Debt Ceiling Has Some Give, Until Roof Falls In

Thanks to Kitty for finding this article.

http://www.nytimes.com/2011/05/05/business/economy/05debt.html?ref=business

Initial Claims: 474K - Bring Out QE3

http://www.zerohedge.com/article/initial-claims-474k-bring-out-qe3

Mexico ramps up gold reserves at dollar's expense

http://www.reuters.com/article/2011/05/04/mexico-gold-idUSLDE7431OZ20110504

Paper vs. Physical Silver Prices

With silver prices plummeting at the COMEX, the price of physical silver hasn't dropped as much, creating a huge premium for physical bullion over spot price.  This is what silver bugs have predicting, as physical shortages don't follow the price manipulation of the paper markets.

Having said that, silver's stratospheric prices have encouraged scrap supply to come on-line.  Hence, prices for physical bullion (and coins) should drop relative to the COMEX futures prices over the next several weeks, shrinking the current premium over spot.  A period of consolidation to digest the incoming scrap supply is in order, with silver trading within a range, setting up for its next move above huge resistance at $50.  If it holds above the nominal all-time high, it's onward and upward with no meaningful resistance above $50.  Silver would then merely catch up to gold's record-breaking bull market.

See disclaimers in the side bar.

Disclosure:  long silver mining shares.

Dan Norcini - Silver Plummets, What to Look For Now?

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/5/4_Dan_Norcini_-_Silver_Plummets%2C_What_to_Look_For_Now.html

China "Aims To Have More Gold Than America"

http://hken.ibtimes.com/articles/140737/20110503/china-aims-to-have-more-gold-than-america.htm

The War on Gold (and Silver)

http://www.larsschall.com/2011/05/04/the-war-on-gold/

Dear Liberals: It’s Your Fed’s Paper Money That’s Thwarting Full Employment

http://blogs.forbes.com/ralphbenko/2011/04/25/fed-paper-money-thwarting-full-employment/

Ben Bernanke’s Lone Positive Legacy: A Return To The Gold Standard

http://blogs.forbes.com/billfrezza/2011/05/03/ben-bernankes-lone-positive-legacy-a-return-to-the-gold-standard/

US Treasury Tells Lawmakers It Needs $2 Trillion In Debt Capacity

http://www.zerohedge.com/article/us-treasury-tells-lawmakers-it-needs-2-trillion-debt-capacity

As silver plunges, the coverage from the financial media intensifies

During the rise of gold and silver to record highs, the coverage was more limited.  I'm nibbling silver-related assets on the way down, as levered longs are liquidating.  When investing in volatile assets, never use leverage, as the commercial shorts will stop you out of your positions.  See entry points here.

Dick Morris Reports: How The Government Lies About Inflation

http://youtu.be/yWcBr02fgDo

For accurate data on such metrics as unemployment and inflation, please visit John Williams' www.shadowstats.com.

Eric Sprott - “Sprott Has More Physical Silver Now Than Ever!”

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/5/3_Eric_Sprott_-_Sprott_Has_More_Physical_Silver_Now_Than_Ever!.html

WSJ Reports Soros, Burbank Selling Gold, Silver, While Paulson Sees Gold Hitting $4,000 In Three Years

http://www.zerohedge.com/article/wsj-reports-soros-burbank-selling-gold-silver-paulson-sees-gold-hitting-4000-three-years

Part 6- The Paper Silver Manipulation Game at all time Highs

http://youtu.be/u9LcKcXpCDE

John Williams: Weak Dollar Behind Inflationary Oil Prices

http://www.theenergyreport.com/pub/na/9452

Osama Bin Laden Death Photo?

Click on  image to enlarge.

A.M. Kitco Metals Roundup: Comex Gold Lower, Silver Sharply Lower as U.S. Dollar Index Firmer, Crude Oil Weaker

http://www.kitco.com/reports/KitcoNews20110503JW_am.html

Against a wave of liquidation of silver longs (mostly due to another CME hike in margin requirements, <click here>), I am going against the grain and accumulating mining shares (buying the dip).  I'm glad I took partial profits last week, allowing me to raise cash to buy back in today.  Silver could drop more, and while trying to "catch a falling knife" is considered dangerous, I've been eying AGQ for a bit, and I'd rather nibble at $258 than at $382.  If silver continues to drop, I will nibble some more, but never depleting my cash reserves.  Good luck everyone.

See disclaimers in the side bar.

Disclosure:  added AGQ at $289.33, $258.1899, $258.06 and SLW at $36.785, $36.35 today (5/3/11).
Edit 1:  filled at $235.37 with AGQ, and $36.145 with SLW on 5/4/11.
Edit 2:  filled at $215.9999, $214.465, and $201.90 with AGQ, and $35.84 with SLW on 5/5/11.
Edit 3:  filled at $181.02, $189.1799 with AGQ, and $35.844, $36.17 with SLW on 5/6/11.
Edit 4:  sold a tranche of AGQ at $206.80.

James Turk - Silver Forming Another Bullish Flag Formation

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/5/2_James_Turk_-_Silver_Forming_Another_Bullish_Flag_Formation.html

US kills 911 mastermind bin Laden

 

CME Group Hiking Silver-Futures Margins By Another 11.6%

http://www.kitco.com/reports/KitcoNews20110502AS_CME.html

I view each margin hike as short-term negative for any commodity, as weak longs liquidate, but long-term it remains bullish for silver because buyers of physical bullion buy at discounted prices and provide a floor for the silver market.

See disclaimers in the side bar.

Disclosure:  long silver.

U.S. Treasury: China Has Decreased Its Holdings of U.S. Debt

http://www.cnsnews.com/news/article/us-treasury-china-has-decreased-its-hold

A FISTFUL OF DOLLARS – PART TWO

http://www.theburningplatform.com/?p=15003

More On The Silver Dive: "Massive Sell Orders" Coupled With Bolivian Nationalization Halt Combine For Perfect Weak Hand Shakeout Storm

http://www.zerohedge.com/article/more-silver-dive-massive-sell-orders-coupled-bolivian-nationalization-halt-combine-perfect-w

Looks like the old sell into low volume trick to flush the stops and kill the weak hands has worked again. Throw in last week's two CME margin hikes and Friday night's margin bonanza by MF Global, and one had a perfect storm set up for another wipe out in silver to start the week.

In the meantime, silver promptly managed to retrace over 50% of the move shortly after the dump. At this point whatever holders remain following last week's margin action and this evening's fine example of shock and awe will likely need far more energy and capital to be shaken out by the same entities whose primary goal is to prevent the surge in silver and ongoing capital-sapping collateral calls. Since none of the actual fundamentals before the long-term trajectory in silver (and gold) have changed, this appears like a rather attractive entry point.

Lastly, one should recall that silver had a mini 10% correction last week and not only promptly recovered but nearly passed the $50 level shortly thereafter. This time will not be any different.

So Much For The Sprott Silver Scare: "Every Dollar From PSLV Sales Was Reinvested In Silver Equities"

http://www.zerohedge.com/article/so-much-sprott-silver-scare-every-dollar-pslv-sales-was-reinvested-silver-equities