Just a couple of hours ago, I got an email from Nick Lair at Gold Charts RS. The CME has raised uh margin requirements yet again, up 9.1% on gold. Silver up 30% from $25,000 to $32,500 for each 5,000 ounce silver futures contract. That's the cost of maintenance. And so here is the letter. And if we jump down to page four, uh we've got the 5,000 ounce silver futures contract. And there is the current maintenance. And this is uh what is now required. So anybody that has a contract has to come up with an extra 7,500


bucks. Uh and uh if they've got a lot of contracts, that can add up to some serious cash. And that means that they may have to sell some of their position to come up with that cash. And if they sell some of their position, the price of silver goes down, which means that more people run into maintenance requirements and it becomes uh difficult. So I am expecting that when the markets open, silver is going to fall. But to me that's a buying opportunity. Now I don't give any financial advice. I tell you how I feel


about it. Uh I think that things have been getting overbought and and this it is not irrational exuberance. This is uh fundamentals that are playing out and that is the reason that silver is rising. Uh some people think that it's just speculation but it it isn't. It's rising because of supply demand fundamentals and all of the future need for silver. And so what I did was I made you a chart of what silver might be doing shortly. Now every once in a while uh everything needs to take a little bit


of a rest. uh when we were in the initial phase of the of this bull market uh from uh 2002 until uh 2011 uh I used to say whenever it uh gold comes back and touches the 200 day moving average it's time to buy. Uh the 200 day moving average was something that was a a really good uh area of support. Uh this is the 9 uh day exponential moving average. The 20-day simple moving average and the 50-day. The 200 day doesn't show up on this chart. It's just off the bottom of this chart. Now, I'm not expecting silver in


the con the conditions that are happening right now. I'm not expecting silver to do a pullback down to the 200 day moving average. Uh, I mean it didn't uh back in the 70s uh from it was actually, you know, I made a video on this day right here back in nove at the end of November. Uh I was wondering if silver was going to punch through this resistance at 54 something. I think it's like 5480 or 5460 something. um if it was going to punch through that resistance and I was comparing it to charts that I had made


of the 70s and it was the same calendar day that silver finally broke through its resistance in uh the 1970s and I can't remember what the price was but it did some just amazing performance down in the uh 10s or something like that or maybe it was down at 7. I can't remember. You'll have to go back and watch that uh video at the end of uh November to see what I'm talking about. But it did break through that resistance on the same day and start a spectacular runup just like it did back in the 70s.


This is pretty much a a reflection of what happened in late 1979. So I found that very interesting. So, I'm I don't believe that it pulled back to its 200 day, maybe not even its 50-day between then and I believe it was January 19th where it put in its high. So, we've still got uh quite a few trading days to go. This isn't going to do much damage. It might be healthy for so I know everybody hates it when I say stuff like that. But if it could pull back and retest uh this the this


resistance here and if that becomes support it is like confirmation that the the game is on that this is uh a bull market that is going to last longer than just some flash in the pan that's going to happen between now and late January. uh this is going to be much longer and we are going to be see seeing tripledigit silver but this was so overbought and it had happened so fast uh that it it it's good that it's being that it's pulling back. It's bad that it's pulling back because of


manipulation and the way the math works out and everything. They are always protecting the shorts and hurting the longs on uh these. And so just don't get involved with futures contracts. Just, you know, physical silver has enough leverage all on its own. And we've seen that in this big move from uh the low 50s up into the 80s in just a month's time. I want to thank you for watching. We'll see you next time.