It's Official! Time to Bug Out!

Just had a very interesting phone call from a past business partner.  Now before I go into the content of this call, a little background.  This fellow, let's call him Al, is a very successful engineer with more than 55 years in the business.  He is involved in one of the last large areas where US manufacturing reins supreme, or at least did until now.  He is moving all assets off shore, including starting companies in China and Canada and shipping all future international work out of the US economy.  He was maintaining a US presence to participate in US infrastructure projects, but those have all evaporated.

On to the call.  Al is scared.  "This is it" he said.  Time to exit the US economy.   By the end of the summer, he expects to hold only minimal interest in the US converting as much fiat as possible to hard assets or investing the money in his cross border ventures.  Al is not a member of the financial elite, he is Atlas and he has shrugged.  Until now, the collapse of the US was just an academic thesis worthy of a strong hedge.   It is real and it is happening now.  Slow motion train wreck.  Buy physical on the dips, invest in strong companies real assets and help as many others as you can to understand the reality of our economic future.

We're BACKwardized! To the Moon!

http://www.zerohedge.com/article/silver-backwardation-doubles-overnight#comment-1215908

There it goes

Well as soon as I said it, the market proved me wrong.  Silver has now broken higher, pushing towards resistance just under 49.50.  Let's see if the momentum can push through to new highs.  If so, we're in uncharted territory and anything is possible.

Interesting

http://www.zerohedge.com/article/fmx-connect-morning-gold-fix-silver-warehouse-shenanigans-or-real-deal

Thursday Morning Dolldrums

Very little price action in the PM Markets overnight and I don't expect much movement through today.  We appear to be in a period of consolidation.  In the silver market, watching for a break first above 48.60 then 49.47 to confirm a new upside move.  Appear to be building support around 48.

The G's

Got em?

Gold
Grub
Goods
Guns

Silver is almost back to the previous high.  See what Asia can do overnight.

Did You Buy The Dip?

I did.  Just took delivery of physical purchased at 44.71 spot.  Go silver go!

Look for more volatility moving forward, wouldn't be surprised to see a return to the 45 mark near term but medium to long term still to the moon!

Physical: Risk on/ Risk off! Did you blink and miss the correction?

Just had an interesting conversation with a friend of mine who completed a grand tour of the local coin/bullion shops today.  He ran across two with no meaningful silver and one that wouldn't sell even at ridiculous premiums.  This is a stark contrast to Monday when the same store wouldn't buy at spot!  Fear and greed at work.  I guess that means greed on!  Correction over.  That is all.  I hope you BTFD!  I did  :)  There will most likely be another bottom this week, but we're bouncing along at support.  BUY and enjoy next week!

The Physical Factor

So everyone is piling into physical.  Coin shop inventory is bare (understatement), buillion is selling on ebay like it's $50 spot+ and APMEX is begging for eagles (not getting any if the rumors are true...  Duh!).  So, in a volatile market that is becoming less liquid by the second, have we reached a point where we have a truley split market.  I think yes.  A quick survey of online silver dealers and auction sites, inculding ebay (sorry), produced the following price data:

Average ASE (late mintage): $51
Silver round:                             $49
10 Oz Bar                                 $480
100 Oz Bar                               $4650

Those are some hefty premiums, and they're flying off the shelf!

Auction premiums are not following the daily dumps, so with the transaction time in the physical market being hours to days, the short term price action appears to be discounted. 

We have a clear bull market trend in physical with technical trading in the paper market.  The actions are clearly split.

Keep on stacking, no trend change in sight for now.  A break below 42.50 for the week might change my tune a bit.

Day One! The Correction?!

And the blog begins!

The silver market has been extremely volatile for the past 36 hours as expected.  The short term charts look like strong support is building around 44.84 with the next line of resistance around 44.20.  I burned some powder and BTD at 44.66 last night but am keeping some dry to average in if 44.66 fails.  Below 44.20, there is a gap to support at 42.50 at which point I'd go all in with an upside target around 50.

Also took the opportunity to aquire more physical at last nights dip bottom of 44.70.  Premiums from all dealers are climbing.  High retail such as APMEX has almost doubled their premiums on small size rounds.  Be careful out there and shop around.  Please post online vendors with low premiums here if you find them.

Waiting for the FED and subsequent stock market action to provide tells on several junior mining companies.  Looking for a good entry into some quality developed companies as well.