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Boot's  Instablog

Grandpa of 2, boy and girl. Retired Army Physical Therapist. Now running an outpatient clinic. Married to my very patient wife of 7 years. She was a Geo Undergrad, so any geo literacy displayed by me is to her credit. We enjoy sailing on Lake Ontario out of Henderson Harbor.
My business:
Bullion Bulls Canada
My blog:
The Lunar Metal
  • Silver Drivers

    Silver spot price is grossly out of line with its supply/demand fundamentals.  The gold/silver ratio should be 1:16 based on the natural abundance of the metal and historic precedent.  With gold holding over 1000 USD/Oz, silver should be holding over 60$/OZ.  
    Gold is acting as it should as a contrarian play.  China and India are market drivers, and many are seeking gold as a hedge.

    Silver is not acting as it should for two reasons.   The most dominant reason it that the COMEX has vast silver holding, and has a significant agenda to hold silver in check.  Holding silver down favors their USD based holdings, and is in their best interest.  Numerous articles by Ted Butler and David Morgan et. al. bear this out.  Secondly, we are being drawn into the convenience of silver ETFs that may or may not be back by physical silver holdings.  This skews the demand side of the equation downward. 

    Unless the CFTC recommends, and Congress approves a cap on futures for silver, it will be range-bound.  Large banks simply have a lock on silver spot . This is self preservation for the large banks, and just the reality of silver for the time being.    Conversely, China seems to have quite an increasing apatite for gold and silver both in bullion and mining companies, and is certainly a market driver in the opposite direction. 

    So we are being whipsawed by these two forces.  For those who hold silver bullion this can be frustrating.  If one trades silver mining stocks, the volatility makes for good trading if one is nimble.

    Tags: SLV, SLW, CDE, HL, Silver, GOLD
    Sep 23 09:27 am | Link | Comment!
  • Silver Now?
     
    Silver is making a move on this fine monday morning.  My good mood is seeping through not because of my coffee, but the metal of my character.  I bought silver in the dips last week.  I bought bullion and coins to be specific.  I will happily give away USD for real metal.  Why silver, why now?  I'll be brief.  
    Festival is starting in India, so immediate demand is trending higher.  Are you kidding me.  Thats what it takes to drive up spot, India?  This is SILVER!.  Now I find that amusing.  I must digress.  We will react to India's Jewelry consumption as a market driver, but not industrial uses.  Electronics, medical uses, solar panels and even clothing are consuming silver at an alarming rate.   I just read the other day from a Richard Daughty article that our above ground Silver stores has gone from 2.2 Billion Oz to 300 million in the recent past.  In a laissez-faire market shouldn't silver be rocketing up if silver demand is higher and supply is lower? Tyaa,  sure. But there's more to the equation, or more accurately, more fingers in the pie.  
     
    Silver  ETFs for one are distorting the picture.  These paper giants cannot possibly all be backing their holdings with bullion, or silver would be higher still. Who else would benefit from manipulating silver?  Banks don't generally like missing trends, if fact they are in the business of creating and manipulating them.  It was the central banks in Mexico that squelched a move to the silver standard there.  Why would they do that?  It must be that their stock piles were already sold off, so they would not benefit from the move.  Nothing else makes sense. 
     
     So stockpiles are down in Mexico, and very likely in other countries (assumption). The markets have be artificially depressed by the COMEX and other banks (their shorting is well document of late).  ETFs are not helping because little to no silver is moving, or simply moving from one holding place to another.  I will give them that.   Industrial uses are on the rise, and yet silver production is not keeping pace.  
     
    Silver gurus have been calling for this scenario for years.  My head is sceptical having been burned on silver trends in the past.  My gut says buy more silver. The illusion of silver being in endless supply and of little use is breaking up.  Why now?  Why not?
    Tags: SLV, SVM, PAAS, GLD, Gold, Silver
    Jul 22 11:57 am | Link | 1 Comment
  • Talking Heads on Goldmans Sachs Software

    The follow-on story to the Goldman Sachs stolen market software should be interesting.  Fair and balanced talking heads will report on the finding of the Investigating Senate Sub-Committee.

    Senior correspondent for Senate affairs Johnny -on-the-spot interviews Senator Richard Cialis. Senator, what actions are being taken over the theft of the commodity trading software from the Goldman Sachs?

    "Well, Johnny, upon the recommendation of the sub-committee for fair trading and the large bank consortium lobby, we recommend further investigation. Additionally and most importantly we have created the sub-committee to the sub-committee for the tabling of large bank fact-finding investigations.  In the mean time we recommend a paltry 1 trillion dollar stimulus package for the poor, beleaguered banks, which have suffered from the theft of their legal and patented trading software.  It has not escaped the attention of the sub-committee that there has been untold loss and emotional suffering."    Thank you Senator.  

    Johnny, this is senior anchor Bob Savvy, what does GS have to say about these trying times? Well Savvy, interesting that you ask.  I just spoke with various GS leadership last night.  I managed to get this.

    Senior GS VP of Public Affairs goes on record as stating, ‘for the superb leadership during recent hardships, we plan using a majority of the allocated money for additional bonuses for the BOD and senior management where the rubber really meets the road...’

     Savvy, I also spoke to GS assistant CFO last night; he was also at our "function."

    ‘Prudent banking and trading practices will be maintained in-spite of the loss of their proprietary Market Skimming Software,  (TM). Things just got a lot tougher. Leaving our gold and silver holdings at these levels simply isn't prudent while the general public has access to our patented intellectual property.  Backing our various ETFs with actual commodities isn't something we've really had to deal with.’

    Senator Cialis do have any final comments?

    ‘Why yes, the sub-committee was unofficially assured that any left over funds will reconstitute the banks greatly diminished bullion supplies, reportedly they were stretched thin after retiring BOD and senior management demanded bullion for the gilding their respective parachutes.  Any remaining money will pay for lobbying costs and other ensundry budget dust.’

    Pictures ratifying these 11th hour bills and other pork barrel items will be carried on all major networks during non-peak hours after late night infomercials.

     This has been Johnny-on-the spot, reporting from the Senate Steps, back to you Bob.

     

    Tags: SLV, GLD, GDX
    Jul 12 10:07 pm | Link | Comment!
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