By Jeff Nielson of
NEW YORK (
TheStreet) -- Back in September (with silver at $21/oz), I wrote a piece titled
Thanks to a rude interruption when the banker-cabal launched one of their
As I observed in that earlier commentary, this recent spike by silver duplicates a chart-pattern which had already had two previous cycles. After both of those sharp spikes, silver suffered wicked selloffs, thus those following that previous analysis may now be worried that history is about to repeat.
There are two very good reasons why silver bulls should have no fears of the previous pattern continuing to play out. To begin with, the last crash in silver -- which began at the end of the summer of 2008 -- was by no means a "natural" reaction of the market to the spike in the price of silver. Rather, as I have written often before, the "Crash of '08" was a Wall Street/U.S. government "joint effort."Wall Street was desperate to hide the fact that it, and it alone was "going down" with the crash in the U.S. housing sector, and overall economy. Meanwhile, the U.S. government had its own motive for engineering a commodities crash: postponing hyperinflation. Had that massive manipulation/intervention not taken place, there would have been no "crash" in the price of silver -- despite the sharp run-up. How can I be certain of this? This brings me to my second reason for believing there will be no crash in silver following this spike: there isn't any more silver. No, I'm not claiming that the entire crust of the earth has been scraped clean of silver. It's the "above ground" silver (i.e. global stockpiles) which has been exhausted. There hasn't been this little available silver in the world for thousands of years.