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Silver Purge As Stocks Surge

Submitted by Tyler Durden on 02/14/2013 11:53 -0400

It seems the mere opening of the US equity markets is enough to spark renewed excitement over the fact that Europe's GDP data must be troughing right - or Japan's? Whatever it is, Silver (and gold) is getting monkey-hammered as Stocks surge on negligible volume... FX markets not so much; Treasuries not so much; credit not so much; Oil not so much...

Smells to us like whatever it takes to run up to overnight highs and take some stops in ES...

and stocks in a world of their own relative to risk-assets almost total lack of excitement...

Chart: Bloomberg and Capital Context

- advertisements -

Thu, 02/14/2013 - 11:56 | 3243162 InsurgoCasca

Happy Valentine's Day, bitchez! - The Squid

Thu, 02/14/2013 - 11:59 | 3243168 GetZeeGold

Ben Shalom......just working the strings.

To Russia with love. Would you be my Valentine?

Thu, 02/14/2013 - 12:10 | 3243232 AllThatGlitters

If I've learned one thing, it is to buy when it gets smacked down hard and not any any other time.

Watch spot silver bounce hard in real time: http://www.pmbull.com/silver-price/

Thu, 02/14/2013 - 12:15 | 3243250 malikai

Gold, Silver, yawn..

http://blog.quantsig.net/2013/02/14/goldsilver-3/

Thu, 02/14/2013 - 12:23 | 3243289 Buckaroo Banzai

"Plomba o Plata", bitchez.

I just paid 65 cents a round for plomba in the 5.56mm form factor and was happy to get it at that price. Exactly DOUBLE what I would have paid 4 months ago.

The plata will have its day shortly.

Thu, 02/14/2013 - 13:55 | 3243593 Bicycle Repairman

It's time to admit that PMs got way out in front of themselves. People looked at statistics from history and the law, and concluded that a breakdown was immanent. It is now clear that the Fed et al. has ignored the law, created a world where the previous statistical history has no meaning and has successfully suppressed the price of any number of commodities.

Problems may ultimately develop, but if it takes another 20 years, there are any number of more productive paths. Stop looking at your stack every day. Forget about getting rich from it. Consider that you may be overweight PMs and adjust. PMs are an insurance policy for an event that is far less likely than it seemed 4 years ago.

Thu, 02/14/2013 - 14:13 | 3243639 12ToothAssassin

A significant dip in the PM markets precipitates the full police state: http://www.homelandsecurityus.com/archives/7310 - Youve been warned.

Thu, 02/14/2013 - 14:47 | 3243739 Bicycle Repairman

I call BS.

Thu, 02/14/2013 - 14:15 | 3243644 kchrisc

Iran!

The banksters are going to bomb Iran via their enforcers--US Mil. They know that PMs will shoot up so they 1) can't be holding shorts 2) want to be way long and 3) need to push prices down before-hand to prevent any rise into the psychological $2,000 area after the bombing.

After the bombing, they will take their loot and re-short it all back down again. Rinse and repeat.

hujel

Thu, 02/14/2013 - 14:26 | 3243682 new game

warnings were there for s.t. wonks(like me): fed talking markets down to hold back(yellen)irrationl exuber uber.

talk is cheap and in the feds case doesn't need action. not fighten da fed.

66.67 percent reduction at 32.-32.4 range. also wedge in place and failed three time to break up side.

now thru 200 and no clue when to buy back all dat monster truck stuff-dont ya know? uff da, was heavey getten er loaded!

wait and see...

Thu, 02/14/2013 - 14:30 | 3243695 new game

and that pesky dolla-strike three. cleanest at present.

ben know that is the rubicon!

long term no mater...

Thu, 02/14/2013 - 14:48 | 3243746 Bicycle Repairman

BS on the whole thread.

Thu, 02/14/2013 - 15:07 | 3243810 SilverDOG

Bicycle Repairman,

PM is STORAGE of wealth.

Again... STORAGE.

Fri, 02/15/2013 - 11:07 | 3246324 Bicycle Repairman

That's right. It is a storage of wealth, period. Unfortunately most of us need our wealth to produce more wealth. The period where PMs did that is very likely over. Now it's just an insurance policy against events that seem far less likely than 4 years ago. The prices are now starting to reflect that thinking. No apocalypse.

Thu, 02/14/2013 - 17:24 | 3244358 sessinpo

It's not that PMs got way out in front of themselves. PMs are where they are suppose to be. Why? Because that is what the market will bear.

And as I hold a small portion of my portfolio in PMs, as I think everyone that can should, I ask this question of PM bugs.

If you knew that PM prices were going to the moon, if you knew that gold was going to $3000/oz or higher. If you knew that silver was going over 200/oz. Why would precious metal companies or private individuals sell it at this price?

I await your logical response (and of course the many down arrows. LOL)

Thu, 02/14/2013 - 18:07 | 3244510 S.N.A.F.U.

Did you really just ask something so stupid? No sarc?

Very young children don't understand that what they know and what other people know are actually two different things. I've never heard of someone who had the ability to type but was still subject to this mental deficiency, until now.

Thu, 02/14/2013 - 20:31 | 3244973 Room 101

In answer to your question, no one "knows" anything in the sense that none of us have a reliable crystal ball.

If what you want is a guarantee, then buy a refrigerator.

Fri, 02/15/2013 - 11:09 | 3246333 Bicycle Repairman

"Why? Because that is what the market will bear."

LOL. There are no more "markets" and you are a buffoon.

Thu, 02/14/2013 - 12:29 | 3243308 flacon

"This time it's different". Get ready for smackdown #2.

Thu, 02/14/2013 - 13:06 | 3243414 AL_SWEARENGEN

Silver has around 150,000 open interest contracts right now. Historically the highest Silver has gotten was about 185,000. The cartel Cocksuckerz keep pounding Silver lower but the OI refuses to drop. Coupled with the physical shortages rumored to be going around (again), this most likely indicates that the cartel is desperate. Desperate enough to not allow ANY significant rallies in Silver or Gold in order to keep away a new wave of buying from entering into the market. MOPE in all its evil glory. Something tells me that if the OI continues to rise as it has in the face of these DAILY waterfall declines, they will have to back off. Whoever hasn't abandoned their positions by now are strong hands indeed.

Thu, 02/14/2013 - 13:40 | 3243550 Wile-E-Coyote

This is no differant than Goldman telling its clients to sell Heinz on Monday of this week.

Thu, 02/14/2013 - 13:49 | 3243574 Debeachesand Je...

Just buy on the the dips to average out cost and you will be amply reward in the not to distant future.

Thu, 02/14/2013 - 17:29 | 3244370 sessinpo

Let's say you are correct and there are cartels pounding PMs lower. Do you realize you are admitting people buying PMs are either bitching and playing in markets they have no control over. No, I don't mean you have control over a market. What I mean is that you are admitting the market is manipulated. Thus, logically, why would you invest/speculate in that market?

Thu, 02/14/2013 - 13:09 | 3243427 AllThatGlitters

Ouch. Ok, maybe buy a little, but hold some back to buy more lower. LOL.

Thu, 02/14/2013 - 11:58 | 3243177 nope-1004

All and any real assets under attack in the name of USD foreign policy and monopoly money. lol.

Thu, 02/14/2013 - 12:19 | 3243265 Harbanger

I think Jim Sinclair is right about the Cartel attempting to shake the Gold tree to accumalate physical before the next climb. He's says the smackdown will be over next month. Gold at $3500 in the near future.

Thu, 02/14/2013 - 12:39 | 3243339 francis_sawyer

Au/Ag smackdown = GS "Sell" HNZ

Thu, 02/14/2013 - 14:55 | 3243768 douglas

While I´ve been buying PM´s since late 2006 (only Gold at first, but since mid-2009 mostly Silver), I realize how alot of newbies that are in high must feel. Although my cost average on AG is just over $16, I actually bought 4 SML monster boxes at $45/oz (yeah I know over $90k - pretty depressing). I suppose you can tell by my cost average that I´m not a poor man, but you know what? Enough is never enough, I want more time to keep stacking and enjoy what life has to offer right now. To this day I always start to sweat it everytime PM´s move up sharply - thinking ¨This is finally it!¨. Then everytime the price goes back down I relax and finances permiting I buy what I can (I´m looking for $30 tommorow to buy another monster box of Philharmonics at JM Buillon). Dont let the MSM BS and the trolls get you down, the fundamentals are ALL there - The debt IS unsustainable, fiat WILL colapse, its just a matter of time - its not a feeling, its a mathematical certainty! Instead of worrying about what you cannot change (like having bought silver in the forties), take the opportunity and use the oportunity to keep preparing for what will surely come to pass. Although it would obviously be nice to have bought at a lower price thereby allowing you to now have more ounces, what is done is done - deal with it! Buy more PM´s when you can and hope that governments manage to drag this out for many more years to come (although I personally cant see that happening) using whatever time we have to increase your stockpile. One day the profit difference between $16/oz and $40/oz will be negligible. Chin up and good luck to all!

Thu, 02/14/2013 - 20:48 | 3244999 Jendrzejczyk

Happy you found us here Douglas.

Welcome.

Thu, 02/14/2013 - 22:05 | 3245160 Midas

Thanks for the tips douglas. I have a tip for you: Don't take up boating as a hobby. I can't tell you how many people here have lost Ag in freak boating accidents.

Thu, 02/14/2013 - 11:57 | 3243169 toothpicker

Artificial algos trade on artificial news creating artificial value.

Thu, 02/14/2013 - 12:22 | 3243283 dark pools of soros

..buying real G5s and yachts

Thu, 02/14/2013 - 12:29 | 3243305 CrashisOptimistic

It's pretty easy when S&P trading volume is at 1997 levels.

That's right, shares traded number 1997 levels. Been falling for 15 years.

Now factor in that computers running up volume at 10 msec rates are 80% of that and STILL only get the total up to 1997 levels.

There is no market. How can there be price discovery?

Thu, 02/14/2013 - 13:18 | 3243459 disabledvet

"that's for me to know and you to find out." not all price discovery is equal...which goes a long way towards explaining why no one is trading this market. "as silver whithers how much longer before land prices collapse?" the Senate is willing to let an ADMITTED front man for the biggest tax evasion scheme in history "take a pass"? "something has to give" part deaux.

Thu, 02/14/2013 - 11:57 | 3243171 digalert

The same silver that the USMint can't seem to get enough of?

Thu, 02/14/2013 - 12:04 | 3243212 EscapeKey

Nah, this type is made of paper. Or bits.

Thu, 02/14/2013 - 13:01 | 3243349 francis_sawyer

Bits are what end up on my toilet paper when I wipe my ass...

~~~

Edit: Congratulations to the handful of downvoters present who actually presume to know better than I do what's on my toilet paper when I wipe my ass...

Thu, 02/14/2013 - 13:34 | 3243522 Just Ice

added to downvotes in lack of appreciation for the rude visual imagery you interjected

Thu, 02/14/2013 - 16:57 | 3243822 francis_sawyer

Rude is the best I can manage when the subject of "bitcoins" comes up [a reference which obviously escaped your massive intellect]... Besides ~ I like to piss off the geeks... THEY ARE LEGION!... Not ONE of them grasps the meaning of "on a long enough timeline"... [Strangely... That ignorance is commonplace in a land of buffoons that that EMBRACE the idea of 'planned obsolecence']...

~~~

What's kind of weird, though, is that GOLD appears to have properties that negates that concept...

Thu, 02/14/2013 - 19:12 | 3244785 Just Ice

"Rude" was an adjective applied to the visual imagery you conjured, not to you [a reference which obviously escaped your massive ego] ...but now that you mention it...

Thu, 02/14/2013 - 13:04 | 3243408 Bansters-in-my-...

It may be paper or Bits,but them Bits sure bite.
Ps ...Fuck you Blythe.

Thu, 02/14/2013 - 11:58 | 3243172 Dr. Richard Head

Those paper-baggers sure know how to make a ceiling. Perhaps I could call JP Morgan and have them help me hang my drywall ceiling?

Thu, 02/14/2013 - 13:43 | 3243558 ParkAveFlasher

Propping up, screwing, fixing, dead men ... nice analogy, +1!

Thu, 02/14/2013 - 11:57 | 3243173 rahbii

"Strong Dollar Policy" ie naked short metals and use the 'money' to prop up worthless paper 'assets'

Thu, 02/14/2013 - 11:59 | 3243183 Mad Mohel

It's going to keep working that way too............till it don't.

Thu, 02/14/2013 - 12:00 | 3243191 rahbii

A friend was speaking with "The Silver Guy" about the rip off charges Europeans must pay to buy Silver Bullion: He had this to say when it came to buying Physical Silver bullion in some countries in Europe. He had called a bullion dealer/broker the previous week and this is the quote he was given:

Daily traded price or Spot + 22% premium on Physical Silver Eagles but it didn't end there, they would then add 23% VAT ( Value added Tax ) on top of that and insured delivery of your metal would cost you an extra €1 per 1oz coin on top of that, so €500 ( $668 / £422 ) on a monster box just for delivery. Vat rates & Premiums differ from country to country in Europe so you better do your homework before you buy. Gold's premiums are nowhere near as high and there is no vat on Gold in European countries, charges averaging around 5/6% over spot. But why are they trying to keep phyzz Silver out of peoples reach....

Thu, 02/14/2013 - 12:12 | 3243239 youngman

The same more or less down here in Colombia...But what perplexes me is why Colombia does not make a coin or two....they have lots of gold mines working...just askin????? Countries make quite a bit of money on the premiums I think

Thu, 02/14/2013 - 12:18 | 3243263 Eally Ucked

It's simple it's not Colombia"s silver, and then you go to next conclusion: earlier or later they will nationalise all those mines.

Thu, 02/14/2013 - 13:41 | 3243553 ParkAveFlasher

Why nationalize mines when you have a nationalized cocaine-based agricultural monopoly? Much easier to plant & harvest coca than to draw gold out of the soil. And, it keeps the American MIC fat, drunk, and happy - just in case the neighbors get jealous.

Thu, 02/14/2013 - 15:28 | 3243874 Eally Ucked

As you know prices for that staff are very high, there must be some distribution chain and political problems. If there were none of them, US would develope it's own industry under Heinz or Coca-Cola shield. Costs are high maybe higher than mining.

Thu, 02/14/2013 - 14:37 | 3243713 Mugatu

As soon as Hugo Chavez finally is declared dead (and not just on life support), Columbia will have to figure out how to balance their budget without the billions in aid and cheap oil from Venezuela. That is when they will nationalize the remaining mines. If you own any miners with exposure in Bolivia, you better get out now.

Thu, 02/14/2013 - 12:45 | 3243359 Fuh Querada

In Germany for years now you pay 15% over spot for a tube of 20 x 1oz silver coins (like Maples or Philharmonics) and that includes 7% VAT. Not brilliant, but still tolerable. Confirmed: Gold is free of VAT and the premium is 5% over spot for the common 1 oz coins. I suspect the UK is where you get fleeced.

Thu, 02/14/2013 - 13:29 | 3243502 ThirdWorldDude

Tell your friend to purchase his silver from dealers located in countries with no VAT on silver coins nominated as "legal tender"... for instance Estonia.

Only problem is you have to wait a few weeks (my last purchase took a month) before you get delivery. And no, it's not because they're some Baltic slackers, it's because they're mostly sold out and I guess you're already familiar with the phyz market's "liquidity".

Thu, 02/14/2013 - 11:59 | 3243178 redpill

Irrational paper markets that can't decide between deflation resulting economic collapse or inflation from central banker pumping. Meanwhile everyone who is in the real physical market has to watch the grotesque lurching thanks to these financial assholes who wouldn't know an actual silver coin if it hit them on the head.

Thu, 02/14/2013 - 12:47 | 3243364 ATM

It's all very rational. The real course of the market should be deflationairy as the debt bubble unwinds. However you have the banking cartel standing on the printing accelerator doing everything they can to reinflate.

The reinflators will always win out in the end because they have unlimited ability to print.

All the swings up and down now are meaningless in the bigger scheme. All prices for everything will go up as the fiat currencies collapse. The real key is to find those assets whose real return will be positive and not get mesmerized by nominal returns which are meaningless.

Thu, 02/14/2013 - 14:28 | 3243687 JimBowie1958

Irrational paper markets that can't decide between deflation resulting economic collapse or inflation from central banker pumping.

Welcome to todays version of balanced markets.

Thu, 02/14/2013 - 11:58 | 3243180 VonManstein

Very reassuring :)

Thu, 02/14/2013 - 12:00 | 3243181 serog

Just how I hugged my kids after Sandy Hook, I shall roll around in phyz when I get to an undisclosed location tonight.

Thu, 02/14/2013 - 12:48 | 3243366 ATM

What's Phyz's last name? I used to date a girl named Phyz.

Thu, 02/14/2013 - 13:39 | 3243549 ParkAveFlasher

Ickle

Thu, 02/14/2013 - 15:51 | 3243948 serog

From Cranston?!

Thu, 02/14/2013 - 13:15 | 3243449 Meat Hammer

I let my kids play grocery store with silver eagles. They love it! At least, they did before the boating accident.

Thu, 02/14/2013 - 13:28 | 3243498 Go Tribe

You lost your kids? I'm so sorry.

Thu, 02/14/2013 - 11:59 | 3243184 HyperLazy

Nat Gas took a hit too. Bought the dip.

Disclosure: Couple weeks ago I picked up a small position on GTAT - PE 3.9 and since it has a short interest of 30%, I am just gonna wait for the short squeeze and see if it turns into the next AMZN at over 9000 PE.

Thu, 02/14/2013 - 23:21 | 3245346 DirkDiggler11

Disclosure:
Go Pump your Bullshit GTWAT straight up your ass and set fire to it ! If you want to pump up your pathetic stock pick on ZH, then take out one of the annoying pop up ads everyone just loves.

Fri, 02/15/2013 - 13:37 | 3245717 HyperLazy

Dear DickWiggler1111!!!1,

Is your sarcasm meter broken? Let me draw you a map to sarcasm mountain - https://www.youtube.com/watch?v=SiMHTK15Pik

Having a bad Valentines day? Here let me make it worse. Wipe the troll jizz off your chin.

Uncordially,

HyperLazy

PS: GTAT is up 20% for me. Or should I have shorted it? Fuck head.

Thu, 02/14/2013 - 12:00 | 3243190 SWCroaker

Did you know that "Silver" is the word for "Monkey-Hammer" in 70 different languages? It is the metal of choice for masochists world wide. Scratch under the shiney surface, and you find red hair. If Gold is having a bad day, then Silver is a monetary metal and has a worse day. If Gold is up, Silver is an industrial metal and there is no need for it in a world were any sane individual would want gold. It's left handed. Sigh.

Thu, 02/14/2013 - 12:02 | 3243205 youngman

I do not know what a Monkey hammer is...but in Japan they take a hammer to a monkeys head.....fresh brains anyone

Thu, 02/14/2013 - 12:58 | 3243381 Raymond Reason

So it can be used as both a noun and a verb in communication exchanges? A store of value, a medium of exchange, an industrial metal, a health product, and a vampire slayer. What's not to like?

Thu, 02/14/2013 - 15:43 | 3243923 mick_richfield

Argentum kills werewolves, not vampires.

That's a mistake you can only make once.

Trust me on this.

Thu, 02/14/2013 - 22:14 | 3245182 StychoKiller

Maxwell's Silver Hammer...

Thu, 02/14/2013 - 12:01 | 3243195 MillionDollarBoner_

PMs are crashing because everything is fixed.

Didn't you get the memo?

Thu, 02/14/2013 - 12:01 | 3243200 youngman

I can´t beat em...so I buy their dips...this was a good one...and I never sell...

Thu, 02/14/2013 - 12:03 | 3243209 s2man

Yeah, good timing. I'm headed to the LCS, today.

Thu, 02/14/2013 - 12:02 | 3243202 Confundido

Oops, Bberg just posted some positive news for Precious Metals, this time from England...I guess it's time to hammer them again, with more PM loans leases to expand supply...

Thu, 02/14/2013 - 12:02 | 3243203 Archetype

I need a tripple dose of Longsoupline NOW!

Thu, 02/14/2013 - 13:59 | 3243606 Shell Game

Just BTFDYI.......this bullshit is a sword with two sharp edges. Me thinks their side of the blade dulls as ours stays keen...

Thu, 02/14/2013 - 12:03 | 3243207 Stuck on Zero

Memo

From: Obama

To: PPT

Date: 13 Feb 2013

Subject: Poor performance of stock market after SOTUS

Get your asses in gear or you are all fired. When I give a wonderful uplifting speech I want the market to respond positively. Get to it.

Thu, 02/14/2013 - 13:20 | 3243468 Meat Hammer

P.S. And if the market doesn't perform, I'll just say down is the new up and the sheeple will come running with investment dollars in-hand.

Thu, 02/14/2013 - 12:03 | 3243208 TahoeBilly2012

"These are not the droids you are looking for..."

Thu, 02/14/2013 - 12:15 | 3243248 outamyeffinway

"These aren't the droids we're looking for." Move along.

Thu, 02/14/2013 - 12:34 | 3243327 Agstacker

Lots of silver in droids...

Thu, 02/14/2013 - 12:04 | 3243213 Big Corked Boots

Silver is purging 'cause I bought some last week.

(sigh...)

Thu, 02/14/2013 - 13:16 | 3243451 Non Passaran

Buy some more this week and so on and so forth.
A no brainer.

Thu, 02/14/2013 - 22:57 | 3245299 Midas

At least I know who to blame. Give me a heads-up next time?

Thu, 02/14/2013 - 12:05 | 3243214 SheepDog-One

HOORAY! What a wonderful world we got here now! WOW this is just SUPER!!

Thu, 02/14/2013 - 12:05 | 3243216 billwilson

Usually signals a bottom. Watch the relative performance of miners versus PMs. This is the hedgies dumping gold to buy miners. Miners will lead gold higher ... because this time is not, or ever, different.

Thu, 02/14/2013 - 12:06 | 3243217 thismarketisrigged

bernanke and obama, i wish you guys only the worst things i can imagine,

fuck u guys, we american ppl should suffer while all these fraudsters make millions, fuck u all

Thu, 02/14/2013 - 12:06 | 3243218 DavidC

Tyler,
Thanks for that - I've been sat here in a WTF with the US open, bizarre considering Europe pre open was down after the initials. I'm still short above 14,000 but wondering about whether they'll pump it back up over again.

This is just absolute madness.

DavidC

Thu, 02/14/2013 - 13:03 | 3243406 Panafrican Funk...

I bought a 20 put/30 call strangle on April VXX options this morning, I figure either they'll keep grinding this fucker ever so slowly up, or we'll have a late December-esque correction around the sequester shit. Or both.

Thu, 02/14/2013 - 12:09 | 3243220 Dr. Engali

I just checked my stacks and they are still there. It's almost as if they didn't even notice a thing.

Thu, 02/14/2013 - 12:07 | 3243221 unwashedmass

It appears, if you follow Harvey Organ's tracking of the Comex activity, that JPM doesn't actually have the silver to meet the March calls if they stand for delivery.

So, CTFC is averting eyes

and let's all sell silver!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

The CTFC is laughable, laughable now.

Thu, 02/14/2013 - 12:22 | 3243288 Confundido

Margins to be further reduced... and should that fail too, the UK Exchequer will stand ready to announce with no less than a week before required how much tons of precious metals they want to "take profits" on in an "auction". You bitchez are fucked!

Thu, 02/14/2013 - 12:07 | 3243222 OptionNinjaNYC

THE FARCE MUST GO ON !

Thu, 02/14/2013 - 12:07 | 3243223 unwashedmass

It appears, if you follow Harvey Organ's tracking of the Comex activity, that JPM doesn't actually have the silver to meet the March calls if they stand for delivery.

So, CTFC is averting eyes

and let's all sell silver!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

The CTFC is laughable, laughable now.

Thu, 02/14/2013 - 13:44 | 3243562 tmosley

They never do have enough, and only rarely do enough people stand for delivery to call them on it. The last time it happened, MFG got Corzined. No reason to think it won't happen again if these guys fail to learn from even the recent past.

One could make a lot of money playing in paper, but it just isn't safe. Everything can be taken from you in an instant.

Thu, 02/14/2013 - 12:12 | 3243225 Cultural Capital

So like let me get this straight.

People buy silver because they can't afford gold. Yet in the future when the lay people are even more screwed financially, somehow magically there will be a rush into precious medals at which time the sleeple will start buying silver at $500 or gold at $3000 when they don't even have the disposable income today to purchase at these "cheap" prices. Haha... yea.. :) Seems like that's going to happen soon, given the global depression we are in.

Think about that for a sec.

Thu, 02/14/2013 - 12:17 | 3243258 Mr Lennon Hendrix

People still have savings in cash and iras, just not as much. 1/100 of those people of some stake in gold. What if that changes?

Thu, 02/14/2013 - 12:18 | 3243262 Dr. Engali

The people with no money have sold or are selling their gold at the "we buy gold shops" right now. The people who will be rushing into precious metals are people who have paper assets as they lose faith in the system and as inflaton starts eating away at their returns.

Thu, 02/14/2013 - 12:22 | 3243284 scatterbrains

well because this is a run on the world reserve currency which is accelerating with every passing day.. it feels different from inside the host currency. Your money buys less and less shit and you wonder how gold or silver is going to find hot money to lift the price. Then one day out of the blue the U.S. pulls an Argentina and devalues...the world dumps U.S. dollars and wow no one had to spend one penny on gold and yet the price doubled. You have to see it from outside the dollar box.

Thu, 02/14/2013 - 12:24 | 3243292 kliguy38

Prices are not cheap compared to ten years ago......did you buy then? in 4 years you may look back and once again you may say prices are cheap........gold is priced in fiat. Its a store of wealth. Right now only the very well healed own gold bullion......do you know anyone that owns more than a few coins of gold. I doubt it. gl

Thu, 02/14/2013 - 12:26 | 3243301 I need more cowbell

"lay people"? Non-clergy? Prostitutes? Potato chip manufacturers? Brick setters?

Thu, 02/14/2013 - 14:14 | 3243641 TPTB_r_TBTF

mattress testers?

Thu, 02/14/2013 - 12:36 | 3243330 Cultural Capital

Thanks for all the responses, it's good to just think these "what if's" out loud sometimes. Full disclosure, I'm a believer in the metals myself.

Thu, 02/14/2013 - 12:48 | 3243367 HoofHearted

So Cultural Capital = Blythe Masters.

Are you really such a dipshit that you can't smell the hyperinflation? Ever heard of M1 and True (or Austrian) Money Supply. By all means take this opportunity to sell the family silverware...dumb ass

Thu, 02/14/2013 - 13:00 | 3243386 Jack Napier

No, not magically. Gold and silver are fungible and divisible so it doesn't matter how high the price goes. They will always be affordable. Maybe an oz won't be, but anybody can buy any fractional amount, even if it's only a gram, or 1/10th of a gram.

Thu, 02/14/2013 - 13:02 | 3243390 Charles Nelson ...

what the fuck is a "precious medal"?

Thu, 02/14/2013 - 14:19 | 3243662 TPTB_r_TBTF

Gold Medal, Silver Medal, but not Bronze Medal

Thu, 02/14/2013 - 12:08 | 3243226 billwilson

Watch KGC, shorts hammered it down for the last month ... and now we see some payback.

Thu, 02/14/2013 - 12:08 | 3243227 Mr Lennon Hendrix

Buy Silver!

Thu, 02/14/2013 - 12:10 | 3243233 unwashedmass

thing is, tho, wow, thanks for the bargain. i mean JPM is selling paper and dragging the price down, and I'm just shoveling it in from the online dealers in the hard stuff. So big smoocheroos to Blythe.

Thu, 02/14/2013 - 13:12 | 3243434 Non Passaran

Xactly. And there are misguided folks who think we are hurting.
Stack stack stack...

Thu, 02/14/2013 - 12:11 | 3243237 Tsar Pointless

Buy food.

Fuck silver and gold.

They're both about as edible as an iThing.

Thu, 02/14/2013 - 17:54 | 3244470 Rusty Trombone

I'm on a buying spree right now. Lead,Brass,Foodstuffs,Property.

Thu, 02/14/2013 - 12:13 | 3243241 Cheshire

The vix is taking a hit as well. Looks like a rubber band day.

Thu, 02/14/2013 - 12:14 | 3243243 cluelessminion

Just wondering ... still mulling the purchase of an american eagle monster box. I was looking at simple rounds and 1 oz bars, things like that that sell at a *much* lower premium than the coins do. Almost $2 cheaper per oz. Are the AE coins (which are not collectable grade) *that* much more tradeable than just plain silver ounces? Trying to figure out what to buy to hold as an investment -- but easily saleable if need be.

Also, has anyone had any experience with Gainesvillecoins.com? Are they reputable?

Thu, 02/14/2013 - 12:31 | 3243275 moonstears

Have a friend who swore by Gainsvillecoins, a few years back, so likely OK. I'd buy junk 90% US coin or genereic rounds from credible source (local if big city). There ARE fake Eagles, too, so don't use that as an excuse. Best with your stacking.

p.s If you can go local consider Commerative Silver US dollars since 1986 with boxes and certs. Ask if he/she will sell close to spot, bringing about $26/28 right now on the secondary for commons, no fakes from China to my knowledge YET. Typically Morgans and Peace (1870s-1930s) are bringing $30, same .77 silver content.

Thu, 02/14/2013 - 13:56 | 3243590 exartizo

...Skip gainesvillecoins.com imho.

I bought a few rounds from them a few years ago. They lost the metal at the post office and refused to replace it.

Yep, that was the word from The Boss Man there.

The metal eventually turned up, no thanks to gainesville.

I did thank them for the Near Heart Attack though.

Oh, and the immediate rise in my blood pressure to 200/130 because I thought I had just lost a few bucks.

Thu, 02/14/2013 - 15:40 | 3243911 Frank N. Beans

an ounce of silver is an ounce of silver when we reach armeggedon, but before that happens...

i think people assign a higher value to ASEs because they are "official," are attractive, and are well-struck.

I recently got my first Britannica and was not happy with the strike quality of it. Thought the Brits can do better.

Thu, 02/14/2013 - 19:42 | 3244850 fijisailor

Good place to buy. No problems with multiple purchases.

Thu, 02/14/2013 - 23:40 | 3245380 DirkDiggler11

I purchase from Gainsville coins silver AE's as often as I can. Best pricing on the net on sliver, reasonable on shipping, and they get your coins to you quickly.
The problem with silver rounds and bars is the "trust" factor. Many people the US hold silver AE's, just look at how many have been sold over the past decade. So a good deal of folks are familiar with the look, feel, and detail in a silver eagle coin. If the economy does end up in full SHTF mode, will others trust your silver rounds and bars as the "real deal" and trade with you. That's one reason you pay a higher surcharge on an AE or Maple Leaf than the rounds and bars. Not to mention of course the govt mints like to make $$$ of them as well in coinage fees...
As for your delima, I would wait for silver to drop to $29 an oz again and then your monster box and tuck that little monster away under your bed...

Thu, 02/14/2013 - 12:15 | 3243251 youngman

Two things....gold and silver are up in Japanese YEN...Bolivares too

Barret Gold says they have several offers for a buyout.....my bet its the Chines that wins this one...they want metals

Thu, 02/14/2013 - 12:18 | 3243261 Confundido

Buddy...gold and silver are not up. The Yen and Bolivares are down! With that same fucking Gartmanish reasoning, even my dick is longer in Japanese terms!

Thu, 02/14/2013 - 12:46 | 3243362 youngman

I am just saying if you are a little Japanese man with a big Purple Katana....that gold is more expensive today in Yen than it was 2 months ago

Thu, 02/14/2013 - 12:18 | 3243260 Quinvarius

When the correction ends, the rise in silver is going to be epic. The last few weeks have been very strained and weird looking. Th fat kid holding that beach ball underwater is going to enter the stratosphere with the ball.

Thu, 02/14/2013 - 12:19 | 3243264 Confundido

What will end the correction? Give me a catalyst.

Thu, 02/14/2013 - 12:25 | 3243282 Quinvarius

Give me a catalyst for any correction at all.

I have these conversations on here a lot. You think it is a debate. Markets move on easy money and easy credit. PMs move on bad money and bad debt. There is nothing here to outsmart.

Ever since 2008 every raw trader out there is thinks it is just about to happen again and shorting is cool. Well, how is that working out in a time of infinite money and the impossibiity of bank failures? We are headed straight into hyperinflation. You have to know the rules of the game AND how markets work.

Thu, 02/14/2013 - 12:40 | 3243328 VonManstein

We are close. When stocks top out that will be that. I was thinking within 1 month

EURGOLD the one to watch.. i would speculate that today was to stop EURGOLD breaking that falling wedge.. Process cant be stopped though GBP in meltdown and Metals looking bullish in GBP terms.

JPY done has its bit.

GBP next

then USD/EUR Gold/Slver together.

We are very close now they cant have it going down in all currencies at once, not anymore.

Thu, 02/14/2013 - 12:54 | 3243372 Confundido

Guys, pls., give me a catalyst...please....Don't just give me wishful thinking. And if stocks go down, PMs get smacked on margin calls.

Thu, 02/14/2013 - 13:08 | 3243420 Non Passaran

Once it becomes clear that even more debt will be necessary for the ship not to sink? (Sink it will, but later on). Obama's new spending plan is "dead", say the Republicons. What would that do to the market? And what will more spending - and it will happen - do for gold?

I've been feeling very optimistic about gold lately. Don't have anything for you but a funny feeling that PM's will make a move within 2-3 months, that's all.

Thu, 02/14/2013 - 13:38 | 3243546 Meat Hammer

Agreed. It's like a lifetinme heroin addict - eventually the heroin will kill you, but if you stop cold turkey you'll die faster.

Thu, 02/14/2013 - 14:19 | 3243660 Quinvarius

You are crazy if you are not buying PMs here. Crazy.

Thu, 02/14/2013 - 15:50 | 3243947 mick_richfield

The catalyst is the failure of the fraudulent manipulation of the PM markets.

If you try to understand PM markets as though they were honest, the matrix has you.

Thu, 02/14/2013 - 23:49 | 3245402 DirkDiggler11

Catalyst :
The US Govt is going to ship the Germans 1/78th of their own gold back to them this year, thus completely exhausting the entire supply of US Held Gold that is left. Ft Knox is then converted to an underground storage depot to hold Obumma's Planet of the Apes action figure collection. I wonder why he is so fond of that one particular doll ........

Thu, 02/14/2013 - 12:55 | 3243375 scatterbrains

I think we could see mid 1300ies in gold before the fed is forced to suspend printing for a bit to try and shake energy prices out. Stocks will flush, gold will flush, oil will flush, the dollar will ramp etc Then I wouldn't be surprised if they announce a re-doubling of fiat printing (to counter act their self induce brief deflationary plunge) but this time with fuel price controls/ strategic petroleum reserve releases etc which will propel gold clean above 2k and the next leg of the gold bull market much higher... or so I'm thinking.

Thu, 02/14/2013 - 13:47 | 3243569 DosZap

When the correction ends, the rise in silver is going to be epic. The last few weeks have been very strained and weird looking. Th fat kid holding that beach ball underwater is going to enter the stratosphere with the ball.

BOTH are going to run up fast.

Thu, 02/14/2013 - 12:19 | 3243270 agent default

Actual quote from the CME:

http://www.cmegroup.com/trading/metals/precious/silver_quotes_settlement...

Towards bottom of left column:

"Price may be managed separately from physical supply."

You can't make this up. It is just priceless.

Thu, 02/14/2013 - 12:21 | 3243278 KingdomKum

we few, we happy few, we band of silver holders . . .

Thu, 02/14/2013 - 12:22 | 3243286 Bam_Man

It's a COMEX futures expiration week. Must hammer down the prices so no one stands for delivery. Because they can't deliver what they do not have.

Simple, really.

Thu, 02/14/2013 - 12:34 | 3243318 Conax

Silver- the whipped dog of the CME.

Sooner or later a beaten dog goes all Kujo and shit.

One of the best thing about ZH is that I see some new offense on the charts, come here, and there's a story written up about it already.

Now that's cutting edge.

Thanks to the T dogs.

Thu, 02/14/2013 - 12:36 | 3243329 CDNX fan

"Stackers" are starting to whine from the rooftops again...hmmmm.

Thu, 02/14/2013 - 12:56 | 3243377 Non Passaran

You're a fool.
We are LOVING these opportunities!

Thu, 02/14/2013 - 13:06 | 3243418 HyperinflatmyNutts

TROLLLLLL... Get the fuck off the site. Before my Silver stack crushes U....

Thu, 02/14/2013 - 13:10 | 3243428 Charles Nelson ...

whine? these are incredible buying oppportunities! I'm estatic that these pricks are playing their paper money games.

Thu, 02/14/2013 - 12:37 | 3243334 Canadian Dirtlump

Silverdoctors reporting 90 million ounces dumped on the market in this latest organic move. I don't know who is more of a joke for credibility these days. The MSNBC talking heads who are full of shit, or the silver bloggers calling for impending 100 dollar silver.

I have my position established, can this fucking system crash already...

Thu, 02/14/2013 - 12:41 | 3243343 Kastorsky