Since my last video update, the silver price has consolidated to a lower
level. While I wasn’t surprised to see silver continue to correct, I do
believe its only temporary before it begins a new leg higher. And, if
we look at the COT Report for silver, there are some positive signs going
forward.
But, before I provide a preview on my newest video update,Silver
Price Update & End Of A Silver Mining Era, I wanted to
clarify my position on “technical analysis.” There seems to be a large
group of precious metals investors that have a negative KNEE-JERK reaction
when I post some charts on technical analysis. They say its a waste of
time to consider technical analysis when the market is rigged or controlled
by the bullion banks (JP Morgan), the Fed and central banks.
While new and long-term followers are free to post any comments
they desire about the pros or cons of technical analysis, my reason for doing
so is to show what TRADERS ARE LOOKING AT and what they expect going forward. Traders,
hedge funds and large institutions all study and follow technical
analysis. Right now, they are the leading drivers of the silver price.
However, technical analysis patterns will not provide the ultimate
FUNDAMENTAL VALUE for silver when the Fed and Central Banks lose control of
the Fiat Monetary system and economy. Yes… at that point, technical
analysis won’t matter. BUT, we aren’t there yet.
So, instead of precious metals investors becoming frustrated because they
believe the silver price should only go IN ONE DIRECTION… UP, I am just
showing how silver trades in the current system. Thus, if it falls back
down to a certain key technical level before moving higher, you CAN TAKE IT
OR LEAVE IT. It’s that simple. However, some individuals might be
savvy enough to trade precious metals and make good money doing it.
Good for them. I see no problem whatsoever with individuals profiting
off precious metals trading.
What I am trying to say is quite simple. I don’t need to be told
that technical analysis doesn’t work in a rigged market. We must remember,
if EVERYTHING is being manipulated, then it becomes a moot point to repeat it
over and over again.
On the other hand, I challenge anyone who says that technical
analysis is worthless, then why have Gold and Silver bottomed very close to
their cost of production? For all of those Bix Weir Aficionados
who agree with him that the Fed and Central Banks can push the price of gold
and silver anywhere they please… then why hasn’t the price fallen
considerably below their COST OF PRODUCTION? The detractors don’t seem
to provide a good alternative answer.
Regardless… I will continue to provide some technical analysis to show
short-term price forecasts for gold and silver. If you want to ignore
it, fine, but I already understand why many of you believe technical analysis
is worthless. Thanks… YOU HAVE SAID IT.
Okay then. In my newest video, I show where I believe the silver
price may correct down to before its NEXT LEG higher. In a few weeks or
month, I will do another update to see if my technical analysis was accurate
or not.
At the latter part of the video, I do a preview on the End of the Silver
Mining Era and what that means going forward for the silver market and
price. I don’t believe many precious metals investors realize just how
important the mining of gold and silver were in the development of countless
numbers of western towns in the United States. Yes, it’s true that
there are plenty of ex-mining Ghost towns that dot the landscape, but many
have become very large cities today due to the mining of gold and silver.
And one such town in the west was responsible for the largest silver
nugget ever to be mined in the world (according to written records):
A single silver nugget weighing 1,840 pounds came from the Smuggler Mine
in 1894. Supposedly, the original nugget was even larger but had to be
broken in pieces to be removed from the mine. According to the
historical data, the silver nugget was 93% pure silver. So, if we do a
bit of simple math, that nugget’s ore grade was approximately 27,000 oz of
silver per ton. The largest primary silver miners today are
producing silver at about 10-12 oz per ton.
In doing some of the historical research, it wasn’t out of the
ordinary for ores in different parts of these silver mines to average 50 oz
per ton, and even higher. I have seen many historical accounts showing
more than 200 oz of silver per ton. Which is why the population
of many of these early mining towns grow from hundreds to 10,000-20,000 in a
decade or less.
The End of The Early Silver Mining Era came right at the time the world
ramped up oil production. Without rising oil production, the production
of silver (and gold) would have declined considerably as the world would have
eventually run out of supply from high-grade mines.
Today, the world seems to have taken oil for granted. There are
thousands of energy workers in each barrel of oil. Thus, the silver
mining industry today would produce a fraction of the global silver without
oil. In my upcoming video, I provide some very interesting data and
information on tens of thousands of extra workers PER SILVER MINE would be
needed if oil was removed from the picture.
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