Silver Slumps To Biggest 3-Day Drop In Over A Year

Tyler Durden's picture

On the back of no news and no fundamental shifts in demand and supply, Silver has cliff-dived 7.5% in the last 3 days, its biggest drop in over a year, as the precious metal heads back towards unchanged on the year. We suspect that, just as with the NatGas story earlier this year (when it went bidless and was justified by endless chatter over what it meant, when in fact it was John Arnold unwinding his positions and closing shop), the moves we are seeing in not just precious metals but copper and across FX are liquidation-related (as we noted yesterday) as fundamentally facts remain the same, given central bank buying of gold into reserves and the Fed set to hit a $4 trillion balance sheet within the next year). Into the 2011 year-end we also saw dramatic 'liquidation-like' plunges in Silver (and gold) as it is very clear that whoever is 'selling' is entirely price-insensitive.

It's beginning to look a lot like H1 2012...

 

Silver broke below its 200DMA (red), and saw the biggest 3-day drop in over a year (lower pane)

 

yet another 2011 echo...

 

S.S.D.Y!!!

 

Chart: Bloomberg