Sunday, January 9, 2011

Nothing is Static

I am riding the bull on the news that COMEX has delivered a massive amount of silver.  I am a little leary of the price action so far this year, but then again, I did call the dip.  But when we passed $29, I did get antsy.  It is hard to save face when the dip dip's your dip.  No matter though, we know gold's fundamentals.  We know the best horse in the race.  The strech will come when silver pulls away to $36 in a short time span.  $50 will hit the tape. Then it is game over, and onto the thouroghbred matchup.  Once fiat is shown for what it is, the new investment question for the field is the debate between gold and silver.  As for  this last lap of the qualifying race, silver and fiat will continue to come apart. 

Finance is always in flux.  Demand and supply never actualize equilibrium at the moment one is looking.  It is a kin to watching a pot boil.  It is best to step away for some time and come back.  You know it is going to boil, so relax and kick your feet up until it happens.

The shorts will have a difficult time managing their position while the COMEX vaults are being raided.  Add the pressure coming from your local coin shop and the "Buy Silver" movement is in full gear.  Only a couple more months are needed to squeeze industrial use to a higher price range.  I am sure once silver is over $50 per ounce the average investor will wake up.  Then we will see another leg up.  After that leg will be when not only the average financial advisor is in, but the average person.  Please remember this is a worldwide movement.  Consistent buying will have a massive effect on supply.

This week may be flat, but $28 has been tested, and has stood the test.  I would not be surprised if the action was flat this week, but by the end of the month, silver will have most likely moved back to the $31 range.  With all the upside right now, and a dip in the price, why not invest in silver?  It is real monie, after all.

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