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Silver Slammed As 'Someone' Dumps $1.4bn In 'Paper' Gold Futures
Following "good" Housing data, "bad" CPI data, and "ugly" wage growth data, someone decided to dump $1.4 billion notional in gold futures markets (sending silver plunging also)...
Sending the price to 2010 levels...
Some context...
We are sure the Chinese will be very pleased to back up the truck a little more.
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Buy it all! Bwahahahahha!
I'm buying hand over fist. Call me stupid.
CAN someone explain this to me?
Why do people buy 1 oz silver COINS as opposed to 1 oz silver BARS? Aren't bars cheaper?
It may have something to do with the numismatic value.
Eagles, while higher in premium, are internationally recognized and trusted. The biggie though, is that the sales of said eagles to you are not reported to the government regardless of the quantity. They less they know about you the better.
I was told by a seller that reporting of transactions was based on the particular dollar amount of the sale, not the coin or bar. If I remember, it was higher than I would have expected. Over 50K, maybe 100K. Ask when you call to order.
Coins are more recognizable than bars, and therefore demand a premium. A potential buyer will have more trust in purchasing a recognized product than a round minted at a facility that they have never heard of.
Just go on ebay and compare the prices of backdated silver eagles to the spot price and the 2015 ones that are back ordered.
Whenever you buy silver or gold in some physical form, you are actually buying two things. You are paying for the metal at the market, then you are paying some kind of premium for the seller to handle the transaction and make a profit, and for the making of the physical object into a bar, a coin, a statue of Buddha, or whatever. Some dealers sell collector coins. The actual value of the metal, plus the markup on its rarity, uniqueness, or whatever they claim adds more value. In my opinion, if you are buying precious metal strictly for the protection of your wealth, you should be buying pure metal in whatever form you like, with a minimum premium markup. There are at least half a dozen big reputable metal sellers out there that are US based that sell with a reasonable premium. You can search on the internet. I would say for a gold coin, the premium recently if I remember, was typically less than $25.00 per coin. Larger lots usually discount the premium. It might be less for a bar. Schiff Gold sells precious metal in several forms, and they offer silver rounds, which they call 'barter bags'. I think some other sellers do as well. They are just pure silver round stamplings, with the weight stamped on them, but you will pay a much lower premium for the metal. If you bought say $3000. worth of rounds, and wanted to sell them all, the buyer might want to assay them. That's not a problem, as an assay test only costs about $35.00. So if you saved $200.00 in premiums not buying fancy coins, you are ahead. I don't know why US minted coins like silver or gold eagles fetch a higher premium than say a Krugerand or Kangaroo. It's in people's heads. Because an ounce of pure gold is an ounce of pure gold is an ounce of pure gold. Period.
If you buy for SHTF reasons which a majority do,,, the coins will be more readily accepted especially U.S minted coins. After awhile it won't matter as most will be set up with scales and verification equipment.
Smash to gain market share due to coming solar power boom. Independence is the new black.
Looks like some shit for brains has got hold of the Greek gold
This is starting to look like final capitulation in this market
I was thinking the same latitude....seems the same in the stock market too...the final harrah so to speak...
Capitulation has nothing to do with price- capitulation is all about volume, and sentiment. The capitulation in this market occured during 4th quarter 2014. In the last 4 months of 2014, the GDX traded 3 years worth of equilalent volume.
PM prices can go lower from here, because if volume dries up to the point that one buyer offers to buy a contract for $50 Gold, and one bullion bank sells them that contract, then BAM- the "price of gold" on all the charts out there becomes $50...
The price of Gold is found on Ebay, not on Kitco or Stockcharts...
So the metal gets slammed because of the worthless paper dump. Well, in the meantime China is buying the "worthless actual physical metal". There's a lesson here for the people with a brain.
Opportunity is starting to knock in silver.
At this rate of decline my next purchase could well be delivered by truck and forklift.
Where is Boris when you need him. He may know a thing or two.
As mentioned, 10 cents is hardly "slammed"...on another note, in the last 15 years, if you bought silver, (excluding 2011 - 2013), you are still doing ok...2011-2013 is when it went to the moon and after that was the true "slam".....What I also find interesting, is that it took 1.4 billion thrown into the paper trade to drop silver just ten cents? 1.4 billion to drop silver ten cents, think about that a minute.
Everthing must be fixed! Literally
Actually... the stuff you think needs to be fixed, instead needs to be ELIMINATED. Everything fiat, fake, fraud, fiction, fantasy needs to be eliminated.
If someone dumped 1.4 billion notional in gold futures...someone had to buy the contracts at the other end...who keeps selling and who keeps buying..same entity?
Yes. the same entity.
Basically they cancel the sell orders before execution and they cancel the buy order before execution.
Paper requires faith, physical does not.
Imagine if someone dumped 1.4 Billion of Apple Futures on the market? Why, I think they would turn off the machines.
Good, the more of these paper rats that jump ship the sooner we'll get back to a real price discovery market.
How come no one ever dumps a billion+ in notional silver futures to drive the silver market lower...?
They always hammer gold's sell stops on enormous volume, and then wait for silver market liquidity to dry up, before running silver's sell-stops on microscopic volume.
Look at the volume difference between GLD and SLV in today's NY session - Today is nothing but an equity raid on the ETF's...
I'll bet today's physical redemptions in the ETF's will be a sight to behold.
The cheapest junk silver around is 18.44 an ounce. Junk has always traditionally sold around spot. Physical silver bottomed weeks ago.
https://comparesilverprices.com/
Here's the dip. BTFD!!! TIme to stack. Prices keep dropping so does availability.
We saw a similar pattern in late summer 2008. While this could be the usual manipulation games, I think it's far more likely that someone is in trouble and puking paper gold.
If so, set the countdown timer, shit got exciting within a month of that happening in '08.
Is JP Morgan selling gold futures to influence silver indirectly and then increasing its physical silver hoard?