Precious Metals Liquidated To Make Room For Alibaba, Silver At Four-Year Lows

Tyler Durden's picture

Precious metals are under pressure once again this morning led by Silver which just hit its lowest since August 2010. It appears investors are liquidating precious metals to make room in their 'safe haven' portfolio for precious Ma's Alibaba IPO... because what could go wrong there... (Russell 2000 is also seeing notable liquidation)

What makes us think this is BABA liquidation (obviously tongue-in-cheek but the timing is odd...)

 

As Silver gets relatively slammed...

 

  • *GOLD FALLS 0.8% TO $1,215.82/OZ IN LONDON, LOWEST SINCE JAN. 2
  • *SILVER FUTURES FALL TO $18.125/OZ, LOWEST SINCE AUG. 2010

It seems Russell and Nasdaq positions are also being liquidated for the "can't lose" BABA...

 

The Russell 2000 is now below pre-FOMC levels...

 

Charts: Bloomberg

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nope-1004's picture

Real money is the enemy of the fractional reserve ponzi.  Of course, it makes total sense to sell, all at once, my silver holdings at 4 year lows for BABA.  lmao.

Totally fake paper market.

gjp's picture

Precisely.  And the ponzi has won.  Markets are marching to one tune only now, doing the bidding of the establishment.  Ever since they went all in there has been no other bet.  The only way to win is to play along.  Of course it ensures unproductive waste and decline and ultimate collapse, but then everybody loses, including the stackers.  Sadly the rational thing to do, short of prepping and dropping off the grid is to join the dark side.  In the long run we're all dead anyway.

whotookmyalias's picture

Let me see if I can clear any more room in my safe, or maybe dig a bigger hole.

BandGap's picture

No kidding, I'm shopping today.

Xibalba's picture

Buying fake eagles from Baba? 

TeamDepends's picture

Holy shit! Silver now $17.98! They have gone all in.

flacon's picture

Wouldn't it be funny if BABA never actually technically IPO'd? They can just accept limit orders from now on and the exchanges can hire some old ladies to decide on "today's closing price"? Now THAT would be an awesome free market ala Soviet Gangnam Style. 

Save_America1st's picture

no...people aren't dumping paper silver to buy ali-fucking-baba stock.

more like they're dumping paper due to the new Shanghai Exchange.

regardless of whatever the fuck it is it's fucking great!  Let's put a nice low 17 handle on the paper Ag today, bitchez, cuz I want to go shopping for more cheap phyzz!!!

SoilMyselfRotten's picture

Isn't Shanghai Exchange just a gold exchange? Now, i could understand people seeing the handwriting on the wall but not sure its directly related to the SGE.

MalteseFalcon's picture

First off money talks and bullshit walks.  Silver is down 67% from its top and so it's taking it on the heel.  Deservedly so.

Secondly Alibaba is going to own the retail space.  For those of you who missed WalMart, Amazon or EBay, here it is again.  Only Alibaba is the final iteration.

Not My Real Name's picture

"And the ponzi has won."

I'm seeing more and more capitulating comments like this. Perhaps the end of this insanity is closer than we all think.

James_Cole's picture

If I’d bought an ounce of silver for every mention of 'bottom in silver' on here over the past few years my losses would be exponential...so those talking about buying this latest 'bottom' - take note. Or not whatever. 

Save_America1st's picture

what "losses" do you have from buying silver???

wait....you weren't stupid enough to sell it, were you? hahaha

only chumps are selling phyzz because they get scared about what the "paper" price is doing. 

Buy and hold...it's for the long haul...it's insurance against the inevitable decline and destruction of the dollar and all fiat paper currencies.

You people who cry about "losses" when paper prices go down or who gloat about it becuase you think you're smarter than phyzz stackers because you have some kind of perceived winnings when GOOG or APPL goes up sound totally pathetic.  Really...you obviously haven't been paying much attention and clearly ZH has not helped you one bit over the last 5 years.

Do you think any stackers are going to gloat or celebrate if silver hits 50 or 100 or 200 or whatever?  Do you know what that actually means???  Do you think it means anything in reality about the fiat value of our phyzz????  Will our amounts of ounces have changed any????  An ounce of silver or gold will still be an ounce.  It won't have changed one gram.

No, we won't be gloating when those days come....and believe me....those days are a lot closer than you might think. 

What that means is that the dollar and all other fiat will have totally collapsed.  Do you think when that happens we would actually sell our phyzz for paper fiat shit currencies of any kind????   If we did would you call us rich????

What good would it do to sell an ounce of silver for 200 bucks if a loaf of bread is nearly that much.  Silver and gold at that point will be virtually priceless in terms of dollars because NOBODY will be selling their phyzz for that shit. 

No...we will want to trade our phyzz for other valuable assets instead.  This will be the interim system of barter (in my opinion) before the new monetary system of whatever kind is spun up and working.  In my opinion there will be a metals backed currency of some kind that will actually have some value or store of wealth to it like our Constitutional coinage prior to 1965.

And we all know how valuable silver coins are today compared to the bullshit in circulation now, right?  But at least a copper penny is still worth the metal it's made of....and at least a nickel is still worth the nickel it's made of.  We know a nickel is worth about 6 cents in nickel value right now.  It will only go up in value as the dollar continues to decline.  Nickels will become what pre-1965 silver coins have become today.  Start saving them now.

So drop the bullshit about losses or profits when it comes to phyzz PM's.  To true stackers that bullshit is entirely irrelevant.  When all trust and faith has been lost in the dollar and all other fiat then you'll understand what wealth really is if you have a healthy stack of phyzz to rely on as your insurance policy.

Everything else is just paper dreams and digital bullshit.  That's the only thing you can bank on these days. 

Save_America1st's picture

yes!  how awesome is that???  fuck yeah...if I had that much fiat layin' around I might do it.  But I'd rather cost average in a little at a time.  Buy a little wait for the next criminal paper dip...buy a little more...wait...wash, rinse, repeat.  I've been doing that for the last 2 months and have added nicely and cheaply to the stack.

James_Cole's picture

Everything else is just paper dreams and digital bullshit.  That's the only thing you can bank on these days. 

You've written an impressive piece, highly persuasive.

But there's one nagging thing I can't quite get my head around, hopefully you can explain. You see, people keep admonishing me not to miss the boat and do buy phyz at any price. As it has dropped in (paper price) there have been ever increasing calls to buy. Yet I struggle with the numbers... So, if you were to buy silver $45 (paper price) or later $18 (paper price) at your LCS, at which (paper) price point would you be able to buy more phyz at? 

My head tells me I could buy more @18, but my heart tells me to believe everything I read on zh. What say you?

MalteseFalcon's picture

Think of how much silver you'll get @ $12.  DO the math, if you have to.

Save_America1st's picture

sure...do the math when at "12" as you say, the premium is 50% or more.  Don't think it hasn't happened because it has.  And who the hell says any dealer is going to sell at 12 and just give it a away when they most like bought at a higher price.  They would have to crank the premiums in order to make a profit. 

If you can't do that math then you sure as hell won't be in business for very long, champ. 

quadratic_equation's picture

Nobody can tell you to buy or not that's your own gut feeling.  Right now spot (paper price) is around $18...you can go to your LCS and exchange your fiat for probably $5 over the spot or $23.  That's if they have your preference mint available.  If you don't care about mint so buy whatever is available.  BTW, spot price is always in troy ounce weight.

StupidEarthlings's picture

well..I say, when there is none available at ANY price, people will wish they could get it for 45, ..and those that DID buy at 45, will be glad that they did.

JMO tho.

Save_America1st's picture

it's called dollar cost averaging.  Have I purchased silver for 35 per ounce in the past?  You bet I have.  At that time I didn't care what the dollar cost was.  I started stacking phyzz kinda late to the game back in 2010 for just about what it's at today over 4 years later.  I bought all the way up into the low 40's when it was going parabolic.  I got what I could afford as a portion of my budget during those times while I was also stacking other essential supply items, food storage, water purification items, guns, ammo, etc. 

Then paper price started coming down and I continued to buy on average when I could during the "dips", hence the popular initialism you see so much of:  BTFD

Did anyone know price was going to come down or how far it was going to come down?  No.  But if you buy at regular times or during dips, etc. you dollar cost average as you go along.

Now I've been able to buy more and more on average during the dips over the last 2.5 years or so.  My dollar cost average is somewhere around the 25 dollar range over all this time. 

Have I "lost" anything?  Not unless I sell it I guess, but that's not the stacker's plan...ever.  Yes, the idea is to get as many ounces as cheaply as possible, of course.  But nobody can time a bottom, middle or top...ever.  You might get lucky here or there, but if you had 50,000 bucks today would you use it all at once to buy silver today?  Or would you use just some of it so that you could wait and see what happens next week or next month?  Then if it goes down again would you use all you had left to buy again or would you just use a portion of it and wait and see?

Same thing if it goes up to 20 next week...you wouldn't use all your fiat at once to buy thinking it might jump to 50 and you would miss out on as many ounces now as you could afford.  You would just buy some and sit back and wait to see where it goes next.

This is all any of us can do.  Especially if we're on small budgets like I am and I only buy in chunks of 10 or 20 at a time anyway and then wait and see what the criminal Cartel will do next. 

But when it's all said and done, really the last damn thing I'm thinking about in hindsight is how much I spent on a certain day compared to another certain day whether it was less or more.  I really don't care. 

Just keep adding to your stack, put it away and forget about.  But you can also have some fun with it and take it out once in a while on a Friday night and party with it, roll around in it...spread it all over the bed and bang a hot chick on it!  They love that and your silver will love it too!  hahaha

Then put it away again and get back to business of adding to your stack on a regular basis and take advantage whenever you can BTFD!

Have a good weekend.

 

James_Cole's picture

it's called dollar cost averaging

That's just another way of saying you're losing money slower, because every time you buy you are increasing your losses, even if you are 'averaging down.'  

People in silver don't tend to look as much at their losses as their potential gains because of the religiosity over the whole thing. i.e. you buy at 35+25, currently 40% out, but avg it's 30$ / ounce. Only gotta get back to 30!! (if we say premiums are a wash). Meanwhile, don't pay attention to your 24$ loss..money is no object!

Not My Real Name's picture

There is a big difference between suggesting there is a bottom in the silver market, and throwing in the towel and saying the other side has won, Mr. Cole.

MalteseFalcon's picture

The Status Quo has made it clear.  PMs are a threat and they are going down.  As long as they are around, that's it.  The Status Quo has also made it clear that they are willing to "go to the mats" to protect their thing.  If the Status Quo disappears, it's Sampson Option time, and paper and PMs and your life are worth nothing.

You won't win with PMs.

somecallmetimmah's picture

"First off money talks and bullshit walks."

Dat's whut she said?

Nightblade's picture

Actually it does make sense for them to short silver, because they can use the proceeds from the short sale to go long BABA.

Does it have anything to do with reality?  No.  But it does make sense if they are chasing the market bubble.

If this is the case then the opposite should happen when the stock market goes down, because the stock buyers will be forced to cover their silver shorts.

SoilMyselfRotten's picture

It will make sense until no silver is available. When PMs run out i'm not sure there is any stock i'd want to be holding.

CognacAndMencken's picture

 

 

Where's that TMosley guy?

-- Silver will be $60 by next Tuesday!

-- Industrial panic is imminent - silver to the moon!

-- The implosion of the COMEX is imminent!

-- I buy silver with every paycheck!

-- We (stackers) need to prepare to be the next oligarchs of society!

-- During the "Industrial Panic," silver will reach parity with gold!

-- Buy silver, crash JPMorgan!

-- The "paper" price is only important on the way up!

-- I haven't lost anything if I haven't sold! (Tell that to Lehman Brothers)

etc. etc. etc......

SILVERGEDDON's picture

 

I have to poop.

 Paper sucks, you Wall Street fucks!

I'll see you vampires in the sun,

With my loaded silver gun.

Yer paper's  gonna go down in flames,

From Lower Manhattan to the Thames.

Your paper is I know not where,

I'd rather shit my underwear! 

For, be there bull,

Or be there bear,

Silver is the suit I wear!

(With gratitude, and apologies to Dr. Seuss.)

 


The only paper I own is the stuff I wipe my ass with.

Market paper is worthless, because I cannot do a good job of wiping my ass with it.

Gold was worth $28.00 an ounce when I was a kid.

Silver was worth whatever was printed on the coin you spent.

Any one think those days are coming back?

All of the lying bum fucking aristocracy of the Age Of Paper Power can burn in their paper suits soonest.


I won't even bother pissing on them to put out the flames.

I collect gold, silver, lead, copper, real dry powder, food, tools, diesel fuel, and other useful commodities.

There is a community of folks all doing the same, so skill sets and extra eyes and hands can guard each others sixes, and "break on through to the other side, break on through to the other side, YEAH. "

Thanks to Jim Morrison for the tunes.  


HFT ain't good for me. 

Credit defaults far as the eye can see.

 

CDS's gonna make some messes. 

Boo hoo hoo as thieves confesses.

 

TBTF gonna fall off a cliff - REAL NEAT.

Wall Street is a bunch of fucking dead meat.

 

 

Banks used to be so overleveraged bold.

 

Now, they're layin' bankrupt,dead and cold.

Gonna be nothing left but wide awake prepper people,

All the rest gonna be surprised fucked up Sheeple.

God bless this mess.

I must confess. I'm a fucking poet,

 

And, didn't even know it.

 

RISK ON, RISK OFF.

DROP YOUR COCKS, AND GRAB YOUR SOCKS, BECAUSE THIS DISNEYLAND RIDE IS JUST BEGINNING !!!!!!!!! 

 

SAT 800's picture

Now $18.04; and delays on the phone lines.

SAT 800's picture

And what does "all in: mean ? hmm. let's think about this; what does it mean? It means THE BOTTOM. BUY !!

fockewulf190's picture

I´m buying.  Take this bitch to $10.  I´ll buy more.  At $5  I sell the house and go ape shit.

SAT 800's picture

The fockewulf 190; a dangerous bird of prey, deserving of respect; as is your plan.

MalteseFalcon's picture

Their utility curve is way different than yours.  After acquiring your 10th vacation home and 11th congresscritter, it makes sense to buy gold bars.

How many vacation homes and congrsscritters do you own?

jerry_theking_lawler's picture

At $5 I would too...that's because that is how much it takes to dig it out of the ground....

According to some 'sources'....

froze25's picture

The premium for physical silver is like 25% on one ounce rounds and about 15% on 10oz bars.  Gold is getting a 6.2% premium on 1 oz bars.  This is off of the APMEX store on Ebay.  Anyone got a better spot?

mt paul's picture

bought yesterday

20 per oz total cost deliverd

froze25's picture

Where did you buy it from?

stacking12321's picture

he bought it from sd bullion (silver doctors).

 

 

 

mt paul's picture

SDBullion...

used a no interset for a year credit card

would have been 3% cheaper 

if using check or wire transfer

mt paul's picture

there are zero 1000 oz good delivery bars 

for sale at APMex

 

waiting to drop the hammer on a 100 oz bar ..

17.80 or so will order..

 

mised 17.85

was out in the shop dorking around 

mademesmile's picture

gainsville coins has 1 ounce liberty for $18.72 a coin. Just got 30, which is a weeks paycheck, which for me is pretty good.

SAT 800's picture

This is correct reaction. As the market makers in New York are also buying right now.

kliguy38's picture

I can't believe you sheep think this is all fake.....CNBS says its the greatest opportunity of a lifetime in BABA!!!.......