What's Next For Silver?
In that respect, it is irrelevant whether silver had just advanced by 10% or 1,000%. If we are "out of silver," the price is going much, much higher. Silver investors should not necessarily expect the same "smooth ride" we saw when silver rocketed from $20 to $30/oz (the first time). That part of the previous chart-pattern has been completed.
In fact, no one can say with certainty how silver will behave in the near future -- with the exception of concluding that the price will not make any significant move lower. Indeed, we see signs of inventory "stress" all over -- aggravated by the endless inventory-fraud perpetuated by those reporting this data.
Not only are bullion-dealers having difficulties keeping any stock available for buyers, but even the U.S. government itself is desperately looking for ways to weasel out of making silver available for its own citizens. First there was the announcement by the Obama regime (and reported by GATA) that it was seeking to repeal the law which requires the U.S. mint to produce enough minted coins to "meet demand."
With the general public in North America just beginning to catch-on to the value and scarcity of silver, demand can only go higher, and government mints around the world have struggled to keep pace with demand even prior to this latest spike in interest. Thus, the U.S. government just made a second announcement today: it is delaying the release of a brand-new series of commemorative silver coins dubbed the "America the Beautiful" series.Given that the government had instructed official dealers to gouge Americans for these coins -- by adding a $9/coin "premium" to the price -- the "official" reason for delaying the release is that "prices are too high." Yes, delay the release today because prices are too high -- and wait instead until silver is $40/oz or $50/oz. That makes sense. From silver analysts to silver mining executives, anecdotal reports are rolling in that even "industrial" users of silver are having greater and difficulties in locating available stock for their businesses. More alarmingly (from the perspective of massive silver-shorts like JP Morgan), following their latest attack on the silver market, buyers responded to the "sale" on silver by holding out their hands and asking for "delivery" of roughly ¾ of total Comex inventories. For the moment, we can expect that silver-buyers will allow themselves to be bought off with paper "bribes."
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