Chart of The Day: The Slippery Slope of Sliver

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Mon, 10/24/2011 - 08:18 | 1803793 Silver Shield
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I wrote the Silver Bullet and the Silver Shield when silver was $31 an ounce in February.

Since then it has been read by 350,000+ readers and translated into 7 different languages.

ALL of the fundemental reasons for investing is Physical Silver in that article are more powerful now, then back then.

Those that continue to be momentum monkeys in a doomed, rigged, paper, ponzi game will never get what is truly at foot here.

Those that do understand, smile and stack knowing that all of the plot twists are meaningless to the end of the story where silver remains the single best investment opportunity in human history.

If you doubt me, read Silver Bullet and the Silver Shield.

Mon, 10/24/2011 - 06:25 | 1803660 just a dude
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"Silver coins, which represent the physical market, were as high as around $52 in April, and now it's at the $32 range, a 58% plunge, even worse than the spot silver."

???  $20 = $52-$32.  $20/$52 = 38.46%.  Big difference between a 38.5% plunge and a 58% PLUNGE.  Am I missing something here or was this a typo?

Mon, 10/24/2011 - 08:17 | 1803791 Slin
Slin's picture

"$20 = $52-$32.  $20/$52 = 38.46%.  Big difference between a 38.5% plunge and a 58% PLUNGE.  Am I missing something here or was this a typo?"

 

You are missing something, when... was silver 52?  It was beatin down before it crossed it 50, everyone, and I do mean everyone knows this.... That is a big miss dude.

Mon, 10/24/2011 - 19:12 | 1806354 just a dude
just a dude's picture

Please explain what I am missing (and, no, I didn't miss the high of $50 and subsequent beatdown);  $52 was quoted from the article/post.  I agree it did not see $52.  Let's use $50; pretty sure you and I can agree on that. 

$50-$32 = $18.  $18/$50 = 36% (even further from a 58% PLUNGE).  The big miss to which you refer, Slin, is on the author of the article; try again.  So, apparently, the contributor for this article is terrible at math or is talking down silver/talking up an exaggerated correction.  Oh . . . you're a tool.

Mon, 10/24/2011 - 07:12 | 1803678 angmikey
angmikey's picture

New math, or fuzzy math, however you see it.

Mon, 10/24/2011 - 19:13 | 1806356 just a dude
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Thank you.

Mon, 10/24/2011 - 03:50 | 1803606 yabs
yabs's picture

haha

yes sorry I thought the article was about silver but its about slithers

Afdter seeing the mvie you are right beware of slithers

not a wise investmnet

Silver on the other hand is

Mon, 10/24/2011 - 04:36 | 1803627 Tapeworm
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Whatever the slippery slope is, all that one has to do is look at the purchasing power parity of slAg compared to your local currency.

 If gasoline and optics, like good muicroscopes and telescopes seem exceedingly inexpensive then it might be a good time to bail. For those that think that there will be land for sale at a silver dollar per acre come the deluge, you are nuts. The only way that doorstops go up from here is if the monetary system blows up and there is a mania to get the silver that you hold.

 Do your arithmetic on just what even the lowered price of silver coin will buy compard to its' old purchasing power when it was money. Multiply that times the productivity of those that deal in fiat currency and it still is wildly overpriced. The crap is heavy too if one wants to haul it to market. The last chance was the idiotic ratio of Platinum to Plata that was reached recently.

 Go ahead and price capital goods priced in Ag as compared to any time in the past one hundred years. Do you really feel so sure that with the end of the world that your slver coin will buy as much as it does now? If TSHTF, there is nothing cheaper now than storage food when priced in silver, but that's your call. If you are trading real goods for argentum, this is your last chance. (IMO)

Mon, 10/24/2011 - 04:38 | 1803626 Tapeworm
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delete double click

Mon, 10/24/2011 - 02:51 | 1803580 Mark_BC
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I disagree with most posters here -- this article is not deceptive and presents a plausible analysis of the dynamics of what it says in the title -- slivers. I've had them before and they aren't something you want to keep. They can get infected.

Mon, 10/24/2011 - 02:04 | 1803554 vincent
Mon, 10/24/2011 - 01:57 | 1803546 vincent
vincent's picture

I'm not underwater, but I want to be.

Mon, 10/24/2011 - 01:50 | 1803538 devo
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Buying silver as an investment with the hope of turning a profit is missing the point. Buying it as a hedge against doomsday scenarios (and possibly inflation) is wise.

Also, silver is worth ~3x the government supressed market value. It could go down to $10 and you'd still break even if/when the time came when you needed to use it.

But, I hope more people stay out so I can buy some for cheap. Waiting to pick some up.

Mon, 10/24/2011 - 02:07 | 1803557 siriyerji
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You are right.One should buy Silver/Gold what they can afford from the disposable income and not expect interest or dividend.Leveraging and expecting short term returns does not always work out.

If the silver goes to $10, I will buy more Silver miners (stock) for a higher percentage return 

http://i54.tinypic.com/2dj2a9h.png

Mon, 10/24/2011 - 01:42 | 1803533 siriyerji
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Gold and silver mining stocks have not performed well .They always tella story in advance.

As long one is not leveraged ,buy physical and keep it as a long term inflation hedge.

Popular 1 oz coins (not exchange delivery size bars) prices dont come down even when futures price come down as there is a short supply (and can be easily sold)

Exchange delivery bars have no much premium but you have to find a equally wealthy person to buy it. not easily sellable in retail.(can sell in the wholesale gold Jewellery trade though)

SLV popular silver ETF (highly manipulated by Morgan & HSBC -Trustees) chart shows recent sell off has no down volume unlike in August. See the volume Bar chart of SLV

[IMG]http://i56.tinypic.com/1236pth.png[/IMG]

more  GDX charts TechTrading

Mon, 10/24/2011 - 01:24 | 1803511 siriyerji
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Futures Exchange /Local Bullion exchange delivery size bar premium is always negligible. Hong kong/singapore/Tokyo/Mubai exchange delivery bars are peculiar local sizes and  not Comex delivery size.

In India  for a very long time 10 Tola bars (3.75 oz or 116.64 g. ) were popular with Gold shops and investors.

I used to whole sale 10 Tola Gold bars and used to order from south african and Australian mines via a major Bullion bank in Singapore.

Now Govt has banned 10 tola bars and only 1 kg bar (numbered) import is allowed.

When it comes to silver,the main use in India is utensils.Most Indian girls gets dowry of silver plate /cutlery,God Idols in silver etc during marriage.

Only recently Bullion bars are getting popular as investment (also due to street crime is increasing snatching gold jewellery from women) as spread is thin unlike jewellery.

For a long time 8gm pure gold coin with some Hindu god/goddes image is the norm for coin investment/gifts.

Mon, 10/24/2011 - 00:53 | 1803475 web bot
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The problem with your flawed thesis is that an economic crisis is coming...

What's coming is not an economic crisis... what's coming is an economic collapse... something entirely different.

By the time this is over... we're looking at every commodity and hard assets as being a storehouse of value... watch what happens with trillions of dollars swish around the globe and how hyperinflation sets in in a matter of weeks.

Mon, 10/24/2011 - 00:43 | 1803457 Rynak
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Fundamentals --> Trashcan <-- Technicals

Neither your fancy charts, nor fundamentals matter, until actual physical shortages appear. And i do not just mean "oh, in theory, in N time supply will run out".... i mean "i ordered this, but there is no delivery"-type shortage.

Mon, 10/24/2011 - 00:06 | 1803404 bill1102inf
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The real price of silver is what you sell it for, not what you pay for it, in volume, retail, or paper.

 

 

Sun, 10/23/2011 - 23:54 | 1803384 YouThePeople
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'The Slippery Slope Of Sliver'

by Sylvester The Cat

Sun, 10/23/2011 - 23:27 | 1803351 scaleindependent
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Trav, how low do you think Ag will go down to?  22, 25, 28?

TIA

Mon, 10/24/2011 - 09:10 | 1803928 tmosley
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I am also not Trav (Thank God).  In my opinion, there is no final downside target for silver, as the exchange is showing signs of extreme distress.  In the end, the exchange will fail, and the paper price will hit zero as the price of physical skyrockets in an industrial user panic.  

There are a few ways that this might not happen.  If the PAGE starts trading silver futures, and they don't try to suppress the price, the business could move East in an orderly manner.  Another possibility is that the CFTC actually starts doing its job and enforces the new position limits.

Mon, 10/24/2011 - 00:34 | 1803441 HungrySeagull
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I aint trav.

 

I have a feeling 30.00 will be the floor.  If Europe teeters over into the abyss then I will be racing the 50,000 Chinese trucks trying to get a few coins at about 24 and falling.

 

Keep in mind, the more they fall, the easier it is to buy them.

 

Any street whore lasts longer than the John's wallet in the Kitco Silver ... it only takes a few minutes to establish a high or low.

Sun, 10/23/2011 - 23:12 | 1803333 sodbuster
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The Slippery Slope of Sliver............ what is sliver?

Sun, 10/23/2011 - 23:36 | 1803358 IrritableBowels
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x4

Sun, 10/23/2011 - 23:02 | 1803324 yabs
yabs's picture

Tyler do you post econmatters purely for a laugh.

Their articles make cnbcs' analysis look good.

No "China Crash scenario"

what are you smoking?

If you want a scary chart try taking a look at the Shanghai index.

http://finance.yahoo.com/echarts?s=000001.SS+Interactive#symbol=000001.ss;range=5y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=;

At least Silver is still up for the year

 

Econ matters

who ever writes your articles is a FULL retard

Sun, 10/23/2011 - 22:50 | 1803300 Imminent Crucible
Imminent Crucible's picture

The chart shows us that silver is more volatile than gold or mining stocks. Didn't we already know that? And doesn't it demonstrate that when gold rises, silver rises exponentially faster? How seriously can we take a silver-bashing article that misspells it "sliver" three times?

Anencephaly is a tragedy, but an anencephalic whore is both frightful and loathsome.

Sun, 10/23/2011 - 23:42 | 1803362 FEDbuster
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They should have the M2 money supply graphed, too.  I think it is up over 30%, bullish for silver, gold, gasoline, food, etc.... 

Kyle Bass said stock up on guns and gold, I'm thinking guns, brass and lead is a more prudent strategy.

Sun, 10/23/2011 - 22:21 | 1803253 Fate
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I was a coin collector first, beginning in my teens.  I collected US issues; one focus was Liberty Walking Half Dollars.  Being a student of ancient history, I also dabbled in coinage of Imperial Rome.

Then, around 2008, I began accumulating physical silver as a store of wealth:  US silver dollars, halves, quarters, and dimes.

Now I collect again, only this time it is exclusively ancient Roman silver coins, or denarii.  Tonight I hold in my hand a denarius of Emperor Marcus Aurelius.  Gorgeous, gorgeous coin, so full of history and romance... and meaning.  As a store of value, silver has endured the collapse of the Roman Empire, the Dark Ages, the Middle Ages, innumerable Continental wars, equally innumerable economic collapses, and two World Wars.  Now I'm supposed to believe some bankster shill telling me it is a bad investment?

Marcus would beg to differ. 

Mon, 10/24/2011 - 00:16 | 1803421 fourchan
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that is a fantastic point +1

Mon, 10/24/2011 - 00:16 | 1803420 pomogranate
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dude, Marcus is dead, which is what you'll be by the time your wet dreams actually come true.

Mon, 10/24/2011 - 00:28 | 1803430 HungrySeagull
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Actually it's the Saladin that will determine the money in the future. Not us.

Sun, 10/23/2011 - 21:52 | 1803187 El Gordo
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This is really good news.  I'm late to the party, so the longer the price stays down, the better chance I have to accumulate more.  Here's the real question - would you sell your holdings for the price quoted today?  If the answer to that question is no, then obviously the product is undervalued.  At what price would you sell, if any?  If the answer is "none" then again you have it right.  It's not about what the dollar is worth, it's about what the silver is worth.  Price up, buy a little less; price down, buy a little more - but always buy.

Sun, 10/23/2011 - 22:35 | 1803274 CompassionateFascist
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There is no DOLLAR price at which I would sell. When the dollar is gone, a 1 oz. US silver eagle will, at a green market, buy maybe 2-3 days of food. That's life itself. 'Course, this is only after Zero and his friends run out of Predators, Global Hawks, and the like.

Mon, 10/24/2011 - 00:29 | 1803431 HungrySeagull
HungrySeagull's picture

No need. Not when you have one to 6 months food on hand.

Mon, 10/24/2011 - 03:36 | 1803598 buyingsterling
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Right on. Who wants to fight the mob at Walmart on meltdown day? People should consider having food, water, and a gun before they bank any metal. When things go bad, you can at least sit tight, metal or no metal.

If you store your metal at home like I do, and you've bought any of it from public sources, have your guns at hand. One of the most valuable items that can be stolen or hacked form a metal distributor is the customer list. People are stealing air conditioners from outside peoples' windows for the copper; what would the mob pay for a list of gold and silver buyers? Unless you're in a small town and friends with the bank manager, you can't really trust anyone else with your metal, so it's a catch 22. Great to have it - might have to kill to defend it. Like anything of real value, I guess.

Mon, 10/24/2011 - 09:02 | 1803902 glokk26L
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When I bought the first time, I was asked if I was tax exempt.  I said no, guy said, fill out this form and you won't pay sales tax on this since it's likely you're investing.

I decided to pay the 7% to be relatively anonymous.

But I have guns too.  Two of them so I can say they're plural!

Wish I didn't rent so I could take some more permanent means of securing my shineys...

Mon, 10/24/2011 - 09:02 | 1803901 glokk26L
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When I bought the first time, I was asked if I was tax exempt.  I said no, guy said, fill out this form and you won't pay sales tax on this since it's likely you're investing.

I decided to pay the 7% to be relatively anonymous.

But I have guns too.  Two of them so I can say they're plural!

Wish I didn't rent so I could take some more permanent means of securing my shineys...

Mon, 10/24/2011 - 08:46 | 1803847 swiss chick
swiss chick's picture

not if you can buy it anonymously...

Sun, 10/23/2011 - 21:35 | 1803155 Conax
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I find myself under water on a few fancy rounds bought since May, but the vast majority of the stack is in the green by over 240%. So the fiat spent back in '07 is safe and sound, well into the future. A hundred walkers bought in March are still up $230 even now. The more expensive stuff just has to sit for a while, but it will end up a positive asset as well. No worries at all.

All of the gloating about people buying silver back before the Mayday drive-by will pass.  

Sun, 10/23/2011 - 21:21 | 1803130 walcott
walcott's picture

 

Just going back over some orders from about a month a ago.

Miraculously after the beat down the relative prices today gold to silver are exactly the same.

Exactly. The exchange for silver vs. gold to a dime either way!

That is impossible unless the prices are artificially set

There is no margin effect. There is no supply and demand effect.

Price fixing. If anybody thinks this market is real and that prices

are set according to supply and demand. You're naive.

 


Also has anybody noticed for the past two months or so that every physical spot price has gone up or down together?

Every fucking day. There's no way to squeeze in a real trade. One that makes you cash on it anyway. Kind of like

having a moving point spread if you're playing football in Vegas. Your team covers 7. Then you go up

to the window and they inform you it was actually -10. You loose.

 

And think about how they beat gold? down in 1981. They held the price that way for 20 years.

So if you bought the high in '81 it was 20 year disaster. That's how they work. Like drowning somebody.

Hold your head or your assets (same thing) underwater long enough until you drown.

The people who rig this game are the ultimate murderous criminal syndicate cabal whatever you want to call it.

 

Mon, 10/24/2011 - 08:52 | 1803863 swiss chick
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Totally agree...

Read Crossing the Rubicon...

Its not gonna stop

Sun, 10/23/2011 - 21:44 | 1803165 jeff montanye
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they can't be loving the news out of europe.

Sun, 10/23/2011 - 21:14 | 1803120 dlmaniac
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An article sponsored by Blythe Master?

Sun, 10/23/2011 - 22:48 | 1803302 SilverDoctors
SilverDoctors's picture

This is clearly a biased piece written by someone who has a vested interest in keeping people out of physical silver.

"Silver was in a bubble in May"  A bubble? Really? As in >75% of the US population was invested in silver?

Um...less than 1% of financial assets are currently in gold, silver, and gold/silver mining shares COMBINED. Yes, silver was overextended in May, but calling it a "bubble" when less than 1% of the population was in silver is just a blatant freudian slip.

Silver is in a DECADE long bull market- NOTHING HAS CHANGED regarding its fundamentals, and it has corrected 50% from recent highs, its COT report is the 2nd most bullish in the entire bull market- and investors should stay away from silver NOW!?!

More like...BACK UP THE TRUCK!!!

http://silverdoctors.blogspot.com/

Sun, 10/23/2011 - 20:44 | 1803082 PulauHantu29
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JPM hates physical holders of PMs from what I read here..and here.

If they (and GS) hate the PM market so much, why are they loading up warehouses throughout the country (maybe the world) with PMs and base metals.

Why did JPM grab half of Barry's total release of the emergency resrves (30 mil barrels)?

I agree with Kotlikoff, the economist from Boston U who says there will be a mad panic rush to Hard Assets as currencies are debased worldwide in an effort to slow the very destructive deflationary spiral we are in.

He makes more sense to me then these Shills on Wall Street. In any case, he has been 100% correct so far about oil, taxes, fiat printing, PMs and the Yuan RMB. Read his 2007 book. It's very informative.

GL!

Sun, 10/23/2011 - 20:50 | 1803093 mayhem_korner
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Why the Morgue hates physical silver holders (like me), and why I smile every time another sleeve of Ag maples or bag of 90% comes in the door:

http://inflation.us/silvershortjpmorgan.html

 

 

Sun, 10/23/2011 - 20:29 | 1803051 mayhem_korner
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So what that means is that some investors could be $20 underwater on each silver coin if they got in around the peak.

 

What does it mean for the ones who bought it at $9? 

All this stuff is great so long as the fiat system is maintained.  I think I'll just hold on and see what happens. 

Sun, 10/23/2011 - 21:11 | 1803113 HungrySeagull
HungrySeagull's picture

Irrevelant.

 

Unless they used a credit card or borrowed money to buy it. he he he.

 

Buillion in your hands free and clear is a pure asset. Unencumbered freedom.

Sun, 10/23/2011 - 20:22 | 1803041 Old. No. 7
Old. No. 7's picture

God they hate Silver. They can suck balls.

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