Max Keiser : Silver is my second largest holding, just behind gold. I am projecting that silver rises to about $100 per ounce over the next 18 months.

“Silver is my second largest holding, just behind gold. I am projecting that silver rises to about $100 per ounce over the next 18 months.”

Gold: Ready, Set, Go!
Morris Hubbartt
Weekly Market Update Excerpt
posted Apr 13, 2012
UUP (US Dollar Proxy) Volume Chart
A strong dollar rally? Sorry, but that’s not likely to happen.
The latest unemployment report released last Friday was a complete disaster. The US now has 88 million people outside the workforce. This is about one quarter of the entire American population. It is a number that will continue to plague debt, deficits, and the value of the dollar.
Some private surveys suggest the permanent unemployment rate is now above 20%.

I continue to be a strong advocate of removing money from the banking system. Gold & silver bullion are the best vehicles to achieve this goal.
Note the enormous head & shoulders top pattern on this dollar proxy chart. When an h&s top is near completion, the volume can taper off significantly after a lot of distribution, and that is clearly happening now.
The UUP dollar proxy fund is sitting right on the neckline now and a breakdown appears imminent. Commercial traders have built a massive long position in the euro currency. They are also carrying a large short position in US dollar futures. The biggest traders are clearly very negative on the dollar.
I expect the dollar to begin a rapid decline within months, and the h&s top pattern suggests it could happen within days. A move down to $21.10 on the above chart is about 10%. I think this phase of the dollar bear market will see the dollar decline by 20% or more.
Gold 2012 Roadmap Chart
There has been a substantial battle going on in the gold market, and finally the bulls are starting to overpower the bears. Highly leveraged traders have been knocked out of their positions in recent weeks, as volatility has dominated the precious metals markets.
My technical analysis continues to indicate that the gold market is ready for an explosive rally. I am going to do another COT & gold stock video analysis this week-end for the general gold community. I expect that tonight’s COT report could be a complete game-changer for the gold market. If you’d like to receive the two-part video, please send me an email at trading@superforcesignals.com and I’ll send it to you. Thank-you.
There were two sharp moves to the upside this week, and it feels to me that the tone of the gold market has changed. If you look at the roadmap chart above, you can see that a clear pullback to the wedge pattern occurred.
The gold price is now rising up from that wedge. I believe a very powerful move has just begun. My projected rise to $1850 could happen very quickly if the dollar breaks down from the top pattern in the manner that I anticipate it will.
Also, please note the 3 bands of active commercial buying highlighted in blue. Historically, this type of relentless buying has been followed by much higher prices.
The statements made by William Dudley of the New York Federal Reserve yesterday came right on the heels of a terrible unemployment report, and he is clearly advocating more quantitative easing.
If it happens, QE3 could cause a huge surge in the gold price. The gold market is set up right now like a race car on the starting line, and it feels like the New York Fed is saying, “Ready, Set, Go!”.
GDX Set-Up Chart
I have issued a capitulation alert for gold stocks. A move by GDX to the small gap $48.35 was what I was looking for, and GDX rose to $48.33 yesterday. From here, there may be one sharp move lower, but the odds of that possibility are fading quickly.
Pieces continue to fall into place for a major advance in gold stocks. These quality money-making stocks are tremendously undervalued. Sentiment continues to indicate the bottom is very close, or already achieved. It may require one quick punch lower. The smartest way to play the current market is to be prepared for either outcome.
I will be offering a follow-up video in the next few days to assess the possibility of the capitulation alert.
GDXJ Double Bottom Chart
I have mentioned in recent weeks that GDXJ is my favorite asset class of the gold sector now, just as silver was late last year. At this point the gold juniors are down about 40% from the highs of last summer. I recently issued a trading buy signal at $22.82.
The washout day at $22.01 came on excellent volume. Yesterday was another high-volume day.
Note the gap in the $26-26.50 area. That’s my first price target, but I think that GDXJ will quickly rise to $30 and then to $38, quickly making the current price area nothing but an ancient memory.
Silver Flag Chart
Silver is my second largest holding, just behind gold. I am projecting that silver rises to about $100 per ounce over the next 18 months.
Note the MACD indicator at the bottom of the chart. My shorter term oscillators indicate that MACD is consolidating here near the zero line. It’s likely pausing before continuing what I believe is a powerful uptrend.
I see the action of the commercial traders in gold as very bullish, but even more bullish in silver.
The volume pattern that is developing is incredibly bullish. Note how the volume rose on the latest rally, after declining for most of the correction. The latest decline from about $37 comes on declining volume. I think the silver price is poised for an explosive move to the upside on rapidly expanding volume!

 

http://maxkeiser.com/2012/04/13/silver-is-my-second-largest-holding-just-behind-gold-i-am-projecting-that-silver-rises-to-about-100-per-ounce-over-the-next-18-months/

JP Morgan Silver Manipulation

Allow me to bring you up to date on what you need to know about JP Morgan's manipulation of the silver market.
It is being exposed, and JP Morgan is failing, and losing money on their scheme. 
On April 5th, we were given the gift of JP Morgan's Blythe Masters giving a TV interview on CNBC where she was trying to claim that JP Morgan does not hold any position in the silver market, but rather, is hedging client long positions in silver. 
Blythe says, "We store significant amounts of commodities, for instance silver, on behalf of customers. We operate vaults in New York City, in Singapore and in London. Often when customers have that metal stored in our facilities they hedge it on a forward basis through JPMorgan, which in turn hedges in the commodities market," she said.
"If you see only the hedges and our activity in the futures market but you aren't aware of the underlying client position that we're hedging, then it would suggest inaccurately that we're running a large directional position," she added. "In fact that's not the case at all. We have offsetting positions. We have no stake in whether prices rise or decline."
The article and TV interview are here:
JPMorgan Not Speculating on Commodities: Blythe Masters
http://www.cnbc.com/id/46969993

Note the phrase: "the underlying client position that we're hedging."

Excuse me, my instinct tells me that clients don't want their long silver positions hedged, or sold short.  Why would a client with a long silver position want the bank to create an offsetting short position for the client?  If you buy stock or shares in a company, do you want your brokerage firm to short the company you just bought to "protect" you from upside gains?  This explanation makes no sense.  A client with such a long and short position would also have to pay storage fees on the long silver position, and then lose all of any upside gains due to the short position.  It makes no sense, in the way that Blythe is trying to get us to understand the words she is using.
As I understand things, JP Morgan (and many other banks, but mostly JP Morgan) has many clients who want to be long silver, in the OTC or "Over The Counter" market and LBMA market, up to perhaps $100 billion to $200 billion worth of "silver" in "accounts".  But JP Morgan (and other western banks) never went out and bought this silver in the first place, because there does not exist $100 billion to $200 billion worth of silver to buy in a world that produces and mines only about $6 billion (at $10/oz.) to $21 billion (at $30/oz) worth of silver per year.  This puts JP Morgan (and other banks) in a natural short position, as they owe their clients 10-20 times more silver than the world produces annually.  JP Morgan thus has this massive natural silver short exposure.  To protect the bank from the silver short position, JP Morgan must cap silver prices, by shorting silver on the COMEX, where prices are set.  Otherwise, as silver prices rise, the bank loses more and more on the silver they are supposedly holding for their clients.  Only in that sense, does JP Morgan have "offsetting positions"; in other words, shorts on COMEX to back up or shore up JP Morgan's other losing short positions (client long positions)!
JP Morgan cannot offset such OTC positions in the OTC market.  Except, in the sense I just explained, every single additional "sale" of silver in the OTC market protects and hedges every other sale, as all sales of "silver" in "accounts" to customers have the cumulative effect of preventing people from buying and taking delivery of real physical silver which would drive the silver price up.
The key reason why the London LBMA and OTC silver selling is so successful is that nobody ever asks for delivery of the silver, because there is a 20% tax on silver delivery in London.  See here:  http://en.wikipedia.org/wiki/Silver_as_an_investment#Taxation
There were two good commentaries on JP Morgan's Blythe Masters TV appearance, here:
Mike Maloney breaks down Price Manipulation in the Gold and Silver Market
http://rt.com/programs/capital-account/maloney-manipulation-gold-silver/
The Russia Today TV show is 27 minutes long, and begins with Jeff Christians shocking admission at the CFTC hearings that the silver market trades 100 times as much silver as really exists to back up all the positions and trades.
JPM’s TV Appearance
http://www.silverseek.com/commentary/jpm%E2%80%99s-tv-appearance
JP Morgan first admitted having (or trying or wanting to cover) a short position in silver back in December 2010, about a year and 5 months ago.  This was reported by the Financial times, and by Barron's, and others.
JPMorgan cuts back on US silver futures
http://www.ft.com/cms/s/0/7d699ca4-06ea-11e0-8c29-00144feabdc0.html#axzz182HTfhCl
Report: J.P. Morgan Cutting Back Big Bets Against Silver
http://blogs.barrons.com/focusonfunds/2010/12/14/report-jp-morgan-cutting-back-big-bets-against-silver/?mod=rss_BOLBlog
What's excellent today is the comparison of today's explanation to JP Morgan's lie from a year and 5 months ago.  Back then, JP Morgan was trying to claim they were closing out, or had closed out, their short positions in silver.  Today, a year and 5 months later, they supposedly have this rational excuse that their firm's short positions in silver exist to offset other client long positions.  Both explanations are lies, obviously.  What I like about the lie of "offsetting client long positions" is that it is a lie disguised by the truth.  The truth is that they do have client long positions that would likely bankrupt the bank if they filled those positions and tried to buy silver that does not exist, and to hedge that exposure, they must manipulate the silver market's prices lower.  Thus, the current lie is sort of like an admission of the truth, but they are being very deceptive and tricky about how they present it.  The best kind of lie is simply a distorted version of the truth, of course.
The New York Post exposed JP Morgan's manipulation of the silver market back in May, 2010, when they exposed an ongoing investigation by the CFTC AND the US Department of Justice into JP Morgan's silver trading.
Feds probing JP Morgan trades in silver pit
http://www.nypost.com/p/news/business/feds_probing_jpmorgan_trades_in_gZzMvWBqOJpB55M7Rh9vwM
That article came out a month after my complaint to the US Justice Department in April, 2010, a month earlier.
http://silverstockreport.com/2010/doj.html
My readers told me they wrote to the US Department of Justice about silver manipulation, without mentioning any company names, and the US Department of Justice sent back form letters saying they were looking into JP Morgan's activities in silver, mentioning JP Morgan by name!
So, what about my claim of the size of those OTC silver positions being in the range of $100 billion to $200 billion, which are far larger than the silver that trades on the COMEX? 
Well, those are not my claims, but rather, those are numbers produced by the BIS, the Bank of International Settlements.  I have repeatedly reported on these figures here:
BIS Changed Silver Data
(From $203 to $93 Billion in Silver Liabilities?)
by Jason Hommel, July 6th, 2011
http://silverstockreport.com/2011/BIS-DATA.html
Silver News Explodes; JP Morgan Admits Guilt!
(JP Morgan admits they are short silver!)
by Jason Hommel, December 15th, 2010
http://silverstockreport.com/2010/jp-morgan-silver-short.html
BIS Admits $190 Billion Silver Fraud
(Almost, if you know where to look!)
by Jason Hommel, April 6th, 2009
http://silverstockreport.com/2009/OTC-silver-fraud.html

The discrepancy or change in the BIS data from $203 Billion of "Other Precious Metals" (in other words, silver) down to $93 billion is still being reported at the BIS website.
From the 2010, June report: $203 billion for the June, 2009 period.
http://www.bis.org/publ/qtrpdf/r_qa1006.pdf
From the 2010, December report: $93 billion for the June, 2009 period.
http://www.bis.org/publ/qtrpdf/r_qa1012.pdf
See Table 22a, Amounts outstanding of OTC equity-linked and commodity derivatives, in the category of "Other Precious Metals".  Scroll down about 90% into the pdf documents.
This BIS data is the smoking gun of manipulation in the silver market.
There is no way that the big banks can increase OTC shorts by $100 billion in silver in 6 months, when the world barely produces $15 billion of silver per year, without the silver price going bananas to the upside, unless this kind of silver derivatives exposure is silver that is owed to clients, which is essentially a naked short position, or silver that was "bought" by the customers, but never purchased by the banks in the open market, purposefully and maliciously and with the specific intent to prevent the silver price from running away to the upside, and to keep the fraud of the paper dollar going as long as possible.  This is really revealing the fraud of the multi trillion dollar paper money scam that the world has going.
There is no reason to disbelieve the BIS numbers when the banks accidentally reveal data that condemns them, and exposes the silver short selling fraud; and every reason to suspect bad faith and nefarious intent when they later edit the data at a key time, Dec. 2010, when JP Morgan is being investigated by two arms of the US Government.
JP Morgan first took on this silver short position when silver was about $20/oz.  Later, the silver price was manipulated down to $9/oz.  Today, with silver at about $32, we can see that the manipulation game is failing.
All frauds eventually fail completely.  This one will, too.  In the end, holding silver in accounts with large banks will not help you.  You need real silver in your own real vault that you have personally lifted and stored away.  Any other kind of silver that others hold for you is likely fraud, and will not protect you in the event of the collapse of the dollar or the collapse of the financial system or the collapse of your brokerage company.
By the time this fraud is exposed fully, and by the time a mere 1% of people or money in America starts buying silver, such as only about $180 billion in the banking system, the silver price will exceed $500/oz. and large firms such as JP Morgan will either be bankrupt, or they will be bailed out to the tune of trillions to keep the financial system together, which will create further inflation that will drive 2% of people into silver, and create the very runaway metals market that will just not stop until all paper money and paper accounts are destroyed for generations.

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I strongly advise you to take possession of real gold and silver, at anywhere near today's prices, while you still can.   The fundamentals indicate rising prices for decades to come, and a major price spike can happen at any time.


http://silverstockreport.com/2012/morgan-silver-manipulation.html


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