Silver Price Explode 2012

I have talked about the flag pattern earlier in March 2012. The forecast was, when silver price approaching the end of the flag, silver price is set to explode! If you have not read it, feel free to check it out here: Cheap Silver Ends In 2012. This is how the flag looks like:

Right now, we are at the end of the flag pattern. Silver price is set to explode anytime now. Yesterday (20/8/2012), silver price has up +.51 in a single day. Chris Duane (the founder of Silver Shield Report) mentioned:

We need to get above $30.61 to get the party started and bring out the silver rockets.  The reason I say $30.61 because that is the 200 DMA and the point that breaks out of the 16 month cup and handle formation.  I feel we have until next month until the real fireworks start.  And unfortunately you are probably not going to like the kind of fireworks you are going to see…

On July 24th, Mike Maloney suggested that silver investors only had a month at the most before beginning a breakout with the price of silver.
Take a look at this chart:

You see, silver price is MIGHT NOT explode tomorrow but we are nearing the end of bear market. I mean very very near. When the price explode to $42-$48in the next 6 to 12 months, you will be grateful that you have bought your silver now at $28+. Why $42-$48? In fact, that is a very potential price you should target to exit your silver for the short term.

Personally, I have buying silver like crazy for the past 1 month to prepare for this moment. I have been buying a lot of silver rounds and some silver bars. I prefers silver rounds over silver bars because silver rounds is always being perceived as money (even though it is not). The bottom line is, I do not want to beat myself up and regret that I didn’t take any action when silver price is cheap. If you can remember during year 2008-2010 (3 years), property price in Malaysia was dirt cheap. Right now when we look back, we might call ourselves silly for not taking action to invest in property back then in 2008-2010.

Silver Breakout – To Buy Or To Wait?

I wrote a post titled: Silver Price Explode 2012. Market started to get exciting and silver price closed at $30.82 last Friday. Without a doubt silver price has its breakout. It is being trapped into the flag since May 2011 and finally has it breakout now.

There was a reader got a little too excited with the price moving straight up for 3 days and bought 20oz of physical silver. Right after he bought them, silver price started to fluctuate around $30.50 and did not go up much. He started to get worried and asked me what happened. Well, silver price does not move up continuously for many days without any pull back. We need to set our expectation right. I repeat, silver price will not going up straight consecutively for 30 days without any pull back.

Anyway, the questions I have been getting for the past few days are:

• Should I buy silver now?
• Should I wait?
• How high will silver price goes?
• Will silver price come down?
• When is the best entry point now?

I will answer all the questions above with the following diagram and give you a “suggestion” what you should do later on.

Referring to the graph, there was quiet a resistance at price $30.50 (end of 2011) that stops silver price from going up. Although silver price broke out, silver price is now hitting the similar resistance like what happened in end of 2011.

I won’t bore you with a bunch of technical analysis, let’s get straight to the point of what does it mean and what we should do.

1. If you did not follow my “suggestion” to buy when price was $26-$27, what should you do now? Should you wait any longer or buy now? Obviously, the short answer is “Don’t wait, buy now. Silver price is going to move up much higher, this is just the beginning.” Right now the price is about $30, imaging when price went up to $60 by end of next year, you will be beating yourself for not taking action now. (Just like how you didn’t buy property in KL / Penang during year 2008 / 2009?)
2. If you did not follow my “suggestion” to buy when price was $26-$27, what should you do now? Should you wait any longer or buy now? Obviously, the short answer is “Don’t wait, buy now. Silver price is going to move up much higher, this is just the beginning.” Right now the price is about $30, imaging when price went up to $60 by end of next year, you will be beating yourself for not taking action now. (Just like how you didn’t buy property in KL / Penang during year 2008 / 2009?).
3. For short term, silver price is facing a possible pull back at $30.50. If you want to be cautious, you might want to wait for silver price to break $32 before entering. Personally, I do not like betting the price to go up or come down. If I have RM200, I will spend RM100 to buy silver now. If silver price does pull back, good, I will spend the remaining RM100 to buy cheap silver; if silver price continues to go higher, great! I will spend the remaining RM100 to buy again the catch the bull trend. There is no right or wrong method but that’s how I will do it myself and how I have been advising my eBook readers and lifetime membership members.

Global Silver Production

Economics 101, when something has high demand and low supply (production), what would happen to the price? Imagine there are only 5 cars available for sales in the market and there are 10 eager buyers bidding against each other, what would happen to the car price? Simple, the price will simply shoot up!

Similarly for silver, in 2011, the total production was about 24,000 tonnes andtotal demand was about 32,000 tonnes. Demand greater than supply. In fact, for the last 60 years (since 1950), almost every year the industry used up more silver than being produce.

Billionaire investment guru Jim Rogers has become a big supporter for silver, insisting silver is now a better investment than gold. He added that if he were to invest in one metal today, it would be silver. Indeed, silver is the only metal that has yet to reach a record high in recent history; it remains lower than the peak price of $50 per ounce that it hit 32 years ago. Gold has historically been valued anywhere between 12 and 16 times more than silver, but it is currently worth about 50 times more than silver, making silver an even better bargain! Silver is more volatile than other metals, which gives investors more opportunities to profit.

Right now, the market is anticipating Federal Reserve Chairman Ben Bernanke’s speech at the annual economic policy conference in Jackson Hole, Wyoming on August 31 2012. At that meeting, Bernanke will make his first public appearance since the release of the latest Fed minutes, which suggest that the central bank is ready to move quickly to jump start the country’s economic recovery. Further quantitative easing is expected to trigger another round of asset-buying interest across the board.

If Federal Reserve does trigger another round of Quantitative Easy (QE3), that means the Dollar will be further diluted and consequently affect our Ringgit. All currencies are pegged to US Dollar as US Dollar is still the world reserved currencies. When that happen, our Ringgit will again worth less. Saving your cash into physical silver (the real money) would be a smart financial choice.

Is The Golden Era Of Silver About To Dawn?

“Investment demand for precious metals will take over in any case from industrial demand. And once the gold price heads up then silver will follow. You get50 times more silver for your money than gold. Historically it was 12 to 15 times the amount of silver for gold, so that also looks like a correction just waiting to happen.”

The time before monetary easing contributes to a period of uneasiness. Time after easing contributes to a binge.

It is because Quantitative Easings, wherever they are carried out ultimately find their way to commodities and equities. Now China, in an anticipated phase of deceleration predicted for August is expected to announce stimulus measures.US Federal Reserve minutes from the latest meeting of policy honchos is indicative of a round of QE 3 for many.

So, what is the outcome of these measures as and when they happen?

One word: inflation!

When printed money without sufficient asset backing finds its way to markets, it behaves like a tide and in a deluge kills the value of money. Hence you may have to pay that piece of burger or this piece of jewellery, a little more than what you had paid a few months ago.

The next question is how to safeguard your investments and assets from this deteriorating trend.

Investing in precious metals is the best option and investing in silver the bettter-than-best option!

“It does just have to be silver. Consider this: silver is the only major commodity not to have reached a new all-time high in this bull market; silver is still cheaper than it was 32 years ago, prices are astonishingly depressed. Then you can consider the impact of an economic slowdown on silver. Yes its industrial use will go down but so will its production because that is linked to the output of copper and zinc mines.” said Peter Cooper in an article.

[Pure-play silver mines are rare and silver is often obtained from zinc and copper mines in an also-mined fashion.]

“Investment demand for precious metals will take over in any case from industrial demand. And once the gold price heads up then silver will follow. You get 50 times more silver for your money than gold. Historically it was 12 to 15 times the amount of silver for gold, so that also looks like a correction just waiting to happen.” he added.

Nowadays there are talks of a global slowdown about to happen in lines of the 1930s depression. If that turns out to be true, those who possesses nuggets of gold and silver would rule the world.

Now, if the silver prices are being kept low as Theodore Butler has argued, and pent up demand in silver and a mismatch in paper silver and actual silver occurs, God save all those who have not invested in silver.

Top 14 Reasons To Buy Silver

All financial experts including Robert Kiyosaki and Mike Maloney believes investing silver is the greatest wealth transfer in human history. Like any other investments, you must know the tips and tricks in order to maximize your profit.

Bill Murphy: $50 Silver Before The End Of The Year

Bill Murphy, the Chairman of GATA (Gold Anti-Trust Action Committee) have a recent interview with Capital Account. During the interview, Bill said silver is going to explode, if it is not September, then it will be in October. He added that silver is in big shortage, “If you want to get it in size. For example if you want to get it in 5, 10, or 15 million worth of silver, you can’t get it for weeks, or for months! And if you finally do get your silver, it will be current minted silver bar, means the silver has not been around.”

Bill explained further, “As the people realize the shortage, that is happening now, JP Morgan will be went after for their short position, that is when the price of silver has gone from $26-$27 to now $32. Silver will be going to $50 by the end of the year.”

When being asked, is the suppression scheme over?

Bill answered “JP Morgan has big problem with what happened and what they have done. It is going to be more difficult for them to keep doing what they have been doing. In addition they are running out of physical supply. I would look for price of silver to explode in not too distance of the future.”

You can take advantage of the coming silver price boom, as long as you know how to invest.

Bill Murphy: JP Morgan Secret Is Out, Silver Price $100 Soon!

The prices of gold and silver are breaking out. Bill Murphy, from GATA.org, predicted all of this over a month ago, before the near 30% jump and now he says this is just the beginning. Murphy is further forecasting continued explosive moves to the upside in the metals prices. “It won’t be long in till silver is at $100,” Murphy declares. But is physical precious metals the way to go? Check this fast-moving interview to hear Bill Murphy reveal the other investment he believes will actually outperform the metals as a “10 to 20 bagger.”

Murphy states that if the JP Morgan scandal breaks as he is expecting:

There is no telling what silver could do on the upside due to a short squeeze as JPM holds naked short positions 3 times the deliverable silver available on the COMEX!

Silver market is very tight. The amount of silver available for purchase is far less than the available gold. It will take up to weeks or even months if someone is trying to buy silver in large scale. This is the very first sign of silver shortage.Right now silver price is about $33. It is not surprising to see silver to hit $50 to $60 and it won’t be long before silver price hit $100.

When talked about general economy, Bill Murphy also mentioned the average person is being squeezed. When the financial crisis hits (which many believe is going to happen within a year) standard of living is expected to drop 30% to 35%.

You must know how to invest in silver to protect your financial life. If you want to invest in silver but do not know how, the best time to start is to start NOW! The “Perfect Moment” may never come. Great fortune belongs to those who are well prepared.

QE3 Is Now Official

Federal Reserve on Thursday (13/9/2012) decided to launch a new program of open-ended bond purchases. This is also known as Quantitative Easing 3 (QE3). QE3 will buy $40 billion of agency mortgage-backed securities each month, starting Friday. It’s also keeping in place Operation Twist (another stimulation package). The bottom line is the central bank will be adding $85 billion of long-term securities each month through the end of the year.

Ben Bernanke

Right after the news, silver price shoot up to $34.70 (almost $2 rise):

US Dollar and silver will always work on the opposite direction. What does it means? When the value of US Dollar drops, silver price rises; when the value of US Dollar rises, silver price drops. When QE3 is launched, it is an action to devaluate US Dollar (lowering the value of the paper currencies), which means the value of US Dollar drops, so consequently silver price reacted with it and went up almost $2 within minutes.

Also take note of the open-ended bond purchases mentioned above. In layman terms, that means Fed will continue devaluating or lowering the value of US Dollar as long as they want. There is no end to it. In other words, the potential for silver price to go up is also no end. Silver price will continue to rise and rise and rise and rise…

I have said it many times and I will say it again, “this is just the beginning“. Silver price has a long way to go. This is a wonderful opportunity in our time. Most people do not know this, but you are reading this blog right now, you must take advantage of the rising silver price. Honestly, it is not too late to start now. However, before you go in to silver investment, I suggest you equip yourself with the correct knowledge to avoid getting burn.

China Made US Dollar Going to Drain (aka Longkang)

Silver investment is all about buying silver at low price and selling silver later at high price. Since Silver price is measured in US Dollar. It is definitely worth to take a closer look into US Dollar especially what happened after QE3 is announced.

Congressman Ron Paul, a 3-time candidate for President of the United States said:

If we act now to replace the fiat system with a stable dollar backed by precious metals or commodities, the dollar can regain its status as the safest store of value among all government currencies. If not, the rest of the world will abandon the dollar as the global reserve currency.

Sept. 6 2012 is the most significant day in the history of the American dollar, since its inception. On that day, something took place that is going to affect our life, our family, our dinner table more than we can possibly imagine.

China made the official announcement on Sept. 6 2012:

Our banking system is ready, all of our communication systems are ready, all of the transfer systems are ready, and as of that day. Any nation in the world that wishes from this point on, to buy, sell, or trade crude oil, can do using the Chinese currency, not the American dollar.

China has officially abandoned US Dollar. The demand for US Dollar has significantly dropped. The value of US Dollar is significantly lowered. Unfortunately US Dollar is still the world reserve currency. The world reserve currency is going to affect all other currencies in the world including Ringgit.

When you continue keeping your wealth in Ringgit, that is exactly what government wants you to do, so that the government can print out more money.

How do you think the central bank print out more paper money? The answer is by simply stealing (devaluating) the value of the Ringgit in your pocket. A fancy term is known as inflation. The reality is, prices of goods did not go up, it is the value of currency going down.

The good news is, silver price and paper currencies (such as US Dollar or Ringgit) always move the opposite direction. When the value of currencies goes down, silver price will shoot up. Silver not only a good medium to preserve your wealth, in fact silver price is going to rise significantly in the near future.

Now is the perfect time to get into silver investment especially during the trouble global financial time. Like any other investments, you must educate yourself before investing your money.

Why Now Silver Better Than Gold

Peter Schiff, the CEO of Euro Pacific Precious Metals, LLC has always been very generous sharing his knowledge on precious metal investment.The following are the summarized points in the 8 minutes video:

• Silver price broke out in August. Silver price has huge potential to shoot up much further. It is not too late to buy gold and silver.
• QE3 is officially announced in September. He knew QE3 was coming because of QE2. Right now, you have an incredible opportunity in silver.
• If you want to protect your wealth, you must buy gold and silver. Between now and then, there will be currency crisis.
• Many investor overlook silver. Don’t ignore the opportunity in silver. As good as the gold chart looks, silver looks even better. Silver is going to make a new high.
• For gold to get back to 2011 peak, gold has to rise 7%; for silver to get back to 2011 peak, silver has to rise 47%, just to get back to the previous high.
• Even IF gold price DO NOT rise, silver price has to rise 20% just to get back to the average past 25 years ratio.
• We have been in silver bull market for 12 years and it has a long way to run. Especially Ben Bernanke has promised to print money. Central banks will print money until the economy collapses.
• Right now silver price is $35, silver price will easily shoot up to $200.

Robert Kiyosaki: Conspiracy of the Rich

In the latest update (October 4, 2012) of Robert Kiyosaki’s Conspiracy of the Rich, he mentioned:

Early in 2012, the ECB, European Central Bank, announced LTRO, which stands for Long Term Refinance Operations: a.k.a. printing money. This is a violation of the Euro’s founding principles.

Last month, US Fed Chairman Bernanke announced QE3: a.k.a. printing $40 billion a month until… until what, I wonder?

The Bank of Japan followed immediately with their own “quantitative easing,” imitating the US and further weaken the purchasing power of the Yen.

 What does this mean? It means the central bankers of the world are choosing to “Live today” and “Die tomorrow.” They are “Out of bullets.” They can no longer lower interest rates so they chose to print, print, and print.

Robert then continued discussing about US debt, you can check out the full article here. What I want to bring to your attention is all the major financial power in the world are printing money. When the whole world is printing money, it is close to impossible for our country Malaysia NOT to follow printing money.

Why? The answer is simple. Malaysia produces goods and exports to other countries. When the other countries are printing money, they are devaluing their currencies. Their currencies is weaker than it was. Now, they will need more amount of their currencies to buy the same amount of goods in Malaysia. In other words, Malaysia become expensive.

When this happens, all the other countries will look for cheaper alternative and no longer want to buy from Malaysia, because we are expensive. Our country financial leaders are not going to allow that to happen because when that happens, our Rakyat will have no job, economy will slow down, crime rate will increase, a whole chain effect will happen.

Therefore, our central bank BNM will manipulate our currency (Ringgit) to lose the same amount of value like all the other countries in the world. So that the export activities can continue like nothing happened. Sorry if this is a rude awaken call for you, but the Ringgit you are holding (or inside your bank account) can purchase less and less stuff everyday. Your “money” is losing value due to these money printing activities.

Lastly, Robert ended the article with the following paragraph:

If you are just starting out investing, I suggest you begin by reading a few books and buying a few silver coins. Knowledge and real money, silver and gold, are better than Obama or Romney. – Robert Kiyosaki, October 4, 2012