So far in 2019 we have kept track of the moves, both up and down, in the gold and silver “markets”. We have been on the leading edge of what is happening and have made some decent, not great, but solid calls regarding how the charts were going to respond to the shifts sands. We believe the next level is close at hand.
Silver finished the week above the $17.00 mark – not far above, but above. It wouldn’t be surprising at all to see a fairly nice move to the downside on Sunday evening when the “markets” reopen. We believe it will be short lived as we are not the only ones seeing the potential for the bullion bank cartel to attack the $17 mark and get silver back down “where it belongs”.
Silver and gold both have been holding their own for the past couple of months showing a lot of strength and refusing to be pushed around. We see silver hitting, and possibly surpassing, the $19.00 mark by years end. Silver will be moving to the low / mid $30 neighborhood between now and 2023 – that’s a lot of movement in a short period of time. This means we are going to see upward moves that are going to take people by surprise. This is not new, I’ve been saying this since December 2017 and will stand by it until the “market” changes.
Please remember, we lost the 2nd largest silver mining operation on the planet earlier this year. There is only about a billion ounces of silver, above ground, for use at any given time. Once this above ground supply begins shrinking, which we will see over the coming 18-24 months, the “market” is going to get nervous. This is to say nothing of the fact that gold is moving higher and people will be shifting their investments towards silver and away from gold.
Silver has been up more than 11 per cent for the year to US$17.22 per ounce — and could go as high as US$19
While gold enjoys all the spotlight, its poor cousin silver has been riding on its coattails and enjoying the safe-haven rally.
Silver has been up more than 11 per cent for the year to US$17.22 per ounce, but is still in gold’s shadow (which is in the midst of a blistering near-18-per-cent jump year to date).
Philip Newman, a founding partner at Metals Focus, a U.K.-based metals consultancy, estimates that silver could hit US$19 by the end of the year and, with central banks easing monetary policy and the U.S. dollar strengthening, prices could go higher.
“Silver is behaving more as a precious metal,” said Newman. “If you go back, over the past few years, it has behaved more as an industrial metal, weighed down by the industrial commodity.”
Canada’s silver production has steadily declined over the years to 353 metric tonnes of production last year from 1,500 metric tonnes in 1990, even as global production has increased, according to World Bank data. Source
Mining supply has been cut to the bone due to the current low value placed on the white metal. As long as this continues, and the traders continue to recognize this absolute fact, silver on the COMEX will be forced to higher ground. As I stated in a recent podcast, (CLICK HERE for one week FREE TRIAL) the “whale” that Ted Butler and Alasdair Macleod discussed a few weeks ago may have been myth, may have been a reality, either way, the “whale” now has others that are piling on and I see the number of traders moving to the upside putting more and more pressure on the bullion bank cartel. I will never say the bullion banking cartel “has lost control” because I don’t believe that. What I believe to be happening is the fact the world now knows these criminals rig the market, and manipulate the price, which makes it more difficult for these criminals to commit their crimes in broad daylight as they have done in the past. Once again, not saying they won’t, just saying it is more difficult for this to happen.
We will never offer financial advice, but we will keep you informed as to what we see and our response. We will continue watching, very closely, all the action within the gold and silver charts. We will share with you what we are doing with our physical position. You may not agree with what we do, when we do or how we do, but at least you will have more information for you to make better decisions regarding your situation. Stay strong, go long!!
