What Happened To The Anonymous London Trader’s Intel? (SLV, AGQ, ZSL, GLD, PSLV, SIVR)
Dominique de Kevelioc de Bailleul: As the silver price breaks below $32, precious metals investors will soon see whether KWN’s mysterious London trader is correct, or not, about the Chinese exercising “massive accumulation” orders “on dips” below $33.
“The Chinese are doing the exact same thing in the silver market that they are doing in the gold market, massive accumulation on dips,” Anonymous told KWN’s Eric King in a Mar. 8 interview. Get my next ALERT 100% FREE
Whether the paper market holds somewhere near $33 isn’t relevant to the long-term holders of silver, it’s timing the purchases along with the elephant buyer in Beijing that has traders wondering about Anonymous. It would, however, be nice to know that someone with access to the same internal data as JP Morgan could be indeed a blessing to the ‘good guys’ in the war to free the public from the tyranny of the banking cartel.
“The physical silver orders that were just filled have been waiting since February 16th,” Anonymous continued. “Those orders near the $33 level were filled in huge size on Tuesday. These long-term accumulators are buying every dip. There were some fills at $34, but some very large orders were filled near $33.”
Below, is a chart of silver, using monthly data and Richard Russell’s favorite moving average parameters for the precious metals of 20 and 40 months.
According to the chart, silver’s 20-month MA stands at $32.71, a price consistent with expected levels of buy orders. So, Anonymous’ intelligence appears to square with the charts.
Anonymous also pointed out in his Mar. 8 interview, as well as in previous interviews that, the Chinese have embarked on a substantial buying spree in both precious metals, gold and silver. That, too, jibes with Leeb Capital Management’s Stephen Leeb’s contention.
Leeb, the author of Red Alert: How China’s Growing Prosperity Threatens the American Way of Life, has passionately advised silver investors to accumulate the white metal along with the Chinese, who view silver as vital to Beijing’s plans for transforming the People’s Republic into a heavy user of alternative energy in the post-Peak Oil era.
According to Leeb, the Chinese are “frantic” about stockpiling silver, as alternative energy products such as windmills and solar panels cannot be manufactured without it. Silver is a “vital” commodity to the Chinese (and others seeking to wean off fossil fuels), according to Leeb.
There is no economically viable substitute for silver in applications that require the most efficient electrical conductivity and heat transfer properties.
Back to Anonymous, who said in the KWN Mar. 8 interview, “The Chinese are doing the exact same thing in the silver market that they are doing in the gold market, massive accumulation on dips.”
Whether the Chinese have suddenly pulled their buy orders below the $33 level (presumably to seek successful buy orders at lower prices), or not, Anonymous puts the silver trade into prospective for the long-term investor.
“As long as we stay under $34, there is going to be constant accumulation,” Anonymous continued. “What does it matter if you buy silver at $32 or $38, when it is going to go multiples higher from these levels? The Chinese know this and that is why they are accumulating in size.”
Leeb agreed, and stated in a Jan. 31 interview on KWN, “I think the outlook for silver, both as an industrial metal and certainly as a monetary metal, is as bright as it can possibly be. I’m sticking with my target of at least $100. But I tell you, Eric, it will happen this year. We are definitely headed for triple-digit silver in the not-too-distant future.”
Both Anonymous and Leeb recommend buying silver, monthly, weekly, or anytime cash becomes available. But the point is: keep buying on significant pullbacks.
Related ETFs: ProShares Ultra Silver (NYSEArca:AGQ), Sprott Physical Silver Trust ETF (NYSEArca:PSLV), ProShares UltraShort Silver (NYSEArca:ZSL), iShares Silver Trust (NYSEArca:SLV), SPDR Gold Trust (NYSEArca:GLD), ETFS Physical Silver Shares Trust (NYSEArca:SIVR).
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