Gold and silver prices September 2011

Gold price experienced during August one of the biggest rallies in 2011. During August gold price nearly reached the $1,900 mark; silver price also inclined mainly in the second half of August, and even passed, at one point, the $43 mark. What were the main factors that contributed to these large gains during August? Much like in July, the sharp rises in gold price, had little to do (at least directly) with the fluctuations in US dollar against major currencies, and more to do with the speculations around the recovery of the US Economy, the ongoing debt crisis in Europe and the sharp falls in the US Stock markets. As the uncertainty in the financial markets inclined during the month, more traders pulled their funds from the stock market and invested in gold, silver and US Treasury bills.  So what is next for gold and silver prices in September 2011? Let’s examine the precious metals market for August and provide an outlook for gold and silver prices for September 2011.

source : http://www.tradingnrg.com/gold-prices-forecast-silver-price-outlook-for-september-2011/

Silver poised to soar on manipulation report

If you read nothing this week you should read this short quote from Bart Chilton of the CFTC with regards to the silver market.

"There have been fraudulent efforts to persuade and deviously control that price,"

No hedging or waffling in that statement is there?

While the CTFT has not reported on its two year investigation into silver market manipulation, I believe this quote is an attempt to telegraph to the market that these complaints will be totally substantiated and very soon.

While I'm not entirely clear as to the extent of CFTC powers to fix this problem, I assume it could lead to criminal charges, fines, position limits perhaps even trading bans.

This could very well be the event that finally frees silver to find its own price level, one which I believe will be a hell of a lot closer to its historical ratio than it is now. My bet is a 30:1 silver to gold ratio (or better) within 2 quarters if the report comes out proving manipulation. That would be about $44/oz

It could however be a lot more explosive than that so I’d suggest you get out there and clean out the coin stores now. Paper will be repudiated very soon, demand delivery on contracts and certificates if you have them or cash them out and go find physical bullion somewhere else in the market. Many junior miners still look quite undervalued; if you have money locked into retirement plans do some research on pure silver plays.

I think this is going to get fun.

Clear sailing towards silver riches

I’ve bought a reasonable pile of silver over the last 5 years and I’ve held it through some crazy gut wrenching turbulence, some that came damn close to shaking my confidence in bullion. Today that fear is entirely gone.

I watch the market daily and I’ve seen the recent attempts to drive down prices and I can say with great confidence that the tide has turned decisively in our favour. Sure they can knock the price down occasionally but no longer can they nuke the market back 30% in a matter of days, their control is slipping.

There are a number of very encouraging signs in today’s silver markets that ensure this quite profitable run will continue for some time.

1. The number of new converts in both blogdom and the financial media who are not scared to state the obvious facts about silver’s supply and demand issues.

2. Advanced technologies are using more silver each year. Solar, high temperature super conducting cables, antibacterial coatings/fibres, and silver/zinc batteries are all expected to see significant demand growth

3. Despite higher prices, demand is making the market for physical silver very tight. Many reports claim there is little to no small silver around for delivery.

4. Few pure silver mines are opening ensuring that a quick fix to supply issues is not going to happen.

5. The amount of silver on deposit with the Comex is shrinking at a nice steady rate. While physical inventory has shrunk to about 107 million ounces, outstanding contracts for “potential delivery, represent more than 700 million ounces. At some point industrial users will panic if inventory shrinks too much; that’s when the real fun starts for us.

I can’t promise prices will not slump a bit from today’s level but I have no fear that this market can be brutalized the way it has been in the past. If you have the means and can find anybody with silver for delivery make that purchase while you can.

I don’t have time to check ALL the vendors and inform you who has stock but I do know that First Majestic Silver restocked this week and have sizes in stock today.

My last couple of purchases have been from First Majestic and I’ve been very happy with the product and the service. Those 1kg bars are beautiful, well packaged and stack so very nicely.

Tell them I sent you, maybe they’ll buy some advertising or s