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

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
I need more cowbell's picture

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

Thu, 02/14/2013 - 14:14 | 3243641 TPTB_r_TBTF
TPTB_r_TBTF's picture

mattress testers?

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

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
HoofHearted's picture

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
Jack Napier's picture

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 ...
Charles Nelson Reilly's picture

what the fuck is a "precious medal"?

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

Gold Medal, Silver Medal, but not Bronze Medal

 

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

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
Mr Lennon Hendrix's picture

Buy Silver!

Thu, 02/14/2013 - 12:10 | 3243233 unwashedmass
unwashedmass's picture
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
Non Passaran's picture

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

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

Buy food.

Fuck silver and gold.

They're both about as edible as an iThing.

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

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

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

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

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

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
moonstears's picture

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
exartizo's picture

...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
Frank N. Beans's picture

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
fijisailor's picture

Good place to buy.  No problems with multiple purchases.

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

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
youngman's picture

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
Confundido's picture

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
youngman's picture

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
Quinvarius's picture

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
Confundido's picture

What will end the correction? Give me a catalyst.

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

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
VonManstein's picture

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
Confundido's picture

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
Non Passaran's picture

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
Meat Hammer's picture

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
Quinvarius's picture

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

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

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
DirkDiggler11's picture

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
scatterbrains's picture

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
DosZap's picture

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
agent default's picture

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
KingdomKum's picture

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

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

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
Conax's picture

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
CDNX fan's picture

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

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

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

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

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

Thu, 02/14/2013 - 13:10 | 3243428 Charles Nelson ...
Charles Nelson Reilly's picture

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
Canadian Dirtlump's picture

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
Kastorsky's picture

market forces my buttoks

http://www.kitco.com/charts/s_leaserates.html

lease rates nosediving into negative today. 

Thu, 02/14/2013 - 13:12 | 3243436 KansasCrude
KansasCrude's picture

Dude Lease rates have been negative since late November.....thats how desperate these pracks are to sell off the market.  Added another 100 oz today.    

http://www.kitco.com/lease.chart.silv.html

Thu, 02/14/2013 - 12:52 | 3243371 dcb
dcb's picture

I'm done with this market as of today. this am was enough for me, t

Thu, 02/14/2013 - 13:01 | 3243391 jomama
jomama's picture

guess what i'm blowing my tax return on, bitchez?

Thu, 02/14/2013 - 13:07 | 3243419 Canadian Dirtlump
Canadian Dirtlump's picture

I'm blowing mine on blow. Because I have a good sized silver stack and being wacked out will help me deal with the price action.

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