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cbwang888 (25.84)

Calling the silver bottom @ $32

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8

May 12, 2011 – Comments (6) | RELATED TICKERS: SLV , GLD , UUP

Commodity crashing fears have spread over from silver, crude oil, metals, foods and energy. We finally saw a significant silver selloffs during Asian trading hours (-8% to $32.15)

Silver will challenge $50 once again later this year as USD index will resume downhill trend.

Reaction to the rise of USD first is selling commodities now. The main factors are weak euro (debts issue) and margin squeezing in the commodity future markets. Since CME asked for extra margin deposits in USD (not silver nor gold), that will cause USD to rise temporarily.

USD is now in the short term overbought situation.

US debts clock is still ticking to the limit and it is not going to stop ticking up if US exports (commodities?) slowdown ...

 

 

6 Comments – Post Your Own

#1) On May 12, 2011 at 10:16 AM, goldminingXpert (30.70) wrote:

Calling this *NOT* bottom on SLV. Thinking about calling the low in USD the other day a bottom, though I await more proof.

Rising USD will improve trade balance, not hurt it (less $-amount of oil imports).  

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#2) On May 12, 2011 at 10:49 AM, cbwang888 (25.84) wrote:

USD index @ 75.4

Silver @ 33.6

We will see

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#3) On May 12, 2011 at 12:38 PM, MegaEurope (22.68) wrote:

I wonder if your prediction will last as long as this one (less than 24 hours): http://caps.fool.com/Blogs/134955-youll-never-see-that/583383

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#4) On May 12, 2011 at 4:19 PM, rfaramir (30.46) wrote:

A bit bold to call a bottom so soon, though I hope you are right. Silver will definitely climb again this year, maybe above $50, too.

I really don't care about the USDX, as that only measures versus other fiat currencies. What kind of measuring stick is that? So we're going to hell in a handbasket slightly slower or faster than other doomed currencies; big deal.

gmx, 

Sinking our own ships full of our exports just as they get offshore "improves our trade balance," too. Read Bastiat. http://www.econlib.org/library/Bastiat/basEss13.html

Not that I'm against a strong dollar; in fact I'm for a gold dollar, as strong as they come. I'm against Bernanke's self-proclaimed commitment to a quote-unquote "strong dollar" policy that prints four billion more of them every day.

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#5) On May 13, 2011 at 8:43 AM, cbwang888 (25.84) wrote:

You can bank on rising PMs on Friday lately ...

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#6) On May 13, 2011 at 12:21 PM, goldminingXpert (30.70) wrote:

not this one... /YG down $20/oz today.

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