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Silver Plunges As Yen Stop Surge Triggers Margin Liquidation
Not a moment after someone was slammed with a massive margin call following the hit of 102 USDJPY stops as we noted moments ago, was that same someone(s) forced to dump a whole lot of silver in thin, no volume trading taking out the entire bid stack on what can only be described as "get me the hell out and pay me anything" liquidation, sending the precious metal to just over $20, before yet another round of buying programs kicked in, and sent it right back up, allowing those quick enough to capitalize on some foolish macro trader's blowing up to pocket a huge profit before Japan has even woken up.
Thank you Kuroda, Bernanke and co for this total farce of a "market."
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Said the dollar:
"I can't remember anything...
The police say I've been smoking angel dust.
My parents are watching television...
I came downstairs and murdered them."
http://www.youtube.com/watch?v=79KtCywZAo4&t=225s
Strong as an Ox? LOL, yeah right. US doelarr still way down from over a decade ago (DXY, 120 to 84).
Smart as one too.
Well, I just checked inventory and can report that I'm not the least bit nervous about holding bullion.
If the USD has the appearance of "strength", it's only due to a comparison with the Euro and the Yen. Does the fact that one hospice patient is not as close to death as 2 other terminal cases actually make him "strong as an Ox?"
Peddle it where they'll believe it. Try Yahoo or Barrons maybe.
Yep. Just re-checked my inventory too.
Amazingly, the drop in price on the CRIMEX does not cause any of mine to shrink or disappear!
It's great to crack open a safe and shine a flashlight in and see the tingling glint of.........gold.
+1. Thanks for the heresy. Nothing wrong with a bit of hedging, though.
EG, Todays action on Silver made me smile as all my research for the last 3 yrs. told me that when the dollar value starts rising due to every other currency being even worse the end is nigh. Right now globally their is nowhere else to put your money so lets put it in a worthless dollar and stawks valued @ 100 x earnings w/ no underlying fundamentals. Old Wall Street axiom - The public is always wrong! I call it as Game Over in the next few months.
They can pound the value of my metals to zero for all I care.
Just what do you think the value of R.E. will be then?
How many new cars sold?
How many co.s' shuttered?
U12 unemployment currently @22% going to.......................?
"Game over, Man, Game Over"
Wow. Dis papr sh*t sure is volatile. <goes back to counting stack>
LOL....you can't make this shit up. Looks like silver will actually end up at zero?
I was late to the silver game and was never able to say I bought it under $20. Maybe Christmas is coming early.
I STARTED BUYING AT ABOUT FIVE....THIS IS GOD'S GIFT TO THE LATE ARRIVALS....AND FOR ME, I'M BUYING HAND OVER FIST NOW. jUST TOO BAD THAT THERE IS SO LITTLE LEFT TO BUY.
I started buying when I was "five". In 1965 my Dad started a collection of Kennedy halves for me and I kept it going, with lawn cutting, paper route, gas station attendent, etc.
Today I was pricing them on Ebay. Coinflation says their worth 8.02, but all the auctions went to 20% premiums over spot. No matter, I place bids on a 3rd party bidding site, and ocassionally, I score for 5% over spot(including shipping).
Bought as early as six to 13 then held. Added at 26. Fart. If that shit's under 20 I'm buying more.
Here comes Santa Claus!
Here's some theme music for you wymyn dogz*
https://www.youtube.com/watch?v=-5-OC_5rksk
* In keeping with recent changes to ZH policy, this term was vetted by the ZH Political Korrectness Kommissariat. It is intended to be benign and inoffensive to all sexes, genders, species, political persuasions, races, ethnicities, religions, and/or cults.
In 08, it dropped to about 9 bucks an ounce. If that happens again, I'll be backing up the truck...
.... and driving away empty and disappointed.
Real phyzzz never went below about $15 in 2008. Sure the paper went to $9 bucks and that's great if you want to buy paper.
Is exactly what I'd pay for a COMEX contract; price discovery finally working.
Actually you can make it up and they still are.
I'm starting a company to put that shit back in the ground. I'll be ready for when it goes negative. The IPO will make me rich!
If you put it back in the ground for $7 and can dig it out at $6, you can make one hell of a bundle on large volumes.
my manhood's springing on that one! now I know what krugman feels like with a whole buncha broken windows
Yeah, baby only the top line matters, or the promise of a top line sometime in the future - and we can use |absolute value| accounting.
fuck yeah!
if you need start up capital
email me a perspectus ..
Come to think of it, it won't cost even $5 to dig out of the ground.
I'll buy me a silver toilet and bathtub.
If you buy US minted silver dollars they can only go down to $1.
Try spending one at Walmart and they'll probably have you arrested. They think dollar coins are small, gold colored, brass, and have an indian woman on them. Or a quarter-sized feminist. God help us.
Make no mistake... lots is arriving at my place.
From personal experience I can only say stay away from boats <sniff>.
I feel your pain... perhaps this next load will make it...
Hey BoP, I'm looking forward to 10 oz bars for 10 bucks plus shipping!
Positioning of the Paper Gold Comex Commitment of Traders:
http://winteractionables.com/?p=2558
we run out of fiat before them
22.5-23 is the average all-in cost for the major silver miners. Good luck to them!
Fucking YEN carry traders are going to destroy the gold and silver mining industry.
Yen carry is utter bullshit... it only gives more money to the rich. Fuck em. The system is rigged from A to Z.
Big Time! The yield on the carry is 2.75% RBA. How's that working out?
Didnt you get the memo?
Silver is going to zero and the currency (paper) markets are all fixed. Just as the Bernank.
This is not related qith margin calls.
This related with thieves.
Speculators are short silver now.
This may be Blyth and Jamie and their plan to keep on buying PM.
Bart and Gary Gensler look the other way
HKMEx closes to settle in cash ALL contracts today. Coincidence?
No, it's not a coincidence.
They weren't making money with silver and gold at prices that prevailed in Q1 and now they see it won't get better in 2013, so they're closing the shop. It's simple.
So we at 70-1 ratio yet? Seems totally natural.
It's whatever BankFiend and Demon want it to be.
It hit 66.8 just a few minutes ago.
Perfectly natural...completely sane...lol.
They keep manipulating, everthing. I think they have too many balls in the air. When they miss just one ball, they will start to panic, grabbing wildly at the next ball and the next, missing them all. Whoever "they" are. The crash will be unbelieveable. Water filter, check. Food, check. Ammo, check. Solar panels, check.
These paper markets are notoriously thin, they can do just about anything they want when they are valued in paper fiat coming from thin air...which has an intrinsic value of about a nickel I guess, given the value of paper & ink ;-)
All the silver bullion in the world is worth $16.8 billion. US debt and unfunded liabilities rise by at least $22 billion every day. Nothing computes anymore.
thats the wrong argument. silver is not wanted/used by most people, so its an argument on the come - for what you and a small % of others believe might happen.
btw QE is 85 billion per month which is ~$3 billion per day, not $22billion.
now if solar panels or oil had plunged this much...
BTW, US debt and liabilities are not QE, but thanks for playing.
I was not talking about QE. I was talking about rise in US debt and unfunded liabilities a year - they rise at least $8 trillion a year. Currently US debt and unfunded liabilities are $140.85 trillion.
its high but not that high. alot of the numbers offset. 8 trillion per year increase? link?
but lest use your numbers - if we truly have a $141 trillion aggregate money supply (debt), then a couple or even 5 trillion central bank expansion is NOT expansionary and NOT bullish for metals (though from this level its hard to be bearish any longer, I admit)
For the record I am long some silver. I just believe that productive capacity is (and about to be) more important than any monetary, digital or metallic marker of wealth. I suspect one day paper currency will be wallpaper and silver and gold will be worth significantly more than wallpaper, but not as much as wheelbarrows, chainsaws, inverters, etc.
8 trillion per year increase? link?
http://www.usdebtclock.org/
Kotlikoff has unfunded liabilities growing at $11 trillion a year. His numbers are about $100 trillion higher than USdebtclock.org
http://www.bloomberg.com/news/2012-08-08/blink-u-s-debt-just-grew-by-11-trillion.html
Richard Fisher of the Dallas Fed had very similar numbers to USdebtclock.org
http://www.dallasfed.org/news/speeches/fisher/2008/fs080528.cfm
Just STFU and spare us your "reasoning", pleeeeze
Solar panels?
Whats it cost to dig those out of the ground & get them to market? ;-)
What a clueless argument!
"Please Mr Obaman give me more debt, I don't want silver because I don't need it!".
Incredible!
Keep stacking. I love XAG!
This news just broke tonight, platinum off $17 for the hell of it anyway.
JOHANNESBURG: South Africa's National Union of Mineworkers said it would seek pay rises of up to 60 per cent from gold and coal producers, raising the prospect of fresh strikes as firms battle higher costs and falling prices in an already heated labour climate.
http://economictimes.indiatime...
Fundamentals don't matter with 100:1 leverage...
Gold and silver are already trading below average all-in cost. Wage inflation in South Africa (and many parts of South America) is only going to increase costs.
If the metals don't reverse course soon, we'll see bankruptcies in the pm mining sector.
I'm pretty sure that's the plan.
Bankrupting the supply side isn't a very sustainable strategy for price suppression, but who knows what tptb are up to...
They, the central banks through the bullion banks, will control production through their front, ABX. If gold becomes the foundation of a new monetary system, they will own most of it and control most of the production.
Crash 'em n buy 'em
Gold Silver Ratio is 65:1now.
Getting awful close to my 70:1 go all in on silver time.
i see blood in the streets paved of gold (and silver)
i guess that means time to buy
And now there goes gold...down over 1%.
Still $20 above the spike low from April, though.
I'm playing with silver rounds, they feel really good in the hands.
did you ever do that with a stack of $1 bills?
Ive done it with soil, and seeds, and a chainsaw...
Gold:Silver ratio is the true play.
Silver to $17.50 (and about 72:1 GS ratio) then watch out. Either new record by end of year or back to $7.00 an ounce.
Fundamentals sure as hell don't count for diddly squat right now.
Yes - $17 is my target on Silver and $1,045 for Gold.
After that, it is a moonshot.
I'm going to fire up my BBG terminal. I still feel violated.
Meanwhile in ES futures trading, the price has soared and margins have not changed, giving everybody almost 22x leverage!
Anyone find those people annoying that brag about their trading prowess....that claim they got short from the highs and been riding the trade down to the lows and always seem to cover and then of course get long twice as big on the way up, once it's obvious to him that the low has been set. It must feel great alerting everyone of that trading prowess.... that once again you are on the right side of these very difficult "trades". It's really hard for we common folk to be reminded how grand you are....so stop.
Tee he heeh..
What with the IRS reading social media and comparing claims to tax returns...
I sold 1 large Ag contract (bought on Oct 24th, 2008, 8:23 EST for $9.37) on April 29th, 2011 @ 2:59 pm EST, for $49.74 !!!
(man do I love the internet and interactive 5 year Ag charts !!!)
You can get $1,000,000 of exposure to the Russell 2000 right now for just $52,000 (the amount of margin required).
You can also rub your asshole raw with jolokia peppers, should you be so inclined.
at Gmad thanks !
That would probably not feel as bad as being short the market.
I know tht for sure.It only makes sense that the market should be going down except, the influx of cash.
Oh well, learned my lesson. No shorting. Time to cash out market index longs and pay off all my devt. Buy real stuff. Guns and ammo are an inflation hedge. Long storage food also. PMS, they're for fun. My girl's not greedy but if I throw some gold on the bed she does do it harder.
Gold, silver, platinum and copper all got the same smackdown.
I have never seen a bigger fucking fraud in my life.
Wait, it gets better...
That's right. What else can we expect after Holder gave the a free pass in a public statement.
that's because there never has been a more recluse government in place. all this crazy stadick is leading somewhere
kitco not taking orders on silver eagles right now.......funny how when the price goes down, it becomes scarcer....unless I'm dealing in paper. Plenty of that always lying around.
But if that is the case, then shouldn't the price for paper be itself?
Haha, pretty soon the people who bought in 2000 are going to be underwater (Maybe they already are after real inflation).
Now I don't feel so bad.
Silver and gold definitely haven't stored value for me. We'll see. I still want them more than dollars, that's the irony.
The point is, that was a near 10% move in minutes. Which other commodity gets jerked around like that??????
If I had to sell into this market it would suck. The good news is that I don't. Silver has been money a lot longer than FRNs, so I am going to hide and watch.
Exactly. It's always just the metals. And corn and JGBs get limit down and circuit breakers (I think everything should be always trading, FWIW) but metals get margin hikes. Whatever. Shake out weak hands. Bottom is near. Silver at 18 and gold 1k has got to be about the bottom and I don't even think we get that low, as pressure on physical markets is huge on every one of these raids. Pretty soon it's not going to matter what some NYMEX trader sees on his technical chart patterns, because the on-the-ground reality will assert itself and complete the paper/phyzz divergence.
And yeah, how come it's always PMs getting liquidated? Why aren't orange juice and cotton futures ever liquidated in these events?
At this rate GOFO should hit 0 this week!
http://justpaste.it/2n00
(Charts courtesy of @Silver_Watchdog)
1999 (dotcom bust and Washington agreement) & 2008 (Lehman), both times GOFO, was the canary in the coalmine and marked cyclical lows in spot prices.
Now the physical market is dislocated again. What's the coming bust in financial markets this time? A global bond bust?
How much longer until China's central bank just shows up at the doorstep and says, "mine" on all the paper gold? Then, they send a notice to HSBC that they will be taking delivery of the gold in their vaults that back GLD...
Imagine the look on their faces when they crack those bars open.
the real question is how stupid is our government going to be in letting Ben, Jamie and Blythe sell off every fucking ounce we have ......
are they really going to let these three sell off the financial foundation of the country?
Not sure but I think you just answered your own question.
Yea, think you already know that answer. Hell yes they are going to let them, because 'them' ARE THEM! We are the fuckees, they are the fuckers....
Let's all say we're getting short down here. It's obviously going to zero.
I love ZeroHedge. I've made a lot of money over the last 5 years by reading the great articles (along with the not-so-great, but those are a minority) and doing the opposite of whatever the majority of commenters recommend regarding investments.
I can't thank you all enough.
Sure ya did, Skippy. Sure ya did.
@GMadScientist
I did agree with one thing the commenters were pushing. 400 acres of arable land with a house and several wells in central Texas.
My only mistake has been holding too much cash. But at my age I can be forgiven for taking less risk. Conservation is more important to me now than growth.
But making money is so hard to resist! So I do keep my hand in somewhat.
No. Your other mistake was Texass.
Solid reasoning, good thing the government doesn't have a problem meeting it's liabilities. If i had bet against myself just a quarter of the time I'd probly be pretty wealthy right now too.
Yea, sell your silver and gold, all of it. It's not money you know. Oh, and all that money you 'made'... may as well tell us how that crack habit is coming along as well...
It's not money. Bitcoin is real money now. It's far easier to transact with.
Great argument!
Now I know why GLD beats gold as money - it's easier to transact with!
We have enough electronics already.
GoldSeek.com Radio- May 17, 2013
http://www.brotherjohnf.com/archives/171257
57m40s “The elite are not god, they just think they are.”
YOU’RE DAMN STRAIGHT THE ELITE ARE NOT GOD.
THESE ELITE ARE SOME VERY, VERY, VERY SICK PEOPLE AND THEY NEED TO BE TAKEN DOWN COMPLETELY AND FOR ALL TIME.
PaperBearMeister,
Murder is a sin. However revolutions against dictatorships are not.
I agree, Stopit.Now. But I think he is saying we need to stop playing their game and go Galt. Take them down indirectly. Quit being hosts to their parasite.
Blame the IRS.
I'm the guy everyone loves to hate, until they search for TRUTH. Grim Reaper
Soo, the puppet masters think they got this whole monetary printing thing under control and can whack down the price of real money? The answer is yes in the short run however everytime they print another trillion and flood the economy with fiat, the end result gets that much worse. All I got to say is precious metals will quadruple when this whole fiat ponzi falls to pieces. I recommend anyone reading this to have a nice supply of physical because as everyday passes, the Central Banks across the Globe have pretty much assured that the current monetary policy will not hold up once the ablity to maintain its obligations turns red... I never dreamed this would come this far, I can't even imagine what the world will be like when it collapses...
This smells fishy. Nobody large enough to have that kind of position in silver could be stupid enough to leave it that exposed to be dumped in the most volatile PM in the most illiquid hours. He/she also has a gold position which simulaniously knocks down that whole market too.
This looks like a planned attack and the above as the excuse.
$20 completes the pattern paper silver has been in for over 10 years. Next stop should be $90 for paper in a couple years. This is just my own observation. I don't trade enough in paper to worry about what it does. I prefer the real thing.
Amen. Not a single ounce of my physical is for sale - especially at these ridiculous "prices".
...and what's the price of the real thing? Ah, right. A couple bucks over paper spot.
The paper market is for hedging. Produers sell contracts to lock in profits. As soon as it is unprofitable to hedge, and the demand still exists at higher prices, the paper market will not be an index for anything.
Maybe you didn't notice, but the Hong Kong exchange just defaulted on delivery. The paper price is not the real price. It is the price of a hedge.
They simply didn't have enough business.
Having said that, BTFD.
". . . someone was slammed with a massive margin call following the hit of 102 USDJPY stops . . ."
Translation: some muppet just got his heart pulled out through his rectum - transrectal cardiectomy.
That's a really good one. I'm still laughing. Thanks.
Nothing like a chuckle in crazy times. Glad I could offer it--a small repayment of many many I have had here over the past few years.
In order for this move to match the mid-cycle correction that occurred from December 1974-August 1976, Gold would have to decline to $1,050/oz.
Then it went up 800%+ over the following 3 and-a-half years.
Oh looky! The silver horse fucking has mitigated.
Maybe if I had listened to someone besides Max Keiser and Zerohedge, I would have bought an ultra-short silver ETF a few months ago. I should have known not to follow any investment schemes of angry right wing losers.
You can always whine like a booger eating brat.
Sorry about your Lost Wages! Looks like he was banned...
And yet, you are still here.
"Right wing"?
This site is liberal.
Classical Liberalism, or train-to-the-death-camp progressive liberalism?
Lost Wages - Maybe you should'nt listen to anybody. I prefer to read everything I can, deduce that info to my satisfaction and then I make my own decision. That way I don't blame anybody but the man in the mirror.
ZH warns you it would be folly to listen to them http://www.zerohedge.com/help/disclaimer.
Commodity complex is collapsing, that's China going down the toilet.
Yup we better hurry and buy some stocks before they are all gone.
Yes, the great rotation out of commodities into stocks is for real.
To think people thought it was bonds and USDs...
No more Zinga, I bought it all after taking a 40% loss on silver selling. I'll finish up.....totally.
The mad captain Bernanke has caused a safe haven flow into stocks from commodities! Probably unprecedented in the history of the markets. The global economy is a basket-case with China a dead weight, so we buy stocks??? It's pure insanity.
QE can't even devalue the $ and we have selling on the 30, most probably Asia/China/Japan buying the 10 (along with the USD). Everything is going to backfire and blow up.
Looks like I will be buyng more gold and silver tomorrow. Just keep it coming Ben, lets see which currency goes to zero first.
Rebounding now, *only* down $0.99
I don't see why China isn't fully behind these smack downs (and even the ones on Comex). Once miners start going bust, what better way to secure supply than buy them up for a song, whilst weilding some political influence over the sovereigns in which the mines are situated, at the same time?
With Trillions in paper dollars to play with, what better way?
I don't think the CFTC would be protecting the Chinese. We know they are protecting someone.
I be buying me some more silver!
Get it quick, it's coming back up pretty fast.
I think they do it to get out of their short positions without loss.
https://www.bulliondirect.com/catalog/selectProducts.do?d-49553-p=1&cat=...
ive found this place realiable and not as crazy above spot as some of the bigger places
Hi Ho Silver!!!!
Isn't this orchestrated to bring down the price for the Rothchild's HK exchange? Today they are settling in cash.
Wouldn't that be illegal?
Great theory except that the total value of their outstanding contracts is pocket change.