Stocks fall, gold and silver gain as Germany rejects eurozone crisis deal

All major stock markets broke their recent rallies yesterday and precious metals rose to a one-month high as it became clear that Germany was unwilling to pay the bill for an effective eurozone crisis deal.

First a meeting of finance ministers scheduled for today was cancelled and matters kicked upstairs to the leaders of the 27 EU members and 17 euro states. Then it became apparent from officials that Germany is the stumbling block to an enhanced role for the ECB in guaranteeing sovereign debt.

The German parliament is about to pass a motion explicitly ruling out the buying of more debt by the ECB. By blocking this action the Germans are surely going to tip Italian bonds over the edge with a huge spike in yields. They are already perilously close to the key six per cent level.

German angst

It remains to be seen what face-saving package the EU leaders can put together tonight. But it appears we are back where we started. EU officials are right the Germans will not support these measures until they have seen the crisis, so we will now get one.

How long will the markets give the eurozone after this political failure? The reaction should be almost instant and we only saw a first glimpse of the sell-off yesterday. Markets that are disappointed can get very nasty.

Gold and silver proved an instant winner with $1,715 and $33.10 an ounce one-month highs. Whether that can be maintained in a true sell-off is less likely as precious metals tend to get sold down with everything else in a real rout like in 2008-9.

But that much could be different this time.

NB : directed from link : http://www.arabianmoney.net/gold-silver/2011/10/26/stocks-fall-gold-and-silver-gain-as-germany-rejects-eurozone-crisis-deal/

Morgan Silver Bar -USA price today (19/8/11) at RM 155/oz

Isnt it a beauty?

29 VALID reasons to buy SILVER OVER GOLD

Here is the list of 29 reasons to buy silver over gold.

1. Due to the tiny size of the Silver market and the lack of physical Silver available to the manipulators, the Silver battle is much easier to win than Gold. Ted Butler’s discovery of massive Silver market manipulation highlights the size, scope and importance of Silver to the current financial crisis.
2. Central banks have NO physical Silver to assist in the manipulation of the Silver market but they still have a lot of physical Gold (although much less than they claim).
3. The majority of Silver mined every year is consumed as an industrial metal in very small amounts and will never return to the market whereas the amount of above ground Gold grows year after year.
4. Due to its low price and superior physical properties, Silver has developed into a vital and necessary industrial commodity that makes it mandatory for modern life. If we woke up tomorrow and gold vanished from the face of the earth, life would continue pretty much as it was the day before. Without silver, modern life would change.
5. Due to the relative very low price of silver and very high price of gold, the man in the street is in a position to buy silver in much greater quantities than gold.
6. In various forms there is an estimated 5B oz of above ground Gold and 5B oz of above ground Silver but Gold trades [around] $1500 per . and Silver trades for about $35 per ozt. Both metal prices are obviously manipulated but Silver appears to be manipulated more. As for Silver bullion that is “in play” for the manipulators, I estimate that less than 200M oz. remain with a current market value less than $7B.
7. Silver has been in a supply deficit for over 50 years! Governments held approximately 10B oz of silver in 1950 and have been supplying that physical stock steadily into the market. Today there is no more of that surplus silver left to sell.
8. There are only 14 years of known Silver reserves remaining in the world at current consumption rates according toUSGS. AFTER THAT SILVER WILL BE GONE FOREVER! Think about it.
9. Demand for Silver is “inelastic” in its industrial applications because it is used in such small quantities per application. An increase in price does not translate into a decrease in consumption.
10. The COMEX Silver short position is the largest concentrated short position of any commodity, on any exchange in the history of financial markets. [Read this (3) article for more information.]
11. Throughout human monetary history the Silver to Gold ratio hovered in the 10-1 range until the invention of futures and options trading in metals. After the massive manipulation maneuvers by the Banking Cabal the silver-gold ratio now stands at over 40-1. [Read this (4) article to find out what effect $3,000, $5,000 or even $10,000 per ozt. for gold would have on the price of silver based on these historical silver:gold relationships.]
12. As defined in the Coinage Act of 1792, the U.S. dollar is Silver, not Gold, and contains “three hundred and seventy-one grains and four sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver” according to Wikipedia. 
13. Silver is massively under reported in the media vs. Gold. Even Jim Rogers, the commodity guru, purposefully ignores Silver entirely in his best selling book “Hot Commodities” even though Silver exceeds all other commodities using his metrics on what makes a strong commodity.
14. Very few investors have physical Silver in their possession. Reasoning: because they claim it is “too hard to store”. Does that mean when Silver trades at over $1,000 per ozt. that people will be more willing to buy and store physical Silver? It is difficult to make up a more bullish argument to take delivery and store physical Silver TODAY…when the Cabal price rigging scam finally fails you can always buy your own Fort Knox to store all that pesky Silver you bought!
15. Silver’s fundamentals are even stronger than Gold’s so when the gold manipulation stops and the Gold price takes off investors will be looking for the next under-priced investment with similar characteristics.
16. 470M oz of Silver owned by the US Treasury… has been sold into the physical market to support the “Strong Dollar Policy”.
17. Most of the large deposits of Silver have probably already been found and/or already mined limiting future discoveriesbecause of the fact that Silver mineral deposits, as opposed to Gold, are usually very shallow in the earth’s crust due to the nature of the geology.
18. There is a significant problem with counterfeit Gold coins and bars because of its high price. Silver coins and small bars have not, to date, had as much of a counterfeiting issue because its price did not justify the effort. (although there is a problem with counterfeit Silver jewelry which may significantly suppress Silver scrap recovery in the future…oddly bullish by-product of counterfeiting Silver!)
19. The total dollar value of the Silver market is a fraction of the total dollar value of the Gold market.
20. Retail physical shortages of Silver are already beginning to appear around the world. The list of announced delays/curtailment by Government owned Mints now includes EVERY MAJOR SILVER COIN PRODUCING COUNTRY IN THE WORLD! [See this article (5) on the shortage of silver for coin production.]
21. Hedge funds are bleeding from the credit crunch and they are looking for ways to save themselves. A single hedge fund can scoop up the remaining physical Silver and blow the price sky high.
22. In the US, Gold confiscation laws are still on the books but there are currently no silver confiscation laws.
23. As of early 2011 the Gold price is hovering around $1,500 or 175% of its historical high. Silver, on the other hand, is hovering around $35 or 70% of it’s historical high suggesting that Silver has a long way still to go.
24. Un-backed paper Silver programs (such as silver certificates and unallocated pooled accounts are the “industry standard” these days and) will be scrambling for metal when redemptions are called in by the investors. The most egregious example of fractional reserve silver is the iShares Silver ETF (SLV).
25. In the past few years the massive global money creation by central banks around the world has created huge reservoirs of cash sloshing around the asset markets looking for a safe haven. Although most mainstream press have discussed Gold as being a likely bucket to fill with this monetary firehouse, SILVER has all the same monetary metal properties as Gold except the Silver market is SO small it would be like FILLING A DIXIE CUP WITH THE FIREHOUSE!
26. The CFTC still has an open investigation into the manipulation of the SILVER market that is being conducted not by their investigative division but by the CFTC “Enforcement Division”. Although the final conclusions have been purposefully delayed by the CFTC, the final outcome may finally be the END OF THE 50 YEAR MANIPULATION OF THE SILVER MARKET!…
27. The growth of emerging economies in Asia will require more and more industrial silver to build out their electric infrastructure and provide a higher standard of living for their middle class. In a global market that has been in a silver supply deficit for years a silver bidding war will result in order to obtain the significant amounts of silver needed…
28. There are currently multiple class action lawsuits that have been filed against JP Morgan for blatantly rigging the silver market. Given that JP Morgan has previously claimed immunity from legal prosecution because they are an agent of the US Government I doubt the suits will ever be brought to trial…BUT the publicity of them “claiming immunity” AGAIN will be the “silver shot heard around the world”…
29. Inventors around the world are making significant breakthroughs in the attempt to solve our energy crisis. From fuel cells to solar power to zero point energies that existed only in our imaginations breakthroughs are quickly coming down the pike. Since silver is the BEST CONDUCTOR OF ELECTRICITY in the world it is likely that the most powerful breakthroughs will involve the special properties of silver.

Conclusion

If all the above reasons are not enough for you to run out and buy all the physical silver you can get your hands on then I’m sure there will be new reasons not far off on the horizon because for the last 10 years this list has continued to GROW…RELENTLESSLY!

It’s true that there are “NO SURE THINGS” in life…but an investment in SILVER comes DARN CLOSE! Yes, you’ll have to ride the tidal wave of price manipulation but when the waves die down you will fully appreciate the power and value of SILVER.

Don’t believe the silver haters…load up on physical silver and keep it out of the hands of those who want to control it. Take it home and stick it in your safe. It may be your last chance!

NB : points taken from original text from link : http://www.munknee.com/2011/05/why-you-should-buy-silver-instead-of-gold/

$200 Silver as COMEX Faces Default

Critically Low Warehouse Inventories Could Sink the Exchange

By Greg McCoach
Friday, August 5th, 2011

Close your browser... shut down your computer... and go buy silver!

The price of silver pulled back 8% yesterday afternoon, carving out a phenomenal investment opportunity for you right now.

At last look, spot silver stands at $39.21 an ounce. But the window to own silver below $40/oz will be open only for a short time, because silver prices are headed for an explosive breakout.

Silver will rebound to $60 an ounce following this correction on surging demand — and then quite possibly to $150-$200 an ounce amid growing concerns that the COMEX itself could default over critically low physical warehouse inventories.

While gold continues to claim the media spotlight, silver investors will be cut the biggest paychecks.

You see, there's one thing they never tell you about gold: 95% of all the gold that has ever been produced is still around in one form or another in coins, bars, artifacts, and jewelry. In fact the same gold that was mined in Egypt 8,000 years ago could be in a piece of jewelry you own today.

Gold has been historically priced ten to twenty times more than silver. So the reclamation of silver is not a priority as it is with gold...

The universal and intrinsic value of gold ensures the yellow metal is saved and recycled to be used in different applications throughout time.

But silver is different. Silver disappears from the market over time; 95% of the silver that has ever been mined has already been consumed by industrial use. That silver is gone forever — unrecoverable at any price.

Silver Industrial Demand

Last year, electrical and electronics demand for silver reached an all-time high of 243 million ounces. In 2010 alone: Cell phones used 13 million ounces of silver Computers consumed another 22 million silver ounces Solar photovoltaic panels needed 47 million ounces of silver The global solar photovoltaic industry alone is expected to call for 70 million ounces this year, and expected to double again — reaching 150 million ounces per year — by 2015. And this demand does not include the other tens of millions of ounces needed for the automobile industry, water purification, medical applications, and nano-silver in goods packaging and hygiene... Total industrial demand will rise from 487 million ounces in 2010 to 666 million ounces in 2015.

In 1950, there were 10 billion ounces of available silver above ground. By 1980, that number shrank to 3.5 billion ounces. Today that figure has fallen to about 700 million ounces of above-ground, refined silver.

Above Ground World Silver Resources

The limited availability of physical silver for the industrial markets alone is enough to rebound prices to another record, past $60 an ounce.

There are about 300 million ounces of physical silver in private hands around the world. The ETFs hold another 350 million. And that's just about it.

COMEX physical supplies are running critically low — so low, in fact, the exchange is actually faced with a default.

There are now less than 30 million ounces of physical silver held at COMEX warehouses. These silver-starved warehouses could prove to be the catalyst that propels the price of silver past $150 an ounce in the near term.

Major COMEX Physical Silver Shortage Continues

Physical COMEX inventories of silver are now down to 27 million ounces. That's more than a 35% decrease since April — and down 48% in the last twelve months.

With so little inventory, it's likely that nine out of ten COMEX traders do not have their silver contracts backed by stockpiles of the physical metal. And at this point, COMEX itself could default if as few as 5,000 contracts stood for delivery.

But the chances of COMEX actually defaulting are slim. Bear Sterns, AIG, Freddie Mac, Fannie Mae, Ford, GM, CitiGroup, Bank of America — all of these companies were bailed out by the U.S. government... There's simply no way COMEX, the world's largest physical commodity futures exchange, is going to be allowed to go underwater. Not gonna happen.

Still, fears of a default will bubble as more investors realize the scarcity of silver relative to the paper that is representing it.

Something will have to be done. Unfortunately for the government, they don't have the physical silver resources anymore to cover a default on physical COMEX inventories. The Feds sold off the country's silver reserves decades ago, and the U.S. government's current stockpile is currently reported simply as "None."

If it comes down to it, the government will have to buy massive amounts of silver in the open market to supply COMEX with the bullion to cover contracts. This would lead to explosion in silver prices straight into triple-digit territory — past $150 an ounce, and I think even testing the $200/oz level.

We will see the price of silver rise to these levels in very short order.

So don't hesitate. Buy silver today.

Good Investing,

Greg McCoach
Analyst, Wealth Daily
Investment Director, Mining Speculator and Insider Alert

NB : Directed from link http://www.wealthdaily.com/articles/200-silver-as-comex-faces-default/3184 

No Matter What… Buy Silver

A lot of my friends are having kids right now. Over the weekend, we had some friends over for dinner. One of them brought his eight-year-old daughter. She loves animals, and was great with all our dogs and horses, but we ended the night exhausted! Explaining the rules, keeping a watchful eye over the bigger dogs, reminding her to use her inside voice... I'm still tired from the visit. And I can't begin to imagine how much harder it would be with two kids. Especially with the arguments, trying to decide who's right and who needs a time-out. The mainstream financial media is like a couple of eight-year-olds. We hear arguments from both sides -- corporate earnings are beating records, but at the same time joblessness could jump to 10% again. Which is it? And how do you plan an investment strategy against such bipolar predictions? Here at Smart Investing Daily, we believe the U.S. economy is at another tipping point. The recent market rallies are unsustainable, are similar to an extinction burst... You know, when a child is throwing a tantrum and he lets out one last big scream before he falls asleep. But in case I'm wrong, wouldn't it be nice to know of an investment that could make you profits if the market rises or falls? Well, I've got one for you...

Invest in Silver

Silver is an interesting precious metal. It protects against inflation like gold. But silver also has a lot of industrial uses. That makes it like copper, which booms during economic recoveries. One of the toughest aspects of gold is to find out if it's trading more as a currency or a commodity. Is gold demand up because of concerns about the debt crisis? Or is gold up because of jewelry demand in India and China? It's an important question, but one that doesn't apply in the same way to silver. Silver straddles the metals industry. Certainly, gold and platinum have industrial uses, and we like both of these precious metals as investments right now. Consider this, though. About a quarter of all platinum consumption came from recycled platinum. That's not the case with silver, and that could mean increased demand during an economic recovery. In fact, 487.4 million ounces of silver were used for industrial purposes in 2010. That's well over four times the amount of silver used to make coins and medals. That's also a gain of about 20% from 2009. Not bad in a struggling economy. With uses that span electrical circuits, water purification, photography and other industries, industrial silver demand makes up 66% of silver production. But there's another aspect of silver that should get your attention -- silver investments. World investment demand climbed 40% last year to more than 279 million ounces. And get this... Hedge funds and money managers increased their silver positions by 19% last week, according to the U.S. Commodity Futures Trading Commission... the third week of gains. (Don't forget to sign up for Smart Investing Daily and let me and fellow editor Jared Levy simplify the market for you with our easy-to-understand articles.)

How High Could Silver Prices Go?

Bloomberg reports that silver could climb as high as $70 an ounce by next March... a jump of almost 75% from current prices. Let's take a look at a chart to see if this is a realistic forecast.

 View Larger Chart

This is a chart of silver futures for September delivery. See that pop from late April? A huge move... but prices fell short of silver's all-time high of $50.35 an ounce in January 1980. Since January 2011,silver prices have climbed 26%. That's not a bad gain; it beats gold's gain of 12% handily. But that's not near the pace silver would need to climb in order to meet a 75% gain by next March. Is it possible? Yes. Between September 2010 and May 2011, silver prices climbed 140%. But just as quickly, a huge chunk of that gain disappeared when silver prices dropped from $48 back below $35. Realistically, silver prices may test that all-time high by Thanksgiving. At that point, smart investors should ruthlessly protect their gains. That strong resistance silver shows around $50 an ounce will be tough to beat. Expect a drop in prices anywhere above $48. For investors considering an exchange-traded fund like the iShares Silver Trust (SLV:NYSE), look to the price spike in late April to find your resistance point. For investors looking at silver mining companies, be aware that mining costs, like fuel prices, impact profits. Keep an eye on operating margins as companies report earnings. Lower margins could mean lower earnings moving forward. Publisher's Note: Taipan's Michael Robinson is the best in the business when it comes to playing the silver market. So far this year, he has led American Wealth Underground subscribers to gains of 200%, 68%, 140% and 353%... all thanks to silver and the metals market. Michael recently unveiled his latest special report. There is a strong chance it will lead to his biggest gains yet. To learn what our silver expert has uncovered, follow the link.

Article brought to you by Taipan Publishing Group. Additional valuable content can be syndicated via our News RSS feed. Republish without charge. Required: Author attribution, links back to original content or www.taipanpublishinggroup.com

Where to look up for hourly updated price for SILVER?

Just try it at link : http://www.kitcosilver.com/

1 oz. Morgan Design Silver Bars

1 oz. Morgan Design Silver Bars for sale at GoldSilver.smsbiz - 0133747792 (KUALA LUMPUR)

James Turk: Just “Several More Days of Silver in The 30"s

With silver and gold rallying strongly against the tide of the risk-off trade, bullion expert James Turk forecasts that silver is about to launch into the 40s, as more nervous investors come to terms with the inevitability of further devaluations and/or sovereign defaults, forced upon the world’s central banks by investors and weak politicians.

“One never knows exactly how the markets will unfold, but my sense is that we only have several more days of silver in the 30s,” Turk told King World News. “Once silver clears $38 on a closing basis, you are going to get back into the mid 40s in a heartbeat.”

Turk, the founder and president of overseas precious metals storage firm Goldmoney.com has warned long ago of the events playing out in Europe today, so his words carry significant weight among the bullion community.  The timing of his call back in January for silver to reach $50 by June 30 was considered reckless and daring at the time.  But history has proved him correct.  Silver reached an intraday high of $49.70 on May 2, just pennies shy of $50 and a month sooner than he expected.

Recently, Turk (along with another PM giant, Jim Sinclair) has differed with another hard-money advocate, Marc Faber, on the direction of precious metals prices during the months of July and August.  Faber expects the precious metals to meander in the hot summer months, which is a bet that the long-standing historical record of weakness during that time is most likely.  On the other hand, Turk anticipates a repeat of 1982, the year of the Mexican peso devaluations.

“The action in gold and silver so far this summer indicates to me that this is in fact poised to be explosive on the upside,” Turk explaind.  “Nobody is talking about this, but it could be a reality in short order.  Here it is nearly 30 years after the breathtaking summer of 1982, and history is about to repeat all over again.”

Turk’s battle with Marc Faber in the fight to be right on the outcome of precious metals during the summer months favors Turk, at the moment.

Gold and silver took center stage during the flurry of bullion-friendly news coming from both sides of the Atlantic, yesterday.  The timing of the news releases from both sides of the Atlantic seemed contrived, timed and salvo-like, as the dollar and euro battle it out in the race to cut sovereign debt loads through currency devaluations.  Gold reached new highs in the euro and new closing high in dollars.  Overall, gold was the winner in the scramble out of euros.

Tuesday’s news of widening spreads between the German and Italian 10-year notes, as well as soaring CDS pricing of Italian debt; an IMF warning launched by the new French (but Ameri-centric) chief, Christine Lagarde, at Italy, chiding the Italians for dragging its feet on implementing its own austerity plan; Moody’s downgrading Ireland to junk; FOMC minutes release, which strongly hints at the possibility of further stimulus from the Fed is coming; the posturing war that’s broken out between Democrats and Republicans over the U.S. federal budget; and the timely strengthening of the Japanese yen to save the day from a dollar breakout of 76 on the USDX have demonstrated the desperation among the officialdom and the equally fearful investor who searches for a truly safe haven.

“Eric this is the start of the next big leg higher in the precious metals,” suggested Turk.  “We’re at a new record closing high in gold today, that is extraordinary considering it is happening against the headwind of a stronger dollar.  There is an important message here, Eric, money fleeing the Euro is not just going to the dollar, it’s flowing into the metal of kings.”

As the public enjoys summertime vacations and respite from the daily slew of bad economic and political news, Turk sees the investor public mostly unaware of the theft of purchasing power currently in progress.  But for the precious metals stalwarts and recent converts, this summer could be a very profitable one.

“People are recognizing that the only true safe haven is the precious metals,” said Turk.  “There are still so few people talking about gold and silver having an explosive summer.  The only place I’ve heard it is on KWN.  The fact that there is still so little bullish sentiment just reconfirms my view that gold and silver are ready to rocket higher.”

It will be mighty interesting to see if silver does indeed exceed $38, and if an assault on the May 2 high is in store for the silver faithfuls.

NB : Directed from link : http://www.straightsilver.com/updates/?utm_source=Email06282011&utm_medium=Email06282011&utm_campaign=Email06282011

SALE : American Silver Eagle

American Silver Eagle coin is now currently opened for buying.

Retailers are suggested to contact GoldSilver.smsbiz for quoting the price per oz.

Contact 0133747792 (malaysia) or email quotation to mas.smsbiz@gmail.com

American Silver Eagle Coins

The American Silver Eagle was first released in 1986 as part of the American Eagle Bullion Program. This program was authorized by Congress in 1985 to produce gold and silver bullion coins with their weight, content, and purity guaranteed by the United States Government.

The design of the Silver Eagle is taken from the Walking Liberty Half Dollar. This coin was issued for circulation in the United States from 1916 to 1947. It was designed by Adolph A. Weinman and is considered to be one of the most beautiful US coin designs ever created. The reverse of the coin, featuring a heraldic eagle, was designed by John Mercanti specifically for the silver bullion coin.

Purchasing Silver Eagles

American Silver Eagle bullion coins are not sold directly to the public. Instead, the United States Mint distributes the coins through a network of authorized bullion purchasers. These dealers purchase the coins in bulk quantities and then resell them to other bullion dealers, coin dealers, and the public. They are also required to create a two way market with the public, both buying and selling the coins to ensure liquidity.

Silver Eagles can be purchased through several options. Bulk purchases can be made by buying so-called “Monster Boxes.” These green boxes contain 25 rolls of Silver Eagles containing 20 coins each. Since a large number of coins are purchased, this usually yields the lowest premium per coin. More commonly coins are purchased by individual 20-coin rolls. The rolls have a distinctive green top depicting the seal of the United States Treasury. Silver Eagles can also be purchased individually. The premiums for purchasing coins individually are generally the highest.

Collecting Silver Eagles

From the beginning of the series, Silver Eagles have drawn the attention of not only bullion investors but also coin collectors. The coins are often viewed as the modern equivalent of Silver Dollars, since they are struck in silver and carry a $1 face value. Coin collectors can assemble the complete series by obtaining one coin for each date and adding to the collection with each new release. Some collectors assemble sets of high gradePCGS & NGC Silver Eagles. These coins are encapsulated and graded by third party grading services. The highest graded coins command significant premiums above bullion value.

The United States Mint has also produced different versions of the Silver Eagle specifically for coin collectors. From 1986 to 2008, the US Mint produced and sold to the public Proof Silver Eagles. These coins are struck with specially prepared dies to create sharp features, mirror like backgrounds, and frosted design elements. From 2006 to 2008, the US Mint also produced a collectible uncirculated version of the Silver Eagle, which was struck on specially burnished blanks and carried the “W” mint mark. Other special versions of the coin have been offered to coincide with the 10th and 20th anniversary of the programs.

Growing Demand for American Silver Eagles

In recent years, the demand for American Silver Eagles has expanded considerably. The economic uncertainties experienced during the second half of 2008 led to a dramatic increase in demand for physical precious metals. The United States Mint experienced difficultly meeting the sudden higher level of demand for the bullion coins. That year, they were forced to suspend sales of Silver Eagles on several occasions and eventually resorted to imposing a rationing program, which allocated available supplies amongst authorized purchasers.

The high demand for Silver Eagles has continued with implications for both precious metals investors and collectors. The highly popular collectible proof and uncirculated versions of the Silver Eagle were canceled for 2009, and the status of the offerings remains in doubt for future years. The bullion Silver Eagles reached a new all time high for annual sales in 2008, and then broke that record in the following year. Current demand trends suggest another fresh all time record high will be achieved for 2010.

NB : Directed from http://silvereagleguide.com/