Silver Tumbles Most In 6 Months

Tyler Durden's picture

Silver is down almost 3% today - its biggest drop since the end of January as precious metals both tumble back towards pre-June-FOMC levels. News on China demand appears to be the main catalyst according to desk chatter (as well as a break through the key 50-day and 100-day moving-averages) with gold testing down to its 200-day moving average at $1286.


Worst day for Silver in 6 months...


Precious metals are reatracing gains from the June FOMC... (and testing technical levels)


Charts: Bloomberg

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Dr. Engali's picture

Let me check...... nope it's still there.... hasn't tumbled a bit.

Dre4dwolf's picture

It's a bit hard for coins to tumble inside a mint case ;) . . .

Mrs. Cog's picture

or at the bottom of a deep lake lol

RevRex's picture

Wake me up when it's $19.58 an ounce (again) delivered to my door.


"news on China demand"



LOL, what a fucking joke that statement is.

Manthong's picture

Now that the Chinese have most of the gold they need at bargain central bank fiat-supporting prices, It’s time to buy up an even thinner physical silver market.

And, it is a slam dunk for their future monetary, electronic and photovoltaic needs.

The Hunt brothers and their backers just wanted to corner an undervalued quasi -monetary market and they did not realize the umbrage that the Fed, Comex and other Wall Street cronies took to that challenge.

The Fed and the rest of the banking racket will meet their match this time around. 


And oh, how does the traditional meaning of  yuan” translate?

“The word "yuan" goes back further than "renminbi". It is the Chinese word for dollar - the silver coin, mostly minted in the Spanish empire, used by foreign merchants in China for some four centuries”

Also,  how does the word  “bank” translate into Chinese?

“First Character: ? (yín) – silver  Second Character: ? (háng) – all right; capable;"

tmosley's picture

Silver has a 6% premium on the SGE.  If that doesn't indicate low Chinese demand, I don't know what does.

Bastiat's picture

Vs today's down 3% price? What was the premium yesterday?  Thanks.

LasVegasDave's picture

And just like that 10,000, err, 10 Turdites cried out in terror

tmosley's picture

Zero, actually.  He explicitly told us this was coming back on Tuesday.  I'm pretty sure he's a witch, but I don't have the scales or the duck to prove it.

Kirk2NCC1701's picture

The silver lining in the story:  Just BTFD.


Save_America1st's picture

"news on China demand..." LOL

Yeah, right...they're demand is highest in the world so prices should tumble?  That makes sense. 

And haven't ASE sales already this year been another record?  ASE vs AGE sales are at 100:1  But there isn't enough demand???  hahaha

Don't mention massive selling of 100's of tons of backed-by-nothing paper bullshit as the cause.  Plus isn't end of the month delivery coming up?  There's usually a big smack to the PM's before "delivery". 

As if they have any physical that they can deliver anymore, and even if they did, they never do or will deliver.  All their physical has gone to China (because of China's low demand? LOL). 

It's not lower's lower fucking supply, bitchez.

Keep stackin'...BTFD and don't look back.  We are right and they are wrong.

Kaiser Sousa's picture

what the fuck Tylers???
and what took ya'll so long to report on the bullshit taking place in the fraudulent phony paper markets???

just sayin.

Pool Shark's picture



In 2013, the Mint sold a record 42,400,000 Silver Eagles.

So far, in just the first 6 months of 2014 (through June), the Mint has sold 24,128,500.

While this is slightly behind 2013's record of 25,043,500 after the first six months, that's still close to all-time record territory.


fonzannoon's picture

where exactly is the supply shortage coming from then? Seems like there is plenty of silver out there. Where are the delivery failures? Not trying to be the dick here, just asking a legit question. Seems like there is plenty of supply, and plenty of demand. The fuckin price just can't seem to move up to validate the demand argument and there is no proof of lack of supply to validate the lack of supply argument.

oddjob's picture

As long as people are allowed to sell Silver they don't own and does not exist, your question answers itself. CME sells more Silver each week than yearly global production, How can you then say there is ample Silver out there?...or do you mean paper Silver?

fonzannoon's picture

I am looking at it from the aspect of us retail pikers. People in venezuala can't buy toilet paper. it's not on the shelves. i can buy silver right now no prob. Schiff's PM company just sent me an ad to buy gold maples $30 over spot in his "blowout sale".

I am not debating that the price is not being slammed down by someone(s) messing with the paper market. I am saying the efforts by everyone on here to buy phyz seems to be futile in causing a legit supply squeeze and possibly driving the price higher.

oddjob's picture

Rather than painting stackers as speculators, I would suggest most that buy Silver and Gold know banks are insolvent and likely to lose any and all paper assets under there care. A rise in price is just icing on the cake.

fonzannoon's picture

i'm not sure where I rendered a judgement as to whether retail were speculating or buying for the purposes you mentioned. Did not mean to do that, if that is what i did.

Whatever the reason for buying, it just does not seem to make a dent in the supply/demand chain enough to impact the market. if it can't disrupt the market, and the pm smashers have no plans to stop dumping paper as they usually do, this may drag on for a long time.

I guess where i differ on here is that a rise in price is not icing on the cake for me. it's the reason for the purchase.

oddjob's picture

I supppose I just realize that by saving in paper I am only subsidizing Bankers who use the profits to bid up the same goods and services that i buy. Where you are buying Silver I am selling paper.

rqb1's picture

I'm waiting for the Fall.

fonzannoon's picture

to clarify, it's not the reason for my purchase, but it certainly plays a decent role in it. 

LostandFound's picture

While China may have a slight reduction, India are still importing 25% of the global supply of silver (near record highs). There is alot more slack in Silver than in gold no doubt and will be for some time. My bet is that the gold phyzz shock (which has little slack) will send a large market into Silver quickly and then thats when the supply squeeze happens, the ratio of gold to silver decreases and silvers price increases.

Gold is the one to watch, the amount that is getting imported by the Middle East and Asia easily outweighs the global year on year supply. The western vaults must be gettting drained each and every month


Bastiat's picture


"There's usually a big smack to the PM's before "delivery". "

You mean there might be some market racketeering going on? 

Diablo's picture

>"Yeah, right...they're demand is highest in the world so prices should tumble?  That makes sense."

You really should expand your information sources beyond just ZH, Mike Baloney, Max Keiser, or all the other 'professionals' featured on here. Since Tyler never reported it (shocking, i know), China's H1 gold demand dropped by 25%, bullion demand dropped by 65%. 

But dont worry, keep stacking. LOL

Buy silver, crash JPMorgan.  LOL


Pheonyte's picture

I've noticed a pattern with you. You only ever show up on PM down days and rag on PM buyers. You contribute nothing else to any other discussion. That's quite the one-track mind you've got there.

casey13's picture

China now imports PM's directly thru Bejing. Only the Hong Kong imports are reported thus the reason for the fall in imports. 



Save_America1st's picture

as if you have a clue what China's actual imports really have been?  Who's information on China have you swallowed hook, line, and sinker???  CNBS, Liesman, and Kramer?

China doesn't report anything truthfully because they don't want anyone to know and they don't want to pay more for their gold than they have to, even if they are using our own T's to buy it with.

The supply is dwindling.  Reports out of Switzerland after a year and half straight of non-stop 24/7 melting of bars and reminting them to .9999 Chinese bars is that they're now getting the old shit from the 1960's.  And that it's pretty much gone.

China's numbers may be all lies, and yeah, I believe it is true that their importing has gone down "some".  But that is most likely because supplies above ground are now beyond strained while exploration and mining output are at historically low levels after the last 3 years. 

So why don't you tell us all just how much gold has the United States imported this year or last year, huh??? 

Yeah, that's what I thought...shut the fuck up. 

Diablo's picture

Apparently the concept of opportunity cost evades you.


Dr. Engali's picture

Yawn. Apparently the concept of hedging against catastrophe or the idea of buying the fucking dip evades you. Or do you claim to buy at the bottom and sell at the peak on each and every trade?

Kaiser Sousa's picture

apparently he doesnt understand what physical Gold and Silver are and have always been....
apparently he believes that we have free and fair markets...
apparently he believes that the debt coupon dollar and all its paper derivatives are true stores of value and savings...
apparently, he's in the wrong place..
and apparently, he doesnt know what the fuck he's talking about...

Diablo's picture

You, and all the other goldturds, have been 'buying the dip' for the past 3 1/2 years. But im sure your little coins and bars will come in handy during the zombie apocalypse or whatever the fuck else youre hoping will happen in the future. Best of luck with that.



NoDebt's picture

You don't BELIEVE in the coming zombie apocalypse?

Pffff.... man, I don't even know where to start with you.  You're really leaving yourself dangerously exposed to an obvious threat.  

Dr. Engali's picture

If you have been paying attention, which it's obvious you haven't, you would know that my strategy has always been to take advantage of the free currency that the BernankenYellenStein monster gives us, BTFD in the market, and then buy real stuff with the profits. If you choose to keep all your "assets" in paper then good luck with that. I prefer to diversify across multiple asset classes. Oh and BTW.... I've owned gold for a hell of a lot longer than 3.5 years.

Kaiser Sousa's picture

how bout 7 years to be exact - jack!

Kaiser Sousa's picture

what did meat cost you 3 years ago...
what did gas cost you 3 years ago...
what did a fucking dollar buy u 3 years ago that a face value $1 Silver Eagle cant buy 20 more of TODAY?????

dude, your either an idiot or a uniformed brainwashed MoneyChanger vassal...
in either case - you still dont know what the fuck youre talking about...
nothing personal...just factual.

ps- sounds like you watch too much TV.

debtor of last resort's picture

Look diablo; it's your balls they are pushing under water. Maybe you should hold tight to them when they have to let them go.

Kaiser Sousa's picture

is that you Bernanke???

JustObserving's picture

There is no inflation as Janet Yellen often points out.  So silver should be free.  

Sudden Debt's picture

Yeah, soon it will be cheaper for McDonalds to put silver eagles in Happymeals than those crappy plastic toys...

SWCroaker's picture

Opex Max Pain.    aka  SSDD.    Just point me which line to get in for my beating.

rayban's picture

I concur. On its 200-day too.

Theta_Burn's picture

This dosen't qualify as a WTF chart of the day???

I bet my dealer just closed shop for the week.

1stepcloser's picture

i'm buying more just to piss them off..