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Silver Is Crashing
For the 3rd time in a week, Silver futures prices are plunging. This time though it is on considerably heavier volume as Silver drops 3.75% - the most in over a month - hammered off resistance at its 50DMA. Gold is also falling though not as aggressively.
Silver slammed...
After failing at the 50DMA...
Gold also weak...
One wonders if this is related to the big China plunge... or just a reflection of broad-based commodity margin calls.
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Best news .......................all year
Cannot wait for the GSR to go above 80
go baby go
I cannot wait neithier. Great time to buy
Oh come on, lets get this under $13. The quicker Silver falls, the quicker the COMEX goes bust, the quicker this is all over.
Turn those machines back on !
All the while JP morgan is shorting the paper market and loading up on physical, HSBC and Goldman are shorting the paper markets and buying over 9 tons of physical gold, and Drunkinmiller makes gold his largest position.
If these very curious events aren't tied to the smashes in PM's over the past month I'd be very surprised. I'm interested in what it means for the next few years in these markets as well.
Wait, another 45 days as the bottom approaches...question is can you go long stocks or does the system implode...."how many shots did I fire punk?".
Buy on the dips. This is a litle dip. Turn those FRNs into even more real money! Nobody knows exactly how far they will push it down, but we are def close to the bottom. Stack on!
Hopefully everyone here already has already started stacking. If not, what are you waiting for??? These candles with silver coins are a good way to get someone interested in silver: https://www.etsy.com/shop/ScentSavers?ref=hdr_shop_menu
They will look up what their coin is worth and be amazed that a silver coin is worth 10-15 times more than face value. People will also understand that silver is real money after they hold it.
Also, half of the sale price of every candle sold until September 7th will go toward Rand Paul's moneybomb on September 7th! Just include which of the bill of rights is most important to you in the buyers notes.
Paper is crashing, not silver.
Oh yeah. Absoluetly. There will come a point when there wont be any physical silver to buy anywhere near the spot (paper) price. When that time comes, it won't be long until it shoots up!
And 100 oz sunshines are back in stock!!!!! I like them better than JMs
How many of you on here are still making credit card payments from when you bought silver at all time highs back in 2011?
I remember reading a lot of comments here on Zero Hedge where people would run up credit cards to buy silver at $40 because it is a "bargain" or a "dip" for when it will be $500 an ounce.
Here we are, it's $14 an ounce, and still trending downward.
I might actually entertain silver again when it gets in the single digits like it was in the early 2000s which to me seemed like just the other day.
I think only low IQ folks like yourself would buy PMs with a credit card......you sound ass hurt, how many ounces did you buy at $45?
Go ahead and go long, after all, what could possibly go wrong?
This is also one of the main tactics the CB's use to make equities look more inviting. Pound on commodities so that money looks elsewhere for returns. From 'Extending the Farce' chapter 2.
Buy The Fucking Farce chapter 3
You can do the same thing with put options. Buy an accurate put spread, ride TPTB manipulation down, and sell. Take some profit out of the trading account and buy physical.
If you manage the trade well, it's free stacks.
I use put options on inverse funds when they melt up the equities. Not hurt if the market plunges. Love the range bound markets :-)
How to you get time for free? As you expend such for "free" stacks.
Would love to know. Time is the most valuable commodity, is it not.
Ag is still wildly overvalued. In actuality, for silver to be fairly valued, you would have to pay JPM $10 per troy ounce just to take it off your hands as a disposal fee.
Ag worthless shite---gimme, gimme paper all day long!
Sheeeeeeeeeeeeiiiiiiiiiiiiiit!
I expect Ag to drop below $11. It is so damn common. People have tons of it already stacked.
so common that there is 4-5 times more gold above ground..... and silver has actual uses, which accounts for 80-90% of all silver ever mined being used up and/or unrecoverable.
that common?
Damn it! I just loaded up two days ago. Don't get next months allowance till the tenth of September.
From memory
16-18th cheapest time of the month to buy Silver
Right ahead of futures closure, HHmmmmm.......
The Bizarro world continues. The world coming unglued, and we have PM's this low. This is an amazing time. Deflation with inflation at the same time. (Portland, ORegon) For the first time EVER...last night I had to pass at the 4 steak pack at Costco. The Rib eyes in a small 4 pack are $61.80. I bought the Top Sirloins instead. Gas is still around $3 a gallon, Organic Milk at $4.77 a 1/2 Gallon. My fucking water bill is now over $200 (Billed bi monthly). House prices are through the roof. My home has gone up from $240,000 to $520,000 in 3 years. Then we have the other side. Electronics.....I sell a NEW Pioneer CD Player for your car for $47. Silver below $15. Oil $40 a barrel, Just saw a big screen TV pop up on the Ebay daily deals for $199. a 50" big screen for $199?? Wow. So...the things we don't need are crashing in price....Electronics, Luxory items and Metals....yet the things we use daily are skyrocketing, food, insurance, housing, etc. This has got to be just crushing many people. I am fine...watching this show...No debt, stacking high, and eating the popcorn.....and reading ZH to try and get a grip on it. I don't thoroughly understand it. I know it is "Called" deflation" but I can't exactly explain why it is happening. Just being honest. How can you have both...Deflation and Inflation? Thanks for educating comments.
https://en.wikipedia.org/wiki/Biflation
Wow..that explains it perfect.....Thanks. Here it is...
.
Just the right senario for Atlas Shrugging.
The time for us producers to go Gault has long past.
Doesn't explain oil going down and your house going up.
please see MANIPUFLATION: /if its out there.
'On the one hand, an over-abundance of money is injected into the economy by central banks' >> except that the 'over-abundance' is not finding its way to the bottom 90% and so that 90% can no longer afford the superfluous 'non-essential items'.
Yup, that's why luxury good producers are still doing well.
Here you go for some nice Sunday reading. https://gold-forum.kitco.com/showthread.php?93752-Deflation-Precedes-Hyp...
Ditto :)
Generally industrial growth is characterized by demand for raw materials (steel, concrete, copper). Demand has been dropping as per exports from Asian countries. Since many emerging markets (EM) countries like Chile, Brazil, etc produce the raw materials, the price of commodities will drop since 'China' isn't buying enough because their exports are dropping. The dollar rises because ppl want to get away/pull money from EM countries and go buy the dollar for safe haven. But that causes commodities priced in dollars to drop further because of stronger dollar. Thats the deflation part (a portion of it--the debt part is something else). Now low domestic interest rates increases the value of everything else here because ppl generally speculate a lot more when money is 'free'. When interest rates are like 10%, no one wants to 'gamble'. this is overgeneralization but hopefully explains some things.
Thank you SOOO much. This is why I come to ZH. I can ask a real question and get a real answer. Thanks. Next question for you then. When does it turn? When does inflation happen? (Of course I mean Silver, Gold, Copper, Platinum, Oil etc go up) Does the real economy need to turn around before inflation hits? If that is the case, then in my opinion we are in for a very long haul.
Just my guess, but if it were not for the machinations and manipulations of TPTB we'd be in a "Zimbabwe Scenario" right now. The number of believers in the USD/FRN decrease daily. The number of holders of PMs increase. The "futures prices" of gold and silver are fiction, as you can see by the ever-increasing "premium" on physical metals. The "little man behind the curtain" will soon be revealed, and people will marvel that he also has no clothes...
Edited to add:
As I type, the premium on 1 ozt SAEs is 24%
With all due respect you can't place a percentage cost on a fixed priced.
I've seen this error made more times than I can count, I don't have the stats available but I've seen them tabulated many a time in the past when people have posted "premiums skyrocketed" and the like.
I'll use random figures but say the cost to design, mint, and distribute a nice silver coin is $5. If siver is $50 an oz then that's 10% of the cost of the finished 'product' - The premium is 10%.
With silver at AU$20 the cost of producing and distributing the coin is still going to be $5. So of course the 'premium' in percentage terms is going to be way higher, it means nothing. If you don't want to pay the cost then just buy a 1KG lump of silver (or to a lesser degree even the 10 Oz'ers) for just over spot today, just like you could with silver nearing $50, just like you'll be able to do at any price. At least until the paper market is over and done with.
No one knows, this is the first showing of this worldwide crapstorm.
When the dollar tanks is my guess.
Mind you, after all middle class has absolutetly ZERO remaing purchasing ability/debt capacity.
This allows oligarchs to cheaply repossess the majority of assests, and start all over again.
Such is not remotley uncommon, if looking beyond today and the shrouded bankoligarch history.
This run has broken the average 80yr +- cycle.
Why?
This time is not just for the money honey, this time they want to own us ALL.
"In the US, Professor Robert Shiller’s cyclically adjusted price earnings ratio – or Shiller CAPE – for the S&P 500 stands at 27.2, some 64% above its historic average of 16.6. On only three occasions since 1882 has it been higher – in 1929, 2000 and 2007."
No inflation in stocks either. s/
First deflationary crash, then Ol' Yeller cranks up the printing presses to save us from the boogeyman. QE4, QE5, QE6, etc. no recovery, more zombies coming like mad. People buy more gold and guns and foodstuffs, as the real eCONomy melts. Likely assymetric damage: shit you don't need dropping in price, shit you do need expensive as hell, paper dollars floating everywhere, black markets, more zombies, and then OBOMBA pushes the red button.
hope this helps
But....inflation doesn't happen if the banks just keep the QE and don't loan it out (like QE!,1,3,4..). Like Curley Howard once said, money is like fertilizer....ya gotta spread it around a little.
yeah, just got property tax bills on our house & condo (rental in same counth) - my "oaid off" house (& condo) are costing me 10% more this yr w/<2% inflation?!? nice...
How can you have both...Deflation and Inflation? Thanks for educating comments.
Really fucking simple, you can't. Either the money supply is expanding or contracting. What you're experiencing is a monetary phenomenon due to policies of propping up certain asset classes over others amidst a near universal slow-down in the world's economies.
PS, don't get confused by price changes... you can have price increases and decreases in deflationary as well as inflationary environments.
Stagflation
Stagflation may be better than the Weimar Republic/Zimbabwe-type inflation that I think is coming to the US. Wheelbarrows of FRNs will be needed to buy a loaf of bread. Get a copy of "When Money Dies" by Adam Fergusson and read it carefully. Then read it again. Then get all your friends to read it. Yes, it's "ancient history" but history has the damndest habit of repeating itself, and at the most unexpected and inconvenient times too...
One wonders if this is related to the big China plunge... or just a reflection of broad-based commodity margin calls.
It's neither of the above. It's a paper smash on the COMEX because TPTB are in desperation mode with stock markets crashing all around the world.
+1,
I was fixin to quote the same errant sentence.
good i hope it goes to $1 per oz
We're still not in charge.
Still waiting for "market forces" to give the momo-chasing computer algos a good old fashioned market enema. I hope that I'm alive to see it... and all the TV talking heads saying that no one saw it coming.
Money is on sale. Woo Hoo
When the whole world is short paper silver, I guess there are a lot of people who don't want to see it start breaching key moving averages to the upside. This looks like aggressive defence of short positions to me.
The paper price is down. Just means the premiums will be higher.
Blythe? Is that you, sweety?
Does anyone know a source that would show the number of contracts that stand for delivery?
Only 18% of silver demand is from investment demand. The rest is industrial and if the world economy crashes so will industry and silver. Gold is money so not so much of a crash.
Silver has been tracking copper's moves in the 1930's.
Only preps for WWII moved it up.
Will history rhyme ?
Look at the other side: silver supply. How much of silver supply is a by product of industrial base metals? I've seen 70% used alot. As the production demand stays down, base metal production drops and silver by product production drops.
Stock to flow is pretty much negligible for silver so after a base metal production crash I would expect that investment demand to seriously impact the price, but only after a dramatic price fall first.
Not clear what you are proposing. How will investment demand impact the price after three prove falls?
Simply that as industrial production drops off investment demand will comprise a much higher percentage of overall demand which will impact the price that is assuming that the manipulators are busted and have thrown in the towel.
If investment demand maintains belief in ETF's you may be correct.
If such belief falters when questions arise in regards to paper asset value, the ride begins.
The manipulators are not remotley concerned and need a towel only for all the heavy lifting
they have done and continue to perform. The reamaining ETF/USD believers burn.
I assume that ETFs will die when the manipulation does.
JP Morgan is removing massive amounts of 'supply' before it hits the market and before it has a chance to impact the price action. Silver will be in short supply soon as it's a by product of other mined industiral metals, who's demand is crashing. Silver remains a monetary metal, and as such will renter a bull market after base metals hit bottom, if not sooner. JPM morgan is postioning (stackin) for this obvious big move up and I am too.
No. This is excessive binge selling into weak trading time slots in order to hammer the price down. It is a paper casino that has no bearing so far with the real world.
Sure there has been obvious manipulation and that was while silver production was up. Now I think that production will eventually drop dramatically but before that no more manipulation maybe for a while; just industrial demand fall off so no manipulation needed for the price to drop for a while anyway? Miners tend to keep operating for a while for a loss because after a shut down restart costs are high. Tell me why this is not logical reasoning?
"Now I think... no more manipulation maybe for awhile"
BWAHHH HA HAAAAA HAAAAAAA HAAAAAA !
The trouble with rigged markets is that you never know for sure when there is manipulation and when there is not. But if you know, all wise one, please share that with me. And by the way you did not provide a logical reason why I'm wrong. Still waiting.
No manipulation yesterday right?
Stability in the market... right?
YEP.
Silver is toxic.
Actually silver is the opposite of toxic:
The antimicrobial properties of silver have been known to cultures all around the world for many centuries. The Phonecians stored water and other liquids in silver coated bottles to discourage contamination by microbes
https://microbewiki.kenyon.edu/index.php/Silver_as_an_Antimicrobial_Agen...
Watch out, no body is supposed to know about that. Big Pharma doesn't want that coming out.
Old-timers would drop a silver dollar in a new glass bottle of milk to keep it fresh longer, too.
We spray 10 ppm .9999 colloidal silver 1/64tsp into our local purchased nonpasturized OG goat milk.
The goat milk lasts longer than store cow milk bought for visitors.
Also into boiling water the canning jars are cleaned in, just saying.
Wait ! I am not old yet.
Funny, when I look at a Morgan silver dollar it sure looks like money to me.
It IS money but also an industrial commodity unlike gold.
Gold is utilized by industry.
Ask any cell phone.
Percentage wise MUCH lower than silver.
HIGH-end technology uses gold.
50% in jewelry, 40% in investments, and 10% in industry. And that jewelry is mostly Indian which they consider investment.
So gold is NOT used in industry, right?
or computer, communications satellite, TV, dental crown, medical diagnostics equipment, surgical instruments, rocket ship, solar radiation reflectors and on and on............
FOFOA? Goldman not paying your rent?
Every opinion must have an affiliation. No independant thinking allowed.
"Allowed" is the key point.
All are capable, and instead become culpable.
Gold and silver have already crashed, thanks to the FED's handiwork.Do you buy at the lows or at the highs?
It's goin' down more when the Fed start raising interest rates....
How much silver is used in a $12000 Tesla battery?
None, the battery core is comprised of depleted futures options on Ag. Long paper.
haha classic
No wonder the car only goes 50 miles before it poops out....
I almost pissed myself with this drop...
when will it ever stop...
thank god the miners are starting to recover a bit...
Good, I hope they smash it to ten so the rest of the weak hands finally puke their holdings up.
THis bullshit does the opposite for me....Do you really think I am going to sell at $15. Fuck no. And then as the price goes down....especially if it does it $13...or even $11....How can you NOT buy. Maybe we are ALL wrong, and then Silver goes back to $4 for years...like it did before...I don't think so. Even if it does...I guess I will be buying a shitload at $4...every time I get fiat. Have a great day.
There are plenty of weak hands who will sell when the pain becomes too much to bare. Tthis doesn't stop until they puke their guts up or until the "market" completely breaks and there is a major fail to deliver. Mark my words, there is always a puke phase to capitalize on.
If holding silver causes pain, then they didn't know why they were stacking in the first place. Good riddance.
last month I reached my goal. Honestly, at the time it was more a dream than a goal. Well, I bought another bigger safe and I have now set a much bigger goal , which I have every intention of achieving . Thanks JPM
And for all my hard work and dedication, I treated myself to a lovely SSG 3000. Seemed like it would go well with my stack
The real price for the coins are set on ebay, not Wall Street. An Eagle is still $20.00 there....
The cyber paper stuff is $15.00.
$4 silver... from your lips to God's ears.
Of course, if the FRN is re-valued - a decimal point is moved over a space or two and $20 becomes $2, then $4 silver looks pretty good...
Are you nuts? The weak hands have been out for YEARS.
The price is DICTATED and in no way legitimate. You just have to buy while you can. Short paper, long physical (ie opening a hedged coin store) is probably the best play you could make.
Bullshit. There are still people holding on who have moved substantial asset into silver.
Tangibles are so passe! Buy some bank stocks, that's where the real value is!
And real estate too, in hot markets!
We're all gonna' live forever!
I know -- Chinese real estate!
It has to be cheap now, right?
Where can I get me some?
Main landers are buying in HK now.
Or so I heard.
Meh. COT still shows too many trader shorts. It will not last. The traders do not win.
Awh. darn and dagnabbit.
BTFD - that silver train is a comin
Interesting Gold Chart this morning , too.
http://www.kitco.com/charts/popup/au24hr3day.html
Folks, this is yet another sure sign that the Fed is going to raise rates next month :-)
Keep stacking...
I wonder if the derivatives are meantt to manipulate the price lower without acrually selling the phyzz for JPMorgue to exit unscathed from their huge silver short postion they inherited from the Bear Stearns takeover?
Although its the wrong thing to do ethically, it seems like the right thing to do financially,
Once you get past the ethics everything else is easy!
JPM has, for the most part, extricated itself from the massive short. It has shifted from commercials to specs.
This gave me an inkling that the worm had turned, but alas it seems not so, at least for the time being.
Silver and Gold will be in the green by the close of the spot session at 5:00 PM.
means someone is buying size
Fed minutes come out tomorrow. Recent FedSpeak was to push for a September hike, so those will be in the minutes. Even though economic data has worsened since, that data will not be reflected in the minutes. I think we are just seeing front running of the minutes. Still, I bought a little more silver on APMEX this morning. Keeping plenty of dry powder just in case the Fed does something later this fall.
This may be like 2008 all over again this time by a factor.
Ag and Ag may get beaten down, but then is straight up.
Enjoy the blue light special in them metals folks.
Pulled the trigger Sunday night on another 100oz, something in my gut said get it while I could. Probably the last bulk purchase I'll make, will be chipping 10-20oz at a time now. Even at 16 bucks you're stealing the stuff compared to where it'll be down the road, so don't over analyze the price and just get as much as you are able.
Fantastic assessment. I see it exactly the same way. I'm frustrated by the inability of my less-than-stellaar intellect to make sense of things, and by the length of time it's taking to sort out what SHOULD happen. ZIRP and QE and increasing debt and Keynesian prescription HAS to be insane. Right? That which cannot continue indefinitely won't, right? REAL assets have to anchor our inevitable reset, right? I can only conclude that the principles posited by Taleb in Antifragile will manifest massively one day. The longer we deny a reset, the more cataclysmic it will be. The only way to get healthy is for financials to break - to be allowed to break. Systems must be allowed to be stressed and to respond naturally to that stress. One dipshit's opinion anyway....
Well, it wasn't THAT friggin' fantastic.
Oops! Massive Chrome hiccup!
Oops! Massive Chrome hiccup!
Oops! Massive Chrome hiccup!
Oops! Massive Chrome hiccup!
Oops! Massive Chrome hiccup!
Cheap silver suits, do your worst.
The language is getting old. How does it crash if it was lower two weeks ago?
End the dramatic headlines....
Margin unwind. Coming to an /es near you, Sept/Oct. 2015.
Buy Gold, Silver, Platinum and Palladium with Euro, Great British Pound, US Dollar and Bitcoin.
https://www.eurgold.eu
silver used to be good for making bullets to kill vampires. nobody believes in vampires anymore. hence no more need for silver
Silver bullets are for werewolves . . . jeez.
They also don't shoot worth a damn. Casting silver is a BITCH.
Wrong Vampire Squid is much more dangerous. Whoar!
How many oz of silver for a 155 HE round?
The lowest premium on junk bags has jumped to 31.61%. 1000 dollar 90% face bags have roughly 715 ounces of silver. At 14,000 dollars per bag that's 19.58 per ounce or 4.49 over spot. Considering that junk silver used to trade at or below spot, that means the price of silver needs to drop 5 more bucks an ounce to make a new low. That ain't gonna happen. It's already bottomed.
Silver For The People
We are some werewolf killin' motherfuckers here at Camp Silencer.
We buy AG and melt that shit into .308 projectiles sure to turn Lycanthropes into Hound Hamburger.
EDIT: It is also quite effective on Hedge Fund Hyena Heads, too.
< Better to buy silver?
< Better to buy gold?
Please cast your vote...
Put a green and white piece of paper next to a shinny silver coin in front of a toddler and see which one he picks up, sorry boys its just that simple.
Sticking with my plan: stack cash, buy Au/Ag in the $900s and $9s, and the upcoming commodity and world trade collapse may drag the PMs even lower.