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Elliott Wave Trading

Silver Breakout, Bang Bang, Maxwell Silver Hammer

Commodities / Gold and Silver 2011 Mar 03, 2011 - 01:37 AM GMT

By: Jim_Willie_CB

Commodities

Best Financial Markets Analysis ArticleEverybody loves the Beatles, whose strange songs are stuck in the memory of millions of people. "Bang, bang, Maxwell's silver hammer, came down upon her head. Bang, bang, Maxwell's silver hammer, made sure that she was dead." Little did the legendary Beatles realize they were providing the theme song for the linchpin of the USDollar in its lethal slide into the dustbin of fiat currency history. The song might have referred to Blythe Masters herself, the arrogant megalomaniac in wait, the JPMorgan queen of ruin.


Silver rules! Gold is the victor, but Silver takes the spoils! The little sister shines! Central banks own no silver, nor do governments anymore. Industry requires and consumes silver, but not gold. Mint coin sales have exploded to record levels, and now struggle to continue amidst grotesque shortages. So on a supply basis and on a demand basis, silver is the dominant metal. In the last several months, Silver has shown its power and exerted its strong dominance. It has led the precious metals move, an explosive one. Gold has confirmed. Excuse the outline format, but the message is clear, offered without the burden of details. In this case, at this time, the important message is the firestorm of positive factors leading to a silver price explosion. The Jackass is on a brief vacation in Central America where the sun never stops shining. Apologies in last weekly article where mention was made of a negative real rate of inflation. The error was blatant in a slip of fingers. Given the price inflation of 8% in the USEconomy and near 0% rate of short-term interest, the inflation adjusted real rate of interest is negative. It is in the minus 7% to minus 9% range. That is a primary jet fuel accelerant for the gold bull market, a factor overlooked by the clueless cast of economist hacks!!

SILVER ON THE VERGE OF EXPLOSIVE MOVE

- prepare for an explosive upward price move toward $40 this spring/summer

- a bullish silver hammer was shown last week, with open & close at the weekly high

- year end price target is $50 per oz should be easy to achieve

- a flag pennant pause pattern has been completed at the 28-31 range

- usually it signals a half-way mark, so get ready for a move to 40 in next runup

- gains in silver have tripled the gains of gold, as Jackass forecasted late last summer

- do not be surprised if in 2 to 3 years, the silver price exceeds $100 per oz

- latest noontime reading was 34.90 per oz for silver, in breakout

GOLD FINALLY CONFIRMS BREAKOUT

- it was bound to happen, and finally it did, confirming the silver breakout

- a rectangular pattern was evident throughout the consolidation period

- gold has shown a very different price pattern behavior consistently

- the entire global monetary system is in ultra slow motion breakdown mode

- latest noontime reading was 1440 per oz for gold, in breakout

GLOBAL SILVER SHORTAGES

- strong industrial silver demand (not true of gold)

- absent depleted USGovt stockpile from 1905 created by Teddy Roosevelt

- fully 6 billion ounces of silver in stockpile has been exhausted for five years

- numerous government mints around the world have announced no silver supply

- evident in the futures contracts, in backwardation of varying degree

- expect arbitrage in full force to continue to make backward price extreme

HUGE QE2 EFFECT ON COMMODITIES

- monetary metals, industrial metals, energy, foodstuffs all rising fast in price

- silver being accepted as monetary reserve, even as asset reserve

- Chinese Govt announced plans to diversify reserves into silver

- India is the first nation to begin a silver monetization plan

- early stage of hyper price inflation in the global economic price structure

- inflation adjusted real rate of interest is minus 7%, a primary gold market fuel

- denials by USFed Chairman Bernanke is its confirmation !!!

- Ben has a nearly perfect track record of wrong analysis and conclusions

DEPLETION OF COMEX VAULTS

- demands for delivery have been heavy since September

- secret supply bailouts come from BIS and even the Holy See

- some sort of March delivery climax event might be in progress

- China has targeted the COMEX for delivery raids

- demand staved off by COMEX cash delivery with 25% bribe (contract fraud)

- metals markets have no silver !!

CHINESE PLOT TO CORNER SILVER MARKET

- China is angry at a broken secret treaty over Favored Nation Status grant

- the USGovt sold the leased metal and cannot return it to China

- China honored its side of the agreement by purchasing USTreasury Bonds

- China is angry over the unilateral QE programs on US$ devaluation

- the devaluation of the USDollar was done unilaterally without agreement

- China is angry over charges of currency manipulation by the USGovt

- the grand currency manipulator in gross violation is the USGovt & USFed

- China senses an exposed jugular vein, and is using Sun Tzu war tactics

GIGANTIC USMINT SILVER DEMAND

- January coin sales were more than 2x the demand in previous months

- mint coin sales are setting records not seen in 20 years

- the USMint is purchasing silver from the open market

SPROTT FUND CHALLENGE TO SOURCE SILVER

- the fund required over three months to secure the entire supply of bullion

- its manager reports of extremely tight silver market, no loose supply

- James Turk echoes the shortage claim, from his GoldMoney vantage point

MINING FIRMS BYPASS COMEX

- the mining firms are not given a fair price by the metals exchanges

- they are selling to the more honest investment funds, as metal source

- the funds might strangle the official corrupted COMEX on supply cutoff

SLV SUPPLYING  COMEX TO MEET DEMAND

- SLV stock shares used to offset naked shorts of futures contracts

- back door to fraud written in their fund prospectus, in careful language

- 129 million oz originally came from Warren Buffett, the great deception

- prepare for a gigantic lawsuit from defrauded investors in late 2011 or 2012

- penalty in negative 2% SLV price premium, which is heading to minus 25%

- in time, the SLV fund will own zero metal

THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.

From subscribers and readers:

At least 30 recently on correct forecasts regarding the bailout parade, numerous nationalization deals such as for Fannie Mae and the grand Mortgage Rescue.

"Your analysis is absolutely superior to anything available out there. Like no other publication, yours places a premium on telling the truth and provides a true macro perspective with forecasts that are uncannily accurate. I eagerly await each month's issues and spend hours reading and studying them. Many times I go back and re-read the most current issue just make sure I did not miss anything the first time!"
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by Jim Willie CB
Editor of the “HAT TRICK LETTER”
Home: Golden Jackass website
Subscribe: Hat Trick Letter

Use the above link to subscribe to the paid research reports, which include coverage of several smallcap companies positioned to rise during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.

Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a PhD in Statistics. His career has stretched over 25 years. He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials. Visit his free website to find articles from topflight authors at www.GoldenJackass.com . For personal questions about subscriptions, contact him at JimWillieCB@aol.com

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Comments

B.
08 Mar 11, 14:20
What Does Silver Do for Us Exactly?

Silver $50, Silver $500 - so what? Why exactly do governments and central banks care so much as you imply? However, Libya problems - then then Marine Corps is sent on station.


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