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Silver Surges 6.8% From Lows After Slammed 10% Lower In 4 Minutes

GoldCore's picture




 

 

 

Today’s AM fix was USD 1,353.75, EUR 1,051.95 and GBP 890.86 per ounce.  
Friday’s AM fix was USD 1,376.75, EUR 1,069.15 and GBP 903.62 per ounce. 

Gold fell $22.20 on Friday to $1,364.90/oz and silver closed at $23.632.

Silver fell victim to heavy, concentrated selling overnight in thin, illiquid Asian trading. Silver was slammed by 10% and fell from $22.36/oz to $20.30/oz in just four minutes - from 23:05 GMT to 23:09 GMT. 


XAG/USD Spot Exchange Rate – 1 Day (Tick)

Silver has recovered 7% of the price plummet and is now down 2.7% today at $21.60 an ounce. 

Silver’s weakness may have contributed to gold falling 1% to $1,354/oz.

It is likely that the very aggressive selling in illiquid Asian markets overnight was by a large hedge fund or bank or a combination of hedge funds and banks with deep pockets. Reuters quoted an analyst at a Japanese bank who said that silver’s price falls were due to one “unidentified investor”.


XAG/USD Spot Exchange Rate – 3 Day (3 Minute)

Heavy concentrated selling likely led to stop loss orders being triggered at technical supports – particularly at the $22/oz level.  

There is some confusion regarding pricing as different pricing feeds are showing different lows in spot silver. CNBC reports that at one point silver hit a low of $20.30, down 8.8% from the start of trade on Monday while Bloomberg report that silver for immediate delivery fell as much as 8.6% to $20.3395 an ounce.

The losses come after silver had fallen sharply last week. Silver futures for July delivery retreated 1.4% to $22.352 an ounce on the Comex Friday, extending the week’s decline to 5.5%, the biggest in a month. 


Cross Currency Table – (Bloomberg)

Hedge-fund managers and other large speculators decreased their net-long position in New York silver futures last week, according to the U.S. Commodity Futures Trading Commission (CFTC) data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 10,794 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions fell by 2,857 contracts, or 21 percent, from a week earlier.

The gold-silver ratio is at its highest level since September 2010 with an ounce of gold currently buying 63 ounces of silver. That is twice as much as in April 2011, when silver was trading considerably higher.


Silver in USD, 5 Year – (Bloomberg)

This is silver’s lowest price since September 2010 which will lead to continuing and possibly increased demand for physical silver.

While speculators such as hedge funds have reduced long positions and increased their short positions, store of wealth physical demand remains robust internationally.

Premiums for coins and bars remain elevated and there continue to be delays in securing physical silver coins and bars in volume. These lower prices could exacerbate these supply issues as higher prices will be needed to increase supply.


Gold/Silver Ration Index, 1983-Present – (Bloomberg)

Contrarian silver buyers are rubbing their hands with glee and will continue to accumulate physical silver coins and bars in expectations of silver surpassing the nominal record high of $50/oz in the coming months.

Further weakness may be seen today and this week but the long term outlook remains positive due to robust industrial, investment and most importantly store of value demand.

Nothing has changed regarding the very bullish fundamentals in the silver bullion market and we continue to expect silver to surpass its inflation adjusted high of $130/oz in the coming years.

NEWS
Silver Plunges to Lowest Since 2010 as Gold Drops for Eighth Day - Bloomberg

Gold Bear Bets Reach Record - Bloomberg

South Africa's NUM seeks 15-60% wage rises from gold producers – Reuters

Singapore’s Changi Airport Seeks Growth With Gold - Bloomberg

COMMENTARY 
What’s Next For The Silver Price? - MoneyWeek

It’s Official: Gold Is Now The Most Hated Asset Class – Acting Man

Adding Insult To Injury, South African Gold Mining Union Demands Up To 60% Wage Hikes – Zero Hedge

Washington Signals Dollar Deep Concerns – Institute for Political Economy

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Mon, 05/20/2013 - 15:26 | 3580415 MacroAndCheese
MacroAndCheese's picture

"Nothing has changed regarding the very bullish fundamentals in the silver bullion market and we continue to expect silver to surpass its inflation adjusted high of $130/oz in the coming years."

So says GoldCore, the author of this "research" and a shill for precious metals because they're peddling it.

Gee, I wonder if 20th Century is bullish on real estate?  Is Skippy bullish on peanut butter?  Is Coca-Cola bullish on soft drinks?

Reader beware.  Know your source.

Mon, 05/20/2013 - 11:11 | 3580293 SAT 800
SAT 800's picture

Normally, these engineered wipe outs are for the purpose of buying back the lows of the day on the part of the "operators". I picked up a June contract at $21.00 on a price order. A price order is an order to buy at specific price; it's entered into the system and if the market trades there you're guaranteed a fill. Naturally physical silver can be bought at Bullion Vault.com as always; and as always the confusion between coins or small objects and bullion remains. The Silver sold at Bullion Vault is as real as it gets; but it's not for people who are crazy enough to want to bury it in their back yards. The babbling about the physical price and the paper price is "internet wisdom"; if you're foolish enough, someone will be glad to take advantage of you; other than that; well established honest brokers are available who sell bullion at trivial bid/offer "mark-ups"; if you will.

Mon, 05/20/2013 - 12:50 | 3580474 Weisshaupt
Weisshaupt's picture

"The Silver sold at Bullion Vault is as real as it gets; but it's not for people who are crazy enough to want to bury it in their back yards."

Perhaps Bullion Vault is no different than trusting a  really good  friend who lets you bury your bullion in his backyard and promises to keep it safe.  But do you still trust that friend while  a band of thieves is threatening to rape his wife and torture his children  and demanding he turn over your "deposit"?   In Lawless and corrupt areas ( see MF Global/Corzine) there is a huge  counterparty risk of trusting another to protect your property.  Will Bullion Vault turn over depositor assets when threatened by government action? By Swat Teams and Tanks?  By personal government attacks upon their leaderships lives? (See IRS and Political Targeting in the US)   Perhaps the folks at Bullion Vault are politcally connected enough to  ensure that their deposits are safe even when governments come to confiscate them, and perhaps they are honest  enough that they do store very ounce purchased, and refuse the temptation to engage in the fractional reserve Gold Fiat paper market. But now you are asking me to believe that there are honest men who are politically connected, and does that seem likely to you? 

You are obviously not worried about the law and order issues ( but I bet you don't store your Bullion in the US Vault do you? Why is that? )  but those of us who see a a big upheaval coming, with global extent, know that the governments in Switzerland , Singapore and the UK will all come under severe economic stress, and will be under  the temptation to secure the bullion deposits of foreigners, by force.  Ownership is untimately determined by force, and if the governments decide to use force to take ownership, the temptation of your third party is to throw your assets to the wolves and run without a fight.  But say your account stays safe in Singapore, but wars, capital controls and  communication issues  prevent you from actually doing anything with it- selling it to take cash so you can buy food for instance?

You don't think things will get that bad? Fine. But that doesn't mean one is  "crazy" to invest in "coins and small objects" - the premium you are paying is the price of not having a counter-party risk. Real silver half a world away in someone else's vault and dependant upon a system of law and order is only  the same as the Real silver buried in your back yard when the integrity of the systems you are relying upon is intact. Take a  look around. There is a lot of evidence that they are not intact. 

UPDATE: I am NOT saying Bullion Vault is a bad or untrustworthy business, or that it would be a bad idea to have an account there, or even that they would throw your assets to the wolves if threatend. I am merely stating that the arrangment has an inherant 3rd party risk,  and that even when both parties to the agreement are above board and honest, there are circumstances beyond anyone's  control where one party or another may be unable to hold up their end of the bargain. 

Mon, 05/20/2013 - 18:10 | 3581880 New World Chaos
New World Chaos's picture

BullionVault corporate headquarters is in London and it looks like the Rothschilds have a large ownership stake via Augmentum Capital and RIT Capital Partners.  They will betray their customers when the time comes.  "We are obligated to uphold British laws against terrorist money laudering.  It's for the public good.  Please think of the children!"   Also, Switzerland isn't a free country anymore so keeping the physical stash there doesn't count for much.  Backyard it is.

Mon, 05/20/2013 - 11:02 | 3580269 SAT 800
SAT 800's picture

How anyone could be ignorant enough to want to discuss thin illiquid trading in Asia is simply amazing. The price wipe out occured at the official opening of Globex electronic trading; based on the CME owned NYMEX,  One glance at the Kitco daily silver price chart will prove this is the case. It's right there in black and white, so to speak. One can, and one would, if one knew anything at all about silver and it's markets, also look at the price chart for June Silver on the CME home page; go there right now and look it up. There's an option to change the chart to a 5 minute period bar chart for today. No Asian market of any kind had anything to do with this vertical waterfall. Everyone who is interested in this subject at all should look at the Kitco 24hr. spot silver price chart every day; it's divided along the bottom into different time zones; and the opening of the Globex; which is the electronic, or on line, version of the Comex; is clearly marked. "Asian" trading was calm and normal; at the very moment of the opening of Globex BANG!.  It's not a good idea to read anything written by anyone who's this pititfully ignorant of the silver market.

Mon, 05/20/2013 - 11:01 | 3580264 machineh
machineh's picture

More of the 'higher premiums' horseshit, as the largest, most liquid market collapses.

THIS WAY TO THE EGRESS, MY FRIENDS!

Mon, 05/20/2013 - 10:56 | 3580239 dark pools of soros
dark pools of soros's picture

nice headline..  you guys feel shammed right now??  

'SURGES over 6%'  from a flash crash

what a huckster move

Mon, 05/20/2013 - 10:40 | 3580177 Cobra
Cobra's picture

[Rubs hands with glee]

Mon, 05/20/2013 - 10:38 | 3580169 FreeNewEnergy
FreeNewEnergy's picture

Phyz is still in the $28-$30 range, sometimes premiums are even higher.

Mon, 05/20/2013 - 10:57 | 3580242 KnightTakesKing
KnightTakesKing's picture

Phyz is now down to $25 - $26, which includes the premiums. Still too high over spot, which was your point, I believe.

Mon, 05/20/2013 - 10:35 | 3580160 GrinandBearit
GrinandBearit's picture

Ag is now the same price it was in 2008 before the financial crisis happened... that is ludocrous. 

What a gift.

Mon, 05/20/2013 - 10:31 | 3580145 Hobbleknee
Hobbleknee's picture

What does it matter if you can't acutally buy physical anywhere near spot?

Mon, 05/20/2013 - 11:58 | 3580482 OneTinSoldier66
OneTinSoldier66's picture

Just took a look at Provident Metals privately minted 1 oz. silver rounds. They look to be a little better stocked since the crash in April, but still low. Anyway, they do have several rounds in stock(unlike after the april price smash), and are selling them at around $25/oz. So, I would say...

 

Provident has some. But personally, I wouldn't necessarily expect to get my metal delivered from the 'halting' COMEX.

Mon, 05/20/2013 - 10:45 | 3580198 Cobra
Cobra's picture

Deleted.

Mon, 05/20/2013 - 10:25 | 3580121 unwashedmass
unwashedmass's picture

keep draggin' it down.....and i will kiss you all ..... have not seen these prices in two years, and god, I LOVE IT > LOVE IT. 

 

Thank you Ben, Jamie, and....my darling Blythe. You are enabling me to save my family from what is coming......and do it at a very, very attractive price.

Mon, 05/20/2013 - 10:33 | 3580153 Hulk
Hulk's picture

Yes, the onus is on Ben, Jamie and Blythe to keep the paper charade going.

All we have to do is keep stacking and make sure we don't run out of popcorn and patience...

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