"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput


Thursday, October 30, 2014

Silver Collapses to 56 Month Low

One look at this chart says it all....

If the metal cannot bounce from its current level, the next level of chart support does not show up until near $15.00


  1. Pretty incredible to witness in all honesty.


  2. Hi Dan -

    Gold has a friend in Greenspan today. http://www.cnbc.com/id/102136750

  3. you obviously haven't heard that the COMEX DEC Silver OI is high... therefore, Silver to $200 ASAP. Q.E.D.

    1. Kid;

      funny you should bring that up. I made a point of responding to that goofy claim not that long ago. I noted that all that it meant was that SPREADERS were active and the NUMBER of PEOPLE who wanted to sell silver had increased. Yet the perma gold and silver bull crowd wanted to dispute that as if it was yet further evidence of an impending moon shot higher in the metals. Some folks simply never learn, no matter how much you try to teach them. They are paying dearly for their stubborn refusal to recognize what is staring them in the face. It is called "denial".

    2. Denial and loyalty go hand in hand....it's a cult-like trademark.

      Just ask Dear Leader in the close-minded society of N. Korea that has him on a pedestal no matter what he says or does. Over in NK they're fearful of punishment or death.
      The loyal followers on some 'bug sites are fearful of being ostracized.
      They might want to examine that particular relationship dynamic and ask how or why that came to be over there.

    3. w they both declare they "believe" before asking Jim why what they were led to believe didnt come to pass.



      I read today that the stimulus program was halted. I believe in QE to infinity, so do you see this as a temporary reprieve and/or propaganda to try to calm down Americans?

      CIGA Jason


      It will be reinstated under a different name in 3 months. 



      I don’t know whether you saw this.

      I ask you questions, not because I am a non believer or "basher" but you are the only one I trust to give me a straight answer.

      Seems all the other "pro gold" people have an agenda as they either operate PM funds or write PM newsletters.

      What concerns me are the myriad of economists and others who are saying the dollar is going to remain strong for quite some time.

      I miss your views that you have written on a regular basis, in the past, as you are the only one who I can trust.

      Sorry to be a PITA but I wouldn’t feel comfortable going to anyone else.

      Have a nice weekend, 
      CIGA Ron


      The dollar’s strength comes from Europe committing economic suicide by adopting US approved sanctions against Russia that kill Europe’s economy and helps ours. That is not a long term deal.


    4. Sooo...Jim believes the EU will solve their growth (and Putin) problems and the corresponding EUR strength will weaken the USD ultimately?

      "...not a long term deal."

      And within 3 months we'll have a new QE-like program?

      Time will tell if he's kicking his own can or not but will anyone remember or care if he's wrong?

      Another Pied Piper that's making it up as he goes along.

    5. DPH;

      this is what is referred to as an opinion with no basis in fact. In other words, wishful thinking.

      The idea that the reason the Dollar is strong against the Euro because of Russian sanctions is laughable. It is strong against most currencies at the moment because the market believes that if any western nation is going to see higher interest rates, the US will be first.

      he knows full well that if the Dollar continues higher, the gold mining share universe is going to implode yet further.

    6. This comment has been removed by the author.

    7. The 1 year deposit rates in Armenia are currently around :

      - 10% per year on the dollar.
      - 6% per year on the euro.

      I chose the dollar.
      Yeah, 10% here. But they lend at 24%!!!
      So just go, open an account and hope that your bank will not go bankrupt within a year... :)

  4. jan soybeans also have the .382 fib from summer high to low at 10.50.

    bulls are talking about outside key reversals up in ags monthly charts that print tomorrow, especially corn bulls.

    coldest oct 31 in midwest in 20 yrs tomorrow, so killing frost in something looks like. must be helping the wheat today on the stuff that recently was planted and we were under planted on last monday crop progress report.

    stock mkt firm on election next tuesday, especially after DX gave up it's ramp.


  5. gold to < or = $1140
    gold/silver to < or = 76/1
    silver = $15.00

    1. @silverwood:
      HUI @160 /.14 = $1140 gold
      .14 = HUI/gold ratio at last bear market
      160 = HUI 2005 & 2008 low.

  6. http://i60.tinypic.com/2r6jl2o.jpg

    I have a target for silver at 15.90 - 16.00
    Intersection of the horizontal blue line, projection of the previous range (black lines), monthly bollinger band, and also on the daily time unit, support of the downwards channel.
    So I'm personally monitoring the 16 $ area.
    Silver MUST bounce on 16 $ or it will be the berezina imho :(
    I don't see any strong obvious supports under that area, except the area mentioned by Dan indeed.
    I'll watch closely 16 $, watching for an opportunity to go long, but with gold testing probably 1180 simultaneously if it happens...I have a very VERY bad feeling about this :(

  7. Dan, Thanks for providing the silver chart. Looks like I might have to wait and see if it heads down to $15 before I take a position. It's funny, I bought my first silver (100 oz bar) back in 2009 @ $15.50 and now 5 years later, here we are again. Thanks for your guidance.


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