Anyone see the silver crash?

[SFBayArea]

Just looked at Kitco and silver was down to $42.17 at its lowest point. Wow.. what a drop.. is it time to sell the stash? Never expected a drop like that. Thought $45.00 was the resistance point. Guess not. Must be the manipulators hard at work again. CFCT need to force everyone that buys speculative contracts to take physical delivery of the item bought within 2 days. I'm tired of the virtual trade where people buy & sell phantom shares of nothing.

 

[clovis97]

A wild ride is indeed here.

I read one article that said that silver wouldn't probably bottom out below $28, which is the 50 day moving average of silver, or sumpin' like that.

A drop to the mid- $30's isn't out of the question. I think that $28 is far too low, IMO.

Some big gains are ahead. It wouldn't surprise me to see $75 silver before the year's end.

 

[SFBayArea]

If silver goes back down to $30/oz and if keepers are more frequent. I have no problem with that. Most of us here have gotten our silver for the lowest amount possible.. so it means nothing where the prices are (as long as they're not under $20/oz) but being able to find keepers consistantly means everything.

 

[kb4iqm]

Personally, I would love to see silver prices free-fall down to under $20/oz. I don't look at it as a loss, quite the opposite. It would be another opportunity for me to buy more physical silver. Faster than CRH'ing takes to build a stash

 

[jeff of pa]

Personally, I would love to see silver prices free-fall down to under $20/oz. I don't look at it as a loss, quite the opposite. It would be another opportunity for me to buy more physical silver. Faster than CRH'ing takes to build a stash

$5.00 an OZ

 

[kb4iqm]

Personally, I would love to see silver prices free-fall down to under $20/oz. I don't look at it as a loss, quite the opposite. It would be another opportunity for me to buy more physical silver. Faster than CRH'ing takes to build a stash

$5.00 an OZ

$5.00 an oz wouldn't hurt my feelings at all. I'de love it

 

[$ilver$urfer]

Does anyone think this has anything to do with the "death" of O-B-L? The stock markets are already rallying so it might be but I don't think it will last for long.

HH,

$ilver$urfer

 

[JD-GA]

For as many people who have automated sell off numbers there are just as many with auto-buys. There are so many people trying to get into the silver train that these manipulation attempts will be met head on with people buying it up. As more and more people take actual physical silver, which is what so many are learning to do, there will be a much larger risk for large paper traders at that point keeping the price of silver on a less volatile climb.

 

[Jeep]

http://slumz.boxden.com/f5/may-1-silver-down-big-today-increased-margin-requirements-1537806/

 

[JD-GA]

10:30am Est Silver =$46.65

Glad I bought another 200oz in china lol.

 

[SFBayArea]

Personally, I would love to see silver prices free-fall down to under $20/oz. I don't look at it as a loss, quite the opposite. It would be another opportunity for me to buy more physical silver. Faster than CRH'ing takes to build a stash

$5.00 an OZ

$5.00 an oz wouldn't hurt my feelings at all. I'de love it

At $5/oz.. you'd only get $.55 per 40%er.. I don't think you'd want that. I've CRHed since ten years ago.. I remember dealers only offering $.55 per 40%er.. it was a joke to keep them. 90%ers would only fetch $2 each. I don't think you really want that. You want something to show for your time and efforts right?

 

[47thelement]

$5.00 per oz! Hell yeah! I'd love it! Just imagine how many short term crhers would be dumping their coins when they realize they could only get $.05 profit for at 40% coin. Think of how many we would start finding in boxes again.

 

[brendan1414]

looks like the silver bubble popped

 

[Jeep]

looks like the silver bubble popped

Not popped, someone threw a wrench in the game.

"CME Group Inc. raised the cash deposit required for trading"

http://www.bloomberg.com/news/2011-...r-u-s-official-says-osama-bin-laden-dead.html

 

[jim4silver]

looks like the silver bubble popped

Not popped, someone threw a wrench in the game.

"CME Group Inc. raised the cash deposit required for trading"

http://www.bloomberg.com/news/2011-...r-u-s-official-says-osama-bin-laden-dead.html

Margin requirements are raised when volatility increases and the value of the underlying commodity rises. A futures contract controls 5000 ounces of silver. There is a big difference between 5000 ounces valued at $20 vs. $50 per ounce. The raised margins help ensure that if the commodity drops or spikes in a big way the party on the winning side of the contract gets paid.

An initial margin is about $14.5K right now and maintenance margins are about $10.7K, which will allow the contract holder to control roughly $220,000 worth of silver--either long or short. Doesn't seem unreasonable to me to have to pony up some good faith $$$$$ (margin requirement) to control almost a quarter of a million dollars worth of silver. Also, the margin requirements are for both the buyers and sellers of silver contracts, not just buyers as some seem to infer.

What some might not understand is that in a futures contract it is settled each day at the end of trading, unlike a stock that you either gain or lose only when you sell. Thus, if you are long and the prices drop that day the money is removed from your account at the close of the day. Likewise if it moves in your favor the money is added to your account. That is why they have margin requirements. For every futures contract there is a long and short battling it out; like a daily tug of war if you will.

Margins are raised in all commodities when they become volatile and when the prices shoot up like silver has lately. No great conspiracy here.

Jim

 

[kb4iqm]

Personally, I would love to see silver prices free-fall down to under $20/oz. I don't look at it as a loss, quite the opposite. It would be another opportunity for me to buy more physical silver. Faster than CRH'ing takes to build a stash

$5.00 an OZ

$5.00 an oz wouldn't hurt my feelings at all. I'de love it

At $5/oz.. you'd only get $.55 per 40%er.. I don't think you'd want that. I've CRHed since ten years ago.. I remember dealers only offering $.55 per 40%er.. it was a joke to keep them. 90%ers would only fetch $2 each. I don't think you really want that. You want something to show for your time and efforts right?

If I intended to sell my finds for profit then I would tend to agree. But since I'm not in this for profit, I don't normally sell my coin buys or CRH finds. If silver were to dip to $5/oz, then collectable silver coins that are so closely tied to silver spot price would become more affordable.

Also, silver is one of the key elements in one of my advanced alternative energy designs. Since silver has shot up so much in price, the raw materials that contain silver have shot up in price as well. I like to see alternative energy products that are more affordable for more people.

Bob

 

[FreedomUIC]

Personally, I would love to see silver prices free-fall down to under $20/oz. I don't look at it as a loss, quite the opposite. It would be another opportunity for me to buy more physical silver. Faster than CRH'ing takes to build a stash

$5.00 an OZ

5.00 for an oz and a 40.00 premimum......

 

[mts]

$41.52 right now. Ouch! I wouldn't be surprised to see it go below $40 at this rate.

 

[jim4silver]

$41.52 right now. Ouch! I wouldn't be surprised to see it go below $40 at this rate.

I think from a psychological perspective, $40 is important if it breaks down below that number. We are down almost 18% from the high from just last week. If it breaks $40 I think mid 30s and even lower are definitely possible. There is always the chance though that it could blast back up overnight tonight or tomorrow. Have to wait and see.

Silver is way more volatile than gold, it goes up higher and faster but falls further and faster too.
That is why I always think it is good to have both gold and silver so as to "hedge your hedges". I plan to start accumulating silver again if it happens to get below 35.

Jim

 

[kalebdad]

Still watching the Crash. Have 180 ozt of Sterling at the Smelter waiting to pull the trigger. Go figure should have overnighted it would have been tehre last Friday.

 

[TheRandyMan]

If silver cannot hold $42 to $42.50, we are probably looking at a rapid fall to $36/$38 range...which would be a $9 to $10 correction and would put us in the 20% correction area. Exactly the type of nice correction I was hoping for. If it makes that move, I will be moving in again to buy as the fundamentals driving the commodities have not changed even with this correction.

The world is still awash in debt and dollars...commodities will continue their upward moves. Consider this the correction you were dreaming about when it was almost $50 per ounce...but keep your powder dry until $38 at least.

Patience weedhoppers...