I see $34-36 bottom if we break the $38 mark. When volume increases this high the speculators are involved and when the big boys get involved after a huge run there is always a huge sell off. I noticed huge buy orders going through and clearing for $41 and $42 May puts which means that the price for May will most likely not rebound past $41 at the most from here. There was also a huge orders being placed and clearing for the May $34 puts which means there is more downside likely to this fall. If you look at the most active list on the DOW you will see that SLV was the 2nd most active on the list this week. This does not happen usually and has not happened in a long before. The last time Silver ran to $50 it was brought down to $30 after so keep that in mind. It was also brought down in one big shot too so this time may not be any different.

Thank you for your encouragement, Ed. Although one knows the truth of what you say, the emotions need some support as well.

When will JPM run out of silver!

Ed Note: What did I say about volatility and silver? Ride with it.

Interesting commentary, Peter!

Nef may be right about silver’s fall to $38, which is close to the 50 day exponential moving average. But Andy’s comments above are most noteworthy. My guess is that the JPM cartel are gunning for silver by forcing it down below it’s 50EMA; if I’m correct, then we could see the short term silver price at under $35. As I stated in ArabianMoney’s other commentary, that move might last until August at most; so I look upon this forced correction as:
1. a buying opportunity for silver, and
2. an opportunity to shift out of the fraudulent and manipulated SLV ETF, and into the physical metal itself.

Sorry silver is going to drop like a stone. May up tick a bit but nothing supports a price increase of 10-40%+ a year.

Ed Note: Wait for the autumn – do you think money supply inflation is really over now?

@JB: => Sorry silver is going to drop like a stone.

Do you have a bet on that pony?
There are too many forces at play to be that sure of anything, including the Chinese Gov engaged along with Russia in a battle to defend their rights to fair trade and wealth protection. Let me counter your claim if you will, with another view. Gold is going through the roof. Why? Because, the US is defaulting on its debt thru currency debasement. Its a policy they have adopted. When the world’s reserve currency is debased, what happens? Gold goes up. Its that simple. There is no other argument necessary. Gold and silver are members of the same family, precious metals. When gold’s status enriches, the family is pulled along. Call it the physics of money.

So what’s your argument?

I’ll begin this statement with the disclaimer that I own gold. If you are a person in today’s world, who does not own gold, you are taking a chance with the security of a string of tomorrows. As Theodore H White, former Luce Booth correspondent who rode with General Mao wrote: ‘There only ever is one currency. ‘

There only ever has been one currency. Gold is always involved, only in those very brief departures, measured in short periods of time, does a fiat currency over-ride gold as humanity’s bench mark currency. Theorists abound to the otherwise contrary opinion that only fiat can supply the capital needed to grow an economy. I disagree. The proof is in the real mechanism for debt expansion. Its at the local level, enabling household debt. That debt is the real expansion of the money supply, when people take it on, and institutions create it. Real expansion of the money supply requires a signature at the most personal level. It requires participation in a real economy.

Gold can do this. Gold even if factored 100 times is better than an unlimited right by a private bank to own and control the world’s currency system, print it out of thin air, and charge everyone usury on it.

Gold represents real wealth. Ask anybody. Gold is not an idea. It is an element on the periodic table and it is created when a star bursts. There is a defined amount.

A system of banks that loans against real wealth is necessary. Gold is humanities recognition of the symbol of real wealth. Gold is real. Wealth is real. Paper money is based on the illusion of something real, and that illusion changes from time to time, becoming usually something dishonest in the end phase. Time has proven that to be the case. Debasement is where the dishonesty expresses itself. It always evolves into a criminal enterprise, invoked though a combination of greed and incompetence, and finally in war. This is where we are now headed.

@ James M:
Your remarks reflect a true understanding of the extreme corruption and greed that exists throughout the financial world.

If he remained neutral, and studied all sides of this argument, Jb could learn a lot, not only by re-reading your remarks, but also by going to the bookstore to buy the book entitled “The Creature from Jeykll Island.”

But he won’t, because he’s not interested in studying the history of fiat currencies; sadly, the net result is that whatever he has saved will be eroded by the FED, which is the most corrupt central bank in the world.

This is your Captain speaking, Please, Phyically show your “Belief-Ticket Stub “to your Silver Flight Attendant…then,Sit down in your seat and tighten your shoulder harness. “Your”SILVER Spaceshuttle, has been Cleared for immediate Takeoff and Departure. Your Destination: “Upward but Unknown”. The SLV ground crew is finishing up, by spraying off all the remaining Weak residual Silver paper material,that would be obstructing any of our Wings lift components. If you look back at the Terminal, you will noticed those unfortunate souls, that now, have left themselves behind, simply from Phyically, not purchasing their own “Belief-Ticket”. We do encourage You to look out the window from time to time, and notice how small the rest of the world, Now actually looks. You may experience a light-headedness as you pass thru the point of the Earth’s-JP Morgan, gravitational pull. At that time, all attendance will be adding to your new High, by passing out “The Only True Bubble” as your refreshments. Thank You for choosing “Silver Belief Air”

lol.. that’s too funny. Good satire!

at this time silver spot is $33.64 & I am looking to buy 9000 dollars worth.
QUESTION: I want to buy ASE’S but the price is 5 dollars over spot. WOULD YOU ADVISE BUYING A S E’s AT 5 DOLLARS OVER OR WOULD YOU ADVISE GENERIC ROUNDS AT 1 DOLLAR OVER?
I value your opinion at look forward to your answer.

Ed Note: Please check our editorial policy and you will see we never offer advice to individuals. Make your own mind up based on our analysis. We cannot know your circumstances or future plans. We cannot act as your financial adviser.

I bought silver today, i still have 2/3 powder dry. I’m hoping for $27 to $25, but you can never be sure with this market. The Chinese are bailing out Europe, which categorically, makes the US the uglier sister again. Buy the dips, and Faber says there is one ahead. Correct?

@ Ron:
My response is a little late, as I did not check this commentary while I was in Turkey from 24 June – 12 July. Methinks you missed a real opportunity to buy silver @ $33.64; that’s the bad news. But the good news is that, by November, silver is likely to exceed it’s former high.

While JPM may force silver back down to $33 or so within the next two months, we can’t be sure that they’ll succeed. So a good strategy is to buy some ASEs now (perhaps 1/2 of the total number of ASEs) and then wait for another opportunity to buy the other half. Two good dealers in the US are:
1) TheCoinAgent.com (for small orders), and
2) Tulving.com (for large orders).

Good luck.
===================
@ James M.
Pleased to see that you bought some more silver when it was being heavily suppressed. Methinks JPM doesn’t have the guts to suppress the silver price below its 200 MA. But then again, if this deflationary depression continues for another 3 months, the resulting de-leveraging plus JPM’s renewed shorts could drive the price down to $30 temporarily.