Something Substantial Has Just Changed In The Silver Market

銀價大升 ?

等睇戲吧 !

kingworldnews.com

On the heels of KWN receiving more reports that available retail silver products are disappearing from wholesaler and dealer inventories, acclaimed trader Dan Norcini told King World News that something substantial has also just changed in the paper silver market.  Here is what Norcini had to say:  “Most of the time shortages don’t mean there is not a lot of the commodity around, it just means there is not a lot of it available at that particular price.  In other words, silver is sitting out in the vaults of investors.  There are guys with 1,000 ounce bars, and quite frankly, they are not interested in selling that metal at prices down near $30.”

Dan Norcini continues:

“As a matter of fact, when we look at that weekly price chart now, Eric, 4 out of the last 5 weeks preceding this one the silver has dipped down to $30 or below $30, and it has encountered very substantial buying down at those levels.  The bears could not crack the market below that ($30 level).

What that means is if there is a demand for silver out there and it can’t be met by the available supply on the market, the price is going to have to go higher.  It’s going to have to get to a level where people where people who are holding these big bars are willing to relinquish it in size or part with their metal.”

Eric King:  “Dan, moving the price of silver from $30, to $32-$33 is not going to get rid of a shortage.  So they are going to have to move silver a lot higher, and that’s going to create that breakout you have been talking about in silver.”

Norcini: “That’s a good point, Eric.  Look at what’s happened in the platinum and palladium markets.  There was a legitimate shortage of platinum and palladium, particularly in palladium.  Palladium was a very strong price chart.  The price of that metal just surged higher, and the same thing now with platinum.  Platinum (recently) moved from $1,500 to $1,700.  The point here is these metals moved (significantly) higher because there was a genuine shortage out there.

As you said, if the price of silver is around $30, and you’ve got very strong demand down there, for the price to move $1 or $2, we’re not talking about enough of an incentive to satisfy that kind of demand.  And certainly not enough of an incentive to induce guys holding the metal in bar form to release it into the market.”  

Eric King:  “Dan, I think we are going to see a pretty big move in the price of silver.  If we do see that, what’s the breakout level?”

Norcini:  “Right around $31.50 this week was a big test.  When it went through $31.50, something changed in the (paper) silver market.  There is now a very real possibility, I would say a strong possibility, that silver is going to try to make a run up toward the $34 level.

If silver gets through $32.50, Eric, I think you could easily see silver put on (another) $2 very quickly and run up to $34.50.  If the supply shortage is real out there we are going to see it reflected in the price action, and that price action will happen sooner rather than later.  We will know if silver shoots up to $34.50 there is substantial truth to that (supply shortage).”