Furious Selling Slam Sends Silver Red For 2014: No Limits Triggered

Tyler Durden's picture




 

With gold holding gains over 6% year-to-date (and the best performing asset-class), this morning's silver slamdown has taken the precious metal notably into the red for 2014 (-2%) and makes it the worst performing asset-class. Silver is back under $19 and near its lowest price since July 2013. Of course, it all started with the futures market where the sudden fiduciary need to dump over 2000 contracts 0505ET sent the complex collapsing, sending the gold-to-silver ratio to its highest since 2010.

Silver near 9 month lows...

 

Someone was in a hurry to dump their silver this morning as we gapped lower in spot

 

as it started in the futures...but no limits triggered

 

As the gold/silver ratio hits its highest since 2010...

 

We mentioned the limits because apparently even the CME has finally noticed the increasing frequency of these idiotic, and clearly manipulative market moves, in which the seller has no interest in best price execution, but solely in moving the market. To wit:

U.S. futures exchange CME Group Inc is considering the introduction of daily limits on price moves in gold and silver futures in a bid to rein in wild volatility that has spooked investors in recent years, a CME official said on Tuesday. CME at present has price fluctuation limits for futures contracts in some energy, agricultural commodities and financial products, but none for its precious and base metals products.

 

The possible move reflects growing concern at the largest U.S. exchange of futures and options about big bouts of buying or selling that have caused huge fluctuations in prices without any apparent fundamental reason.

 

"We don't have price limits in gold and silver. That's something that we are looking into," Miguel Vias, CME Group's director of metal products, said in a panel discussion at an industry event, in response to a question about how the exchange protects investors from excessive volatility.

 

U.S. exchange operators are already edgy about allegations over high-speed traders rigging the Wall Street stock markets and the so-called dark pools, or trading outside of exchanges, in the wake of the recently published book "Flash Boys: A Wall Street Revolt," by Michael Lewis. The biggest concern for the exchange is the array of sophisticated trading programs that are capable of significantly pushing the market higher or lower, Vias said.

Get out of town!

Unusually big moves and the fears of price "slippage" - the difference between the price at which a market player wants to execute an order and the price at which they are able to do so - have turned some gold and silver futures investors away, he said.

But not the central banks, which take daily delight in manipulating the prices of gold and silver, either through the BIS or fixing banks, just so no fingers ever point toward them.

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Thu, 05/01/2014 - 08:20 | 4715371 GetZeeGold
GetZeeGold's picture

 

 

We have to abandon real money......to save it.

 

More for me then!

 

Thank your grandkids for me....they're paying for it.

Thu, 05/01/2014 - 08:21 | 4715386 James_Cole
James_Cole's picture

Amazing that people buy silver (or sellside it) and then complain about the above chart activity. Maybe in a few more decades people will wise up. 

Thu, 05/01/2014 - 08:29 | 4715408 Max Hunter
Max Hunter's picture

Just another day in the universe.. Some of you may love this book.. http://www.amazon.com/dp/B00JX6WUR8

Thu, 05/01/2014 - 08:48 | 4715482 bania
bania's picture

opportunity of the decade? century?

Thu, 05/01/2014 - 08:56 | 4715504 SoilMyselfRotten
SoilMyselfRotten's picture

They want to limit volatility? It's not volatile on the way up, only when it's monkeyhammered down. That is called price management.

Thu, 05/01/2014 - 09:30 | 4715637 outamyeffinway
outamyeffinway's picture

Well isn't it interesting that they NOW want position limits when it can't be taken much lower? No. They want position limits to limit UPSIDE CHAOS! Which is coming.

Thu, 05/01/2014 - 10:17 | 4715827 Battleaxe
Battleaxe's picture

Hold physical then there are no position limits. You don't want leverage and it will go so high you won't need any leverage to make a KILLING. Anything in an account somewhere won't do you any good when you need it anyway.

Thu, 05/01/2014 - 10:55 | 4715945 tonyw
tonyw's picture

thank you for forcing the price down and allowing me to buy moar.

 

Thu, 05/01/2014 - 09:41 | 4715653 Save_America1st
Save_America1st's picture

it's my fault, once again, everybody...I picked up a nice new shiny roll of Buffaloes yesterday afternoon at 19.25 thinking "this is a good bottom to stack on some more". 

Of course everything we can get under 30/oz is a fucking steal.  But my last 4 purchases in a month have triggered another step downward each and every freakin' time.

You can either hate me or thank me for it depending on your point of view.  LOL

But thanks to me silver is on one of the best sales in history, so you're welcome!  I think I'll get more today!

*****Let this be a little lesson to any newbies out there.  This is why over the last month I've only bought a little at a time and didn't drop 5000 bucks all in one shot.

You never burn up all your dry powder at once in the PM stacking game.  Cost-average in a little at time on the way down and back up again so that you accumulate as many ounces for as little fiat as possible.

Cuz if you every think you're going to be able to perfectly time a bottom and burn up all your dry powder in one shot you can damn well bet they're going to monkey hammer it the next day on you just to piss you off!!!  LOL

Don't try to time the top either cuz they can slam it down faster than you can figure out what the hell is going on and they will fuck with your brain in both directions at once. 

But if anyone out there has been saving up and thinking of making a big sized purchase one day, I'd think today would be a good day to at most make maybe just half (at most, not all) of that purchase and then sit back and wait to see what happens next. 

These times in the PM's are fucking epic and will be written about by the proper PM historians quite a lot in the many years to come after the great monetary reset.

Those who had been stacking before the SHTF are going to come out very well on the other side....if we can all survive it!!!

(guns, ammo, food, water, meds, camping-fishing-hunting supplies, etc. are ALL a necessity too!!!) 

Thu, 05/01/2014 - 09:42 | 4715672 Cpl Hicks
Cpl Hicks's picture

PM meltdowwwwwwwwn!

Hi-yo, Silver.

Thu, 05/01/2014 - 09:59 | 4715742 AustrianJim
AustrianJim's picture

Hey, would you mind selling some of your silver so the market will go back up? Thanks!

Thu, 05/01/2014 - 10:07 | 4715783 Save_America1st
Save_America1st's picture

Right?!!?  Maybe if I sell everything I've got at 10 bucks an ounce, then silver will blast off up to 75 an ounce and then I can BTATFH (buy the all-time fucking high) and drive it back down to 18 bucks again! 

Kinda makes sense in the bizarro world of PM's.

Gotta love it and gotta stay looooooooooooooooooooong.  Stacking and patience is our key to making it through the shit-storm coming over the horizon. 

Thu, 05/01/2014 - 11:19 | 4716063 SilverRhino
SilverRhino's picture

When I buy silver I am not buying it hoping the price goes up tomorrow.   

 

I buy it KNOWING the price will go through the roof in the next 20 years.   Silver is retirement metal

Thu, 05/01/2014 - 11:25 | 4716104 Save_America1st
Save_America1st's picture

EXACTLY, SilverRhino!  Exactly...

Thu, 05/01/2014 - 12:19 | 4716396 SAT 800
SAT 800's picture

Back over $19; where it was in Hong Kong last night. Pretty short tempest in the teapot.

Thu, 05/01/2014 - 15:48 | 4717384 ultimate warrior
ultimate warrior's picture

Silver is a retirement metal.

Exactly how I see it. Stack on.

Thu, 05/01/2014 - 11:24 | 4716101 Canadian Dirtlump
Canadian Dirtlump's picture

I'll take par of the wrap.. I got a tube of barbers, peregrine falcons, maples, great white sharks. LOL. You're all welcome.

Thu, 05/01/2014 - 11:47 | 4716214 Storm Bringer
Storm Bringer's picture

You are not promised tomorrow.  Burn up the dry powder when you have it.  When the East decides it is time, the dollar may be worthless by the time you get up. 

Thu, 05/01/2014 - 09:21 | 4715599 tmosley
tmosley's picture

Try "greatest in human history".

It may rival even an early purchase of bitcoin.

Thu, 05/01/2014 - 09:25 | 4715610 Manthong
Manthong's picture

So I guess they want India to get all the silver since they shipped all the gold to China.

Keep in mind that not only are they scooping up all the monetary silver they can in India, they are going bananas for PV solar.

Thu, 05/01/2014 - 09:30 | 4715636 SRSrocco
SRSrocco's picture

HERE IS A FITTING ARTICLE FOR THE SILVER SMASH THEME OF THE DAY:

Institutions Mislead The Public About Silver Investment Demand
Thu, 05/01/2014 - 09:44 | 4715684 Save_America1st
Save_America1st's picture

Thanks Steve!  Keep kickin' ass, man!!!!  You do most excellent work!!!

Thu, 05/01/2014 - 09:47 | 4715692 HardAssets
HardAssets's picture

I reached my % of assets allocation target for silver some time ago. But this is starting to look Real Interesting.   Hmmmm . . . maybe I need to have a 'garage sale' and get rid of some junk, including a car, that we're not using much now. Turn that stuff into physical silver and see what happens. Good motivation for doing some spring cleaning & clearing.

Thu, 05/01/2014 - 10:18 | 4715822 Save_America1st
Save_America1st's picture

exactly my thinking too...I have a 1988 (in very, very great condition too) Jeep Grand Wagoneer that has actually appreciated in value.  Gets 7 MPG and I'm not driving it regularly anymore.  Sure is a kick-ass full size Jeep, but I'm thinking of letting it go to the highest bidder in a couple months and using the proceeds for more PM's, lead, lead/copper delivery systems, more supplies, etc.

Might even use the fiat to scout out and grab some bug-out property tucked away in the mountains somewhere. 

But you're right...cleaning out crap we don't want or need that's taking up space is the perfect way to get some extra fiat to swap out for more PM's. 

I'm gonna hate to see my Jeep go, but my thinking is that after the SHTF there are going to be some really sweet fucking Jeeps on the market that some people won't be able to keep anymore, which will be sad for a lot of people.  But I'm sure I'll be able to re-acquire a nice one for a lot cheaper than they're going for now using some cheaply acquired silver.  Who knows!  Same thing for land and homes too.

Unfortunately for some there's going to be a fire-sale after the great monetary reset.  That's when our PM's should come in real handy.

I wish more people in America would wake up and get to stackin' for their future survivability.  I hate that so many aren't going to be prepared for it, but the stackers will hopefully be able to help those people by way of barter with silver so that they can get rid of things they can't keep.   That will help them gain silver to get by with.

Hopefully America comes out better in the end once we destroy the fiat and the money changers along with their treasonous policital puppets. 

Constitutional money is what I'm hoping for in America again some day. 

Thu, 05/01/2014 - 10:56 | 4715937 HardAssets
HardAssets's picture

Yeah the Great Re-set is going to happen. No way to get around it. When and how it will look at that time, is anyone's guess. The last few years may have been frustrating and maddening for many invested in the PMs, but given the hand being played by the fiat printers - it couldn't look any differently. A guy I know recently was talking about retirement and his 401k accounts; he's 50. While he was talking I was thinking "So . . . you really think youre going to be able to retire?"  I didn't say anything. I've talked about these issues before and he doesn't want to think about it. But now its probably smart to think in broader terms than just the financial aspect of survival. - - Its enlightening to read the accounts of people from the past - Weimar Germany, the USA right before and after the 1929 stock market crash, Argentina, the USSR, etc  People feel secure in their belief that tomorrow will be like yesterday and today. And then one day . . it isn't.

Thu, 05/01/2014 - 11:23 | 4716043 Save_America1st
Save_America1st's picture

I agree...I spent much of the last 7 years figuring all that out and trying to pass it along to friends and family.  Unfortunately most of them just can't or won't see what's happening.  The "Normalcy Bias" syndrome, so to speak. 

I finally realized that you can't convince people of what's going on unless they find the path on their own and then take an interest in some piece of the puzzle that opens their mind to the rest of the "Matrix". 

Some will never figure it out...but those that do, like I did, figure it out best when they walk the path on their own discovering more and more along the way.  Then one day they finally wake up and they never see the world in the same way ever again.

Once you've discovered the Matrix you can never be plugged back into it. 

Regarding the 401k scam (which is how I view it)...I know what you mean about that too.  I'm 42 now but about 6 years ago I quit contributing to my 401k.  I'll never see any of that junk by the time I'm supposedly ready to "retire" and collect it.  Luckily I didn't have a massive amount in there anyway, but I took advantage of the 50% loan option and used a big chunck of that to scoop up a lot of PM's.  Figured I may as well use some of it while I could and since it was a low interst rate and I would be paying myself back at the smallest bi-weekly payments then at least the money goes back to the 401k in the off-chance that one day I actually might get to collect something out of it.

But even if it's nominally worth something like 100,000 dollars, what will those dollars actually have the ability to purchase in 25 years???

By then that might only get you 1 month's rent and groceries....who knows? 

But I'm damn sure if I make it that long and have my stack in tact, it'll have purchasing power many multiples higher by the many thousands than any dollars I will have saved in some worthless account.

500 Mercury Dimes at 200/oz will be worth 14.50 each.  One day if silver gets that high we just might need a silver dime for a gallon of gas and another for a gallon of milk.  But it might actually take 2 dimes for a gallon of gas.  Those only cost me 1.40 each right now to stow away. 

I'd rather bet on silver being much more valuable than anything we try to save in the 401k, IRA, or any other fiat saving scam.  It's all going to be totally devalued to nothing, stolen by the government and taxed into nothingness, or stolen by the banks with their new "Bail-In" regulations/theft laws.  Or just inflated away and we won't be able to buy a cup of coffee with any of it. 

I hope your friend and the older people out there can make it to the day when they can start cashing in on their 401k's and IRA's.  But at my age now I hold no hope at all of making it and so I told myself a very long time ago it doesn't exist and won't exist in the future, so I will always be mentally prepared for when the SHTF and the fiat system is finally destroyed.

PM's are our only hope of making it through to the other side. 

 

Thu, 05/01/2014 - 08:35 | 4715422 SAT 800
SAT 800's picture

Still long @19.84 basis July, from Mar.28th. as reported here. It looks like the american futures market was responding to a lower price in London Cash; rather than being the driver. Every significant rally in the metals starts with a washout. Cheap Silver ! BTFD !

Thu, 05/01/2014 - 08:52 | 4715491 agent default
agent default's picture

If it moves 1% to the upside they will introduce price limits and halt the market every time there is a significant upside move, claiming market volatility.

Thu, 05/01/2014 - 09:40 | 4715663 SoilMyselfRotten
SoilMyselfRotten's picture

You mean kinda like how they raised margin requirements on silver roughly 6 times in a week to keep it under their control?

Thu, 05/01/2014 - 09:57 | 4715736 HardAssets
HardAssets's picture

&*^%$#@$^&*  ! ! ! !

 

Sorry, had to get that out of my system. Feel much better now.

Thu, 05/01/2014 - 09:18 | 4715509 philipat
philipat's picture

It's interesting that this latest monkey-hammering "Coincided" with several articles from very high profile folks talking about Silver being the best value investment out there? I honestly think there is no shame anymore, they just don't want anyone to even think about buying PM's. I mean, what kind of trader would do this if he wanted to exit 2K contracts? It makes no sense other than someone with NO profit motive (cough...The Fed...cough) sending out a very clear message.

So long as the paper tail keeps on wagging the physical dog, they remain in control. As a separate matter, knowing that the PM markets are so totally manipulated via the BB's, why would any REAL Trader take a counterparty position to the BB's? I suspect that the Comex has become just a circle jerk between th BB's, taking turns at being on opposite sides of the trade, with The Fed compensating the losses with a few extra minutes of running the printing presses?

The bad news is that they do seem VERY determined this time, even though PM's are now at or below their all-in cost of production. It would SEEM that they can't keep this going much longer in view of the supply and demand fundamentals and the lack of physical metal to continue, so maybe this is a last hurrah. They won't squeeze any more metal out of GLD and The Central Banks don't have any Gold, so where will the Gold come from to keep selling into the market? Of course, there is still, at least at present, a bit more Silver in stock than Gold, so of course they attack Silver as an easier and cheaper way of attacking the PM complex.

But, Shit, this is almost THREE years now and it is getting tiring. As they also know.

Still, I had some of my Gold and Silver bars out of the safe last night. And it still looks just as nice to me.

Thu, 05/01/2014 - 09:52 | 4715708 SAT 800
SAT 800's picture

The chart published with this article shows a medium term triple bottom, rising; I don't feel like complaining about that.

Thu, 05/01/2014 - 09:51 | 4715706 SAT 800
SAT 800's picture

Oh, I'm sure within one decade they'll be fully awake. And you will be too; but you may wish you were still asleep.

Thu, 05/01/2014 - 08:27 | 4715402 lordbyroniv
lordbyroniv's picture

US DOLLAR STILL LOOKS LIKE SHIT.

 

THESE GUYS AT THE FED ARE FUCKING TARDS !!!!!!!!!!!11111

Thu, 05/01/2014 - 08:36 | 4715424 lordbyroniv
lordbyroniv's picture

These years be right for ones who save gold. One good ear knows meaning of wind in trees. The leaves come down as seasons change. Fools see falling price of gold as "death of tree", they chase its price as leaves on the ground. Know you all, it is the season that has died.

Time will prove all things. Ones of simple thought, such as I will save the wood, not the leaf as they buy the gold, not the price!

Fri, 05/02/2014 - 08:42 | 4719446 Lionhearted
Lionhearted's picture

One thing is for sure, the value of your FIAT DOLLAR does not historically go up. Also keeping DOLLARS in your bank account where it earns 0.0002 % and is subject to confiscation is not the wisest idea either. Even if you are not buying PM you are safer keeping your DOLLARS in your safe than the bank.

Thu, 05/01/2014 - 08:18 | 4715372 Matt_Master
Matt_Master's picture

Perfect timing as I just got paid...time to convert more single ply into hard assets

Thu, 05/01/2014 - 08:37 | 4715425 SAT 800
SAT 800's picture

Save in saving money and spend spending money; there you go Brother. Good on yer Mate.

Thu, 05/01/2014 - 09:10 | 4715553 Chump
Chump's picture

Hey just wait a few.  I'm about to order some myself, which is usually good for another drop about 30 minutes after I place the order.

Thu, 05/01/2014 - 09:54 | 4715717 SAT 800
SAT 800's picture

LOL. Well, I would suspect the price will recover some tomorrow, so it might be a good idea to finish today.

Thu, 05/01/2014 - 10:08 | 4715786 Battleaxe
Battleaxe's picture

It may go down more but will eventually be many multiples higher.  Buy now. Buy later. Anything under 20 is a steal!

Thu, 05/01/2014 - 10:24 | 4715848 Chump
Chump's picture

Agreed with both of you...just a little facetious humor to celebrate a good deal on some more metal!

Thu, 05/01/2014 - 08:18 | 4715374 macambaman
macambaman's picture

I wonder who?

Thu, 05/01/2014 - 08:28 | 4715404 101 years and c...
101 years and counting's picture

just wait a few days and ZH will give you the name(s) of the latest bankers to suicide themselves.  commodities crumbling as global economy crumbling.  margin calls will be coming fast and furious across all asset classes soon enough.

Thu, 05/01/2014 - 09:05 | 4715539 Battleaxe
Battleaxe's picture

Loose lips bring hits!

Of course, sometimes you don't even have to talk. You just have to know something they're afraid will get out.

Thu, 05/01/2014 - 08:19 | 4715377 buzzsaw99
buzzsaw99's picture

slag

Thu, 05/01/2014 - 08:19 | 4715378 dirtyfiles
dirtyfiles's picture

its regular as a coffee in the morning

Thu, 05/01/2014 - 08:21 | 4715380 FieldingMellish
FieldingMellish's picture

Trapdoor to $17 now opened. Bombs away.

Thu, 05/01/2014 - 09:56 | 4715733 UrbanMiner
UrbanMiner's picture

I have support at $18.85, if that goes and holds then its 'trap door'. There is the outside possibility it holds here....

Thu, 05/01/2014 - 08:21 | 4715381 NoDebt
NoDebt's picture

It's almost like there's a... pattern or something to this.  

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