Jim Willie is looking for silver to gap up to $40 here, with a possible pause for a cup of coffee at $36. As we said this morning, if silver is able to convincingly clear $34-$34.50- there is simply no resistance to stop a rally back to the pre-smash down levels.
The next upsurge will be one for the history books. With new money heading to fill holes in the bank bond bailouts, the recapitalization of numerous banks, the economic stimulus, and the government debt monetization (led by the US), the debasement of major currencies will be astounding. The Gold & Silver prices will make strong new highs repeatedly.
This article would be remiss not to point out that history is being made. The COMEX has decided to raise margin requirements when a falling price is occurring, for both gold & silver. Normally, the opposite is the case. Notice no USTBond margin hikes, even though an asset bubble. If truth be known, the damage done to the Paulson Fund had a big hand in knocking down gold. Motive is painted on the walls. Policy is to tarnish the precious metals as the global monetary system continues to crumble, as the USGovt deficits head toward $2 trillion annually, and the USEconomy enters a recognized recession along with Western Europe, before renewed stimulus is attempted. With all the destinations staring the bankers and politicians in the face, they wanted the Gold & Silver prices to be pushed down. The next upsurge will be one for the history books. With new money heading to fill holes in the bank bond bailouts, the recapitalization of numerous banks, the economic stimulus, and the government debt monetization (led by the US), the debasement of major currencies will be astounding. The Gold & Silver prices will make strong new highs repeatedly.
The Silver price is ready to bust north too, but in a more emphatic display. Its decline was led by the Gold decline, but was also pushed by the industrial demand card from a slower economy. The extreme silver supply deficit has not gone away. Neither has the huge silver coin demand from various mints around the world shown any sign of relenting. The Silver price has a MACD reversal in progress. The 30 breakout level from the final months of 2010 has been defended. The potential for a powerful reversal to fill the obvious gap from 32 to 40 is painted loudly for all technical traders to see. No resistance is presented. A pit stop at 36 will come, enough for a cup of coffee.
More from Jim Willie's latest Hat Trick Letter:
