facing the general public, that will hasten the day when people alter their behavior to get out of the US dollar and into safe haven assets like gold and silver.