Is silver gonna drop through support June 13?

[jim4silver]

Looks like silver is heating up for a bit of a drop. If it breaks below the 32 range, I think it will hit high 20s for sure.

Don't really mind though since I have some bearish leveraged ETF calls. Sold one today for a small profit. Gonna put the proceeds into physical if it breaks below 30.

Jim

 

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[JD-GA]

<shrug> No idea. The only thing over the grape vine is with the economy souring some people are saying there want be a bigger need for silver industrial use wise. Of course they said the same thing last year when silver use went up 16% and silver price doubled.

Seems like some of it may be due to the dollar being reported as strong, but that is only because other fiat currencies are even weaker than the dollar. That being said NOTHING has changed except out economy is getting worse and our debt grows further. Cant see why silver is dropping for the life of me but it is.

 

[hombre_de_plata_flaco]

Gold is taking a dip too. It makes perfect sense due to the fact my order wasn't processed at the refinery until after it fell $11.00 today.

The current drop is mind boggling to me. If the dollar is weaker, shouldn't PM's be stronger? I am going to be really stewed if this stuff hits the 20 dollar range.

Does anyone know the current whereabouts of the Hunt Brothers?

 

[jim4silver]

I personally believe that the big speculators (hedge funds, institutional traders, etc) are controlling silver either up or down. If the "manipulation" theories are correct, then market fundamentals don't matter anyway.

I don't think industrial use means anything bull or bear towards silver right now. There are tons available for industrial use at today's prices (paper). Some pundits talk about how silver gets used up and is not recoverable, but I believe that is only true for the past couple of decades or so. Before that silver used in x rays and photography was recycled. Most of the electronic stuff we have today that uses silver didn't exist until fairly recently (20 or so years). Future uses will certainly "eat up" silver and not be economically feasible to recycle unless silver hit several hundred per ounce.

So I believe that somewhere there exists lots of stored silver in 1000 ounce bars just waiting for the right price to hit the market. I don't know what that price is. Also, lots of silver coinage from all over the world still being held by collectors, although lots does get melted each day, only to become 1000 ounce (or smaller) silver bars. so it is not being "used up" as some might say.

I still think that someday when/if the dollar really tanks that more people will flock to gold/silver and that will drive the price up to 100 or more per ounce.

Jim