Are We Seeing The Build Up Of A Massive Spike In Silver Prices

[soldintime]

I clearly believe the general public is now starting to be aware of Silver and prices are in the rocket launch territory. Can't believe a 5% rise in 1 day. The spike will be followed by a massive drop. Beware!

PRECIOUS-Silver surges 5 pct on dollar, gold at record

[Errol]

Should be a drop soon, but longer term price is going to $100s an ounce (probably around $500).

[Ruffneck]

im not worried , i bought all my silver (total 105 ounces) below 40 , alot of it below 25.

im going to hold off buying silver for a few months till the price eases off a little

Edited April 25, 2011 by Ruffneck

[MrFlibble]

Should be a drop soon, but longer term price is going to $100s an ounce (probably around $500).

Sounds about right to me, $500 Silver and $10,000 Gold, back to the original 20:1 ratio.

The wheels are visibly coming off now and it cannot be much longer before the dash away from paper begins en masse.

Once the average punter starts piling in the sky is the limit - look at housing!!

So far the Sheeple are being hoodwinked with Cash4Gold but it cannot last forever. Maybe when a can of beans hits £5 they will finally get it.

[winkie]

http://www.youtube.com/watch?v=6R1E9F3Fb0Q&feature=related

[200p]

This is the greatest wealth transfer we are going to witness in modern history.

[Guest spp]

I clearly believe the general public is now starting to be aware of Silver and prices are in the rocket launch territory. Can't believe a 5% rise in 1 day. The spike will be followed by a massive drop. Beware!

PRECIOUS-Silver surges 5 pct on dollar, gold at record

Not another one.

The general public...are you serious!!? clearly.

You are the kind of person that probably said the seem thing at $21. Get a grip or stop making stuff up. Silver is correcting (up) and the bullion banksters are under some serious pressure.

Why don't you just sell everything for those precious things notes you call 'money'? I know the chinese have a few you can buy.

Can't believe it?? Well if you'd been listening to the people that knew...you would believe it!

OTH A drop would be great. Then 1% of that general public you talk about might have another chance to get in at lower prices.

[Ruffneck]

Not another one.

The general public...are you serious!!? clearly.

You are the kind of person that probably said the seem thing at $21. Get a grip or stop making stuff up. Silver is correcting (up) and the bullion banksters are under some serious pressure.

Why don't you just sell everything for those precious things notes you call 'money'? I know the chinese have a few you can buy.

Can't believe it?? Well if you'd been listening to the people that knew...you would believe it!

OTH A drop would be great. Then 1% of that general public you talk about might have another chance to get in at lower prices.

A nice drop would signify a bull trap and would rid the silver market of the same gullible johnny come latelys that you have been talking about.

Bring it on.

['Bart']

Once the average punter starts piling in the sky is the limit - look at housing!!

I dunno TBH. Joe Public is comfortable with buying houses. It's something most people do, it's something most people are expected to do.

Things like silver and gold are unknowns. More so than stocks and shares. Why is gold rising? Why is silver rising? Oh, must be a bubble. Stay away.

Ironically the average person will be quicker to call "bubble" in gold or silver than they ever would in housing.

[200p]

I wanted to invest some money (not a lot) for my mother 6 years ago. She said, gold?! No one wants that! - she has changed her mind since.

I wanted to invest some money (not a lot) again for my mother 4 years ago. She said, silver?! No one wants that, it has no value, useless! She has changed her mind since.

I wanted to invest some money (not a lot)again for my mother, last week. She said precious metal mining shares?! No one wants those, I'll lose money in those risky stocks! Will I be right a 3rd time?

[blizeH]

Mind if I ask what exactly you invested in? Sounds like you have good insight

[interestrateripoff]

http://www.zerohedge.com/article/four-scary-words-silver-delivery-not-possible

The SHTFPlan's Mac Slavo brings us the story of one Bill Cramer who decided to cash in on his silver profits after a nearly decade holding period (under the assumption he was receiving warehousing services considering he was paying storage fees), confident that he could simply receive the metal he held with a broker, until he heard the following 5 very disturbing words: "Sorry, delivery is not possible."

From SHTFPlan:

"Bill Cramer of St. Louis was pretty confident everything was on the up-and-up. He purchased 5000 ounces of silver back in 2003 for a spot price of $4.94 and stored them with an east coast broker. When he was discussing his holdings with his coin dealer, the dealer dared him to try and take delivery of the metal.

Bill took him up on that dare and contacted his broker requesting to take delivery of his supposed physical metal holdings, for which he had been paying storage fees for years. As you may have guessed, the broker advised him that physically delivering the metals was not possible."

It's a nice scam, you pay storage fees but then can't actually take delivery on what you own. It's as if there isn't enough silver to go round.....

[200p]

The tricky thing is picking the right mining stocks - some can be right dogs. Stocks can go to zero, whereas the commodity cannot. Wheat (WEAT) ETF $ denominated, looks cheap now if one does not want to chase gold or silver.

---

Mining stocks - start your journey here:

http://www.advfn.com/cmn/fbb/thread.php3?id=21909943

Ideally it should be a producer, be able to be put in a ISA wrapper, have at least 1m ounces of gold reserves or equivalent silver reserves, be a profitable company, have good management, have mines in politically safe countries, and have good upside for further exploration resource ounces. Yes there's a lot to worry about, which is the pain with stocks.

In a mania though, all precious metal stocks will go up, like the tech boomdays. E.g. Knutsford group had a market cap of near on £1bn, but all it had was £5m in cash and a business plan! I await a potential hole in the ground to be worth £1bn.

[200p]

Mind if I ask what exactly you invested in? Sounds like you have good insight

The order will go through in a minute so I can reveal it. OMI looks like a good bet as it ticks most of the right boxes. It generates a profit! The market values it around £50m. It's resource is lower than I would like at 1.9m ounces, but there is good explorational upside over the next few years. It also has a silver resource (to keep us on topic), iron and diamonds. Copied from elswhere:

A first pass at a summary of OMI's activity & prospects. Comments welcome.

Orosur Mining

Market cap: £35m

Cash: £6.73m

EV: £28.3m

Total resource over 1.8 Million oz gold

Strengthened management Team

PRODUCTION:

San Gregorio, Uruguay. Gold production:

* Projected revenue net of cost of sales: £17.56m (assuming $1350 gold)

* 5 year life, 55-60K oz/annum

* Higher grade from Arenal Deeps means costs/oz projected to reduce from $839/oz to $545/oz - this would add £10.1m/annum to revenues.

EXPLORATION

Minas de Corrales, host to San Gregorio, Uruguay: Exploration potential:

* Arenal Deeps (San Gregorio) Silver content RNS due

* Potentially mineable grades between and beneath the Santa Teresa and Ombu pits

* Additional high grade intercepts at Picafor, 8KM from San Gregorio

* Nueva Australia, Rincon, Areicua & Laureles present further targets

Vaca Muerta, Uruguay:

* 85 kilometres east of the Company's San Gregorio gold mine

* successful recent drilling included, 16m @ 2.58g/t and 26m @ 2.3g/t

* strong, shallow gold mineralisation that is open along strike in both directions as well as down dip

Rocha, Uruguay

* Drill testing early 2011

Texas, Uruguay

* Drilling early 2011

Other Uruguay prospects:

Presidente Terra, Paso de Lugo, Mahoma, Crucera

Pantanillo Norte, Chile:

* Over 1 million ounces of gold, bulk tonnage, low grade

* New Chief Operating Officer, former projector director at neighbouring Kinross mine

* Planned 2011 phase 2 drilling will target resource expansion

* Other historically identified targets to be tested

* scoping study commenced June 2010

Other Pantanillo prospects, Pantanillo license, Chile:

* Excellent potential within the larger Pantanillo License, being located in the Maricunga Belt of Chile which hosts in excess of 60 million ounces of resources.

- Oro 52

- Quebrada Pantanillo

- Pantanillo Sur

Anillo, Chile:

* Systematic sampling of the trenches is expected to finish in the second quarter

* OMI is planning to drill during the third quarter after a final compilation of results from trench sampling

Incahuasi, Chile:

* OMI plans to continue follow-up surface mapping and sampling in quarter two before making a decision on further drilling.

JOINT VENTURES:

* Gladiator Resources JV. Iron. Drilling has commenced

* Olivut Resources JV for diamonds, Rivera project, Uruguay. Encouraging drilling results, moving ahead with phase 2 of option.

* Mineral Cala, Option agreement in Southern Uruguay.

CRND I have recommended before on this board as a speculative punt (35m gold reserve ounces) but it is well down, due to mine flooding. It may come good as long as this bull market continues, and it doesn't go bust, because even the turkeys will fly. Definitely risk no more than 2.5% of your capital in such risky companies.

Do your own research as always.

Edited April 26, 2011 by Money Spinner