Straight UP, For Once

Wow! Isn't it strange to see lines on the gold and silver charts that go straight up? I'd forgotten that that type of action was even possible.

This continues to be a very interesting saga to watch.

http://www.zerohedge.com/article/first-time-total-comex-silver-drops-below-100-million-ounces-physical-deliverable-silver-und

Though it appears that The Comex can raid SLV for paper silver whenever it is necessary, the dwindling supply of "registered" silver is still an extremely significant, ongoing event. That the bullion banks and their customers are choosing to hoard silver by reclassifying it as "eligible" speaks volumes to the very real and very tight supply of physical silver. 

Let's start with the POSX today. It is once again benefiting from selling in the euro. Not that the US$ has more tangible value than the euro or any other currency, its position as "global reserve currency" still drives the "safety" trade. For today, with apologies to any vertically-challenged Turdites, it is simply the tallest midget.

paper_6-15am_dollar_700h.jpg

Gold decisively broke through 1525 on that spike up this morning. IF it can now maintain its footing above 1527, it looks primed to run back toward 1545.

Silver continues to struggle mightily as it seems as if buyers have called a general strike. There is little if any conviction on the long end, which allows The Cartel to continue pressing it down as there are simply more offers to sell than there are bids to buy. It's good to see support holding at 34.25 or so but we need silver to trade back UP through 36 before anyone will get excited.

OK that's it for now. I'm glad/relieved that so many of you have found the new site to be fun and helpful. Let's keep it up. Please continue filling the forums and the comments with quality information. Have a great day! TF

154 Comments

Battle Beagle's picture

FUBM ;)

The FUBM is in overdrive at the moment, the question is how far do we go on this move, $36, 36.50 or $37+? 

Sterling's picture

Dunno if it's just me

The chart won't load.  Anyone else have this problem?

Battle Beagle's picture

It's not just you.

It's not just you.sad

MIDDIE's picture

Me too

No pic for me either.

SilverTree's picture

!

BOING!yes

SilverTree's picture

How far?

>$500

lcalama's picture

chart not loading?

chart not loading?

Eric Original's picture

Dow Gold Ratio Forum

I just set up a Dow Gold Ratio forum. 

Thoughts?

LongGoldLongSilver's picture

Armstrong is right?

Well, wouldn't be too bad if Martin Armstrong gets it his way. A turning point in gold and silver June 13/14 2011 would be the most bullish case for the metals from a cyclical perspective according to him. I have the most respect for him, so let's hope this continues...

Sterling's picture

Closing in on $36

Bad U.S. data and we may get past $36 today.  it's $35.96 as I type this..

Agophillic's picture

A big red "X"

Chart won't load for me either...but it doesn't really matter because we know what it looks like...we look at them every day!  Although, I do love the sharpie commentary by "Ours Turdly...I mean Truly".

I love the fact that silver is staying low and the BoS aren't getting excited just yet...I'm still slowly adding to my position on a monthly (sometimes only quarterly depending on business).

tomasaronsson's picture

Sweeeeeet! Chart not loading

Sweeeeeet! Chart not loading though..

davefess's picture

Change

Does anyone else find it weird that dollar is up, stocks down and PMs up? It typically was dollar down, stocks and PMs up. Are PM's breaking out of that pattern or is this just a one day thing?

sevin's picture

Let's get to 36 and shake out

Let's get to 36 and shake out some shorts!!!

Sterling's picture

Chart's showing up now

Now I see it!

admin's picture

We're working through one

We're working through one little issue with the charts.  The first one should be showing now... we'll have the other ones in place shortly.  Thanks for your patience!

tallydynasty's picture

They don't call silver, the

They don't call silver, the "mule" for nothing!

The sentiment has been so poor that this action is catching shorts off guard, not to mention longs on the sidelines.

If it can stick a strong close today things could get interesting.

SilverTree's picture

How far?

>$500

aha69's picture

happy days are here again

well at leat upto $37 anyway. Who knows perhaps even $42-43 is not out of the question before the end of June. At least the Greeks are doing there bit to help us

letey petey's picture

I think the robin outside my

I think the robin outside my window is long silver.

letey petey's picture

admin, I love you.

Seriously, I so love your avatar.  And I really do have a helicopter for you somewhere in the basement.

Jordski's picture

http://www.kitco.com/ind/Rado

http://www.kitco.com/ind/Radomski/jun142011.html

Funny to look at this next to the gold chart which is vertical!

Battle Beagle's picture

    Twitter rumors regarding

Ultra86's picture

I also find it strange...

It seems the PM's are showing a lot of strength despite a rising dollar. Seems very bullish to me but I'm no Turd Ferguson. I've got a good bit of dry powder ready dump on the cartel. Was going to wait for a dip towards $33 but if we head back towards $40 I think I'll pull the trigger. Either way I'm a buyer, just trying to pick up the most oz's for my fiat.

Ultra86's picture

Hmm, my reply isn't attached to the comment I was replying to

Just FYI Turd and crew. My message above was a reply to:

Change

agNau's picture

Dollars true value?

It is "The Turd that Floats!"
For the time being.

tmosley's picture

Time to Get PHYSICAL

Don't be too surprised if the silver market breaks down in a big way over the next two-four weeks.  There are likely to be a lot of dirty tricks as the EE attempts to weed out the OI, even as their inventory crashes to zero.  This story is the SINGLE MOST IMPORTANT STORY right now.  

We have a good chance of seeing the COMEX go bust before the end of next month, and a VERY good chance of seeing it go bust by the end of the year.  Now is the time to pull out of ALL paper investments, including miners, and go all in physical.  The prices aren't bad either.

ChiTownHustler's picture

silver inventory

Jim Comiskey from lindwaldock seems to think the inventory numbers are higher, he also dose not know the difference between eligible and registered, check out his june 10 and june 15 you tube clips.

june 15

june 10

MountainMan's picture

50 Day MA

Gold put in a solid bounce off of its 50 day moving average, silver should follow on its tail.

Martin Armstrong's Economic Confidence Model put June 13/14 as the turning point for the next up cycle. Did we just see the lows? Time will tell...

http://armstrongeconomics.files.wordpress.com/2011/06/armstrongeconomics-june-13-14-turning-point-061411.pdf

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