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More On The Silver Dive: "Massive Sell Orders" Coupled With Bolivian Nationalization Halt Combine For Perfect Weak Hand Shakeout Storm

Tyler Durden's picture


Two key factors that appear to be contributing to the rapid move in overnight silver (and subsequent jump to pare half its losses) is i) the fact that Bolivia, despite being in a cash crunch has for the time being yielded to miner demands and has put its nationalization plans (as discussed previously here) on hold, and ii) there has been a dramatic bout of selling coming out of nowhere, despite the PM complex having opened very well bid earlier on, in what appears a coordinate effort to nuke silver exclusively.

From the WSJ: "Opposition from Bolivia's independently organized miners stopped President Evo Morales from implementing plans to boost state control over the country's mines Sunday, according to leading officials who were advocating takeovers of the country's vast mineral wealth. Mr. Morales has generally used May 1 labor day festivities to highlight his socialist agenda of reverting the country's energy and mineral resources to state ownership. On previous labor days, he announced nationalizations of Bolivia's strategic hydrocarbon reserves and the electric power grid, with mass rallies and military displays. This year, however, anticipated takeovers of the mining sector failed to materialize." None of this however, is news, as Coeur d'Alene and, of course, Sumitomo, the two biggest silver miners in the politically embroiled country already were assured their facilities would not be touched so we fail to see how this non-news is in any way validating of a nearly 20% move. Elsewhere, Bloomberg notes what appears to have been a massive coordinate attack on silver starting just before 6:30 pm Eastern.

From Bloomberg:

"We opened up this morning n New Zealand exceptionally well bid across the board," Jonathan Barratt, managing director at Commodity Broking Services Pty, said in a phone interview from Sydney today. "We got a high in gold and then we got massive sell orders in the spot market and the price fell through. When futures opened the market fell again." 

Looks like the old sell into low volume trick to flush the stops and kill the weak hands has worked again. Throw in last week's two CME margin hikes and Friday night's margin bonanza by MF Global, and one had a perfect storm set up for another wipe out in silver to start the week.

In the meantime, silver promptly managed to retrace over 50% of the move shortly after the dump. At this point whatever holders remain following last week's margin action and this evening's fine example of shock and awe will likely need far more energy and capital to be shaken out by the same entities whose primary goal is to prevent the surge in silver and ongoing capital-sapping collateral calls. Since none of the actual fundamentals before the long-term trajectory in silver (and gold) have changed, this appears like a rather attractive entry point. 

Lastly, one should recall that silver had a mini 10% correction last week and not only promptly recovered but nearly passed the $50 level shortly thereafter. This time will not be any different.


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Sun, 05/01/2011 - 21:39 | 1226809 RobotTrader
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Selloff is probably nothing.  ES only off about 2 points, Uncle Buck can't get a bid.

Probably a much needed setback for some base building, that's all.


Sun, 05/01/2011 - 21:45 | 1226830 Rahm
Rahm's picture

I have stopped following all TA and EVERYTHING ELSE.  My signal to buy is when Meth Man comes back in posting.  That's when I know to go all in.  When he is MIA, then I might take some profits off the table.  That buy/sell formula cannot fail!  In other words, BTFD!

Sun, 05/01/2011 - 21:57 | 1226880 Upswaller
Upswaller's picture

Calling Meth Man a dip will get you nowhere.

Sun, 05/01/2011 - 22:32 | 1227035 TruthInSunshine
TruthInSunshine's picture

Silver has been labeled an 'enemy of the state.'

The Bernank cried hysterically after gold & silver soared during the time he spoke on Wednesday, and it deeply impaired him.

Be prepared for the Whiskey Foxtrot Tango.

President Obama plans address to the nation

By Michael A. Memoli, Washington Bureau

May 1, 2011, 10:01 p.m.

President Obama will address the nation at 10:30 p.m. Eastern time Sunday, the White House said.

The announcement was abrupt, coming after the White House had declared a so-called lid, meaning no other news would be coming for the remainder of the day.

No word was given as to what the president would be addressing.

Sun, 05/01/2011 - 22:35 | 1227075 goldfish1
goldfish1's picture

10:35 No Obama

Sun, 05/01/2011 - 22:47 | 1227151 Michael
Michael's picture

Osama Bin Laden is dead. Big deal, the CIA employee boogeyman is dead. That's the reason for the market moving event.

Sun, 05/01/2011 - 22:50 | 1227175 Terminus C
Terminus C's picture

This is such bullshit.  It is doubtful that he is dead (not disagreeing that they are announcing his death).  More circus... disgusting.

Mon, 05/02/2011 - 07:17 | 1228659 Confuchius
Confuchius's picture

Anyone with an IQ in the single digits will believe washington's babbling. That just means all of osama / obama's voters will lap it up. Simply seeking a face saving way to exit Afghanistan.

Sun, 05/01/2011 - 23:26 | 1227620 Larry Darrell
Larry Darrell's picture

Now the real bold are TPTB going to be with their next move???

9/11 destroyed all the Enron evidence so the US ponzi could advance.

Will they use May 4th (5+4=9, 2011 staying w/ the 9/11 theme) to blow up the Comex and "lose" all of that evidence??

Then, they can blame the "terrorists" for retaliating over bin Laden's death, and at the same time change the rules on silver ownership/taxes etc. in the name of "National Security"

Mon, 05/02/2011 - 00:18 | 1228019 Al Gorerhythm
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Show me an authentic "Death Certificate".

Mon, 05/02/2011 - 02:48 | 1228421 Anonymouse
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Market moved well before this hit the wires.  Someone got a leak and made a butt-load of money

Mon, 05/02/2011 - 07:59 | 1228770 tmosley
tmosley's picture

More like LOST a buttload of money.  They moved the market way beyond where it ended up, and lost money doing so.

The only people really making money off of this are those who BTFD.

Mon, 05/02/2011 - 05:56 | 1228566 Sudden Debt
Sudden Debt's picture

I don't fully agree with you Michael.

I think this is a very beautiful day that this pig is killed by brave US troops.

I see this as a cheerfull day witch shows they never stopped looking.

I got tears in my eyes of joy when I heard the news that he was death.

 Sure there are conspiracy theories, but as long as not really proven, this shows the US isn't a power to be messed with.

My respect for the US troops is at a all time high right now.

Mon, 05/02/2011 - 08:39 | 1228858 MassDecep
MassDecep's picture

Raa Raa Raa, Hip Hip Hooray! I am so Happy!!! I wonder when they are going to give me my next Vaccination? Ohh, I need some Fluoridated water; my teeth are rotting so bad!! Ohh, I am so happy they got that Bad Man!!! OHHHHHH

Mon, 05/02/2011 - 06:26 | 1228597 Twindrives
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bin Laden, like Soetoro, was employed by the CIA. 

Sun, 05/01/2011 - 22:03 | 1226885 nope-1004
nope-1004's picture

Well, I didn't sell my silver.  If pushing around a paper market is the best they can do, then the writing is on the wall for these white collar criminals.

We've retraced some 50% already, so it truly is a weak hand if they pull out all the stops during low volume hours and can only move it down 5%.  Silver has incredible strength.



Sun, 05/01/2011 - 22:28 | 1227021 Bicycle Repairman
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I smell continued desperation.  The retrace has already started and will take all of 48 hours.


Sun, 05/01/2011 - 23:21 | 1227532 Kassandra
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Sun, 05/01/2011 - 23:18 | 1227534 Kassandra
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Mon, 05/02/2011 - 03:43 | 1228478 Wooly
Wooly's picture

Personally, I'd rather it went even lower just so I can buy even more!!!

Sun, 05/01/2011 - 22:50 | 1227174 disabledvet
disabledvet's picture

is there a quality bid in US equities?  Are they "folllowing the surfer"?

Sun, 05/01/2011 - 21:42 | 1226812 carbonmutant
carbonmutant's picture

Somebody's testing the strength of Silver...

Sun, 05/01/2011 - 22:47 | 1226866 Doña K
Doña K's picture

As I predicted on Saturday the 23, see #1199534. This is a massive smackdown as the swan song of Bennie and co. If they do not succeed (in their mind) to stop or reverse Gold/Silver uptrend, they are toast.

I would wait one or two days after stabilization and then go in as big as I can physical.


Sun, 05/01/2011 - 22:51 | 1227198 disabledvet
disabledvet's picture

actually i'd keep my eyes on US equities.  quality bid there and "there's your stabilization fund."

Sun, 05/01/2011 - 22:03 | 1226897 winks
winks's picture

No shit Dick Tracy,

Sun, 05/01/2011 - 22:50 | 1227181 Silver Shield
Mon, 05/02/2011 - 00:02 | 1227890 SilverFish
SilverFish's picture

Why didn't you just say "The price of silver is down a little" Captain Obvious?

Sun, 05/01/2011 - 21:42 | 1226814 OrestesPenthilu...
OrestesPenthilusQuintard's picture

I'm glad they're trying socialism down there.  It's been so successful in the past.

Sun, 05/01/2011 - 21:55 | 1226871 pesamystik
pesamystik's picture

Yeah, the socialist countries Norway, Denmark and Sweden have been real fucking moron.

We have socialism here, socialism for the rich. So it really depends on what type you're talking about.

Sun, 05/01/2011 - 22:17 | 1226976 Ahmeexnal
Ahmeexnal's picture

Highest suicide rate in the world. Among the lowest birthrate.
And that is not a disaster?
And BTW, the brand of socialism in those places is national socialism.

Sun, 05/01/2011 - 22:24 | 1227002 pesamystik
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Also happens to have the highest rates of happiness and highest standards of living. That paradox often exists. New York state is consistently ranked the lowest in terms of overall happiness but is ranked 45th for suicide rate. Meanwhile, states like Utah with an overall high level of happiness has one of the highest rates of suicide.

One of the explanations is that miserable people surrounded by those who are happy have their unhappiness magnified. In New York, everyone is miserable, so you always have that to fall back on.

Sun, 05/01/2011 - 22:23 | 1227012 pesamystik
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Furthermore, the U.S. birthrate for White Europeans is not much higher. White people allover the world are having fewer children. This has nothing to do with socialism. Countries with very high standards of living are having fewer children. Actually the Scandinavian countries have been faring much better than other European countries that could be considered less socialist then the Nordic ones.

Sun, 05/01/2011 - 22:36 | 1227069 sun tzu
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They have socialized healthcare but they certainly aren't fully socialist like Cuba or Venezuela, you dumbfuck. It's pathetic how you retarded communist dinosaurs keep pointing to the Nordic countries as successful examples of socialism. Try some real socialism like the USSR, Cuba, and North Korea. They are all failures. 

You think only the US bailed out bankers? What the fuck do you think Europe has been doing the past few years? Get a clue you stupid fucking prick

Sun, 05/01/2011 - 22:42 | 1227131 pesamystik
pesamystik's picture

Buddy, if you keep conflating communism with socialism, there is no point in debating with you. Also, regarding Greek from the poster below, that will hardly impact the Nordic countries. They have tons of money in rainy day funds and very healthy economies, unlike the U.S. which has been running trillion dollar deficits and one of the lowest ranked standards of living in the industrialized world.

Sun, 05/01/2011 - 22:58 | 1227283 sun tzu
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Hey shit-for-brains, socialism is the economic system, communism is the political system. Are you really that dense? The United States is a (semi)-capitalist country that is supposed to be a representative republic. Therefore, the economic system is capitalist and the political system is a republic. The USSR had a socialist economic system with a communist political system. Are parts of the US economy socialized? Yes, but it is still more capitalist for now. The same with the Nordic countries. They are more socialized than the US but they are still mainly capitalist. The government runs healthcare, education, and some retirement and welfare systems. The rest of the economy is capitalist.

Sun, 05/01/2011 - 22:37 | 1227076 Ahmeexnal
Ahmeexnal's picture

Watch your illusionary "very high standard of living" about to crumble to dust: nordic countries are heavily exposed to greek debt.

You're about to get a voluntarily mandated haircut.  Have fun with when the riots start!

Norway will be lucky if they get 60 cents on the dollar. Their oilfund is about to become

a prime textbook example of stupid investments for students of economics worldwide.

Mon, 05/02/2011 - 02:52 | 1228427 d_senti
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Not to mention that their Muslim immigration problem is steadily getting worse. Cities like Malmo have skyrocketing rape numbers, etc., and it will only get worse. They import Muslims to support the socialist system and its lack of a decent birthrate, but they're a drain on the system instead, precipitating collapse. They're all screwed.

Socialism doesn't work; as a smart lady once said, sooner or later you run out of other people's money.

Mon, 05/02/2011 - 07:54 | 1228749 karlypants
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Nordic countries are not heavily exposed to Greek debt compared to France and Germany. Here's the breakdown.

*only* $100bln exposure outside Britain/Ger/Fra which isn't going to crumble anything considering the nordic balance sheet.

Sun, 05/01/2011 - 22:41 | 1227103 macholatte
macholatte's picture

 very depressing & serious stuff

Muslim Demographics

Sun, 05/01/2011 - 22:26 | 1227016 tmosley
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Highest rate of happiness?  No, you are clearly thinking of Soviet Russia.  They were 100% happy, until the capitalist pigdogs came along and ruined their worker's paradise.

Sun, 05/01/2011 - 22:30 | 1227044 pesamystik
pesamystik's picture

You are one stupid mother fucker. The Economist (the ultimate "pro-capitalist" paper in the world) and OECD rate countries based on many factors, such as family life, economic well-being, job satisfaction, etc. They release a report every year. 

Here's the Economist from 2005

Those horrible "socialist" countries always come out on top. 

You are one of those fucking "GO USA, WE'RE NUMBER 1" fucking idiots. period.

Sun, 05/01/2011 - 22:39 | 1227111 sun tzu
sun tzu's picture

Those aren't socialist countries you stupid cocksucking piece of shit. They simply have socialized healthcare. Nearly everything else is still privatized. Have you ever heard of IKEA, Ericsson, Saab, Volvo, Electrolux? Those are the capitalists who fund the social programs in Sweden. Your mother must have shit you out on your head and forgot to flush.

Sun, 05/01/2011 - 22:49 | 1227200 pesamystik
pesamystik's picture

The U.S. have almost 50 million people on food stamps, and everyone here is screaming about how great our capitalist system works. We bailed out banks with trillions in tax payer dollars, and everyone keeps screaming how great capitalism here is. We lend out subsidies to the poor welfare queen corporations, who already pay virtually nothing in taxes through loopholes their lobbyists write into the tax code. Capitalism here is super!

We are simply debating semantics. I believe capitalism is healthy when it is not crony-capitalism, which is currently what the U.S. is based on. I believe that pure socialism, in which everything is nationalized, is not a good thing. However, I believe that in developing countries it is a good idea to keep certain key industries nationalized lest the banks from stronger economies go on a feeding frenzy. You saw this happen when the USSR collapsed. The oligarchs swooped in as all the assets became nationalized and bought all the resources the country had for pennies on the dollar. Countries such as Peru need to maintain a healthy balance of equity flowing in and protection from vultures, it's a tight-rope to walk, and always has been for these countries.

The truly correct term for the Nordic countries are social democracies, and yes, they are not truly socialist countries in the purest form.

Sun, 05/01/2011 - 22:38 | 1227093 Spalding_Smailes
Spalding_Smailes's picture

Did you get your schooling in the USA ? Do you live well because of the capitalist system that allows your company to make money and pay your commie ass ...


You should move to russia then you bum ... 

Sun, 05/01/2011 - 23:03 | 1227354 tmosley
tmosley's picture

Funny how you think you can just use the label of capitalism associated with the US and think it is really capitalism.

Your thinking is so backward, I have trouble understanding how you can be real.

But then I remember that you are a driver, and therefore every word out of your mouth is a lie.  So it all makes sense.

Sun, 05/01/2011 - 22:27 | 1227032 sun tzu
sun tzu's picture

When was the last time a Scandinavian government nationalized a company or industry? Nokia, Ericsson, and many private businesses exist. It isn't your socialist workers paradise that you leftiest have wet dreams to, you fucking retard. That's Cuba and North Korea with their high standards of living. Maybe you should get your socialist ass over there and jerk off.

Sun, 05/01/2011 - 22:35 | 1227079 pesamystik
pesamystik's picture

Just because you have private industry does not mean you do not have socialism. The natural gas profits from Norway are heavily taxed and put into the coffers for the people and government. When I talk about socialism, I am talking about high taxes on the rich, and overall high tax rate used to provide a high degree of social services, such as universal healthcare, subsidized housing, a huge safety net, free maternity care, and a huge amount of vacation time.

If you asked anyone from one of those countries, and I am friends with a quite a few people from those countries, they would consider themselves to have a socialist government, and one they actually really like. 

Get my "socialist ass over there and jerk off," hahaha. Americans have been so brainwashed that they have an almost visceral gut reaction to anything containing the word "socialist" that they lose all logic. Cuba and North Korea are dictatorships based on COMMUNISM, stop trying to conflate the issue dickwad.

Sun, 05/01/2011 - 22:43 | 1227140 Ahmeexnal
Ahmeexnal's picture


There you go. Those stupid vikings where among the first to kneel and bow to the NWO.

Keep your paradise to yourself.

Sun, 05/01/2011 - 22:51 | 1227233 pesamystik
pesamystik's picture

Oh no! 

Look at the socialist nightmare they have to endure!

Mon, 05/02/2011 - 01:36 | 1228256 Ahmeexnal
Ahmeexnal's picture

Your infinite display of ignorance has no match on ZH.

Those countries for which you profess a blind and sick idolatry are puppets of the NWO.

Your lack of historic memory shouldn't come as a surprise.

I bet you don't remember who Olof Palme was, and why he got blown off.

A few years back, the bubble was in the PIIGS.  The scandibubble is next.

But hey, it's all good now.  Just as it was all good in Ireland and Spain a few years ago.

And to add the last nail to your coffin....can you comprehend just how idiotic it is to proclaim socialism, while keeping the most backward of all feudal vestiges: royal families??

Then again, maybe you like being a happy serf.  


Sheeple are sheeple.

A is A.

Take your bib and go to sleep.


Sun, 05/01/2011 - 22:46 | 1227163 sun tzu
sun tzu's picture

That's right you dumb fucking shithead. The US also has socialism. What do you call medicare, medicaid, unemployment insurance, social security? Every country has social programs. That does not mean they are socialist. A real socialist country has no private ownership of property, you stupid cuntface. I see your weak shitbrain was easily brainwashed by your professors.

Socialism is the economic system that COMMUNISTS use, you stupid ignorant son of a whore. Your fucked up stupid pea brain is too stupid to differentiate between a political and economic system and you want to debate?

Mon, 05/02/2011 - 10:16 | 1229339 Ckashan
Ckashan's picture

You are a tard;  your babble is pointless.  None of the countries you speak of have had a "FREE BANKING SYSTEM" since the beginning of the 20th Century and yes a 'free banking system' contrary to what is preached in the media and schools is better and more efficient. Ergo the massive capital waste in 'BAILING-IN' the TBTF.  'Capitalism', 'Communism', and 'Socialism' over the most recent history all have one thing is common...?  That's right you guessed it a 'CENTRAL BANK'!  The purpose is to take away the threat of 'redemptions' for banks and to allow for the 'synchronized' inflation and deflation of the money supply (wash,rinse,repeat).  Thomas Jefferson if you read history pointed out that this is the process that is used until the wealth of a country is consolidated into a few hands and the rest of the citizens are broke on the land that their parents' parents', etc. owned.

Socialism = Key infrastructure is owned and controlled centrally; Non-key infrastructure is not.

Communism = Everyone's labor is allocated in a manner that everyone receives an equal share of production.

So they are not the same economic system and by the way these definitions are conceptual.  In the real world of course when things are put into practice they differ often from what 'theory' would dictate.  The point is one way or another, more than likely as recent history shows, our wealth will be siphoned through the non-free banking system implemented around a central or central banks.

FYI...Unemployment insurance and S.S. is 'Insurance' like auto insurance.  You PAY for someone else to assume the risk.  If the other party commits fraud and can not assume the risk then... well you figure it out.

Sun, 05/01/2011 - 22:47 | 1227172 sun tzu
sun tzu's picture

That's right you dumb fucking shithead. The US also has socialism. What do you call medicare, medicaid, unemployment insurance, social security? Every country has social programs. That does not mean they are socialist. A real socialist country has no private ownership of property, you stupid cuntface. I see your weak shitbrain was easily brainwashed by your professors.

Socialism is the economic system that COMMUNISTS use, you stupid ignorant son of a whore. Your fucked up stupid pea brain is too stupid to differentiate between a political and economic system and you want to debate?

Sun, 05/01/2011 - 22:56 | 1227299 pesamystik
pesamystik's picture

Ass fucking dumb cockwhore shithead fucking cock pussy ass no brain motherfucker shitsucking tardcake. 

There are plenty of companies nationalized. We are talking about a matter of degree. Many countries have oil companies nationalized, along with railroads, utilities, etc. These countries are considered socialist, just not the "bad" socialist you are fucking cocksucking referring to.

Go fuck yourself, kid fucker.

Haha, this is kind of fun. 

Sun, 05/01/2011 - 23:06 | 1227403 akak
akak's picture

Ass fucking dumb cockwhore shithead fucking cock pussy ass no brain motherfucker shitsucking tardcake.

Methman was going to choose that as his handle here, but unfortunately for all involved, most of it would not have been displayed.

Mon, 05/02/2011 - 01:34 | 1228283 RockyRacoon
RockyRacoon's picture

I think the Texas Gun-fella-Jesus-freak guy just had a myocardial infarction.

Mon, 05/02/2011 - 01:43 | 1228301 Ahmeexnal
Ahmeexnal's picture

He'll have to repeat all those words he read next time he's up for confession.

"father, I have sinned..."

Mon, 05/02/2011 - 14:40 | 1230933 akak
akak's picture

I don't think his particular flavor of Christians do confession ---- they more likely handle poisonous snakes, or babble in "tongues", or burn witches and heretics.

Sun, 05/01/2011 - 23:13 | 1227476 slewie the pi-rat
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i think tyler should decide whether this whole OT smack-down was about semantics, or not.

beats the hell outa me!

Sun, 05/01/2011 - 22:59 | 1227336 Chuck Walla
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Norway, Denmark and Sweden, yeah, those are some economic powerhouses alright.  I don't get why Mexicans aren't flocking there instead of this shit hole. Anyway, plenty of alcoholics live in those paradises, so you know life is the best! 

Mon, 05/02/2011 - 00:17 | 1228011 Shock and Aweful
Shock and Aweful's picture

maybe its because Mexico does not border Scandinavian nations

Really...that is the best you could come up with?


This whole debate about "socialism" and "capitalism" is completely retarded.

It has been decided...all attempts at "socializing" anything in the U.S. (excpet subsidies and bailouts for corporations and the rich) will be attacked, demonized, and demagogued to death...


It is a good thing that most U.S. citizens are complete morons and have no balls to stand up and demand that the taxes they paid went into actually providing TANGIBLE programs that help THEM.  But thankfully...instead, we get to have things like corporate subsidies, bailouts, endless wars and a trillion dollar a year "defense" industry.  God...we should all get on our knees tonight and thank the lord of this great land (mammon) that we have not had to endure such hardships of a "socialized" society....could you imagine...FREE college (that would be a shame)....or NOT-FOR-PROFIT HEALTH CARE (the horror!)  Or....worst of all....some financial security when you reach old age (that has to be the epitome of pinko-faggot communist shit there. fucking "Capitalist-First" droogs....give it a rest....this is NOT capitalism we have here...this is a fascist's wet dream....a complete takeover of government by thr corporations...and there are people out there like you who will defend the farce.

Mon, 05/02/2011 - 01:40 | 1228297 Chuck Yeager
Chuck Yeager's picture


Mon, 05/02/2011 - 01:51 | 1228328 HyperinflatmyNutts
HyperinflatmyNutts's picture

Could not of said it better! Agree 100%

Mon, 05/02/2011 - 07:34 | 1228694 Umeyma
Umeyma's picture

thank you, a remark on their mentally retarded racist belief would ve been welcome as well.. but maybe it s not even worth a feedback on such pathetic ideas

Wed, 05/04/2011 - 09:19 | 1237642 Vendetta
Vendetta's picture


Sun, 05/01/2011 - 21:43 | 1226817 MGA_1
MGA_1's picture

$50 - important number.  

Sun, 05/01/2011 - 22:11 | 1226934 Id fight Gandhi
Id fight Gandhi's picture

No, silver in this environment should be well into the 100s.

Sun, 05/01/2011 - 22:36 | 1227081 KinorSensase
KinorSensase's picture

most silver on ebay was over $50 last it's more around 49 (back envelope math).  the cost of physical is ahead of the spot anyway, but i agree: it will be nice to see the spot break $50 and shit's gonna take off then IMO.

Mon, 05/02/2011 - 01:34 | 1228292 RockyRacoon
RockyRacoon's picture

I closed about 50 lots this evening on eBay and the sales ran from $48 to $52 for generic .999 silver rounds.  Felt so good I listed another 50 or so for this next week.   I hope the price bounces nicely as I could use the fiat to trade for some more Eagles.

Sun, 05/01/2011 - 21:43 | 1226823 TwoShortPlanks
TwoShortPlanks's picture

*Posted Earlier but no response*

Hey Tyler, can you or one of the smart people with PM experience please explain something for me.

Please go here and bring-up the following 4 charts:

A) 5 Year, Gold USD

B) 5 Year, Gold AUD

C) 5 Year, Silver USD

D) 5 Year, Silver AUD

Okay, please explain why Gold in AUD looks volitile (as one would expect from a minor floating currency bouncing around), and yet Silver in AUD has little volitility, and in fact, is a close match to the the same graph in USD? Intuitively, shouldn't we expect volitility in both, or, a mirroring of the USD in both, not one of each!

Why does Silver AUD mirror Silver USD, but Gold does not...WTF?

Is this a tell-tale sign of manipulation, or has it something to do with Gold being produced and exported from Australia?

And we've just seen Gold relatively unaffected by the Silver sell-off...both are PMs, right?

Sun, 05/01/2011 - 21:58 | 1226865 Keri at Bankste...
Keri at Bankster Report's picture

Please link those specific charts.  I'm not one of those smart people you are requesting, and so I am having trouble finding them through the link you provided.

Sun, 05/01/2011 - 22:03 | 1226899 TwoShortPlanks
TwoShortPlanks's picture

Can't, the URL is the same for all data.

Just cut-n-paste this URL:


Sun, 05/01/2011 - 22:47 | 1227162 slewie the pi-rat
slewie the pi-rat's picture

hey, 2 short: Precious Metals Central - Gold Prices

if you look at these charts, i think we may be seeing a gold V. silver play.  the ratio was 31, then, early today's trading, spiked to 37!  sell silver, buy gold, now, it is coming off a bit.  lQQk at those opening charts:  gold straight up, silver straight down. 

i think the market makers are having a hoe-down with the crimex & electronic markets, right now. 

blythe!  you can take those spurs off, anythime... 

Sun, 05/01/2011 - 23:35 | 1227673 TwoShortPlanks
TwoShortPlanks's picture

Thanks, looks something like that. But none of this matter with Physical, a dead USD is a dead USD to me.

Sun, 05/01/2011 - 22:58 | 1227281 Gunther
Gunther's picture


Posted also here:


During that time silver is up ~5 times and gold ~2.5 times in USD.

The Aussie$ got dumped during the financial crisis late 08/early 09 . Overlay those moves of similar magnitude and opposite direction and you get gold being range-bound since the top in 3/09.

In EUR is a similar pattern with different timing; since gold passed 1000 Eur it got range-bound.

Nothing to worry about but is tests investors patience.

Sun, 05/01/2011 - 21:43 | 1226824 winning
winning's picture

BTFD ................

Sun, 05/01/2011 - 22:10 | 1226942 Long-John-Silver
Long-John-Silver's picture

Silver Bugs are gang raping all the online dealers taking advantage of this dip. Apmex is rapidly selling out of Silver Eagles.

Sun, 05/01/2011 - 22:25 | 1227010 Hugh G Rection
Hugh G Rection's picture

If I ran APMEX, the site would be down for maint. during raids like this.

Mon, 05/02/2011 - 04:49 | 1228538 Hephasteus
Sun, 05/01/2011 - 21:44 | 1226826 Re-Discovery
Re-Discovery's picture

Of course.  (Except for the Bolivia nationalization thing.  Which is probably an 'of course' as well.  What do communists know about the hard work of pulling metal out of the ground.  Better ways to steal it.)

Sun, 05/01/2011 - 21:50 | 1226838 espirit
espirit's picture

Yep, that would certainly increase production- Not!

Sun, 05/01/2011 - 21:45 | 1226831 espirit
espirit's picture

Let them do this during regular hours and see how it works.  Nothing would be better than to BTFD at the daily low.

Sun, 05/01/2011 - 21:51 | 1226836 Rahm
Rahm's picture

During regular hours, it would blowup in their mUtH@f^kK!n faces & bite them in the @$$ at the same time!

Sun, 05/01/2011 - 21:45 | 1226832 Re-Discovery
Re-Discovery's picture

JPM chipping flint over a fire in a rainstorm trying to get it lit.  This is the latest spark. 

Sun, 05/01/2011 - 21:48 | 1226833 fonestar
fonestar's picture

What sort of fucking morons would sell silver for fiat??  Fucking morons, go and be a lemming at the DOW!!

Sun, 05/01/2011 - 22:06 | 1226913 TwoShortPlanks
TwoShortPlanks's picture

I wonder if it's a case of HFT quote stuff the price down and BTFD to pick up physical at a discounted rate.

Sun, 05/01/2011 - 22:10 | 1226930 espirit
espirit's picture

No doubt about it.

That way CNBS can rag on an eventual collapse to shake the tree even harder for their master(s).

Sun, 05/01/2011 - 22:14 | 1226950 Id fight Gandhi
Id fight Gandhi's picture

Shit like soars and nobody bats an eye, dollar
Tanks, oh shucks... This is normal?

Sun, 05/01/2011 - 21:48 | 1226834 tmosley
tmosley's picture

Yup, machinations.  Thing about machinations--they are always temporary.

Enjoy the sale everyone.  I won't, as I am caught with little dry powder.  I can bet you that in two weeks when I have access to more funds, this "collapse" will be a dim memory, and we will likely be above $55.

Sun, 05/01/2011 - 21:46 | 1226835 Mec-sick-o
Mec-sick-o's picture

Silver Flash Crash

Sun, 05/01/2011 - 21:58 | 1226876 lawrence1
lawrence1's picture

This is the kind of crap that helped me decide two months ago to be only in physical and cash. No more broker commissions, no more stop losses ignored at the discretion of the house. As someone quipped, my PMs were totally unmoved by this event. Go physical and starve the fucking criminals and, of course, preserve your savings.

Sun, 05/01/2011 - 22:12 | 1226952 Bastiat
Bastiat's picture


Mon, 05/02/2011 - 00:27 | 1228057 Al Gorerhythm
Al Gorerhythm's picture

Yup. An old lesson painfully digested.


Wed, 05/04/2011 - 09:20 | 1237660 Vendetta
Vendetta's picture


Sun, 05/01/2011 - 21:47 | 1226837 Blorf
Blorf's picture

Low volume flash crash.

Sun, 05/01/2011 - 21:48 | 1226840 Feduptaxpayr
Feduptaxpayr's picture

$50 is the Maginot Line.....No doubt that $50 was ordered to be defended at all costs.  But realize that the open interest in silver futures is not at historically high levels so the frothiness at a top is not present.  Since we are in the delivery period on the May contract this attempt was necessary to force weaker hands out.  I expect this selloff to be overrun due to the demands made in the physical marketplace and many have been waiting for something like this to buy or to buy more.  It will be interesting to see the premiums tomorrow on silver eagles and other product.  If the premiums expand, then expect a sharp rebound and I wouldn't be surprised to see a "melt up" in the silver market where, at some point, everyone realizes that there just isn't much out there to be bought.  That is when the sellers disappear and the remaining shorts cover AND you get speculators buying heavy.  Right now this selloff is being bought by those shorts that were caught and I suspect we will see further decline in the open interest.

Sun, 05/01/2011 - 21:52 | 1226857 penisouraus erecti
penisouraus erecti's picture

nice summary

Sun, 05/01/2011 - 21:58 | 1226874 augie
augie's picture

silver down? wallstreet congradulating themselves on the defense of their 50 line? Bullish for bolivian blow.

Sun, 05/01/2011 - 22:15 | 1226954 espirit
espirit's picture

I'll trade them ounce for ounce.

Sun, 05/01/2011 - 22:18 | 1226984 Huckleberry Finn
Huckleberry Finn's picture

you forgot escort services too.

Sun, 05/01/2011 - 22:00 | 1226895 bankrupt JPM bu...
bankrupt JPM buy silver's picture

"$50 is the Maginot Line...."

Wasnt the maginot line a HUGE failure?  I mean it was pointing backwards, the Germans ran around it, and then the artillery was pointing right back at the French. 



Sun, 05/01/2011 - 22:19 | 1226992 knukles
knukles's picture

The reason is that it was French.


Mon, 05/02/2011 - 00:30 | 1228067 Al Gorerhythm
Al Gorerhythm's picture

It was a heavily defended line in the sand. It got smashed.

Sun, 05/01/2011 - 21:48 | 1226843 dumpster
dumpster's picture

 50 bucks important number

 60 bucks important number

 70 bucks important number

  80  bucks important number


so the 50 number is you regurgitating back what you heard from some one else and thus becomes a  clustercrap number

all these savy lap top creatures with the know it all copy machine mouths  


Sun, 05/01/2011 - 22:17 | 1226965 MGA_1
MGA_1's picture

$50 was the last high for silver, and a high point for the last round of inflation.  We are on the cusp of a dollar collapse.. $50 is an important number.  After this, people might start moving out of bonds.

Mon, 05/02/2011 - 09:24 | 1229060 mayhem_korner
mayhem_korner's picture

When you're done slapping yourself on the "back," take a deep breath and observe what's happening.  Behaviors change at tipping points.  There is an all out assault to undermine silver, unlike anything in this bull run. 

Silver is a tiny, tiny market in terms of the overall investment complex, but it is a bellwether right now.  The Morgue may have it's back broken due to it's ridiculous shorts.  And once you break the historic high for the asset, it signals to the entire investment complex that the existing paradigm has shifted. 

So $50 is important...more important than $30 was, and more important than $40 was.  It is THE battle line.

Sun, 05/01/2011 - 21:49 | 1226848 Sokhmate
Sokhmate's picture

Aaaand it's gone. It's gone it's all gone.


I pray that we visit the thirties.

Sun, 05/01/2011 - 21:54 | 1226868 tmosley
tmosley's picture

I'd be happy if the current price (as well as supplies and premiums) lasted two weeks so I could get some.

Sun, 05/01/2011 - 21:50 | 1226850 Imminent Crucible
Imminent Crucible's picture

If only...if only...JP Moron Chase could manage to get the price down 30% for me.

I would behave myself for the rest of the year.  Okay, for all of May.

Sun, 05/01/2011 - 21:54 | 1226869 espirit
espirit's picture

If...if, they would only pay us in fiat to buy more silver at lower prices - Oh wait, they do!


Mon, 05/02/2011 - 00:32 | 1228073 Al Gorerhythm
Al Gorerhythm's picture

Pascal's wager.

Sun, 05/01/2011 - 21:50 | 1226851 truont
truont's picture

Remember, Americans, if you're short silver, you are long the dollar.
Chose your team.
Pick a lane.

Sun, 05/01/2011 - 21:57 | 1226870 SheepDog-One
SheepDog-One's picture

Yep, good point. Silver shorts are long dollars. Im not taking that bet.

Sun, 05/01/2011 - 22:20 | 1226961 TwoShortPlanks
TwoShortPlanks's picture

Spot-on...All eyes on AUD for safe haven...this morning's Financial Review quotes Westpac Currency Strategist, Sean Callow, states, "They don't want these US Dollars because they (Asian Central Banks) are convinced it's going to go down sooner rather than later".

I think we're looking at the Death Rattles of the US out for the kicking...and BTFD!!!

*Article on pg1 and pg22: Asian Central Banks Buy $A in Search for safety*

Sun, 05/01/2011 - 22:05 | 1226922 Teamtc321
Teamtc321's picture

Do tell more.......please elaborate.

Sun, 05/01/2011 - 21:54 | 1226853 SilverDreams
SilverDreams's picture

...and in other news, it still takes weeks to get an order of Silver Eagles filled...

Sun, 05/01/2011 - 22:37 | 1227073 UncleFurker
UncleFurker's picture

1. Drive across the border.

2. Find an Electra appliance store.

3. Walk down the back of the store to the Banco Azteca branch window.

4. Pull out pesos and buy Libertads across the counter.



Mon, 05/02/2011 - 02:33 | 1228402 Tail Dogging The Wag
Tail Dogging The Wag's picture

Gracias, amigo!


Sun, 05/01/2011 - 21:56 | 1226855 dumpster
dumpster's picture



 many said that 29 was the line

 others said 38,, then 45 now 50   what will be the next critical line


and what makes fifty so critical as the dollar drops ,, as China India buy ,

i am sure the Indians are looking at fifty on an American scale as they be-gen to use silver as a currency .  

Sun, 05/01/2011 - 22:00 | 1226882 SheepDog-One
SheepDog-One's picture

Last week Apmex was begging to buy at $51, now theyre selling at $44. If Apmex is getting screwed like this its all gone out of control, theyre about to burn.

Sun, 05/01/2011 - 22:17 | 1226979 Long-John-Silver
Long-John-Silver's picture

They got gang raped tonight. I've been watching inventory levels. Expect much higher buy premiums tomorrow morning. I also suspect they will start limiting on-line buy hours. Obviously they got caught with their pants down. The automatic spot pricing went right down with this no volume manipulation move.

Sun, 05/01/2011 - 22:24 | 1226998 Captain Benny
Captain Benny's picture

APMEX isn't getting screwed.  They hedge their inventory so price swings hardly change their bottom line...  They basically have a persistent (but always changing) paper short position to offset the inventory which they have taken possession of.  (Sometimes that inventory may be in transit or vaulted elsewhere)

Sun, 05/01/2011 - 21:55 | 1226856 Spalding_Smailes
Spalding_Smailes's picture


1900 - $0.80

1910 - $0.70

1920 - $1.70

1930 - $0.50

1940 - $0.42

1950 - $0.90

1960 - $1.00

1970 - $2.00

1980 - $48.00 ( Two months later below $10.00 )

1990 - $6.00

2000 - $5.00

2003 - $5.00

2006 - $8.50

2009 - $12.00

2010 - $18.00



Irish Independent - 2007 

"John FitzGerald (ESRI economist) stated that if he believed there was a crash coming that he would sell his house and rent it back. Tellingly he is not doing so because he believes, as I do, that if (and that is a big 'if') the market is going to crash it will do so in a patchy, selective way which will not impact to any great degree on many of the existing homes in Ireland.


Sun, 05/01/2011 - 21:57 | 1226881 tmosley
tmosley's picture

Douchebag doesn't have the balls to post a damn word at $49.  Surprise surprise that he would be out trolling on what is clearly a massive fake out.

Why haven't you sold your truck and used the capital to build a trading empire yet?

Oh yeah, it's because you get 95% of your bets wrong.  You only tell us about the ones that are up.  Haven't heard you say shit about RIMM lately.

Sun, 05/01/2011 - 22:01 | 1226891 Spalding_Smailes
Spalding_Smailes's picture

Seanad Eireann speech - 2007


"However, what we do know is that the underlying demand for housing remains strong, driven by a relatively young population and continued inward migration. While we may experience a year or two of sub-50,000 completions, it is reasonable to expect over the medium term that annual completions will return to sustainable levels which will remain high by international standards, reflecting the strong underlying demand for housing in Ireland.

Sun, 05/01/2011 - 22:00 | 1226896 Spalding_Smailes
Spalding_Smailes's picture

Irish Independent - 2010

"One of the good things about the steep discount, averaging 47 per cent, is that the residential property market will now be stabilised at a realistic level."

You can now buy in confidence that the price is realistic."

Sun, 05/01/2011 - 22:33 | 1227049 Bicycle Repairman
Bicycle Repairman's picture

I sold my house in Ireland before the crash and bought silver.  Thanks for the slice of Irish history.

Sun, 05/01/2011 - 22:07 | 1226929 bothsidesnow
bothsidesnow's picture

Hey T Mopey I was putting words out before $49 and you called me a faggot.

What you calling me now fucktard.

Sun, 05/01/2011 - 22:13 | 1226937 tmosley
tmosley's picture

A faggot.

Call back on Wednesday when silver is back at $49.

You should ask yourself what kind of moron would place a huge sell order that was bound to move the market in a major way in an ultra-thinly traded market when they could have waited a few hours and made the same sale and gotten a lot more money.

Here's a hint--they have access to unlimited "money", so they don't have to make economical decisions.

Sun, 05/01/2011 - 22:16 | 1226962 espirit
espirit's picture

Tomorrow morning?

Sun, 05/01/2011 - 22:35 | 1227077 tmosley
tmosley's picture

Maybe.  Who knows?

Mon, 05/02/2011 - 05:10 | 1228549 Urban Redneck
Urban Redneck's picture

If today wasn't a convenient LBMA holiday they would have been able to move the same amount at the AM fix with no impact on the markets.

Sun, 05/01/2011 - 22:28 | 1227020 bothsidesnow
bothsidesnow's picture

Ok I will call back on Wed. Mopey and you are right "they" have the money to move both paper market any way "they" want.

However, the TA points to a top for now, I'm still sticking to that.

I'm not sure "they" are ready to pull out the guns and have a good ole fashioned duel with you and akthefuckingak yet. Although, you know I'm thinking "they"might have a few more guns and ammo than you all do.


Sun, 05/01/2011 - 22:45 | 1227137 tmosley
tmosley's picture

Uh-huh.  Are you a moron or something?  The slamdown came at the most lightly traded period of the entire week.  

Funny how you registered all of 6 weeks ago, yet you already claim to know everything about everything.  I'm sure you were never here before that, as any other user name.

Also, TA?  I hope you mean "tits and ass", because that has a lot more effect on this market with it's tiny number of large members than any technical analysis you could pull out of your ass.

Mon, 05/02/2011 - 06:50 | 1228617 Hephasteus
Hephasteus's picture

Oh look. A power hungry fuckface faggot is threatening violence. Not that there's anything wrong with that.

Sun, 05/01/2011 - 23:03 | 1227352 disabledvet
disabledvet's picture

"no coup on friday" so "counter-attack monday?"  massive reserves via QE for banks says to me "take delivery of the silver."  regulators jam the "speculators" with margin requirements, hand over the metal, wait for Wall Street's opening, sucks to be long.  it's not like there's a supply shortage.

Sun, 05/01/2011 - 22:13 | 1226957 longorshort
longorshort's picture

Damn people never learn, till they experience it for themselves.  Yah who cares silver may go higher, but if it does, im sures the corrections will be more ugly than this.  Do you really want to jump on a flaming bag of dog poop thats overpriced.   Your just gonna get crap all over yourself if your wrong.  Dot com stocks were different at one time too.  This is all part of huge commodity manipulation play.  When it blows its gonna suck for the dog poop bagholders.  I have about 13 pounds of silver, but have not sold because it has some centimental value, I have not looked through all the coins that are not just 999 rounds to assess collectible value.   I am saying be careful and use some common sense.  Yah helicopter ben is printing money.  But does the % appreciation in commodities match the % increase in commodity price over the same period of time?

Sun, 05/01/2011 - 22:25 | 1227019 Ahmeexnal
Ahmeexnal's picture

A clear sign that the banking elite is really desperate is when they start outsourcing their trolls:

"centimental value"

Functional illiterates are cheap to hire.

Mon, 05/02/2011 - 02:00 | 1228340 LudwigVon
LudwigVon's picture

flaming bag of dog poop thats overpriced.

Sun, 05/01/2011 - 22:29 | 1227025 Teamtc321
Teamtc321's picture

Silver is not over priced. Your wrong. IMHO

Sun, 05/01/2011 - 22:25 | 1227011 jomama
jomama's picture

hey shitbreath, why is it you post this every_single_time there is a drop?


Sun, 05/01/2011 - 22:32 | 1227039 bonin006
bonin006's picture

So if Ag follows the 1980 spike again, it should hit something like $400, and then drop to about $100? Is that what you are trying to say?

(reply to Spalding's chart) 

Sun, 05/01/2011 - 23:09 | 1227397 disabledvet
disabledvet's picture

only gold and maybe the Nasdaq of the 90's and the Dow of the 20's go straight up.  Silver?  Oceans of it.  Obviously "no good reason for the price to rise" pretty much ever--unless of course folks were expecting the Fed to announce "a silver standard as the financial equivalent of natural gas is to fuel of the future."  a "bridge fuel" i think they call it--only for money.  What was that you say?  "Not in a million years?"

Sun, 05/01/2011 - 21:54 | 1226858 Godisanhftbot
Godisanhftbot's picture

 Right, margin requirements for LONG Silver should be 1%, and SHORT silver 90%.


 Aint that the ticket?

Sun, 05/01/2011 - 22:04 | 1226912 Keri at Bankste...
Keri at Bankster Report's picture

The ticket is "mandatory delivery."  If anyone actually wanted to fix the CFTC's "rules," it would be to add that phrase as a stipulation of entering a contract.  Does anyone here think oil would be what it is now if delivery was mandatory?  Remember $30 a barrel oil in late 2008 and the off-shore (literally) storage in super-tankers?

Sun, 05/01/2011 - 22:23 | 1226996 Long-John-Silver
Long-John-Silver's picture

and 100% pay to play. All the money on the table, no margins.

Sun, 05/01/2011 - 22:23 | 1226995 longorshort
longorshort's picture

No the sum of all contracts on all exchanges should should equal the total ammount in circulation plus deliverable by mining based mining capacity for future deliveries.  2nd the damn exchanges should enforce delivery when the market bubbles on speculation rather than changing margins, and audit major vaults.

Mon, 05/02/2011 - 00:25 | 1228062 Unbeliever
Unbeliever's picture

Seems like you're talking about the end of fractional reserve lending/banking.

I don't see how speculation is a problem.

Sun, 05/01/2011 - 21:55 | 1226859 uno
uno's picture

the Morgue setting off all those stops, I expect this to be a weekly Sunday night event for a while.  Also have to expect CME got their back with margin raises tomorrow and continuing until the Morgue is outright long.

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