Gold And Silver Correction Possible But Store Of Value Demand - Especially From Asia To Support

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Tue, 04/26/2011 - 08:43 | 1207291 Xibalba
Xibalba's picture

nevermind that .DXY is getting monkeyhammered. 

Tue, 04/26/2011 - 08:49 | 1207312 Cash_is_Trash
Cash_is_Trash's picture

I hope Argentum takes a hit to $43, to BUY THE FUCKING DIP

Tue, 04/26/2011 - 09:23 | 1207445 What does it al...
What does it all mean's picture

The corollary of BTFD is probably Sell on the Pop.  45 to 49 gets so much coverage, but not so much coverage by ZH when it went from 49 to 45.  Oh no, not biased at all.

Tue, 04/26/2011 - 09:46 | 1207522 SheepDog-One
SheepDog-One's picture

45-49, then 49-45...well the time period youre talking about happens to be the last THREE trading days, and ZH has reported it all, so what are you talking about?

Tue, 04/26/2011 - 09:55 | 1207554 What does it al...
What does it all mean's picture

I miss the one line headlines, with a single number.

42, lights out.

45, good bye.

47, 50 in no time.

On the way DOWN, I don't see:

48, Floor!

47, BTFD.

46, let's print lots of stories and disinformation.

45, now it is a 10% correction.


That's all.  Not as straightfoward and succinct on the way down.

Tue, 04/26/2011 - 10:40 | 1207740 Canucklehead
Canucklehead's picture

You're new to this stuff... aren't you?  Sit back, watch and study.  I'm sure someone will tell you what to do and when to do it.

Sit back and think about all the money you will be making once someone gives you the inside scoop.

Tue, 04/26/2011 - 10:47 | 1207770 What does it al...
What does it all mean's picture

Nice picture.  No, not new.  You sounds like the cattle driver that is driving the cattle to slaughter...  I would rather jump off the bridge my self than being led by others.  There is a lot that I don't know, but I am not waiting for people to "tell" me.

Tue, 04/26/2011 - 11:17 | 1207887 tmosley
tmosley's picture

Clearly you are new.  This happens ALL THE TIME.  No-one ever said silver only goes up and up forever.  This "collapse" has only taken us back to *GASP* last week's levels.  BFD.  The last time it happened was $34, hardly even a month ago.

You can feel free to go ahead and jump off of that bridge as soon as you are ready.

Tue, 04/26/2011 - 11:22 | 1207906 knowless
knowless's picture

thats the joke

Tue, 04/26/2011 - 11:30 | 1207928 What does it al...
What does it all mean's picture

I get it, pretty funny.  And there is some truth... the roundtrip is indeed incredible!

Tue, 04/26/2011 - 09:57 | 1207571 Harbourcity
Harbourcity's picture

Going down is a non-event.  If you read much you'd know a correction was coming.


Tue, 04/26/2011 - 09:55 | 1207574 What does it al...
What does it all mean's picture

I understand... then why so excited when it goes up?


Tue, 04/26/2011 - 10:17 | 1207650 redpill
redpill's picture

Because it has been going up relentlessly, doubling in six months. Why the fuck do you think?

Tue, 04/26/2011 - 10:24 | 1207668 What does it al...
What does it all mean's picture

Exactly!  Leaving no room for a pull back and even a plateau, is just like Geithner, saying that there is no way for US to default.  There is no reason or rationale, just blantant talking one's book.  And that is not exactly fair journalism.  

To your point, it is EXACTLY the reason why Silver can go to 30, then 60, then 45, then 100.   Just be fair and the path is always undetermined.  

Tue, 04/26/2011 - 10:52 | 1207803 redpill
redpill's picture

You're framing it as the down being equal to the up, but it's not. The central point is that there is a reason silver skyrocketed, it wasn't just market consolidation or temporary correction like the down days are. The fundamentals are driving silver up, the technicals cause corrections and consolidation. That is why up is different than down, and they are not equal in the current environment.

Tue, 04/26/2011 - 11:13 | 1207849 What does it al...
What does it all mean's picture

Long term, I see your point.  Short term...  let's not pretend this is the floor or the top.

Mathematically, up 5 points is the same as down 5 points.  (Not in %, but in simple dollar p/l.)  

Tue, 04/26/2011 - 10:09 | 1207621 6 String
6 String's picture

I must admit the silver trade had gotten ridiculous. I mean, seriously, everyone and their mother were calling  the 50 oz magical number over and over and over and over and over and over and over get the point. Like all these swine had calcuted on their Hp 12c's the intrinsic value of the metal. Yeah, right, what a joke.

So, at first, I thought it was total manipulation. But now....I think it's really just the silver sheeple selling as soon as the price closed in on the magical number 50.

But the thing is the 50 oz. number is just fucking plain silly. An arbitrary number pulled from the fucking sky. Come on, seriously. Where do the dipshits get this stuff?

Tue, 04/26/2011 - 10:14 | 1207639 What does it al...
What does it all mean's picture

Well, not exactly.. somebody is raking it in and JPM/HSBC is not going to go bankrupt anytime soon.


There was a serious disinformation campaign right before QE2 ending and the non-starting of QE3.  The "hedgers" who has a lower margin on futures can do thing that most "speculators" can't.  The margin was going to be raised and this is all manufactured to take stupid people's money.


JPM is fine, HSBC is fine.  Break them via regulation or votes.  not through a stupid silver trade.

Dollar continue to collapse, and it is not good, but silver wasn't the answer to everything.


Somebody is fabulously wealthier from the round trip, and Goldman can still be right..  What a trade/world.

Tue, 04/26/2011 - 10:25 | 1207682 Hephasteus
Hephasteus's picture

"JPM is fine, HSBC is fine.  Break them via regulation or votes.  not through a stupid silver trade."

If they are so fine then why do hoards of people sniffing of freshly peed pants keep filing through here at ever options expiration. And when delivery is loooking really iffy.

It's still in backwardation. There's only one way to fix that. Pay more. It can never go into permanent backwardation just keep paying more and more for it. It's not like you got big standoffs on debt ceiling raises and budget believability issues or any of those troubles. Just pay more. You can afford 19 million bucks for bonuses right and left. Just fork it over. :)

Tue, 04/26/2011 - 10:35 | 1207704 What does it al...
What does it all mean's picture

There is no proof that JPM/HSBC is MASSIVELY short.  Come on, they are not that stupid.  Even if they are, the fed will rescue them and US Taxpayers will then be shorting the silver.  (like MBS/CDO^2... and other toxic assets.)  Show me PROOF!


If you are betting on a backwardation/contango trade, DO THE CALENDAR SPREADS, not an outright.  So that is itself an disinformation.

Tue, 04/26/2011 - 10:51 | 1207799 6 String
6 String's picture

I totally agree with What Does It All Mean. Long silver will never do anything material to JPM. If that is the point for one owning silver, it is a material waste of one's time.

Mike Krieger talks about civil disobenience by owning silver. This is non-sense. If you want to own silver as a hedge, and a good one at that, against the collapse of fiat fine. But thinking a skyward price of silver is somehow going to harm JPM is horseshit. It will and has done nothing at all to them. Anyone bother to read JPM's latest Q filing? Of course not. That is not something macro boys bother with. Silver skying hasn't done shit to JPM and no matter how much one rants and raves and stomps up and down the facts don't change: Silver can go to 200 and it won't mean shit to JPM.

Arguing with idiots is also a waste of time.

Tue, 04/26/2011 - 11:17 | 1207880 What does it al...
What does it all mean's picture

There is a feedback loop of agreeing here.  I do have to say, this disinformation compaign to capitalize on hatred for JPM (boy, don't they deserve it.) is quite ingenious until peole get hurt.  And hurt they will...  Still not Dimon though.

Tue, 04/26/2011 - 11:21 | 1207901 Hephasteus
Hephasteus's picture

There's proof. You find it yourself.

My due dilligence is dozens of pants pissers. I mean they got to be scared of something. It's not like there's a guy with an axe chasing them.

I mean something just fucking destroyed Bear Sterns. It didn't just disappear into some bermuda short triangle during a fuck a goat festival in the caymen islands. Something killed it. I wonder what it was and I wonder where it is now.

I wonder.

Tue, 04/26/2011 - 11:52 | 1208031 6 String
6 String's picture

Dude, what killed Bear Sterns was a balance sheet that was levered 33:1. In fact, Bear Sterns silver short position was profitable in the Great Financial Crisis, which had nothing at all to do with Bear Sterns going down. If you did a tiny bit of DD you would understand it was a balance sheet leveraged to the hilt with securitization markets totally freezing up. When that happened, it was shit hits the fan for all the scumsucker and rotten banks.

But silver? That my friend had virtually nothing to do with Bear Sterns demise. Their silver position actually helped them.


Tue, 04/26/2011 - 13:43 | 1208173 slewie the pi-rat
slewie the pi-rat's picture

i think there is plenty of silver.  even for jpmorgue.

Tue, 04/26/2011 - 09:47 | 1207525 bullionbaron
bullionbaron's picture

A lot of top callers coming out of the woodworks, Bob Moriarty the latest and here are my thoughts on his most recent article:

Tue, 04/26/2011 - 10:25 | 1207678 Overflow-admin
Overflow-admin's picture

And where is HammyWanqer? (don't remember all its names)

Tue, 04/26/2011 - 08:46 | 1207294 Creed
Creed's picture

interesting post from a well regarded Market Ticker poster


User Info SILVER PRICE - EXTRAORDINARY FACTS in forum [BreakingPrice] Hedgefundmanip
Posts: 4992
Incept: 2007-08-02


How is this not meaningful...

Yesterday, ounce of investable silver traded 1.5x just on the COMEX.

SLV added another $9bn; so call it 1.7x or 170% in total of trading per oz of investment silver.

Gold only traded like $20bn against $3.3 TRILLION of investment gold; so a turnover of 0.60% vs 170% for Silver. Each ounce of Silver traded more than 250x as much as each ounce of gold. WTF is that?

SPY was like $35-40bn against $15 trillion plus; so call that 0.25% daily turnover

NFLX was 20% on the day of the print
SOHU was 20% on day after print
AAPL was 3% on day after print

I am in search of any major asset that every traded 170% of its float in 1 day; that's quite staggering and hard to ignore as a sign of something really meaningful.


When asked about silver Turk remarked, “The important point Eric is that silver is still in backwardation. I mentioned to you previously in the KWN blog piece on April 1st of this year that if silver remained in backwardation when we neared the $50 area it would be a truly extraordinary event. Here we are with silver touching $49 in Asian trading this morning, yet it remains in a 63 cent backwardation from spot to December 2015.

I can’t stress enough how significant that event is. Over the past three months the price of silver has nearly doubled, yet the backwardation has not disappeared. Markets are not designed to work that way, the higher price is supposed to entice people to sell their physical and hold dollars instead. I think the market is quite clearly sending the signal that people would rather hold silver instead of paper money.

The bottom line is that as long as silver remains in backwardation, price declines will be short-lived, it’s also telling us that silver has not yet reached a top on this move.”

Tue, 04/26/2011 - 08:56 | 1207335 drivenZ
drivenZ's picture

well, why wouldnt you sell your silver, dollar is doing great this morning....haaha. 

Tue, 04/26/2011 - 09:08 | 1207369 Stormdancer
Stormdancer's picture

Stocks to flow ratios baby!  Anyone not paying attention to that is missing a critical piece of market information.

Denninger will be frantically looking for an excuse to ban this poster right about now....

Tue, 04/26/2011 - 08:49 | 1207300 schoolsout
schoolsout's picture

Denninger banned me yesterday from his forum as he went absolutely apeshit (read: stupid) on precious metals.  He didn't like me calling him out for cussing out those that didn't agree with him.

I think the man 1) was high on something more than just a little bud  or 2) going senile.


By the way...he's gonna laugh his face off and say "I told ya so" when the much needed correction in silver he sits on his cash.

Tue, 04/26/2011 - 08:53 | 1207326 Goldenballs
Goldenballs's picture

Correction - this is all planned,you honestly think anything else is worth a toss besides Gold and Silver.The $ is toast.

Tue, 04/26/2011 - 08:55 | 1207333 schoolsout
schoolsout's picture

Didn't you hear?  Because the Euro has problems, the US dollar will the moooooon

Tue, 04/26/2011 - 09:11 | 1207379 Hephasteus
Hephasteus's picture

So an entire monetary union that can't align it's econonic interests with each other is going to somehow align them with ours and dollars?

Tue, 04/26/2011 - 09:24 | 1207439 schoolsout
schoolsout's picture

No, they are saying because they are having problems, the USD will skyrocket by default...that and everyone in the world is still trying their hardest to get USD in critical times...(that last part was said with a bit of sarcasm)

Tue, 04/26/2011 - 08:55 | 1207338 SheepDog-One
SheepDog-One's picture

The 'correction' already happened, 'I told ya so' trolls having a gloatfest over $1,505 gold and $47 silver are real nuts. Dollar only has 1 way to go, down, PM's will only resume upward march. 

Tue, 04/26/2011 - 09:00 | 1207350 Creed
Creed's picture

Denninger banned me yesterday




I've been reading there since 2007 & never bothered to open an account. You have to hero worship the guy to be able to go along to get along.

Figures his ego is taking a bashing over the "precious dollar" bullshit he's been spewing for years now. That's not to say it can't happen but the fact is it hasn't and he's been consistently WRONG.

Tue, 04/26/2011 - 09:12 | 1207391 FEDbuster
FEDbuster's picture

Denninger gets many things right, but is so wrong about PMs.  Too bad he cannot accept that the FED and their bankster owners are filling the "credit hole" with Obama bucks.  His dollars keep going down, while real money keeps going up.  Price everything (including this BS stock market) in gold to get a true picture of what is going on.  No one knows for sure how the collapse will happen or what will be the final trigger, but I would rather have an AR10, thousand rounds of ammo, year's worth of food and a box full of silver and gold, than a $25K CD at Wells Fargo earning .75%.

Tue, 04/26/2011 - 09:32 | 1207483 Vergeltung
Vergeltung's picture


Tue, 04/26/2011 - 09:45 | 1207520 Creed
Creed's picture

Denninger gets many things right



Tue, 04/26/2011 - 09:53 | 1207551 Infinite QE
Infinite QE's picture

Getting banned there is a badge of honor as an acknowledgment that your IQ is above normal and that your bullshit detector is working.

Tue, 04/26/2011 - 10:26 | 1207683 SilverRhino
SilverRhino's picture

By the way...he's gonna laugh his face off and say "I told ya so" when the much needed correction in silver he sits on his cash.

Not too worried about Denninger. He'll sit on it until the day that a few hundred thousand wont buy a hamburger.  

He will NEVER admit a mistake regarding PM's ever.   That says more than enough about his character.

Tue, 04/26/2011 - 08:47 | 1207305 RobotTrader
RobotTrader's picture

The F12-punching, electronic bit-flipping algos are now starting to overrun the SLV market.  It appears that 27% of annual mine production was "flipped" in just one day alone yesterday.


How ironic that this "sound money" instrument is now the favorite flavor to be sub-penny traded by a bunch of machines......

Tue, 04/26/2011 - 08:49 | 1207313 Johnny Lawrence
Johnny Lawrence's picture

For a CANSLIMer, you sure have a lot of opinions.  That means you make mistakes.  A true CANSLIMer couldn't care less about the stuff you talk about.

Tue, 04/26/2011 - 09:00 | 1207346 SheepDog-One
SheepDog-One's picture

Yea gosh silver and gold are really taking a drubbing, gold 'beaten down' to $1,505 in all time high territory by far, silver $46.50, well over what the PM sourpusses only last week said would never be reached.

Tue, 04/26/2011 - 09:10 | 1207387 55 men
55 men's picture

What did your mom make you for breakfast this morning?

Tue, 04/26/2011 - 09:21 | 1207436 Robot Traders Mom
Robot Traders Mom's picture


Tue, 04/26/2011 - 08:51 | 1207308 Goldenballs
Goldenballs's picture

Options expiry day,what do you expect.Bulid a huge wall across each end of Wall St and across every road it has junctions with.Then turn it into a prison,saves taking the suspects far.Forget the Mafia,financial institutions,governments and central banks are the biggest crooks.

Tue, 04/26/2011 - 08:52 | 1207317 Turd Ferguson
Turd Ferguson's picture

I'm looking for a dip back toward the lows of yesterday morning.

Tue, 04/26/2011 - 08:51 | 1207321 lunaticfringe
lunaticfringe's picture

Now everyone is a "silver expert." Spare me the good samaritan work.

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