Bear's Lair

Bear Markets always follow Bull markets and a severe stock market correction is long overdue. Bears Lair will spot, monitor and analyze the stock market correction as it develops.

 

Although silver got smashed this month the real story is in gold.

First thanks to StockCharts.com for the following charts…

I recently had cause to recall the fact that my Professor of International Finance gave me a "courtesy" pass mark for his course (in 1970/1) because I was stupid/arrogant enough to argue that the gold price would rise above $35/ou

The first article on silver ever published on the internet by Silver Investor was titled "S

One of the main ideas of investing in precious metals is to take physical delivery of your purchase.

** This article first appeared in the September issue of The Bull & Bear Financial Report, website www.TheBullandBear.com.

Should the silver price break above $5.50/ounce, the measured move target derived from the following Point and Figure chart is $7 - $8 / ounce.
(Source: StockCharts.com)

Open Interest as reflected on the COMEX weekly chart on August 8th is now 550 million ounces (see below), with Commercials having a net open short position of 352 million ounces as at August 5th.

This article provides a final "in-depth" assessment of Silver and Silver related equities as investment opportunities over the coming years.

Our reasons for focussing so closely on Silver at the current time are threefold:

There have been two very interesting developments in the past week:


1. Silver’s Daily Open Interest on Comex dropped to almost zero (See red line at bottom of chart)

Nearly three years ago, I wrote an article for the public called "Silver to Zero." The basic premise of that piece, published on October 20, 2000

A comparison of the Long Term Silver and Gold markets yields some interesting observations. Both charts are up to date to end April 2003.

I asked the question in my last silver futures report back in March, "When will this correction finally end?" I answered by pointing out that the silver chart suggested the correction should be over soon week as the latest 12-week

On a 12-mth basis the price performance of silver has lagged gold with a 1.5% increase, whilst gold has managed a subdued 8% rise.

The current price action in the precious metals markets have excited the gold bulls, recently we watched as gold touched the $390 per ounce level

To understand what is happening in the gold and silver markets, it is necessary to understand the rules by which the game is being played.


There appear to be four "teams" of players, as follows:

Gold tends to out-perform silver during those periods when confidence in the US$ is falling and/or the US economy is weak.

While the past month has been an extremely active and eventful one for the gold market, the "other" metal has been shunned by comparison.

It's a fact. Gold investors believe in gold under any economic condition, but they aren't so sure about silver.

So far, I can get it for my clients. The Mint is supposedly out, as are the US reserves. China supposedly inserted 61 million ounces into the market last year, but that is hardly enough to satisfy the demand.

In our last silver update dated Sept.

One common complaint from those wishing attain leverage to a rising silver price has been the lack of viable investment opportunities in Australia.

Gracing the front page of the "Australian" on Saturday was the sensational headline, "Housing Bubble Ready to Burst".

Let start the interview

A potentially profitable speculator's play is developing in the stock of Silverado Gold (SLGLF), a low-priced mining share that we've been able to profit from several times in the past few months.

A silver sling-shot set-up

September 16, 2002

In a recent silver market report we noted that September silver futures were coming up on an important test of a major supporting floor.

In our last silver market report we noted that September silver futures were coming up on an important test of a major supporting floor.

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