This page has been archived and commenting is disabled.
Silver & Small Caps Slump As Bonds & Dollar Jump
What a difference two days make. After the exuberance of The Fed-day's "dovishness" which was "hawkishness", Small Cap stocks and Transports have given back all their FOMC gains and Treasuries have regained all their losses. Russell 2000 closes near 6-week lows, down 1.0% year-to-date (as Trannies end the week +17.4% YTD) with the S&P and Dow making new record highs. Despite a 1-2% gain for big caps, Treasury yields ended the week lower (30Y -6bps, 10Y -4bps) tumbling 7-10bps from high-to-low today. The USD ended the week +0.75% (10th week in a row) at new multi-year highs led by JPY, AUD, and EUR weakness. Oil was the only commodity holding gains by the close of the week as copper and gold were clubbed in line with the USD gain as Silver was monkey-hammered -4% on the week. BABA closed just above its opening level around $93. Today was also the 2nd Hindenburg Omen in a row.
Year-to-Date, Trannies on top; Small Caps on bottom...
Since The FOMC, Russell is down and Trannies unch...
And Homebuilders worst, Healthcare and financials best post-FOMC...
On the week, Russell is the biggest loser...
High-Yield credit rallied on the week but as the chart below shows, it is clear that small caps (for now) are struggling as credit markets are less acquiescent than before...
But while stocks are broadly higher on the week, bonds also rallied to their low yields of the week...
Wondering what drove bonds today? Seems UK nervousness sent money back into safe-havens...
FX markets saw more USD strength as JPY and EUR weakness dominated (and then GBP selling today)
And so commodities tumbled (oil modestly higher) with Silver getting smashed to 4-year lows...
Charts: Bloomberg
Bonus Chart: BABA closed just above its opening level
Bonus Bonus Chart: Stocks remain almost record rich to the Fed balance sheet...
Bonus Bonus Bonus Chart: Market internals are in chaos as for the 2nd day in a row, a Hindenburg Omen was triggered...
»
- 8263 reads
- Printer-friendly version
- Send to friend
- advertisements -
Why the 3 to 4 dollar spread between spot and physical price of silver. Are the bankers loosing control over the physical market?
I am GUESSING that dealers are underwater on inventory and trying to make it up with commission.
APMEX had an incredible sale on Maple leaves a few days ago, about $2 over spot any quantity... someone knew something
Economic uncertainties trigger rush for 12.5kg gold bars, worth about £300,000 each
"The number of 12.5kg gold bars being bought by wealthy customers has increased 243pc so far this year, when compared to the same period last year, said Rob Halliday-Stein founder of BullionByPost."
"The sales of 1kg gold bars, worth about £25,000 each, has doubled during the three months ended August, when compared to the same period last year, according to ATS Bullion sales figures."
http://www.telegraph.co.uk/finance/commodities/11104055/Super-rich-rush-...
What did the English call their artillery? "Pounders"?
Our every day prices are guaranteed lowest at Buy Gold and Silver Safely. We sell Maples @ 1.85 over spot for less than 1000 at present and 1.75 over spot for 1000 or more plus a 1% commission (about 18 cents).
http://buygoldandsilversafely.com
Doesn't hurt that I have called the gold and silver markets well too.
For the last time get it through your heads. The dealers are hedged to their ears either way. They make 2-3% on sales and that's it, whichever way the price moves. They live off volume not price fluctuation, they would go bankrupt in two days if they did.
agent, if you saw what dealers did last year when the prices fell quickly, they simply raised their premiums. They aren't going to get stuck holding the coins they bought or ordered from the Mint at higher prices. Simple as that.
Yes, I always thought they'd be smart enough to hedge their inventories, but apparently even many of the larger shops don't do that. I'm always disappointed, though, that the premiums don't decline over time as they roll the inventories and bring in new stock at a lower cost to them.
They will have to follow the market at some point.
Or get gone.
blank.blank.
So they are just gouging now, or covering for the paper pushers.
No really, they should get whatever the fokk the market will bear.
Maybe I would.
Hopefully, they would treat regular customers a little better.
I wonder how much of the commodities dump and dollar pump is due to the economic war on Russia, and how much is due to collapsing demand.
I just picked up five 100 oz bars from Provident for $1851 a piece. The spread there wasn't bad at all. Hell, it's below production cost.
Make sure they're real. I can't believe any dealers would be selling any inventory at these prices. i know mine isn't.
Good for you; that's a good buy.
Premiums almost always go up on price dumps, it seems like it usually takes a while at a new level before they come down.
Look lets get one thing fucking straight...
NOBODY sold any Physical Silver today and that phony paper fake as price action had nothing to do with real Silver aka REAL MONEY...now, UPS is due at my front door any minute now with some more REAL MONEY....
i aint shook, and aint gonna be bitchez...
FUCK THE MONEYCHANGERS AND THEIR PAPER PONZI...
Do you think they will move the fake paper down to 16$?
Hopefully.
Which fake paper? The coins are like plastic right now. If they weren't in my pocket I would say they would float away...
they could...and if so i'll be right there...
question is just like it was back 2009 and10' - will u be able to find a dealer to sell it to u at that phony paper price??
when it was $11 and $12 every coin dealer i went to said they didnt have any when in fact they did but were refusing to sell at that price...the siutation is way worse in this shithole of a country now versus then...i'd bet against it...
Fine with me.
In my opinion; and that's all it is; it is based on experience and time in this market, but it's just an opinion; the answer is no. These prices will attract buyers like shit attracts flies. And that is the mechanism of a bottom. When you motivate people, they act, and when they act they bid up the price. I believe, for what it's worth, that the manipulators themselves were buyers late Friday afternoon; this would be a typical stunt for them, (the NYMEX); to crush the stops, ( of their customers !), and buy the bottom that they created. I expect prices to rise in the next two weeks.
Silver is acting like a deflationary industrial metal. This may not be what the inflationista's want to hear.
Here is my latest article;
Gold and Silver Feeling the Deflation Blues
http://bit.ly/golddeflation
Link is broken. But thanks
classic. Yes, the "link" between the fiat world and the real world is most definitely broken, has been for quite some time.
Thanks Racetothebottom, Here is the correct link for it:
Gold and Silver Feeling the Deflation Bluesbit.ly/golddeflation
no, try again.
lol... Zerohedge adds a http: to bit.ly wtf
http://buygoldandsilversafely.com/gold/gold-and-silver-feeling-the-defla...
As far as those who don't like my deflation comment, I sell gold and silver for a living and at least my clients are buying lower as they wait for my "all in" article.
Who cares what people "like" or "feel" or some other bullshit. The interconvertability of a PM into any fiat is well-established. I like purchasing power, period. The spot price of gold has been tracking the debt limit of the U.S. for several generations. it only, very recently, uncoupled. As far as "velocity" goes. It matters only as long as the "money" in question is still accepted by your trade partners.
But our FEELINGS and our LIKES/DISLIKES get in the way of our THINKING...
Sucks to be you then.
You mean "it sucks to be human" then.
I refuse to be human.
speak for yourself.
LawofPhysics,
Where did you get "like" or "feel" from? I don't write feel good stuff, I tell it like it is.
How as the purchasing power done for gold and silver since 2011? Can you separate that from prior times? Why the changes since 2011?
No velocity = no inflation.
Money valued in other money is an illusion.
But your comment "I like purchasing power period" is spot on.
You tell him, brother. Deflation my ass.
good luck on the "all in" bottom picking timing........ I'll keep buying all the way down. ... bought from 12 up to 28 and bot from 36 down to 18......haven't lost a dime yet and best of luck to you "waiters for all in"
always buy into falling prices, especially if the underlying whatever is severely under-priced/valued.
If you bought silver at twenty and now it's lower...far lower actually...you HAVE LOST MONEY "in the sense of gain." (Or "the art of gain" as it were. Another term for "wages"?)
Does your view extend to equities? And if so how?
Thanks kiliguy. So far I have been spot on, and my indicators have been pretty reliable.
For those that may not time the bottom perfectly, if one investor bought Apple stock at $300 pre-split and the other bought at $400, and today it was at $700, would either be complaining? Yet one paid 25% more than the other. You have to of course be confident silver/gold is going higher.
So pick a spot, walk away, enjoy life and come back in a few years.
I'll try sir!
Every newsletter writter in the world is "spot on"; according to their monday morning game analysis. I repeat; Deflation my Ass.
In any case, I have never had any problem turning that industrial metal, or any precious metal into the fiat du jour, whatever that may be. Deflation you say? Name one society/currency that collapsed/died because their purchasing power was too strong.
I always thought it might
Tracking what copper did in the 1930's until rearmament started.
Guess thats where we are again.
It has only been six years since the bottom fell out. Did people forget already?
This time is different ... chinese commie internet can only go up, up, up !
But this is a new and better Snake Oil!
Ancient Chinese Secret! (opium)
Intangibles pumped and levered, tangibles dumped and hammered.
Bullish for Unicorns and Leprechauns, bearish for sanity.
And the S&P closed red one point for the day; big whoop.
keep buying your silver bitchezzz, the end is near.
The end is ALWAYS near.
"The time at which there will be no other choice but to reject the current system entirely is fast approaching. Although that moment is unknown to us, the course that we continue to pursue will undoubtedly hurtle us into a monetary abyss that will mandate a major reform."
Ron Paul- "A Case For Gold" 1982
This could go on for a while longer.
Well .. no one can accuse Paul of not being a man ahead of his time.
Best part about buying a ahare of BABA is that you don't even own a share of the company that operates in communist china which does not allow foreigners to invest in chinese companies which is run by a man who ran over shareholders before. You do own a share of a holding company in the caymans with promises backed by these altruistic people. Hong Kong would not ok the deal but the sec ran it through--I am sure greed of fees by the large banks has nothing to do with it.
Best part about buying a ahare of BABA is that you don't even own a share of the company that operates in communist china which does not allow foreigners to invest in chinese companies which is run by a man who ran over shareholders before. You do own a share of a holding company in the caymans with promises backed by these altruistic people. Hong Kong would not ok the deal but the sec ran it through--I am sure greed of fees by the large banks has nothing to do with it.
You can say that again.
thank you sir, can I have another!
Say hello to Mr Bond assholes....
Silver proves once again to be gold's bitch! G/S ratio at 68.21 up from 31 in 2011. The G/S ratio just made a 4-5 year high and may be breaking out over resistance at 67. You have to wonder what that means. More pain for silver relative to gold.
Russell traders are no doubt rejoicing the first day-long, steady, fairly obviously telegraphed move we’ve seen in what seems like months, traversing the entire hourly Keltner with no boomerang fake-outs or hiccups. Yesterday’s odd action, with near complete stasis for 6 ½ hours, was perhaps a clue. The ultra-rare “dumptruck” algo took the pre-BABA pop just enough above the 20 DMA to double-cross Death Cross-ers, then tanked like Wile E. Coyote’s anvil. Let’s bask in today’s easy winnings, as next week our algo favorites may return with a chip on their shoulder (including Mr. Sawtooth, Fake-Out Freddy and Stanley Stop-Hunter), with hexadecimal revenge on their minds.
I have no idea what you just said...
As Greenspan might have said: "If you understood me, then I must have misspoke."
Unlike Greenspan, I'll translate: the goddamn Russell, often the most annoying (but potentially rewarding) index to trade, had the first day-long, steady move in a long time. It's been flitting around like a dragonfly, with action choppy as hell for a few months.
See below and "Alan Greenspan and those that followed him were wacko's." Thank God for Treasury...providing over watch from a bunch of lunatic fringe "committee members" and their crazy ideas about "from whence comes liquidity."
KCS I enjoy your insight and color analysis. I've had my fits with the RUT and your analysis was too funny. Thanks.
It seems R2K traders have equal parts masochism, paranoia and wanderlust that coalesces in a strange amalgam most often recognized by loud, sudden cries of “HOLY FUCK!” and/or “Sacred Shit!”, normally at 9:36, 10:16 or 1:27, after realizing a hole was opened requiring the rest of the day to dig out of, or that 4 hours of breathlessly pacing the floors have been undone in 32 seconds by an ambush algo.
To wit, while I cleverly shorted today early with my account packed into TZA, it failed to make up for my misdeeds on Mon and Tues, hesitating and missing the former’s glorious opening red candle, then getting triple whipsawed in the latter’s double-entry algo the first 3 hrs. But, I’ll be back in the saddle on Monday, as things may just be getting interesting in Russell-ville. . .
Translation...
https://www.youtube.com/watch?v=oGKUjcESCcU
Right now you can trade fiat for physical silver. One day you will refuse to trade your silver for fiat. Thanks for the chance to add more.
CFTC and COMEX just using the days event as a good excuse to say to everyone, "That Harvey Organ's just a crazy old man."
Sorry but I have this feeling even he will think he is crazy when his predictions don't pan out like he claims. I have a lot of respect for the guy, he is not afrad to stick his neck out with his calls.
He's mis-called the market for years, with the same spreadsheet - cut and pasted diligently every day, the same speculations - 'how will JPM meet their delivery obligations with these inventories?', and the same calls - 'Comex will surely default this next delivery month'. I'm sympathetic to his belief, but for fuck sake, he needs to admit to himself that he does not know what he's talking about, and that clearly the owners/operators of the Comex have plans and options and inventories that they are not sharing with him.
He IS just a crazy old man.
Once again - If the Australian dollar is weak, that has absolutely no effect on the US dollar index since the Australian dollar is not one of th six currencies used to establish the value of the US dollar index.