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Silver Soars 26% In 26 Hours

Tyler Durden's picture




 

It appears rumors (there's that word again) of precious metals' demise have been greatly exaggerated yet again. After hitting a low of $26/ounce just shortly after 24 hours ago, the metal has since soared by a whopping 26% to $32.90 (thank you CME and Shanghai Gold Exchange). That's $6.90 in one day. The same with gold. It seems that the market has finally had its brain kicked in a little following the realization that an expansion in the EFSF from E440 billion to E3 trillion (which has about 0.01% probability of happening, and would likely see the mobilization of a certain army first) would mean an exponential decline in the credibility of that "other" currency, which while potentially retaining its value against the "first" currency, will have been devalued that much more against the real, undilutable currency. We expect the market to comprehend that Goldman, for once, was spot on in its evaluation that anyone who bought yesterday at the lows, will have already made their full year unlevered return in one short day.

Silver:

and Gold:

 

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Tue, 09/27/2011 - 06:07 | 1714060 Fips_OnTheSpot
Fips_OnTheSpot's picture

Spell insanity: M-A-R-K-E-T

Tue, 09/27/2011 - 06:23 | 1714077 spiral_eyes
spiral_eyes's picture

No surprise in any of this:

Nothing in that last liquidation did anything whatever to affect any of gold or silver's long term fundamentals.
 

Kicking the can down the road using the same policy tools that Bernanke has been using for the past three years (i.e., forcing rates lower and-or forcing inflation higher) will result in harsher negative real rates — making treasuries into an even worse investment. Eventually (i.e., soon) the institutional investors — and more importantly (because their holdings are larger) the sovereign investors — will realise that their capital is rotting and panic. In fact, there is a great deal of evidence that China in particular is quietly panicking now. The only weapon Bernanke has is devaluation (in its many forms) — which is why he has been so vocal in asking for stimulus from the fiscal side.  

And — in spite of the last week’s gold liquidation, as China realised long ago — the last haven standing will be gold. Why? Because unlike treasuries (the biggest bubble in the word) and cash it maintains its purchasing power in the long run.

The Emperor is wearing no clothes, bitchez.

http://azizonomics.com/2011/09/26/the-emperor-is-wearing-no-clothes/ 

 

Tue, 09/27/2011 - 06:32 | 1714093 Snidley Whipsnae
Snidley Whipsnae's picture

"Because unlike treasuries (the biggest bubble in the world) and cash it maintains it's purchasing power in the long run."

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

No fiat currency that we know of has lasted longer than forty years.

PMs have been money for at least 5000 years.

When paper fails, and it will, the world will return to some form of PM referenced money.

Sooner or later the 'paper pm' game will blow up...the sooner the better. Paper PMs are a total farce, since they have counter party risk.

Tue, 09/27/2011 - 06:36 | 1714096 Popo
Popo's picture

Tyler -- your post is difficult to understand:  

So... you think the expanded EFSF is extremely unlikely -- and yet you believe the rise in gold prices is warranted?   Aren't those contradictory statements?

Can you clarify that?

$4 Trillion expansion in the EFSF and $5000 gold makes sense.

But no expansion in the EFSF would seem to be bearish... 

So which is it?   Your sarcasm seems to be playing two different positions on this post...

Tue, 09/27/2011 - 06:44 | 1714107 Edward Fiatski
Edward Fiatski's picture

You seem to be confusing GLD & gold.

Tue, 09/27/2011 - 09:07 | 1714515 tiger7905
tiger7905's picture

Sprottmoney still has nothing for sale....

http://goldandsilverlinings.com/?p=1661

Tue, 09/27/2011 - 09:41 | 1714634 Belarus
Belarus's picture

I called Sprott and they do have silver for sale, although they were out of some bars. However, interestingly, remember all those silver bears that said buying Sprott 15-20% above NAV is insane becuase when the price gets smashed you'll lose via sport price and premiumium compression? Well...not so fast. After the largest 3 day drop in over 31 years, Sprott's premimium increased!

Furthermore, this only coincides with many vendors unable to keep up with demand, even though conventional wisdom and crowd behavior would tell you crickets would be chirping at the dealers. As we know, also not so. There was almost no vendor that didn't struggle to keep up with demand. It appears silver bulls are value hounds more than they are tin foil hat wearers. 

I expect the insanity to be far from over, we can only hope JPM and HSBC continue to suppress the price and that every EU and EU bank decides to shore up more capital by selling evermore paper GLD and SLV once the EFSF fails.....

Tue, 09/27/2011 - 10:37 | 1714812 goldfish1
goldfish1's picture

There are conflicting reports about the near term outlook for silver. These articles illustrate for me the issues between the technicals and the naked short selling.

Clive Maund intimates that this rally sets the stage for the next takedown, indicating silver is poised to drop to the low 20's. 9/25/11

"...If you think this nascent crash is just some sort of heavy correction that has has almost run its course, you need to open your eyes...

...the magnitude of the decline on Thursday and Friday against the background of emerging deflationary forces strongly suggests that silver will soon crash this support and continue its freefall even lower - and there is no significant support below the $30 area until it gets to the $20 area...

 ...Silver longs have already been taken to the shearing shed and royally fleeced over the past few days...

...they are likely to bleed steadily to death as silver heads lower in the weeks and months ahead. "It will come back" they will console themselves, and they and their cheerleaders will be looking around for someone to blame - the banksters, the cartel, the Comex, J P Morgan etc, who have conspired to cheat them out of their just rewards - anyone but themselves..."

http://news.silverseek.com/CliveMaund/1316994129.php

Chris Powell (GATA)  9/27/11 quotesMarket analyst Izabella Kaminska:

"While the likes of GLD insist that every share outstanding is matched by a gold bar -- and this is almost definitely true -- what they can't claim is that there's a way to differentiate gold with previous claims on it from gold without previous claims on it within its reserves (i.e., borrowed gold). It is consequently entirely possible that gold ETFs are sitting on mountains of borrowed central bank gold."

http://ftalphaville.ft.com/blog/2011/09/14/677021/why-gold-forward-rate-...

As a lay person here who has studied and been interested in these matters for decades, I see that timing is the key to success in trading, buying and holding. The manipulations by the FED and others seem to have no limits, although we know this cannot last forever.

Can someone please comment to these excerpts and elucidate further?

Tue, 09/27/2011 - 11:20 | 1714977 DosZap
DosZap's picture

Chris Powell (GATA)  9/27/11 quotesMarket analyst Izabella Kaminska:

"While the likes of GLD insist that every share outstanding is matched by a gold bar -- and this is almost definitely true -- what they can't claim is that there's a way to differentiate gold with previous claims on it from gold without previous claims on it within its reserves (i.e., borrowed gold). It is consequently entirely possible that gold ETFs are sitting on mountains of borrowed central bank gold."

 

I totally agree,an one more thing.

How many times has this gold that's on LOAN, been sold(it's unallocated),and their is nothing saying that the entire stash of GLD has not been sold at a parer ounce  ratio of 1000-10,000 to the actual ounce.

Tue, 09/27/2011 - 12:16 | 1715151 SRV - ES339
SRV - ES339's picture

Can someone please comment to these excerpts and elucidate further?

This latest raid was very successful (lots of fear, and margin selling out there)... the PTB are now in the money for the comex expiry, and they will cover shorts all the way back to $40+... this is a speed bump.

Tue, 09/27/2011 - 14:59 | 1715798 Manthong
Manthong's picture

"anyone who bought yesterday at the lows, will have already made their full year unlevered return in one short day"

.. that is anyone trading GC during Asia open.

Tue, 09/27/2011 - 06:50 | 1714118 Snidley Whipsnae
Snidley Whipsnae's picture

I believe the German people and German courts have had enough of sending their Euros to PIIGS...

"Germany's Top Judge Throws Major Monkey Wrench Into Leveraged EFSF Machinery, Demands New Constitution and Popular Referendum for Further Powers

"Germany's top judge has issued a blunt warning that no further fiscal powers may be surrendered to Europe without a new constitution and a popular referendum, vastly complicating plans to boost the EU's rescue machinery to €2 trillion (£1.7 trillion).

Andreas Vosskuhle, head of the constitutional court, said politicians do not have the legal authority to sign away the birthright of the German people without their explicit consent.

"The sovereignty of the German state is inviolate and anchored in perpetuity by basic law. It may not be abandoned by the legislature (even with its powers to amend the constitution)," he said.

"There is little leeway left for giving up core powers to the EU. If one wants to go beyond this limit – which might be politically legitimate and desirable – then Germany must give itself a new constitution. A referendum would be necessary. This cannot be done without the people," he told newspaper Frankfurter Allgemeine"

Tue, 09/27/2011 - 07:19 | 1714181 BigJim
BigJim's picture

That dude better keep away from hot-tubs.

Tue, 09/27/2011 - 07:41 | 1714240 Bicycle Repairman
Bicycle Repairman's picture

.....and accidentally exploding mailboxes, wherever he may be driving.

Tue, 09/27/2011 - 08:32 | 1714392 GetZeeGold
GetZeeGold's picture

 

Even my kid sister saw this screw job coming.

 

Tue, 09/27/2011 - 06:52 | 1714124 SWCroaker
SWCroaker's picture

You seem to insist that Tyler be consistent at all times and in all statements, when commenting on the most byzantine and bi-polar thing man has yet created: the markets (PM markets, at that).  A bit petty, IMHO.

Tue, 09/27/2011 - 07:03 | 1714152 Tyler Durden
Tyler Durden's picture

Good question, and here is the simple answer - PMs are nothing but a bet on central planning stupidity and failure.

Everything else is noise.

We can give you 100% guarantee there will be much more central planning stupidity and failure.

Tue, 09/27/2011 - 07:06 | 1714158 Snidley Whipsnae
Snidley Whipsnae's picture

Excellent answer.

Tue, 09/27/2011 - 07:15 | 1714176 saulysw
saulysw's picture

Interesting answer - note the "we". Tyler is a collective.

Tue, 09/27/2011 - 07:19 | 1714183 BigJim
BigJim's picture

His name is legion.

Tue, 09/27/2011 - 08:17 | 1714340 LeonardoFibonacci
LeonardoFibonacci's picture

His name is LEGEND

Tue, 09/27/2011 - 07:39 | 1714232 CrazyCooter
CrazyCooter's picture

I reached the conclusion a long time ago that ZH was a team probably larger than the few folks listed (Marla, etc). The volume of research, analysis, attention to market details at all hours, and so on is just beyond the ability of a few people.

Obviously these folks have skills that would allow them to partake in the market with OPM, so I further assumed they are sufficiently wealthy to afford the hobby.

I could be wrong!

Regards,

Cooter

P.S. I am up at 3AM here because I can't sleep and ZH entertains me ...

Tue, 09/27/2011 - 08:43 | 1714426 swanpoint
swanpoint's picture

Maybe, ZH is really the crew at CNBC working "the other side." Why else would Reggie M be on TV?

Thu, 10/06/2011 - 01:02 | 1744333 CrazyCooter
CrazyCooter's picture

I haven't ever seen a guest at CNBC carry their balls in an ash can. So, I must logically conclude that ReggieM isn't part of your conspiracy.

Regards,

Cooter

Tue, 09/27/2011 - 07:55 | 1714282 Chicago bear
Chicago bear's picture

Please refer to rule #2 in FC.
You are a we too. I am a we too. They are a we too. God is a we too. No point in investigating.
Bernanke is a we too which is Tylers point and why I bought metal close to yesterday's low as it was running up.

Tue, 09/27/2011 - 10:36 | 1714810 Doctor sahab
Doctor sahab's picture

The royal We

Tue, 09/27/2011 - 07:51 | 1714269 Campagnolo
Campagnolo's picture

Don Tyler, you are my hero

Tue, 09/27/2011 - 09:54 | 1714672 Fukushima Sam
Fukushima Sam's picture

PMs are not only a bet, but a weapon...

Everyone reading this, go out and buy at least an ounce of silver today.  You will strike a blow against the system that oppresses us.

Tue, 09/27/2011 - 07:47 | 1714263 Ranger4564
Ranger4564's picture

Popo... my take, no exp EFSF leads to institutional failures and collapses, communities struggle, so currencies struggle, gold rises; yes exp EFSF leads to lack of confidence in the system and currency devaluation, gold rises.  Gold likely rises more when they devalue currency, but I don't know enough financial history to be certain.

Tue, 09/27/2011 - 06:57 | 1714135 theotheri
theotheri's picture

Dead cat bounce.

Metals are merely industrial components. The store value argument is an antiquated wife's tale that's sadly outdated in a world connected by mobile devices in every hand.

Gold and Silver have value of course but their ridiculous run up has way more to do with speculative bubbles filed by agile hedge funds than inflation protection.

Tue, 09/27/2011 - 07:06 | 1714157 CrazyCooter
CrazyCooter's picture

Then why do all central banks hold gold by the hundreds and thousands of tons? Why did the US build an army base (Ft Knox) to house a good chunk of our gold (most of the rest is at West Point)? Might be the same reason China has been buying gold hand over fist (they are 1k tons and want 4k tons)?

It might be because ... gold is money? If only a famous banker said something to that effect I might have some traction with this crazy observation!

Now, I am not saying we are going to gold backed money, because if TPTB have any influence we will end up with SDRs ... while the world figures out what the new international trade money is, gold will prove to be a wise choice to park ones savings.

Regards,

Cooter

Tue, 09/27/2011 - 07:13 | 1714169 theotheri
theotheri's picture

I'm not saying gold doesn't have value, I'm saying the value is about $1000/oz.

Ft. Knox was constructed before computers. Technology has changed the uniqueness of the yellow and silver metals.

Tue, 09/27/2011 - 07:25 | 1714202 youngman
youngman's picture

You can be the guy with the Apple Iphone gold App....I will be the Ft knox....

Tue, 09/27/2011 - 07:35 | 1714221 BigJim
BigJim's picture

Your disdain for gold as money would make sense if we had one-world government, which could enforce one fiat on everyone.

However, we don't have this situation. And we have multiple countries competitively devaluing, some primarily for mercantalist reasons, and others to dilute their debt so they can (nominally) avoid default.

In this setting - where the indentured labor of their increasingly unemployed citizens is no longer sufficient to outweigh a country's debt obligations - possession of commodities becomes important to underpin a currency's value. The USD, for instance, is now mainly underpinned by oil (this is a mixed blessing, but that's another topic).

Of all the commodities, PMs are the most suited to being used as money, gold in particular, because it has very little use except as a store of value (people are willing to pay a small fortune for its use in jewelery precisely because this reason).

Just out of curiosity - how are you arriving at a 'value' of $1000/oz, when by definition, the market determines the value of everything - and even at present prices, we know various government agencies are suppressing the price?

Tue, 09/27/2011 - 07:47 | 1714261 Bicycle Repairman
Bicycle Repairman's picture

"Your disdain for gold as money would make sense if we had one-world government, which could enforce one fiat on everyone."

That is the key part of your answer, not one-world government.  Even with a one-world government, central planning breakdowns would lead to alternative black market currencies.  It's about enforcement.

Tue, 09/27/2011 - 08:41 | 1714418 BigJim
BigJim's picture

I think you're right, that in the long run, if there was a one-world-government, with a single fiat, it would still break down eventually because central planning just doesn't work, and black-market currencies would arise (again). The enforcement is key... I live in a city, so perhaps I have too much belief in TP'sTB ability to force us all to use their particular flavor of fiat, and, by extension, a NWO to do the same, planet-wide.

There are a couple of things mitigating against this... if Russia and China didn't exist, I could believe an NWO might arise, but I doubt they can offer those countries' existing kleptocrats greater wealth or power than they already have, so it won't happen.

However... for the sake of argument, if (say) SDRs became the new universal currency, I think the purchasing power of gold would plummet, at least until the SDR regime started showing signs of breakdown... which might take another 40 years. By which time I'll either be dead or too senile to enjoy my Au speculations. Meanwhile, in such a scenario, my Ag should do ok, because the fundamental industrial demand/diminishing supply equations still hold.

Tue, 09/27/2011 - 08:02 | 1714280 CrazyCooter
CrazyCooter's picture

While the question wasn't directed at me ... I can't sleep ... and it should be a fun thread ... so ...

I would take M1:

http://www.federalreserve.gov/releases/h6/hist/h6hist1.txt

I would take the US proven gold reserves:

http://en.wikipedia.org/wiki/United_States_Bullion_Depository

http://en.wikipedia.org/wiki/West_Point_Mint

I believe the rough/approxinate total is ~8k tons between these two where there is approximately 32000 ounces in a ton.

So, in grade school I learned how to take 2,098 billion and divide it by (8000*32000) which is roughly 8k/oz?

Lets assume a 40% reserve ratio, which would net ~3.2k/oz.

Would you like to discuss M2 or perhaps total liabilities (so we can be solvent again)?

Regards,

Cooter

Edit: I linked to the US Mint instead of West Point ... oops!

Tue, 09/27/2011 - 08:44 | 1714436 BigJim
BigJim's picture

Yes, this is Rickard's line, and it has a great deal of merit.

One thing I don't see discussed, is the inherently inflationary effects of governments revaluing gold at (say) $7500/oz. I believe CBs hold around 20% of all gold; which means that if even 25% of the 'outside' gold is sold to CBs, then their holdings will double, and the issuance of fiat will double.

Am I missing something here?

Tue, 09/27/2011 - 08:00 | 1714291 Ranger4564
Ranger4564's picture

I view it similarly but slightly differently. 

When you see that a society is struggling with economic productivity, there are fewer goods and services being produced, less trade, less GDP, less employment, etc. That leads to currency devaluation as the currency is not trusted and not demanded, leading to the search for a different base for the currency.  In your example, Oil, but military oppression has often been used historically. Essentially, if your economy is in trouble, and you want to save your currency, you have to do something... find something to pin the value to, or beat the crap out of the rest of the world so your currency is still more valuable.  I choose neither.

The reason I choose precious metals is not because I want Gold / Silver to back the currency, it's because I don't believe the society will be able to rescue their currency, so I am trying to grab hold of a universally accepted currency... coins / bullion / etc.  In the world today, all societies are collapsing, and bonds / treasuries / stocks in any region of the world make no sense. When you have no where else to store your wealth, Gold / Silver make the most sense.  Additionally, investing (ok, buying) Gold / Silver also takes money out of the other asset classes and makes it harder for the society to manipulate their currency.  In this light, Gold / Silver are really worth a whole lot more because it is trying to represent the collective productivity of all societies on the planet, and any material assets as well.

Tue, 09/27/2011 - 08:52 | 1714462 BigJim
BigJim's picture

I hear you - I think :-)

I agree, if there is true societal collapse, then PMs will be one of the few stores of value, along with guns, ammo, defensible property, and water/food/energy production facilities. And medicine, alcohol... and women, if things get truly barbaric. Not that I'm advocating sexual slavery, I hasten to add.

But I'm more optimistic - my planning is aimed at dealing with a steady, decades long slump in wealth as all currencies are inflated and everyday items become more expensive. My thinking is that in such a future, PMs should rise in purchasing power relative to practically everything else.

Tue, 09/27/2011 - 12:29 | 1715203 theotheri
theotheri's picture

?? In the world today, all societies are collapsing, and bonds / treasuries / stocks in any region of the world make no sense.??

 

Alll societies are collapsing?  Sorry I missed that memo.  I suppose you access your high speed internet access out of thin air? And your local police force has vanished?  Hospitals closed down?  Groceries stores empty?  Beaches desserted?  Sheraton Hotels totally vacant?  Parking lots empty?  Subways and trains abondoned?

 . 

Tue, 09/27/2011 - 14:06 | 1715567 StychoKiller
StychoKiller's picture

Next Friday, I believe that the Sun will rise in the east around 6:30am.  It hasn't happened yet, but intelligent people can extrapolate this event from all the previous times it has happened.

There are over $14Trillion reasons why owning Au & Ag is prudent right now.

Tue, 09/27/2011 - 09:06 | 1714511 theotheri
theotheri's picture

"Just out of curiosity - how are you arriving at a 'value' of $1000/oz, when by definition, the market determines the value of everything - and even at present prices, we know various government agencies are suppressing the price?"

 

You can see from this chart of M3 growth that gold started running away from it around $1000/oz.

http://www.howprofit.com/wp-content/uploads/2011/05/US-M3-VS-Gold-1970-2...

Tue, 09/27/2011 - 14:33 | 1715684 BigJim
BigJim's picture

I must be even dumber than I thought. How does this chart - showing the ratio of gold to M3 since 1970 - prove (or even suggest) that the price of gold started 'running away' at $1000/oz, and that this establishes what the 'value' of gold should be now?

Tue, 09/27/2011 - 10:38 | 1714815 GoinFawr
GoinFawr's picture

 Paul van EEden, is that you?

Tue, 09/27/2011 - 07:26 | 1714201 Hobbleknee
Hobbleknee's picture

Conversely, how is paper money a store of value? The dollar has lost over 94% of its value since the Fed took over.

Tue, 09/27/2011 - 09:09 | 1714516 theotheri
theotheri's picture

That's bullshit.  If you bought 30 years bonds 30 years ago, paid taxes on the interest and reinvested the proceeds in more 30 years bonds I think you would have done just fine.

 

I'm sure there's a regression analysis somewhere on the interweb that shows what the total return looks like.

Tue, 09/27/2011 - 10:34 | 1714807 GoinFawr
GoinFawr's picture

lol, speaking of 'bullshit' and 'regression': nice choice of timeframes.

As you are so fond of pointing out: this isn't 1981.

Tue, 09/27/2011 - 14:52 | 1715765 BigJim
BigJim's picture

But we're talking about the purchasing power of 'paper money' here, aren't we? Wouldn't it be fairer to look at how much your $ would buy now if it had been salted away in 1913, 1933, or 1971? Seeing as those are all key points in the timeline of our increasingly paper-y currency.

But let's say, for the sake of argument. you decided to invest in US treasuries... how much would they all be worth now if you'd chosen the above dates?

Tue, 09/27/2011 - 08:36 | 1714405 Mike2756
Mike2756's picture

Don't get too excited, just a vicious rally.

Tue, 09/27/2011 - 10:39 | 1714818 tmosley
tmosley's picture

Exactly.  Perhaps we ought to stop screaming about how it's plunging or soaring, take a step back, and realize instead that the markets aren't realizing anything, but they are just reaching unheard of levels of volatility.  Might also note the strong downward bias (unless it rises above $40 in the next 24 hours).

Someone predicted that, I think.

Tue, 09/27/2011 - 11:31 | 1715006 Jalaluddin
Jalaluddin's picture

Not insanity, just the New Economics as explained earlier by a Zerohedger: a shortage plus all that silver at the bottom of the sea should have smacked the market down. What we have is a short-lived regression to the Old Economics where shortages cause price increases and credulous traders don't necessarily believe what they read in the newspapers.

However the neocon(artist)s create their own reality - so basically the New Economics rules until next week (or tomorrow maybe) when a different type of reality bites.

 

Tue, 09/27/2011 - 06:08 | 1714061 GeneMarchbanks
GeneMarchbanks's picture

Melt up!

Ohh! Paper... you never cease to amaze with your ability to lie...

Tue, 09/27/2011 - 11:50 | 1715055 junkyardjack
junkyardjack's picture

Silver is melting back down, looks like short cover rally on the volume

Tue, 09/27/2011 - 06:07 | 1714062 nmewn
nmewn's picture

BATFD ;-)

Tue, 09/27/2011 - 06:11 | 1714063 jomama
Tue, 09/27/2011 - 06:12 | 1714064 FoieGras
FoieGras's picture

Sharp drops and subsequent rallies to 50% retracement levels are typical of bull or of bear markets?

Tue, 09/27/2011 - 07:37 | 1714225 BigJim
BigJim's picture

Depends on how manipulated the markets are. I suggest you google 'paint the tape'.

Tue, 09/27/2011 - 06:14 | 1714065 7bit
7bit's picture

$35 will be the last possibility to exit the longs and sell all the physical Silver. The chart is clearly pointing to $20 and even $20 might eventually break. I see it in the 10's soon, maybe even lower.

Tue, 09/27/2011 - 06:16 | 1714071 turicum
turicum's picture

waaaay toooo optimisic

Tue, 09/27/2011 - 06:21 | 1714078 pazmaker
pazmaker's picture

looks like an inverse head and shoulders pattern which usually indicates it's heading back up.

Tue, 09/27/2011 - 10:16 | 1714747 tekhneek
tekhneek's picture

Yeah. I pray rolls like 7bit are right at night. Imagine all that Ag and Au you could stack at $1000 and $10.

I for one think it's going to -$7 and gold will probably be about $8 once all this europe crap blows over and people learn to just love their servitude and shut the fuck up.

 

Tue, 09/27/2011 - 14:15 | 1715616 Hephasteus
Hephasteus's picture

I'll tell ya what. You give me 10 bucks and I'll come haul your dangerous unwanted crappy pm's away. Fall cleaning special.  :0

Tue, 09/27/2011 - 06:38 | 1714101 James T. Kirk
James T. Kirk's picture

So, on your chart predicting sub 20 silver, the y-axis would be US fiat money backed by no tangible asset in the known universe, and the x-axis would be the price of silver "financial instruments" that have less than 5% actual silver backing. Am I missing something here,Troll?

Tue, 09/27/2011 - 06:59 | 1714136 7bit
7bit's picture

LOL

You will remember my posting when it breaks below $20. You are all acting like the brainwashed sheep they want you to be. And now go and buy more. Listen to the propaganda and spend every last penny and buy all the Silver and Gold you can get.

But don't complain once you realize that it was the biggest mistake of your life. You have been warned.

 

35 will be the last exit for silver and 1720 for gold.

Tue, 09/27/2011 - 07:05 | 1714155 Snidley Whipsnae
Snidley Whipsnae's picture

"35 will be the last exit for silver and 1720 for gold"

.........................................................

No, 35 will be the minimum number of NEGS you receive for making such a stupid comment.

Tue, 09/27/2011 - 07:15 | 1714173 7bit
7bit's picture

Just wait and see how it will unfold in front of your eyes :-)

You will hate yourself for not listening to the warnings.

Tue, 09/27/2011 - 07:41 | 1714239 BigJim
BigJim's picture

You're right, I should sell my physical and buy US treasuries. Now THERE is a store of value.

LOL! Lend money to the US government at 3%? 7bit, you're 1 bit short of a byte.

Tue, 09/27/2011 - 08:07 | 1714312 Ranger4564
Ranger4564's picture

7bit, you're 1 bit short of a byte.

 

That was brilliant.  Too funny. :)

Tue, 09/27/2011 - 09:10 | 1714523 Motley Fool
Motley Fool's picture

Perhaps this is the new fiattackwatch reaching out to bloggers. :P

Tue, 09/27/2011 - 08:31 | 1714391 banz
banz's picture

You may be right 7bit, silver in particular worries me.

Have you considered this however, after telling their people to buy

Gold and silver for the last 4 years, what do you think would happen

in China if silver hit $10.00, think about that.

The silver decline was stopped almost dead in its tracks yesterday at $26.50 or so

a buyer or buyers were waiting, and they needed about 90 seconds to take every sell

order and then some.

You may be right, you may be wrong.

 

Tue, 09/27/2011 - 07:15 | 1714175 Smiddywesson
Smiddywesson's picture

If you are alleging a 26% price increase is a dead cat bounce, or some kind of trick to sucker silver longs back into the market, then I'll see you in Roswell for the space alien convention. 

It appears that the smack down is over until the next options expiration or blow up in Europe or earthquake du jour.

Tue, 09/27/2011 - 22:48 | 1717244 pacu44
pacu44's picture

Maybe we slip into a depreciation depression, but there will be hyperinflation right around that corner...

 

See the whole ride, not just the dip in front while standing in line for your chance to ride =]

Tue, 09/27/2011 - 22:48 | 1717245 pacu44
pacu44's picture

Maybe we slip into a depreciation depression, but there will be hyperinflation right around that corner...

 

See the whole ride, not just the dip in front while standing in line for your chance to ride =]

Tue, 09/27/2011 - 07:27 | 1714204 gdnchg
gdnchg's picture

7bit, So whose shill are you? JPM? BAC? Rothchilds?

Tue, 09/27/2011 - 07:45 | 1714253 7bit
7bit's picture

You have it wrong. The above mentioned shills are exactly the ones who are selling the PMs to you at absurd prices and you buy it. You buy it and they profit.

I am only here to warn you, to activate your brain and open your eyes. There is not much more I can do for you. For my own profit I am simply betting against this artificially inflated bubble and I will end up on the winning side.

 

Tue, 09/27/2011 - 07:51 | 1714271 Bicycle Repairman
Bicycle Repairman's picture

7bit, I believe it has been a little more than 15 minutes.  Hope you enjoyed your extra time.

Don't feed the trolls, folks.

Tue, 09/27/2011 - 07:52 | 1714272 Praetor
Praetor's picture

Don't worry about his mental illness, he's just one bit short of  byte.

Tue, 09/27/2011 - 08:03 | 1714293 7bit
7bit's picture

Don't insult the messenger. -1 for bad style.

You will soon remember this conversation, I have nothing to add to this anymore, it has all been said. The maket will teach you the lesson, I only gave you a short preview of its contents.

Tue, 09/27/2011 - 08:44 | 1714433 NidStyles
NidStyles's picture

Do me a favor hang yourself for being that diluted.

Tue, 09/27/2011 - 07:43 | 1714245 LongSoupLine
LongSoupLine's picture

ok look, I'm a chartist myself, and can say chartology in this HFT, CME, China, CFTC, Fed, Treasury, JPM, GS, HSBC, Comex corrupted market is nearly impossible.

The only accurate chart futures are the ones programmed into the floor based algo-bots...which, of course, only the chosen have access to.

On that note, if silver does indeed hit $20, I'm backing up the truck and loading up...and if that means liquidating the college funds, well, I'm that confident it will return so well that Harvard will be renamed "LongSoupLine University for the Advancement of Common Sense, Ethics and Middle Class Supporting Studies"

Tue, 09/27/2011 - 08:37 | 1714410 Mike2756
Mike2756's picture

I'm gone here, bought at 28.

Tue, 09/27/2011 - 08:40 | 1714417 NidStyles
NidStyles's picture

What is with you morons and your delusions? You honestly think that human endeavor is determined by what you see on a stupid chart through so-called Technical Analysis? The only thing technical about it is that you used a computer to look at it.

 

 

Tue, 09/27/2011 - 21:57 | 1717129 HeavydutyMexica...
HeavydutyMexicanOfTheNorthernKingdom's picture

i hope you're right.

Tue, 09/27/2011 - 06:13 | 1714066 Edward Fiatski
Edward Fiatski's picture

With Gold being undilutable currency in its purest state since the Supernova(-ae), (which had created the conditions for birth of our Solar system), I wonder, can you melt it into a golden dildo form on shoe-string budget? Remind me the melting t*C of Au; I'd like to place said dildo near the portrait of Ben S. Bernanke in my living room.

Tue, 09/27/2011 - 08:54 | 1714471 HoardeBilly
HoardeBilly's picture

1337.33 K, 1064.18 °C, 1947.52 °F

 

The low melting temp is one of the reasons it works so easily as jewelry.

 

Good luck on that gold dildo.  Post a picture of your shrine when you complete it.  hehe

Tue, 09/27/2011 - 06:13 | 1714068 PaperWillBurn
PaperWillBurn's picture

Why can't these crashes occur on payday???

Tue, 09/27/2011 - 06:21 | 1714079 hondamikesd
hondamikesd's picture

Or at a decent hour? By the time I woke up yesterday it had already retraced 50% :(

Tue, 09/27/2011 - 06:16 | 1714072 ivars
ivars's picture

Though I can not make short term predictions, also since I remember I  have smoothed most of small fluctuations in the March ( silver) and May ( gold) graphs I posted yesterday here (these smaller fluctuations should be wrong, so no need to include them):

http://www.tfmetalsreport.com/comment/60454#comment-60454

I will try one shorter term  (on 2-3  months scale) , as suggested from the same charts with some corrections to upside peaks- let us see what happens:

1) Silver may fluctuate around 30 USD (+- 3?) for 1 month or so, then move up sharply about 5 USD to 35-40 and drop again, now to little higher level of 33-35 +-5, and not change much anymore this year.  So the bottom will be kind of close from time to time during October.

2) Gold, on the contrary, seems to be posed for relatively steady growth till 1800 in November, around which level  it should fluctuate for few months (+- 50 ?) .

Huh. Must be wrong, but so tempting.

Tue, 09/27/2011 - 06:58 | 1714139 Snidley Whipsnae
Snidley Whipsnae's picture

You are making assumptions based on charts when we all know that the take down in PMs was done in the wee hours by central banks/bullion banks?

Your 'predictions' are equivalent to reading goat entrails.

The only correct statement in your post is "Huh, must be wrong"...

Tue, 09/27/2011 - 07:41 | 1714230 ivars
ivars's picture

So far both of these charts I refer to  have been spot on, considering they did predict current events 5-6 month in advance, regarless, or rather, including all manipulations, takes downs, etc. That is the nature of a long term chart- if its true, it represents the whole system with all its defects, events, humans, human made machines that trade e.g. silver , etc. Everything in the end condenses to the simple 2D price-time  chart, so the effect of everything could be also predicted by using characteristic chart pattern behaviours and expecially long term reactions to huge sharp pulse like 9/11 or Lehman shocks.

Tue, 09/27/2011 - 07:45 | 1714254 BigJim
BigJim's picture

If you believe that, I have some Enron shares to sell you. Just look at the charts!

(up to August 2000, at any rate)

Tue, 09/27/2011 - 06:19 | 1714075 gratefultraveller
gratefultraveller's picture

While the spot price of silver had dropped 50%, this drop was (unfortunately) not reflected by the prices of the online PM dealers in Germany, example ProAurum.

http://www.proaurum.de/edelmetallshop/silber/muenzen_anlage.jsp?action=s...

They did not drop more then 25%, repeating the pattern of the last hefty drop earlier this year. Even though I did not manage to average down (my last purchase was done at even lower prices), I am reassured that the envisioned decoupling between paper and physical will happen as envisioned. This seems to be confirmed by the fact that a couple of US-based online dealers could not be reached during the lows.

You will notice, however, that their stock was cleaned out anyhow - only 7 of 42 items are still available.

Tue, 09/27/2011 - 06:22 | 1714082 turicum
turicum's picture

interesting... Thanks for sharing the link.

Tue, 09/27/2011 - 07:02 | 1714148 Snidley Whipsnae
Snidley Whipsnae's picture

"You will notice, however, that their stock was cleaned out anyhow - only 7 of 42 items are still available."

PMs are not paper to be printed up instantly upon demand. PM markets are not deeply liquid because they cannot be printed upon demand. If you want in, get in before the crash of paper.

As far as their stock dwindling... Probably sold to their biggest and best customers... not sold to a bunch of Johnny Come Lately pud knockers.

Tue, 09/27/2011 - 07:18 | 1714180 EasterBunny
Tue, 09/27/2011 - 07:56 | 1714285 Bicycle Repairman
Bicycle Repairman's picture

The reason that gold disappears from smaller dealers (or the premium rises) during sharp drops is because they purchased it at a much higher cost and won't sell until they can recoup their costs.

That's it.  Nothing else happening.  Nothing else implied.

Tue, 09/27/2011 - 10:46 | 1714835 tmosley
tmosley's picture

Eh?  APMEX ran out of numerous items.  You saying APMEX is a "small dealer" that withholds inventory?

Tue, 09/27/2011 - 06:22 | 1714080 BlackholeDivestment
BlackholeDivestment's picture

...market wheelies ...Bitchez. Look out. http://www.youtube.com/watch?v=ig6kzs2-8zU&feature=related Better learn to use the brake and the clutch. Lol

Tue, 09/27/2011 - 06:22 | 1714081 RTFM
RTFM's picture

As Karl Denninger says, this PROVES that Gold and Silver are not currency.

If they were currency - like my precious mound of priceless FRN's - then the price of bread would have gone up by 26% in the same period.

Well, did it? There you are. To believe otherwise is horseshit.

Note that the price of bread DOES go up or down 1% or so a day, along with the value of the dollar. If you say it doesn't, then Karl will ban you with his Hammer of Thor. Karl is always right.

Tue, 09/27/2011 - 06:34 | 1714092 MarketTruth
MarketTruth's picture

Karl who? Oh, you mean the guy who needs to buy a clue. As he suckles the teat of the banking system and believes that laws will be followed one day. Oh, Karl also believes that the US Government has power to stop the banksters (ROFL). That Karl guy is clueless and whines far too much.

BTW, Why does Karl offer a 'Gold' level discussion board... when he should name it the 'Goldman Sachs' level instead to follow his ideal thinking.

www.youtube.com/watch?v=WCwWfSYBwOQ&feature=player_detailpage

PS: Gold up over 15% for the year... how is that banking and stock system working for you Karl? Yup, i thought so LOL! Of course Karl probably has bonds and other 'safe havens' that yeald 2% while REAL inflation is over 6% YTD. Always nice to book real-world losses, eh Karl.

PS: Nice that Karl did a special on the CHF and how central banks can devalue their currency overnight by 7%. /sarc

Tue, 09/27/2011 - 07:22 | 1714190 CrazyCooter
CrazyCooter's picture

I don't completely dismiss KD, although I do take exception to some of his positions; particularly what money is. KD, if I am not mistaken, thinks some sort of commodity basket should back the currency. For as intelligent as he is, I do not understand his fixation with pissing on gold. Kind of flies in the face of 1000 years of fiat history.That said, I think his primary concern is expansion/contraction of the money supply as trade/populations fluctuate over time.

Snadly Whipsnae up the thread was actually pretty spot on regarding his observation that fiats don't last more than 40 years. You can go back to the original paper money (China about 1000 years ago) and see the same depreciation over time. It's like freaking ground hog day!

Anyone with positions in physical PMs of 12 months or greater are not really phased by what is going on ... this is in contrast to those who may have been trading in the futures markets with this insane volatility. But isn't that the goal? This is about pushing traders out of PMs with insane price swings going off like bouncing betties to similar effect.

This is about control of the paper price and I could give a rats ass about price movements; I just want part of something when this shit show face plants in its own vomit face down in the gutter. It will be better than nothing which is where fiat will end up. Unfortunately I will be working for fiat until the new money system gets here...

Regards,

Cooter

Tue, 09/27/2011 - 07:24 | 1714195 Snidley Whipsnae
Snidley Whipsnae's picture

KD? Probably the highest paid troll on the planet. He has gained a certain following among those that have never read the 'Patriot Act', and believe that the US Constitution, with rule of law for all, continues to be enforced.

KD and followers believe that someday the country will elect new and better politicians that will 'put America right', balance the budget, restore the rule of law for all and bring the lying bankers to justice... As long as KD can keep the morons distracted with his ranting and raving they will think that they are participating in a movement to restore 'America to it's former greatness'...

KDs followers fail to realize that we are in a paradim change, the like of which none of them have ever seen.

BTW, any site employing 'The Hammer of Thor' or any other such non sense to limit discussion is to be avoided. Such sites have preconceived notions about the financial melt down in progress and are little (if any) better than main stream media outlets. Without an exchange of ideas a site becomes just another propaganda organ of TPTB.

Tue, 09/27/2011 - 08:00 | 1714288 Bicycle Repairman
Bicycle Repairman's picture

Correct.  I'd add that Karl is right about a 1,000 small things and wrong about a few big things.  In balance Karl is wrong.

Tue, 09/27/2011 - 08:15 | 1714331 CrazyCooter
CrazyCooter's picture

I like the way you put that.

Regards,

Cooter

Tue, 09/27/2011 - 08:21 | 1714352 MarketTruth
MarketTruth's picture

Nicely summed up, as KD can be right at times, yet his thoughts about how laws, etc will be followed via new politicians is completely wrong. KD seems to mean well, yet is so very wrong on the big picture that it destroys whatever may be left of his ever-dwindling credibility. Some of us say KD is smoking Hopium.

Tue, 09/27/2011 - 08:02 | 1714295 BigJim
BigJim's picture

KD and followers believe that someday the country will elect new and better politicians that will 'put America right', balance the budget, restore the rule of law for all and bring the lying bankers to justice...

Didn't you know? Voting in a new set of puppets will automajically replace the puppeteers!

It's like if a bunch of sheep manage to trample a sheepdog to death, the farmers won't fleece or slaughter them any more.

Tue, 09/27/2011 - 06:37 | 1714094 Narcolepzzzzzz
Narcolepzzzzzz's picture

.

Tue, 09/27/2011 - 07:09 | 1714161 theotheri
theotheri's picture

Of course they're not currency. They behave like penny stocks, easily manipulated.

Tue, 09/27/2011 - 08:02 | 1714294 Bicycle Repairman
Bicycle Repairman's picture

End game, theotheri, endgame.

Tue, 09/27/2011 - 11:23 | 1714982 theotheri
theotheri's picture

That's the fundamental flaw that I see.  I see the US fluctating against against currencies wildly in the next decade but I don't see a default nor do I see massive devaluation.  And that is the case then we will see less importants. America has the resources, intelligence and skill to cover all it's needs internally. I think that makes it unique in the world.  With Canadian oil America is better poised to withstand a trade war than any nation on earth.

Tue, 09/27/2011 - 13:33 | 1715424 BigJim
BigJim's picture

'America' will have to compete for Canadian oil like everyone else, with an increasingly diluted currency. Meanwhile, America's resources, intelligence and skill are being overwhelmed by debt, and big-brother governmental oversight.

What you don't appear to understand is that ALL currencies will be devalued together, not against each other, obviously, but in terms of their buying power.

Tue, 09/27/2011 - 08:07 | 1714311 BigJim
BigJim's picture

Of course they're not currency. They behave like penny stocks, easily manipulated.

What - and currencies aren't easily manipulated? LOL - why do you think governments institute them? Because they're more easily manipulated than monie. My god you're clueless.

As for PMs being easily manipulated... sure they are... until they aren't. And unless TPTB can find a hitherto-unknown stock of physical to shore up their paper games, then their games are on the way out.

Tue, 09/27/2011 - 06:25 | 1714083 Pretorian
Pretorian's picture

"expect the market to comprehend that Goldman, for once, was spot on in its evaluation that anyone who bought yesterday at the lows, will have already made their full year unlevered return in one short day, cover for the eur/chf position ond SNB margin call...they return the money in a single day and still none of them is in jail. Rule of Law ,constitution, fuck that all it is crime gang bang world.

Tue, 09/27/2011 - 06:23 | 1714084 Ganja Jane
Ganja Jane's picture

BTFD.

Tue, 09/27/2011 - 06:25 | 1714087 N57Mike
N57Mike's picture

Captain ...a full ration of cat nip for the tribe today?

Tue, 09/27/2011 - 06:26 | 1714088 whirlybird rules
whirlybird rules's picture

When the European markets and the Euro fall, it will be delicious;)  Don't short until you see the bulging white of Merkels' eyes!

Tue, 09/27/2011 - 06:30 | 1714090 KingdomKum
KingdomKum's picture

we few,  we happy few,   we band of silver holders  .  .  .  

Tue, 09/27/2011 - 08:09 | 1714317 7bit
7bit's picture

You'll hate your Silver so much you'll want to spit on it.

Tue, 09/27/2011 - 06:35 | 1714097 Freewheelin Franklin
Freewheelin Franklin's picture

Sine waves, bitchez.

 

BTFD(s)

Tue, 09/27/2011 - 06:38 | 1714102 Sow-puncher
Sow-puncher's picture

Take that, Blythe!

Tue, 09/27/2011 - 06:50 | 1714116 silver is money
silver is money's picture

Suppression of gold and silver prices will end pretty soon, this cannot continue for long time !!!! buy physicals.

If you are in Japan, http://www.ishifuku.co.jp/english/index.html

Staff working at Kanda office are pretty kind:)

Tue, 09/27/2011 - 06:50 | 1714120 Urban Roman
Urban Roman's picture

An obvious short squeeze.

People will be tossing their monster boxes in dumpsters by this weekend. Next week at the latest.

/

Tue, 09/27/2011 - 08:04 | 1714305 Bicycle Repairman
Bicycle Repairman's picture

You'll be dumpster diving for food in 12 months.

Tue, 09/27/2011 - 10:01 | 1714697 Urban Roman
Urban Roman's picture

Nah. I'll be digging for PVC pipes in LJS' back yard.

Tue, 09/27/2011 - 08:56 | 1714476 Long-John-Silver
Long-John-Silver's picture

I never toss my empty monster boxes. The kids love them and fill them with their own treasured items. In order to fully protect my ASE's I must remove them from that big green box. PVC pipe in diameters that would allow inserting a Monster Box  must be special ordered along with end caps. PVC pipe and fittings that allow inserting ASE 20 coin tubes are cheap and available at every hardware store.

Tue, 09/27/2011 - 06:51 | 1714121 doomandbloom
doomandbloom's picture

£130 Million Worth Silver Discovered on Shipwreck off Ireland Coast
http://uk.ibtimes.com/articles/220471/20110927/shipwreck-treasure-found-...

Tue, 09/27/2011 - 06:55 | 1714132 Poor Grogman
Poor Grogman's picture

Shop till you drop gentlemen. the sale finishes soon.

I wonder if I am allowed to tap the EfSF for  a few $$$ to buy some hard assets.

hmmm. if only..

Tue, 09/27/2011 - 07:04 | 1714154 navy62802
navy62802's picture

I am holding my long term position on PMs ... namely that central banks around the world have no choice at this point other than to continue their expansionist monetary policies. They will continue to devalue their currencies which will ultimately cause the values of PMs to increase over the next several years.

Tue, 09/27/2011 - 07:28 | 1714212 CrazyCooter
CrazyCooter's picture

Yup! This is my central investment thesis right now.

I am really looking forward to Jim Rickard's book coming out in November (Currency Wars). I re-discovered his interview series over at King World News which goes back to 2009 (~40 interviews - great listening as MP3 CDs in chrono order). He talks a great deal about the changes facing the global money systems.

Regards,

Cooter

Tue, 09/27/2011 - 08:14 | 1714330 BigJim
BigJim's picture

Rickards is indeed an impressive chap. He has extensive knowledge of currencies, banking, and the history of The Fed (with particular reference to gold). To cap it all, he has a great ability to articulate complex ideas simply, and 'on the fly' can conjure up perfectly organised and cogent arguments. Definitely a man worth listening to.

Tue, 09/27/2011 - 07:11 | 1714166 jmcadg
jmcadg's picture

Awesome. Blythe is gonna have to get off her fat arse to do something about this.

Bring it on bitch. Knock it down again and we'll back the truck up.

Tue, 09/27/2011 - 08:15 | 1714332 BigJim
BigJim's picture

Blythe hasn't got a fat arse. She clearly works out and is in great shape.

But I take your meaning.

Tue, 09/27/2011 - 09:26 | 1714590 I Got Worms
I Got Worms's picture

Would grudge-fuck Blythe.

Tue, 09/27/2011 - 07:13 | 1714171 Kina
Kina's picture

So JPM got their shorts covered yet....or are we going through this all again?

Tue, 09/27/2011 - 07:27 | 1714182 PaperWillBurn
PaperWillBurn's picture

In response to

 

"In Bangkok the gold market has gone berserk.

Thailand has a very strong gold culture with gold shops virtually on every main street where one can purchase gold bars on demand until recently.

Now with the recent price slam down you have to get a queuing ticket and wait for two to three days to obtain your bars.

Strange the price is collapsing as demand for physical has soared here in Thailand !

I admire the great work GATA is doing in the fight for honest money."
www.lemetropolecafe.com

Posted Here: http://www.zerohedge.com/news/market-snapshot-gold-silver-recover-eu-doubles-down#comment-1713286

 

I sent my wife to the gold shop down the street(in Bangkok) and she was able to aquire physical just fine. She said more people were there than usual though. She saw on tv that there were lines of people in Yaowarat(China town) which is pretty much gold town. So purchases have stepped up in Thailand but it's still easy to get physical.

Tue, 09/27/2011 - 07:22 | 1714188 saulysw
saulysw's picture

The only issue I have with this thread is a remarkable correlation with Zerohedge posting a thread on rising PM's, and then the PM immediately topping.

Tue, 09/27/2011 - 07:31 | 1714215 CrazyCooter
CrazyCooter's picture

That's the illusion; the price is a paper price and most on ZH are physical owners. Different animals.

Regards,

Cooter

Tue, 09/27/2011 - 07:35 | 1714224 7bit
7bit's picture

Exactly. Als note the increased frequency of "Guest posts" from the PM salesmen where they call absurd new highs whenever a new price drop is imminent. They want to unload their expensive metals to the sheep and the sheep buy it every time.

The level of disconnectedness from reality here is mind boggling. Its not funny anymore.

Tue, 09/27/2011 - 08:17 | 1714339 BigJim
BigJim's picture

Don't forget to load up on treasuries, 1-bit-short-of-a-byte dude.

Tue, 09/27/2011 - 08:39 | 1714415 7bit
7bit's picture

Who (except you) was talking about treasuries? My post is about Silver and I surely won't load up on anything that is as overpriced as Silver and rapidly losing value.

Tue, 09/27/2011 - 08:58 | 1714478 BigJim
BigJim's picture

Fair enough, point taken.

But as you fail to explain why you believe silver is overpriced, you lay yourself open to accusations of trolldom, and, consequently, mockery.

Silver is used in large numbers of industrial processes. Above-ground silver stockpiles are diminishing. Do you believe there are alternatives to silver on the horizon, or believe mining it will become cheaper, or believe governments will stop diluting their fiat? WHY do you think it's overpriced?

Tue, 09/27/2011 - 14:25 | 1715655 Hephasteus
Hephasteus's picture

Ya give me one of those companies that has 4 billion market cap and can't make 10 million a quarter without lying out their ass. Oh and makes sure my investement is unsecured so that the senior bond holders can take it all when the ponzi collapses.

Fuck equities, fuck corporations fuck your ponzi.

Tue, 09/27/2011 - 10:18 | 1714757 DosZap
DosZap's picture

7bit

So,

I guess India with it's 18,000 Tons, and China, and all PacRims, and all US investors are all wrong.

The only way we have a monster dump permanently, is if the CB's do aco-ordinated SELL OFF of all their holdings into the market.

That would take us back to $50.00 Gold, and $1.50 Silver.

OR a ONE world currency mandatory......................in which case, I won't be here, as the Rapture will be shortly occuring.

ALSO, DO ALL of us a favor, and tell us WHY you believe what your saying, your not giving any TECHNICALS or REASONS for the demise.

 

Tue, 09/27/2011 - 07:41 | 1714194 FunkyOldGeezer
FunkyOldGeezer's picture

My (up until now) reliable weekly chart suggests Silver is still not out of the woods, not yet at least. Even the crash in early May didn't cause the indicators to go fully negative, whereas the current one has. So, unless it climbs back above $36 ish and convincingly stays there, I'm assuming more downward potential at the moment. Same goes for the daily chart too.

Do you also realise that WTIC outperformed both Gold and Silver over the past 10 - 11 years, although Silver and Gold have both recently bucked that trend.

So, maybe the real Bull market in metals is only now really beginning, as I can't see Oil becoming less in demand over the longer term? The obverse of course, is that they both crash to low, low levels and then recover with oil remaining more or less stable. That would see them out perform oil too, but from a much lower base price.

Tue, 09/27/2011 - 08:23 | 1714362 BigJim
BigJim's picture

Let's face it, short-term 'investing' is just fucking guesswork if you're dealing with a market that is as rigged as PMs. If the fundos support higher prices in the medium/long term, and you're not buying more than you can afford to, and you're convinced that in 5 years Ag will be worth $100 in todays money, then frankly, who cares if you buy at £32 instead of $28?

I understand it's pretty crucial if you're a trader, but most of us are BTFD stackers. And we've just had a hell of a dip, IMHO.

Tue, 09/27/2011 - 07:38 | 1714228 PulauHantu29
PulauHantu29's picture

Orderly rise to $100....gold to $2,500 over the next year.....oil $220 according to Nomura.

Tue, 09/27/2011 - 07:40 | 1714236 Fate
Fate's picture

Funny, the silver in my safe is worth the same to me now as it was a week ago, with no fluctuations.

Buy and hold, friends, buy and hold.  Ignore the market goblins.  Then enjoy the peace of mind that only owning PM's can bring.

Tue, 09/27/2011 - 08:04 | 1714303 THE DORK OF CORK
THE DORK OF CORK's picture

No Guts No Glory.

Tue, 09/27/2011 - 08:06 | 1714309 firstdivision
firstdivision's picture

Once the rumors are proven to be false both commodities will fall again.  Like stocks, these are both up only on the Liesman's lie...err I mean rumor.

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