Home > Attention Silver Bugs: Get Back Into The Pool – NOW! (SLV, AGQ, ZSL, SIVR, PSLV, GLD)

Attention Silver Bugs: Get Back Into The Pool – NOW! (SLV, AGQ, ZSL, SIVR, PSLV, GLD)

March 26th, 2012

Dominique de Kevelioc de Bailleul:  Insiders to Fed Chairman Ben Bernanke’s speech, delivered at a gathering of the National Association of Business Economics, popped silver futures higher by more than 60 cents within minutes of the NY open on Monday.  In his speech, Bernanke has finally admitted that more QE is needed, and his needed excuse is: fight stubbornly high unemployment.

The recent alleged decline (see ShadowStats.com) in the unemployment rate reflects a “a reversal of the unusually large layoffs that occurred during late 2008 and over 2009,” he said to attendees in Arlington Virginia. “To the extent that this reversal has been completed, further significant improvements in the unemployment rate will likely require a more-rapid expansion of production and demand from consumers and businesses, a process that can be supported by continued accommodative policies.”   Get my next ALERT 100% FREE

“Continued accommodative policies!”  Translation: Attention silver bugs!  Get back into the pool—NOW!

While the FOMC is now stacked with nine doves to Bernanke’s 10-person committee, with Richmond Governor Jeffrey Lacker playing the sole bad cop in his role of providing the occasional head fake for those traders who don’t quite grasp the Fed’s communique con game, yet, there’s nothing stopping the Fed from its mission to monetize crushing levels of U.S. Treasury debt (save a long-shot Ron Paul win in November, of course).

To that point, on Friday, Gabelli & Company’s Caesar Bryan warned precious metals investors of the Fed’s ability (and a complicit media) to sway sentiment among the uninformed momentum traders who routinely push the silver market to massive extremes on the way up and on the way down.

“What we’ve seen is some optimism surrounding the U.S. economy,” Bryan told King World News. “This has led to people now thinking that the Federal Reserve can stop expanding their balance sheet and indeed begin to withdrawal some of their stimulus.

“So there’s been a pretty big change [due to Fed and media propaganda] in the last six weeks. However, I think it’s important for investors to understand these mood swings can be pretty quick and violent.”

Bryan goes on to tell KWN that, though the Fed talks a tough game, it cannot stop expanding its balance sheet without imploding the entire global financial system—a point still not grasped by the majority of investors holding sovereign and corporate debt as well as money market accounts.

“There is real pressure for the central bank to continue to buy at the long end of the bond market to prevent long-term interest rates from rising,” Bryan said. “So don’t be surprised in the next couple of months when psychology shifts back to people thinking the Fed will remain active.”

In retrospect, those “next couple of months,” according to Bryan, turned out to be only a couple of days.

But if investors can take to heart 50-year veteran Jim Sinclair’s macro outlook for gold (by extension, silver), long and drawn-out declines in the silver price provide excellent entry points for newcomers and accumulators, or ‘stackers’.

According to Sinclair, the Fed had already set course to monetize debt and devalue the US dollar following the collapse of Lehman Brothers in 2009, no matter what Bernanke may say about unemployment, the economy or anything else.

Moreover, geopolitical considerations regarding Iran and the White House’s decision to cut Iran from SWIFT only serves to hasten the dollar’s decline.

On Saturday, Sinclair posted on his Web site JSMineset.com:

The major financial weakness in the U.S. is the level of the U.S. dollar due to sundering use in international contract settlement [accelerated by cutting Iran from SWIFT], the clear and present trend of substituting both the Yuan and Euro as international settlement currencies, and the lack of true economic buyers in the U.S. long bond market.

History will record this decision at this time as a major factor in the final move to financial unwind in the West.

The letdown of the housing report today does not support the majority view that the U.S. is gaining take off speed economically. It is not. It will not and QE will go to infinity, about that there is no question. [Emphasis added]

Of course there’s no question about QE-to-infinity, as Sinclair has suggested all along; the question really is, who will be blamed for the roaring consumer price hikes to come? The Fed or Iran and speculators?

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).

By Dominique de Kevelioc de Bailleul From Beacon Equity Research

BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap  stocks, emerging technology stocks, hot penny stocksand helping investors make informed decisions. Our focus is primarily OTC stocks in the stock  market today, which have traditionally been shunned by Wall Street.  We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.



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  1. March 28th, 2012 at 00:29 | #1

    Silver has drawn the attention of many influential people over the years. There was Lord Irwin, British Viceroy of India, who started dumping Indian silver on world markets in 1928, causing the Great Depression by wiping out the buying power of the entire Far East. There was Henry Morgenthau Treasury Secretary who during his tenure sucked over 565MOZ silver out of China; Secretary of State Henry Stimson and British Chancellor of the Exchequer Neville Chamberlain who both blocked an international conference on silver; Franklin Roosevelt who seized silver from Americans on Aug 9, 1934; Treasury Secretary Andrew Mellon who refused to make a $14 million purchase from US miners under the Pittman Act of 1918, and Supreme Court justice William Taft who upheld Mellon; Edward Stettinius Secretary of State who pioneered silver leasing in WW2 with 88MOZ; Glenn Seaborg who as head of the Atomic Energy Commission got 65MOZ silver to play with (still unaccounted for); Douglas Dillon Treasury Secretary and LBJ who took us off silver coins; William Simon who played a major role in crushing the Hunt/Arab silver play; Paul Volcker who wrenched 59MOZ silver from the Hunts by 1986; Edmund L. DeRothschild, whose son in law heads the Barclays organization and its silver dealings with Buffet, and many others. What’s the most important thing about all these men? They were/are members of something you never heard of—”The Pilgrims Society,” which exists as “a secret society gradually absorbing the wealth of the world.” INVESTIGATE this before “deciding” its just a fish story http://www.silverstealers.net (The documentary refused coverage by GATA, King World News and Gold Eagle!)

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