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« Minco Silver Corporation 19 January 2011 | Main | The Silver Market is really tight »

Silver Prices 17 January 2011

silver chart 17 Jan 2011.JPG

Whilst being dragged mercilessly around the shops the other day I spotted a jewelers shop with the usual signs outside saying that they buy and sell gold and silver etc. It looked like a good place for some respite and an opportunity to find out just what is happening at the High Street end of things.

We kicked off with a polite inquiry about us wishing to purchase both gold and silver coins and bars for investment purposes. The shop owner, resplendent in apron, goggles, head bands and high powered magnifying glasses gave us a perplexed look.

Do you know, he said, that I took delivery of both, enough to last this shop five weeks and it all went in a day and a half. However, I have placed another order and when you are certain of exactly what you want you can piggy back on the back of my order but we can not give you a delivery date as things are a bit manic at the moment. He went on to say that investment demand was now outstripping his demand for jewelry, which although he was happy to get the business he was surprised at just how fast it was moving.

He also told us that people who had bought three months ago returned in the first week of January 2011 and paid cash for immediate possession. He likened his business to the bakery next door with the proviso that he was handling much bigger numbers. He wasn't prepared to tell us just how big as we had just walked through the door and he didn't know us. We asked how much gold and silver his customers brought back to make a profit when the price had increased, he laughed and gave us that look! None of his customers who had purchased precious metals for investment purposes had tried to sell it back to him, however, he was getting a steady flow of broken jewelry that people would cash in and his pride and joy as a craftsman was to repair the objects and display them in his window.

This is not a scientific experiment, but the owner did dwell on the supply side difficulties that he was experiencing so this would appear to be in line with most of what we have picked up from our peers, the media, other sites, etc.

It suggests that the physical supply and availability of gold and silver as we have alluded to in the past and has been reported on many other sites such as King World News, is still very tight indeed

The difficulty we wrestle with is can silver do it again, put in a repeat performance equal to that of last year, especially in the latter half of the year when it went from $18.00/oz in August to $30/oz in December 2010. Normally we would say that this is highly improbable but every time we have a knock down and drag out session we come back to very similar conclusions that silver will indeed have another very good year. Gold prices may steal the limelight and power ahead making record breaking headlines, however, silver prices will be there or thereabouts. We lean towards the theory that the shear numbers of people in China, India, Asia, etc, that are steadily increasing their wealth will be able to afford some silver as their financial position improves and should they gain some traction then gold prices will appear less daunting and so they start to accumulate some gold too. Also, the investors/speculators who have made some good profits in silver may decide that the time has come change horses and allocate some of their capital to gold in the hope that a better percentage gain can be had. Its going to be a very interesting year and a pretty bumpy one at that.

Just our thoughts of course.


Over in the options trading pit, we now have 59 winners out of 61 trades, or a 96.72% success rate. If you have any questions regarding these trades please address them through their site where they will be handled quickly and I hope efficiently.

sk chart 10 Dec 2010.JPG

The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today, before we decide to cap membership.

Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.

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Reader Comments (9)

That's why my target on silver is 22.50, it will be right at the 200MA. But I think it will make a low to 20.00 (this year)

January 17, 2011 | Unregistered CommenterDi

What a brave person to predict silver at $20, when David Embry of Sprott Asset Management states he would be disappointed if silver does not reach $50 this year.

Mr. Di, do you have any support for your prediction, do you have some information that you read that will help you back up your assertion and help us to understand how you could make it?

January 17, 2011 | Unregistered CommenterRobert

Oh please. Nobody knows what the silver price will be at any point in the future, especially you Di. You've proven and displayed to the whole world your complete and utter inability to forecast, so spare us. It's not even entertaining anymore.

The bottom line is this: Silver is cheap when you look at the big picture. Might it trade lower in the near term? Sure. Might it trade higher? Sure. Night it run away with a ferocity you can barely imagine? Sure.

Is it a good buy regardless of what happens in the next 12 months? Absolutely. It's a vital commodity that also functions as money at a time when currencies are being destroyed as a matter of overt public policy! It's price has been suppressed for a very long time and the jig is either up or nearly up. Supply is very very tight in the short term and long term supply is very much in question.

Yeah, buy and if it goes down, dance a little jig for your good fortune and buy some more.

January 17, 2011 | Unregistered Commenterfallingman

FYI the weekly COT report update shows a potentially bullish development for Gold.

The "wrong-way" large speculators have gotten negative on Gold - a potentially bullish sign.

January 17, 2011 | Unregistered CommenterMark

For all the technical analysis people out there...Looks to me like SLW has some support at $30.35, the 50% fibonacci retracement point of the most recent rally July - Dec. 2010. This is also the point where a gap up occured - could be filled in on the way down.

Next level of support is $28.00 or 61.8% fib. retracement point - an area where major support typically occurs, particularly with the one we are currently experiencing.

So by applying the fib. retracements, it looks like $28.00 is the area where SLW could drop in the short term.

January 17, 2011 | Unregistered CommenterMark

OK, I believe you, all of you! But, please, just tell me what the miners are going to do.

January 17, 2011 | Unregistered CommenterJohn Ell

So I went to buy silver coins and bars last week, in Vancouver, BC, Canada. Went to two places...all they had was two-1 ounce silver bars. Went to another place and got 3 big bars, but when I asked them about silver Maple Leafs, they were sold out. So it appears that investor demand is strong and there is a willingness to grab whatever is available. Went in again today (Monday the 17th) and they had just got in 20 tubes of Maple Leafs, but they had a 2-wk waiting list to fill. I'm not saying that I can't find anything, but the places with available silver are charging a higher premium.

January 17, 2011 | Unregistered CommenterRobert

I have just brought a further 250oz and will continue to purchase when the cash allows. No one can predict this market. Just keep buying physical with a mind on the silver physical shortage and backwardation in the market. If you are in the UK you can purchase from my online shop at good prices -

February 11, 2011 | Unregistered CommenterNigel Reed

sorry that is

February 12, 2011 | Unregistered CommenterNigel Reed

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