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Furious Selling Slam Sends Silver Red For 2014: No Limits Triggered
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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Buy at 19, 20,22,25--in the long run it won't matter. just keep stackin.
I'm no trader but I do like the 40 year silver chart.
Building a nice base in the handle of the cup.
Patience,
You've got to think in a longer time frame rather than day by day, or quarter by quarter.
Stack On
What;s not to like ? Be a hard man that would dislike that chart.
Silver miners can't even make a buck at these levels (see BVN today). Expect some serious consolidation.
Unfortunately the silver miners are the retards that are allowing this to go on. I own mining shares in a few different mining companies and have gone to the annual meeting to question management as to why they sell all of their product at these depressed prices. If just a few of these companies would get together and withhold their product (sell just enough to cover their operating costs), the price of PM's would go through the roof. Their official response is that that would be collusion and would be illegal. Off the record I got a couple of the managers to admit that it could be done, but they're scared shitless that some regulatory agency would suddenly find a 'problem' with their operating permits. One company last year (First Majestic Silver) did just that on their own (withheld some of their production), and made a handsome profit on the silver they withheld, by selling it a few months later at a substantially higher price. At any rate I'm not too upset about it, because in the meantime, just keep stacking baby.
Great day to back up the truck
beep beep beep .....
LOL. yeah, something like that.
Meep... Meep... Meep?
It'll soon be beep beep beeeeeeeeeeeeeeeeeeeeeeeeeeee.......
...for the bah bah sheep
Just bought another 20 BU 2014 eagles @ $20.14 each, keep stacking....
If you like the silver story, just get delivery. Metal out-of-the-system, at bargain prices. Could it go (much) lower? Sure, but with negative GOFO for the yellow metal, current Ag spot price below overall costs of production, the current (low) prices are not sustainable, so accumulate with patience and be rewarded (later). The chief printers can push the paper price to whatever, but they cannot print physical. The paper metal market is way bigger than the physical market. Possession of metal (actual holders) of the metal will win the day, but it's always darkest before the dawn...
This is a case of clear market manipulation. When trying to unload a 2K order, you don't send in a fucking market oder.
Ah what a discovery - that it is a (clear) case of manipulation!
And I am sure you also think the SEC, the CFTC the CME, the LME et al God's angels
Since you can't put a coherent sentence together, I'll ignore your post.
double post
I find it hard to believe the banks would permit the regulators to interfere with their stacked deck.
Okay, this might be a dumb question...or a couple dumb questions...
But is there a way anyone can tell what happened this morning? I don't think anyone actually sold physical silver into the market....right? It was all done with paper, right? So is there a way to tell who did it and what they didi? Did someone or some entity sell a bunch of the paper contracts they were holding or did they naked short the market which caused the big drop? Am I asking this right?
Thanks!
It was a futures trade done at the Comex right after the open. Not sure if it was done in the pit or on Globex. You can check time and sales at the CME.
Yes, it was all done with paper Yes, Ted Butler and GATA www.gata.org have been documenting this paper scam for a dozen years or more. Yes, they naked shorted the market, but because they are working on behalf of central banks (gov't) they get away with what would send you or me to prison for life. The good news is they do need some physica in the showroom window to make the scam work, and they are running out of gold very quickly. The other good news is that every such scam in the past (London Gold Pool, etc) has failed, and history shows us this one will fail too. And yes, it's done to destroy confidence in gold/silver instead of the confidence in paper fiat. And yes, the regulators are not braindead, they are bought and paid for.
Gee Whiz! Maybe I should trade my stack for fiat before the price goes any lower.
A nice video about silver mining costs and more from a friend at another site:
2013: Silver Market in Review
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.