A little somethin' from Norcini....what we are witnessing in the silver market is chicken feed at best. We're only at 1/6th of the inflation adjusted price of the all time high....what a safe haven magnet!

BD1

"Please examine the following two charts.

The first is a silver inflation adjusted chart using the government’s CPI numbers. The second is of the gold/silver ratio. When the ratio is increasing, gold is outperforming silver. When the ratio is declining, silver is outperforming gold. You can see that lately silver has been outperforming gold due to a combination of investment fund money pouring into the grey metal which has also generated quite a significant short squeeze until today’s price action. The reason that so much money is pouring into silver can be seen by referring to the first chart of inflation adjusted silver. Even after it’s very impressive move of the last few weeks, silver is six times cheaper than its all time record high on an inflation adjusted basis. It would have to exceed $130 to match the 1980 spike high in real terms.

You have already seen the inflation adjusted gold chart which shows gold less than half of its all time high in real terms and platinum which has exceeded its all time inflation adjusted high. When one considers those two metals and then looks at silver, it is no small wonder that the giant commodity index funds are moving into silver in a big way. Keep this in mind when someone yells that silver is overpriced.

By the way, this is primarily intended for investors or traders with a longer term view of the metal. Traders who are short term oriented will have to play with what the silver market gives them on a day to day or week to week basis. The recent break in price from a 28 year high in silver let the trapped shorts off the hook just as a commercial signal failure appeared imminent. They appear to have dodged a bullet for now but prior to the break, many a silver short was probably ruined forever when it comes to trading. It is without a doubt one of the most unforgiving futures markets around and has claimed more than a few neophyte traders and even some supposed “expert” ones."

http://www.jsmineset.com/cwsimages/M...

http://www.jsmineset.com/cwsimages/M...