Silver Update – $14 Support Broken

This is going to be short and to the point, cuz I got an NBA Draft Preview to do (coming soon to Speedburner on Sports and the SPDBRNR Blog). 

Silver’s rally was built on a weakening dollar, weakening bonds, and hopes for an economic bounce to stimulate industrial demand.  No bounce economically, and stabilization in bonds & the dollar materialized in June. The 45% rally in ’09 corrected fast & sharp, like silver is prone to do. 

$14 didn’t hold, but taking a close look at this chart, we see the potential for $13.50 to be the next floor.  It was never violated during the May pause before it launched to $16.  If it holds, we could get a nice little trading range here…$13.60-ish to $15. 

The biggest two or 3 banks are short more than 4 months production of silver…people know they would take forever to fulfill a delivery on all their shorts, and silver would skyrocket in price.  Read Ted Butler if you want to learn more about the heavy shorting of precious metals by the largest banks in very large size…they’re trying to kill the financial and economic siren, and they won’t succeed.

The fundamentals are overwhelmingly in silver’s favor. The $ & bonds are being shunned worldwide as they reproduce like flys in the hot sun, while supplies of silver are massively curtailed by the global slowdown in copper, nickle and lead mining amid a collapse in pricing and demand in late ’08. 65-70% of silver is mined as a byproduct of those metals. 

Now on to the NBA…draft in 2 days!!!  Then comes football mag hunting…let the summer begin!!!