Is Silver Finally Going To Break Through
The Key Resistance Of $18.50 Per Ounce?

David Levenstein
27 August 2010

Last week, the price of silver tested the key resistance level of $18.50/oz but, failed to penetrate this level. Once again, the bullion banks seemed to put a cap on the price at this level. According to the latest Commitment Of Traders (COT) report, the four or less largest traders (Commercials or bullion banks such as JP Morgan and HSBC) are currently short 225,484, 000 ounces of a total net current short position of 268, 720, 000 ounces. This means that 83.9% of the total net short position is currently held by four or less traders. And, probably most of these short positions are held by JP Morgan. How is possible that one firm can hold such a concentrated position? Well I leave it to your imagination. Can you imagine what the regulators would be saying if this position was reversed and held on the long side and prices were being pushed upwards? In fact this is precisely what happened with the Hunt brothers in 1980. They were accused of attempting to corner the silver market and forced to liquidate their long positions, causing the price of silver to plummet from it highs. However, once the CFTC regulators impose new laws to prevent this type of action, further price suppression will be difficult and the price of silver should adjust to a more realistic level.
While industrial demand for silver is increasing, so is monetary demand. More and more investors are turning to silver as a way to protect the purchasing power of their savings. This can be seen by the increased demand for silver bullion bars and bullion coins in particular the one ounce US Silver Eagles which are experiencing record sales this year. This year alone, sales of the one ounce silver eagles have reached 22, 255, 500 compared with sales of 28,766,000 for the entire year 2009. In addition, new investment vehicles such as silver ETFs have come along, taking several million ounces of silver out of the marketplace.

As I have often mentioned, the fundamentals for silver are very bullish. Basically, it is simple economics… the higher demand and the lower the supplies, the higher price. Yet, you can still buy silver for less than a third of its previous high in 1980 while gold by comparison has reached and way past its previous all-time high which was reached in 1980 at $850/oz. Today, with gold around $1200 an ounce and silver hovering around $18 an ounce, the gold-silver ratio has climbed back to around 65 to 1. While silver was one of the best-performing assets last year, it is nowhere near its all-time highs of more than $50 an ounce. Silver would have to triple from here just to match its previous highs, and inn inflation-adjusted dollars it would have to go up almost ten times.

TECHNICAL ANALYSIS


From April this year, we can see that the level of around $18.50 has been a key level of resistance for silver. Each time, the price breaches this level, it is sold off. While the charts do not explain the reason and merely show price action, we know this is mainly due to continual price suppression by the major bullion banks. However, once the real demand/supply dynamics are allowed to ******** normally, we will see a price break above $18.50 followed by a rapid move to the previous highs of $19.25/oz.

Senhor carloszorro - & foreros - a cuánto es interesante traerse plata legal a Ajpanha a día de hoy ?
Hay algún tipo de limitación ?...ké tasas lleva ?

Grace mile



edit : Vendo pole en hilo mítiko.

Razón : Privis.

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[/QUOTE] This means that 83.9% of the total net short position is currently held by four or less traders[/B].[/QUOTE]

O lo que es lo mismo: Tengo un 16,1 % de de posibilidades de hacerme rico si sigo comprando plata.

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Señor Esseri, mis previsiones apuntan a que la plata va a subir en vertical en los próximos meses, las manipulaciones de la FED (calentando la economía de forma artificial) junto a los desequilibrios entre la oferta y la demanda son el caldo de cultivo perfecto para que las materias primas sean una opción por la que hay que apostar.
Las tasas mas bajas están en Alemania, aqui en España es un atraco comprar plata física.

¿Que tal le fueron las vacaciones? Espero que las xatis no le hayan dejado muy seco

This means that 83.9% of the total net short position is currently held by four or less traders[/B].[/QUOTE]

O lo que es lo mismo: Tengo un 16,1 % de de posibilidades de hacerme rico si sigo comprando plata. [/QUOTE]


Ya ves como se las gasta JP MORGAN (hijos de puta), lo que necesitamos ahora es que vengan los Chinos, Soros y Rogers a dejarles el mercado seco, los especuladores serán nuestra salvación.

OK...su optimismo es patente , pero me interesan las ventajas o desventajas de traerla del extranjero físicamente y sin problemas . A riesgo de salirme del tema e incomodar, le mandaré un privado.

- Antes hablaría kon el monstruo de dónde guardo mi oro k kon usté de txatis, embaucadorrlll . ( Te conheço,bakalhaoooo...!!! )

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No me sea rencoroso, que aquel fatídico día un servidor estaba de broma.

Me la tiene guardada !!!

A brinkar a brinkar...o makako fodeu o kú da máe...

( bromeando, bromeando...el mono enkuló a mamá)

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Posteo para marcar el hilo, saludos.

No es pole, pero aprovecho para felicitarte por la apertura de este hilo, y agradecerte todos los años de trabajo en burbu.info.

Por cierto un grafiquito de los tuyos, en primera pagina, con lineas, soportes y sobrecompra o sobreventa, no estaria nada mal.

gracias.

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