$50 Silver by Dec 31, 2012

Wynter Benton (wynter_benton), is an anonymous blogger on Yahoo Finance who claims to be a group of former, disgruntled JP Morgan commodities traders under Blythe Master. They have accurately predicted many silver moves in early 2011, and now they have made a new prediction: silver will trade above $50 before Dec 31, 2012.

According to wynter_benton, the take-down of MF Global on October 31, 2011 was designed to prevent wynter_benton from taking delivery of a massive amount of physical silver that would break JP Morgan’s naked short silver position.

Benton also claims that JP Morgan’s $36 silver derivative time-bomb is still ticking, and that the ex-JPM traders have re-grouped and are on the offensive again.

I have no doubt silver will break $50 in the near future.  The question is: how long will it stay there?  Will it stick this time?

Why you should own physical gold, precious metals

Most gold that is traded on the market isn’t actually gold; it’s paper or digits on a computer.  In the same way your bank does not actually hold your savings in cash in a vault, gold brokers do not actually own all the gold that they trade.  In fact, for every ounce of physical gold, there are at least 200 “paper” ounces.

Besides the obvious moral implications of trading something that doesn’t exist, this causes other problems. For example, it allows the true price of gold to be manipulated more easily.  Also, what happens if, for any number of reasons, too many people want to take possession their physical gold?  Recently when MF Global went bankrupt, Gerald Celente, and countless others lost over $1.6 billion when 33,000 client accounts simply “vaporized”.  So let that be a lesson for you: if it’s not in your hand, you don’t own it.