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.

 

[StevoCBR]

I am a bit stunned by the level that's it's gone down so quickly and admit I under estimated it for sure. But I do still think were going parabolic soon. And I think we could see a skyrocket to $100 in a short period of time at anytime. You look at fundamentals and ask why it isn't a $100..well of course we all know the answer is JP Morgan. But hats of to you JP you are definitely gonna go out with a bang.

 

[jim4silver]

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...

Actually, if silver hit $49.79 (April 25th in overnight), and it falls to $36, that is a 27.7% correction.
At $40 we are at roughly a 20% correction, which we may see this week if the selling continues. Or it could blast past $50, you never know with silver.

One thing to keep in mind with all this volatility is a saying by Jesse Livermore, who is thought of as one of the greatest stock traders, who said "the market is always right". No matter what we may "think" or "feel" that silver is worth, it is worth what the market will bear. No use trying to place artificial values on what we feel silver "should" be worth, it is what it is. Back in summer last year you could stroll into a coin store and buy an ounce of physical for under 20 bucks--as much as you wanted, because that is what the market said it was worth.

No matter what is going on in the paper markets, when you can buy physical at a particular price, then that is what it is worth-- plain and simple. If silver, or any commodity is truthfully rare and/or supply diminished, the price will reflect that for physical. So when people try to blame the so called "manipulators" for keeping the price of silver (physical that is) down I have to disagree. It is because the demand for the physical is so lacking that allows the paper market to control the price. If demand for the physical was high, people, institutions and such would pay what it took to get an ounce and that price would be what silver (physical) was worth. The fact that right now I can go into any coin store here and buy as much physical silver that I want at 42 to 43 bucks per ounce (generic rounds/bars and junk silver) tells me silver is not worth 100 bucks per ounce as some may say.

The fact that the paper (futures) market still controls the physical market tells me we are no where near the parabolic heights in price we will one day see when the physical market splits from the paper (futures) market in silver.

Jim

 

[WormtownFJR]

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...

Actually, if silver hit $49.79 (April 25th in overnight), and it falls to $36, that is a 27.7% correction.
At $40 we are at roughly a 20% correction, which we may see this week if the selling continues. Or it could blast past $50, you never know with silver.

One thing to keep in mind with all this volatility is a saying by Jesse Livermore, who is thought of as one of the greatest stock traders, who said "the market is always right". No matter what we may "think" or "feel" that silver is worth, it is worth what the market will bear. No use trying to place artificial values on what we feel silver "should" be worth, it is what it is. Back in summer last year you could stroll into a coin store and buy an ounce of physical for under 20 bucks--as much as you wanted, because that is what the market said it was worth.

No matter what is going on in the paper markets, when you can buy physical at a particular price, then that is what it is worth-- plain and simple. If silver, or any commodity is truthfully rare and/or supply diminished, the price will reflect that for physical. So when people try to blame the so called "manipulators" for keeping the price of silver (physical that is) down I have to disagree. It is because the demand for the physical is so lacking that allows the paper market to control the price. If demand for the physical was high, people, institutions and such would pay what it took to get an ounce and that price would be what silver (physical) was worth. The fact that right now I can go into any coin store here and buy as much physical silver that I want at 42 to 43 bucks per ounce (generic rounds/bars and junk silver) tells me silver is not worth 100 bucks per ounce as some may say.

The fact that the paper (futures) market still controls the physical market tells me we are no where near the parabolic heights in price we will one day see when the physical market splits from the paper (futures) market in silver.

Jim

To expound upon this a bit. Silver is a commodity. It is also a hedge against inflation and in NORMAL times it is not an investment tool. Happy about 50 dollar silver? How's 10/gallon gas feel then. Or 30 for a 10lb bag of rice. This isn't about the value of silver in as much is it's about the value of the dollar.

 

[RIcoinhunter]

I think the drop is just a speed bump/correction.Will all knew this was going to happen.Everybody hold tight things will swing back up in do time.

 

[mts]

Well, we broke the $40 barrier.

 

[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...

Actually, if silver hit $49.79 (April 25th in overnight), and it falls to $36, that is a 27.7% correction.
At $40 we are at roughly a 20% correction, which we may see this week if the selling continues. Or it could blast past $50, you never know with silver.

One thing to keep in mind with all this volatility is a saying by Jesse Livermore, who is thought of as one of the greatest stock traders, who said "the market is always right". No matter what we may "think" or "feel" that silver is worth, it is worth what the market will bear. No use trying to place artificial values on what we feel silver "should" be worth, it is what it is. Back in summer last year you could stroll into a coin store and buy an ounce of physical for under 20 bucks--as much as you wanted, because that is what the market said it was worth.

No matter what is going on in the paper markets, when you can buy physical at a particular price, then that is what it is worth-- plain and simple. If silver, or any commodity is truthfully rare and/or supply diminished, the price will reflect that for physical. So when people try to blame the so called "manipulators" for keeping the price of silver (physical that is) down I have to disagree. It is because the demand for the physical is so lacking that allows the paper market to control the price. If demand for the physical was high, people, institutions and such would pay what it took to get an ounce and that price would be what silver (physical) was worth. The fact that right now I can go into any coin store here and buy as much physical silver that I want at 42 to 43 bucks per ounce (generic rounds/bars and junk silver) tells me silver is not worth 100 bucks per ounce as some may say.

The fact that the paper (futures) market still controls the physical market tells me we are no where near the parabolic heights in price we will one day see when the physical market splits from the paper (futures) market in silver.

Jim

To expound upon this a bit. Silver is a commodity. It is also a hedge against inflation and in NORMAL times it is not an investment tool. Happy about 50 dollar silver? How's 10/gallon gas feel then. Or 30 for a 10lb bag of rice. This isn't about the value of silver in as much is it's about the value of the dollar.

I can certainly agree that the price of silver right now is not about supply and demand to any large degree...it is almost completely about debt and monetary policy of the US and the rest of the world. Thus, the very accurate statement that it is being viewed as a hedge against inflation. The pricing is going up in anticipation of rampant hyperinflation that will occur as governments attempt to print money to pay their debts off cheaper. The markets are anticipating this hyperinflation and building it into commodities.

But...there will be a lag in the period of time between the hyperinflation hitting across the world and $100+ silver and $3,000+ gold...that will be the window of opportunity for those who recognize what is going to happen to prepare by hoarding the commodities that will weather the storm and come out of the other side. Yes..there will be "the other side" and whatever currency comes out of it as the main barter tool will be something that will have commodities like gold and silver as at least part of its basis. There may be other currencies used in that basis at well...maybe a basket of currencies and commodities.

But those who have gold and silver will not be the losers...it will be those who sat on their paper money.

 

[Jeep]

This is a great opportunity to snag more silver

Get your ads out on craigslist and grab the silver, folks are running scared and selling it dirt cheap.

It helps to word your ad to play on their fear

 

[da1984]

CME just announced another margin increase to $21,600. Going to probably take another hit tomorrow.

 

[conpewter]

CME just announced another margin increase to $21,600. Going to probably take another hit tomorrow.

Paper silver down to $37, we'll see how far it drops.

 

[TheRandyMan]

Based on further research I am revising my estimated bottom for the silver market to the $28 to $30 range. This will bring it back to around the January 2011 levels when the rocket ship took off. Patience...patience...

 

[ArkieBassMan]

OK...we're going back up. Do you think the correction is over, and its time to buy, or is this (as I suspect may be happening) just the people that shorted on the way down buying and driving the price up a bit? Opinions?

 

[ivan salis]

from 48 to 36 -- a nice little 25% "market correction" caused by --higher "margin" rates being set --big money "naked contract sellers" sitting on the boards raised the margins required to play --thus tanking the market from 48 to 36 to prevent folks from "cashing in their opitions" with silver at a near all time high of $48 --would have cost em a bundle to phyisically "fill" and deliver those contracts --- so what do they do? easy TANK THE MARKET DUH -- raise the rates one needs to play "the game" -- fiscally squeeze out the small timers out thus "forcing" them to sell off , since they can not "afford" the new rates-- once the sell off flow starts "the lemming effect" kicks in driving the market prices way way down.