Silver Heading to $80 an Ounce
Greg McCoach Explains What's Next for Gold and Silver
Gold and silver prices showed big volatility in both directions over the past week, indicating we may be ready to run to the next new highs.
After a big run-up in prices earlier last week, gold and silver were hammered on February 29th after manipulative comments from Federal Reserve Chairman Ben Bernanke.
It should come as no surprise that Big Ben would run to the rescue of the gold and silver shorts, trying to stem the tide of higher metals prices...
“Helicopter Ben” made comments last week trying to insinuate diminished prospects for a third round of quantitative easing. This testimony is supposed to make us believe QE3 is a figment of people’s imaginations.
But wait a minute — haven’t we heard this all before when we were told QE2 would never happen?
I think we’re having a déjà vu moment!
We already know how this drill goes...
In my opinion, this is just another short-term manipulative move that will wear off quickly.
What this says to me is that we are now ready to move to the next new highs, which could come rather quickly as the showdown in Europe is about to unfold in the next two weeks...
Put yourself in the shoes of these bankster and government jackals: They are caught every which way with absurd and imploding debts that can’t possibly be paid back.
Their attempts at kicking the can down the road at this point are a complete joke, and the only tools they have to survive in the short term are QE to infinity, lying, cheating, deceiving, and criminal behavior.
I fully expect governments and banksters to use and implement these tools with reckless abandon until they collapse.
I wish I could give you a time frame, but I don’t have a crystal ball...
One thing I did see in the news recently was the fact that the state of Wyoming announced contingency plans for a collapse of the U.S. Government!
Yes, you read that right. In case you didn’t see this in the mainstream news media, you can check it out here.
This move in silver last week was of particular note, and I think it sheds important insight on what to expect in the next run-up in metals prices...
Silver hit a five-month high at $37.21 an ounce after busting through tough resistance at $35.
This strong move is, in my opinion, a precursor to what is coming in silver prices.
The bust-out move was attributed to a surge in “massive fund buying” and to “panic” short covering.
Some of the bullion banks with large concentrated short positions covered their short positions after the technical level of $35.50/oz was breached easily.
This is why Big Ben had to come to the rescue and use his scheduled Humphrey Hawkins testimony before Congress as a platform to keep the lid on silver for now.
These minions of low character are so predictable!
Massive liquidity injections from QE3 and ultra-loose monetary policies make silver increasingly attractive for hedge funds, institutions, and investors — thus the need for bad boy Ben to say something to the contrary.
I am absolutely convinced that silver is getting ready to make a very big move. You must keep in mind that silver remains more than 30% below its record nominal high 32 years ago in 1980 — and more than 75% below its inflation adjusted high of $140/oz in 1980.
In comparison, gold already passed its old nominal high of $879 several years ago, which means to me that silver is getting ready to play catch-up in a big way...
This is why I have been saying in interviews that we could easily see a $60, $70, or even an $80 silver price in the near future.
The right silver mining stocks would go ballistic as this happens.
And speaking of Ben Bernanke, did anyone catch who was grilling him at his Congressional testimony?
There was a very tense exchange between Congressman Ron Paul and the head of the Federal Reserve that is worth seeing...
Join Wealth Daily today for FREE. We''ll keep you on top of all the hottest investment ideas before they hit Wall Street. Become a member today, and get our latest free report: "3 Gold Stocks to Invest In Today as Gold Prices Continue to Rise"
It contains full details on something incredibly important that''s unfolding and affecting how gold is classified as an investment..
In a scathing opening statement, Paul went on the offensive against the Fed:
“What we are witnessing today is the end stages of a grand experiment,” Paul said, adding that the Fed’s control over the nation’s money supply has directly caused economic bubbles and all but destroyed the purchasing power of the dollar.
Noting that the Fed will soon end because it is facilitating too much debt, the Congressman added, "I’m anxiously waiting for this day... Reform has to come.”
Turning his attention to Bernanke, Paul asked the Fed Chairman whether he did his own grocery shopping. A somewhat bemused Bernanke replied in the affirmative, to which Paul hit back, “OK. So you’re aware of the prices,” before commenting on government denial of real levels of inflation.
“This argument of prices going up two percent, nobody believes it,” Paul said. “The old CPI says prices are going up at nine percent.”
“People on fixed incomes, they are really hurting. The middle class is really hurting. Because their inflation rate is very much higher than the government tries to tell them, and that’s why they lose trust in government.”
“You say inflation is about 2%, I say 9%, let’s just call it 5%,” Paul told Bernanke.
“That inflation is taking money away from the people... Someone is stealing wealth and this is very upsetting...”
The Congressman then pulled out a silver eagle, explaining that it has retained its real worth and that hard assets should be used as currency as outlined in the Constitution.
Telling Bernanke that in 2006, when he took over at the Fed, an ounce of silver bought about 4 gallons of gas, where as today it will buy 11 gallons. “That’s preservation of value,” said Paul.
Paul called for a competing currency to the dollar, stating that the laws should be changed to allow precious metals to settle contract disputes and other legal obligations.
Bernanke addressed Paul by jokingly saying, “good to see you again, Congressman,” before somewhat derisively saying he would be happy to consider the Congressman’s ideas and help him work out what currencies to hold.
Paul hit back by saying the government goes after those who attempt to use gold and silver as alternatives to depreciating Federal Reserve notes as if they are criminals, telling Bernanke: “the record of what you’ve done is destroy the currency.”
It’s a shame most American’s can’t figure this out...
Oh well, it is what it is.
Summing It Up
The bottom line to all these shenanigans is that gold and silver prices are going higher.
Therefore, the need to own the physical metals and take delivery of them — along with owning the shares of companies that are building or already have ounces of gold and silver on their books — is paramount.
The best of class precious metals juniors are waking up and moving higher, particularly the silver companies in the last week or so.
We have been given some keen insight as to what is up next — before the Ben Bernanke Show put us on pause.
Our bullion markets will remain volatile, but they will push for new highs in the not-too-distant future... taking the juniors along for the ride.