Silver Catching Gold's Cold?

Tyler Durden's picture




 

Silver is now down around 6% on the week as it reverts back in line with Gold's recent weakness. Whether this is broad asset/collateral liquidation from AAPL holders or a reaction to the liquidity spigot being turned off is unclear but while we need 'weakness' in equities before the next printfest begins, its inevitability suggests buy-the-dip in PMs may be the play once again. Meanwhile, WTI just lost $105 as the Brent-WTI spread holds around $17 (upper end of recent range) as the USD pushes higher.

 

 

Chart: Bloomberg

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Tue, 03/06/2012 - 10:47 | 2227760 LawsofPhysics
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All paper is sick, what is your fucking point?  Get physical and have the opportunity to be your own bank.

Tue, 03/06/2012 - 10:49 | 2227768 achmachat
achmachat's picture

I'm still waiting for my PM dealers here in Europe to adjust to the low paper price... they really hesitate!

Tue, 03/06/2012 - 10:55 | 2227806 Pladizow
Pladizow's picture

Thank you, may I have another!

Tue, 03/06/2012 - 11:05 | 2227841 MillionDollarBonus_
MillionDollarBonus_'s picture

Total massacre for goldbugs and silverbugs. Meanwhile treasuries are rallying superbly with the 10 year back below 2%! It's quite amusing to me that silly libertarians still can't seem to grasp that US treasuries are the only true safe-haven, despite their 20 year track record.

Tue, 03/06/2012 - 11:09 | 2227868 AL_SWEARENGEN
AL_SWEARENGEN's picture

Treasuries, not to be confused with 'treasure' (Gold & Silver) burn and are debased just as easily as any other fiat paper.  

Tue, 03/06/2012 - 11:18 | 2227954 Badabing
Badabing's picture

Every three months TPTB hammer has come out for the last year this is not by accident but by design.

Anyone who thinks this is normal free market activity is a dick! What the fuck gives them the right to manipulate the only store of value we have left!

Tue, 03/06/2012 - 11:22 | 2227975 goldfreak
goldfreak's picture

Jim Sinclair said in 2003 gold would trade at 1650 in January 2011. He was off by six months. They can slam it temporarily but in the end it will go where it has to go. ALf's numbers!

Tue, 03/06/2012 - 11:24 | 2228003 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

JS is a pimp.  That said, buy PMs, bitchez!

Tue, 03/06/2012 - 11:29 | 2228056 Clint Liquor
Clint Liquor's picture

A pimp is a man who makes money from pussy. He must be a genius.

Tue, 03/06/2012 - 11:37 | 2228078 GetZeeGold
GetZeeGold's picture

 

 

Benny is the real Mack Daddy.

 

Amazing what you can do with a little QE hot-cash....it's the first government program that has ever done me any good. Thanks Benny!

 

 

Tue, 03/06/2012 - 12:44 | 2228472 trav7777
trav7777's picture

rut roh, gonna be a LOT of pissed off silverbugz bagholders who bought into the rah rah in the runup toward 38.  Nothing like a nice immediate 20% smackdown to people's life's savings

Tue, 03/06/2012 - 13:13 | 2228601 Nage42
Nage42's picture

I assume that you lump in the masses with day traders who have to swallow the post-pump 20% going-limp salty loss and then must move into something else hoping to ride the stiffening rise?

...OK, I'm using a metaphore that I am no longer comfortable with..., but the idea is that these people who bought into Silver are not day-traders here on ZH; they've taken delivery and expect it to go to the value of: "it will buy me much greater than 2 10Kg bags of rice/flour" in the mid-term future.

I suppose if you wanna talk day-tradersese and "my l337 technical anal-izing skillz are longer than yourz, son!" then shoot your wad about how your triple-leveraged premium option contract puts with fixed term drop-off kickers for a left-right 10 bagger then who are we to say boo?

I just wish Singapore would hurry up with their newly propoed legislation to remove the 7% GST on all precious metals (yes, that includes Au,Ag,Pt,Pd and one could make good cases for Rh, Ir, and Os provided they are >99.95% pure and in coin/wafer/bar form) in their 2012 budge speach... that Mr. Lee... he's one smart cookie, like him or love him, but it's amazing what a benevolent dictator can get done when he actually cares about the result for his childeren (and their childeren, etc.).

 

/meh

 

 

Tue, 03/06/2012 - 13:57 | 2228772 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

yes all those silver bugz surely rushed in at 37 leveraged up as always!

Look at the chart - silver outperforming to the upside and doing the same to the down...I know which metal I prefer!

Tue, 03/06/2012 - 13:58 | 2228774 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

yes all those silver bugz surely rushed in at 37 leveraged up as always!

Look at the chart - silver outperforming to the upside and doing the same to the down...I know which metal I prefer!

Tue, 03/06/2012 - 11:34 | 2228092 goldfreak
goldfreak's picture

how is he a pimp? Explain

Tue, 03/06/2012 - 12:24 | 2228367 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I meant in a good way.  He is pimping the fiat ponzi, how"s that.

Tue, 03/06/2012 - 12:03 | 2228233 Farley
Farley's picture

Actually, they are manipulating how many piees of paper you receive for your PMs. In no way can they manipulate the true value of the metals.  For instance, my silver quarter from 1964 will still buy a gallon of gas, just as it did back in the day. When they manipulate the paper,...its the perfect opportunity to rid yourselfof the paper that is ultimately doomed. Thats how I try to think of it. fwiw

 

 

edited to make it more readable

Tue, 03/06/2012 - 12:22 | 2228355 Likstane
Likstane's picture

Well said Farley.  Simple, concise, and an example to boot.  You should be an FX trader./teacher. 

Tue, 03/06/2012 - 12:48 | 2228493 trav7777
trav7777's picture

the truth is that there is speculative froth in both gold and silver.  When price moves one way, people chase it and it overshoots.

It's true of everything these days.

Tue, 03/06/2012 - 15:18 | 2229193 GetZeeGold
GetZeeGold's picture

 

 

No....it's a direct correlation to the national debt.

 

 

Tue, 03/06/2012 - 11:09 | 2227876 LawsofPhysics
LawsofPhysics's picture

and what has gold's value done over the same "10 year" period?  You are slipping idiot.  It still amuses me that people are stupid enough to pay in order loan the government money.  If Gold goes below $400, I will have broken even.  MDB, you truly are one entertaining fucknut.

Tue, 03/06/2012 - 11:09 | 2227888 mayhem_korner
mayhem_korner's picture

 

 

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.

Alan Greenspan, 1966 Gold and Economic Freedom

Tue, 03/06/2012 - 11:10 | 2227896 peekcrackers
peekcrackers's picture

No the massacre is on your 401k and savings ..

Tue, 03/06/2012 - 11:12 | 2227910 Blythes Master
Blythes Master's picture

McDB, you are a govt troll.

Go fuck yourself.

Tue, 03/06/2012 - 11:17 | 2227946 Uchtdorf
Uchtdorf's picture

I'm convinced that that MDB is just doing this to infuriate ZHers. He does not really advocate what he's writing.

Tue, 03/06/2012 - 11:28 | 2227982 LawsofPhysics
LawsofPhysics's picture

No, he is serious and I suspect he is in some Ph.D. program in eCONomics or a government troll.  Go ahead, press him for an "intelligent conversation" on economics.  He will contradict himself in three posts or less.  I made this mistake once.  The negative arrows on only my comments would seem to confirm the obvious.  only other obvious conclusion is that he is a useless tool generating volume.  Speaking of which, anyone seem/heard from robo trader?  haven't had a rear-view prediction in a while.

Tue, 03/06/2012 - 11:49 | 2228179 francis_sawyer
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he got tangled up in his leotards after yoga class...

Tue, 03/06/2012 - 12:02 | 2228242 jcpicks
jcpicks's picture

I think after every comment left by MDB he intentionally forgets to leave off /sarc....

Tue, 03/06/2012 - 12:46 | 2228484 trav7777
trav7777's picture

no; he's not serious.  He is using very dry sarcasm.  I find him highly amusing especially the way he makes ZH "freethinker" monkeys dance and bang cymbals.

Tue, 03/06/2012 - 13:27 | 2228655 Hulk
Hulk's picture

LOL, I have to turn my computer speakers down, the cymbals are so loud after an MDB post...

Tue, 03/06/2012 - 13:24 | 2228647 fuu
Tue, 03/06/2012 - 11:22 | 2227984 mayhem_korner
mayhem_korner's picture

 

 

Of course.  He and the other trolls are here to generate comment volume.  You need to have pretty good command of the info in order to create such outlandish, alternative views.  RoboTrader is the same.

Tue, 03/06/2012 - 11:28 | 2228041 fuu
fuu's picture

Fairly sure some of them are just the Tylers stirring the pot. RobotTrader gets banned/unbanned at least once a month.

Tue, 03/06/2012 - 11:44 | 2228140 Smiddywesson
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Deleted because it spoiled the fun

Tue, 03/06/2012 - 12:28 | 2228392 DosZap
DosZap's picture

I'm convinced that that MDB is just doing this to infuriate ZHers. He does not really advocate what he's writing.

I am convinced he's a Guv shill. Agent provocateur.

Tue, 03/06/2012 - 11:20 | 2227971 BerCrank Call
BerCrank Call's picture

LMFAO!... Just this morning I was thinking how I missed MDB: haven't seen you in a while, and frankly, nobody does it better.  

What's with all of these negatives? I think folks around here have lost their sense of humor... 

Keep up the good work MDB. Comedy Central is on the line.

 

Tue, 03/06/2012 - 11:40 | 2228130 the 300000000th...
the 300000000th percent's picture

Are you kidding me?? I hope Silver goes way down even furthur so I can buy buy buy. When T's crash they are gonna crash HARD and at that same time Silver is going to go to ininity and beyond. 

Tue, 03/06/2012 - 11:51 | 2228188 Nothing To See Here
Nothing To See Here's picture

"silly libertarians still can't seem to grasp that US treasuries are the only true safe-haven, despite their 20 year track record."

I'm either silly or blind, but compared to gold's 6000 years track record as a store of value, indeed, I confess that on the pages of History, I can't even notice an asset whose track record is 99,5% shorter.

Tue, 03/06/2012 - 11:51 | 2228189 _ConanTheLibert...
_ConanTheLibertarian_'s picture

HAHAHAHAHAHAHAHAHAHAHAHAHAH ^n

Tue, 03/06/2012 - 15:18 | 2229063 cranky-old-geezer
cranky-old-geezer's picture

 

 

... US treasuries are the only true safe-haven, despite their 20 year track record.

Safe haven?  After USD (and treasuries and any other USD-based asset) has lost 40% of its value in just the last 4 years?   That's a safe haven?

When Dow hits 16,000 and treasury yeild is sub 1% and USDX is 80, you'll be here gloating no doubt.

When USD collapses on world markets very next day, what will you say then?

Yes, that's how it'll happen.  Suddenly.  Overnight.

Tue, 03/06/2012 - 11:22 | 2227983 Sudden Debt
Sudden Debt's picture

there's this new fund that's going to be launched soon fully backed by bullion which is going to attracked the investors and push the paper comex price down. And than there's a expectation of a price explosion on the physical.

So I hope the paper now really goes down on the comex and there will be deal on the physical for that moment.

Just put 7K on my visa to buy on the cheap :) below 30 would be great!

 

Tue, 03/06/2012 - 12:40 | 2228454 DosZap
DosZap's picture

Sudden Debt,

there's this new fund that's going to be launched soon fully backed by bullion which is going to attracked the investors and push the paper comex price down. And than there's a expectation of a price explosion on the physical.

This is not the  Hong Kong one is it?,It got smashed by an INTERVENTION, and why Au ,Aug is down.

31 tons sold ,never changed hands, and brought the Hong Kong launch down.(American/Chinese heavyweights did it).

BUT, there is a new one forming there, that will not be able to be manipulated, and the Comex will be SOL when it comes online.

Tue, 03/06/2012 - 10:51 | 2227771 DormRoom
DormRoom's picture

Beta $VIX is how you hedge paper tigers until the market collapse in on itself (Central Banks are running out of ammo to contain tail risks)  --short term trading only, less ETF rebalancing wipe out your gains.

Tue, 03/06/2012 - 11:01 | 2227829 YC2
YC2's picture

Ill be covering my short delta under 30.  For now letting it ride.  GO JPM!  GO! 

 

love the bomb

Tue, 03/06/2012 - 11:06 | 2227858 nachtliche
nachtliche's picture

The point is paper trades directly affect the physical price, and silver/gold aren't going anywhere fast despite all the hooplah. 

Tue, 03/06/2012 - 11:58 | 2228006 Deo vindice
Deo vindice's picture

The real point is ... the price only matters if you are actually buying/selling that day.

If you have physical, it doesn't matter a bit.

Anyone who buys and sells physical PM's on a daily basis trying to make money is not very smart.

I don't know anyone who has possession of physical that is looking at it with that kind of short term outlook.

The ones I talk to say it's for their retirement. They are taking control of their own financial futures.

Tue, 03/06/2012 - 10:49 | 2227774 emsolý
emsolý's picture

It's merely a sneeze. 

Tue, 03/06/2012 - 10:50 | 2227775 fuu
fuu's picture

BTFD!

Tue, 03/06/2012 - 11:56 | 2228214 TheSilverJournal
TheSilverJournal's picture

The money printers can't allow Greece to default. The last thing they want is to cause the domino of debt to start bringing down the world's largest nations and to lose control of the printing press. Come March 20, Greece will make it's payment and silver will be recovering.

TheSilverJournal.com

Tue, 03/06/2012 - 10:50 | 2227776 sojourner_man
sojourner_man's picture

WARNING:  Buy the 'dips' may be only for the 'Dips'... caveat emptor!

 

Do NOT follow this link or you will be banned from the site!