Silver Purge As Stocks Surge

Tyler Durden's picture

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

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InsurgoCasca's picture

Happy Valentine's Day, bitchez! - The Squid

GetZeeGold's picture



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


To Russia with love. Would you be my Valentine?

AllThatGlitters's picture

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:

Buckaroo Banzai's picture

"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.

Bicycle Repairman's picture

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.

12ToothAssassin's picture

A significant dip in the PM markets precipitates the full police state: - Youve been warned.

kchrisc's picture


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.


new game's picture

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...

new game's picture

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

ben know that is the rubicon!

long term no mater...

SilverDOG's picture

Bicycle Repairman,



PM is STORAGE of wealth.

Again... STORAGE.


Bicycle Repairman's picture

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.

sessinpo's picture

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)

S.N.A.F.U.'s picture

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.

Room 101's picture

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.   



Bicycle Repairman's picture

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

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

flacon's picture

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


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.

Wile-E-Coyote's picture

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

Debeachesand Jerseyshores's picture

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

sessinpo's picture

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?


AllThatGlitters's picture

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

nope-1004's picture

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


Harbanger's picture

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.

francis_sawyer's picture

Au/Ag smackdown = GS "Sell" HNZ

douglas's picture

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!

Jendrzejczyk's picture

Happy you found us here Douglas.


Midas's picture

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.

toothpicker's picture

Artificial algos trade on artificial news creating artificial value. 

CrashisOptimistic's picture

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?

disabledvet's picture

"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.

digalert's picture

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

EscapeKey's picture

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

francis_sawyer's picture

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...

Just Ice's picture

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

francis_sawyer's picture

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...

Just Ice's picture

"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...

Bansters-in-my- feces's picture

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

Dr. Richard Head's picture

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?

ParkAveFlasher's picture

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

rahbii's picture

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

Mad Mohel's picture

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

rahbii's picture

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.... 

youngman's picture

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

Eally Ucked's picture

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.

ParkAveFlasher's picture

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.

Eally Ucked's picture

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.