Silver Hits Key Support Amid Hedge Fund Exodus

While the dollar is down around 3% year-to-date, not all dollar-denominated assets are rallying and in fact, silver is now the biggest loser among the precious metals.

Palladium's recent resurgence has pushed it back above silver for the year (though still in the red) as Gold and Platinum remain in the green for the year.

All of this has happened as hedge funds have abandoned their long positions in silver. As Bloomberg points out, hedge funds and other large speculators cut their long position in silver futures and options for a sixth straight week in the longest string of declines since August 2014.

Notably, the net speculative positioning across silver futures and options is near its lowest level in 20 years...

All of which might be useful timing as Silver is back at a historically important level of cheapness relative to Gold...

Comments

Michigander Michigander Wed, 02/28/2018 - 09:52 Permalink

I guess the /sarc sign was needed. I hold lots of bullion and lots of crypto. You know and I know the bullion markets are manipulated and its fucking demoralizing to see silver perpetually slammed. People that say "OH YAY, I get to back up the truck cuz its so cheap" are being disingenuous. We are going to get fucked one way or another forever, I'm convinced. Should silver got to 700 dollars an ounce, expect a windfall profits tax.

In reply to by Michigander

Philthy_Stacker Michigander Wed, 02/28/2018 - 10:16 Permalink

That's why I stack monetary coin here in Canada. They can't charge capital gains, if you spend it, instead of converting to fiat. A recent history of varying denominations for different weight coins from the Cdn mint, means they can't tax you based on the amount of AG in the coin.

1917 - 90%
1850 - 80%
1966 - 50%
1969 - 0%
1988 - 99.99% Silver Maple

As of today, you can buy 99.9% $20 'Superman' coins for $20 Cdn (8 grams)
You can buy a 1oz. 99.9% Maple, that has a $5 denomination. (Costs $24 Cdn. @ spot + prem.)

Example Scenario:

Buy Silver dollars @ $20/oz|
Silver hits $150/oz (someday soon?)
Profit = 75x
Take said profit and instead of 'cashing' out, go buy assets, using the coin. If the other party doesn't mind, you're done. No capital gains on money ... honey!
 

In reply to by Michigander

Hillarys Server Wed, 02/28/2018 - 04:24 Permalink

Everything went up, stocks, real estate and so on, except silver.

I can't figure out whether that means silver's time will come or silver's time will never come.

What if markets will always be rigged and controlled forever and ever?

Haus-Targaryen Hillarys Server Wed, 02/28/2018 - 04:38 Permalink

I often keep bringing myself to this thought. 

What keeps me investing and stacking is that as the CBs keep injecting more and more and more cash into the system to maintain asset prices, they are going to have to do more and more and more to not only keep the paper price of AG and AU down, but they also must find more and more and more physical AG and AU to maintain the arbitrage between East and West. 

They've really screwed themselves, and they've backed themselves into a corner: the will flood the system with cash to keep all asset prices up EXCEPT FOR AG and AU which they have to keep suppressing, else the game is over as people flee the USD for PMs. 

They'll keep this going for longer than we can imagine, but they eventually WILL lose control of the AG and AU markets.  I think the physical vs paper arbitrage will do them in on this front eventually. 

When that happens you take the printing press away from the CBs. 

The continued suppression of AG and AU is a matter of existential importance to the powers that be.  Its just that simple. 

It amazes me they allow literally no steam out of this pressure cooker over the past few years, but if you look at it from their point of view -- if they do and the PMs take off -- they've screwed themselves. 

EDIT - All that being said if TBTF smack this down to say 100-1 I'm going to completely abandon my entire cash position and go all in on physical Maple Leafs. I think that would be the deal of a lifetime. 

 

In reply to by Hillarys Server

BandGap Haus-Targaryen Wed, 02/28/2018 - 06:16 Permalink

I agree with your remarks 100%. We are now in a world where we have to place our bets and I'll be damned if it will be in dollars or Euros (although we have a small hedge there). Even my older kids are buying silver. The goal at this point is to minimize debt while accumulating PMs and other items that might be scarce in the future (ammunition comes to mind).

It would be nice to see a relaxation of gun ownership laws since one side apparently has grenades and rocket launchers over there. But I am sure you are told the local constables can handle it.

It would be nice not to have a paper trail. But as the world stands now that ship has sailed except for the coins purchased at the local dealer (who pays cash, bless him). Have to deal with any confiscation at a time when that may occur.

Good luck, all.

 

In reply to by Haus-Targaryen

thunderchief Haus-Targaryen Wed, 02/28/2018 - 05:27 Permalink

A big compnent of price suppression is killing sentiment. 

It is the very thing that keeps everyone out of AG/AU and in everything else overpriced, in major bubbles.

Constant, relentless destroying of any positive sentiment is key to gold and silver price suppression. 

Then there are the paper gold and silver markets, just waiting for all those other suckers someday.

In reply to by Haus-Targaryen

Haus-Targaryen thunderchief Wed, 02/28/2018 - 05:44 Permalink

Sure, but this makes the prices extremely fickle. 

As soon as sentiment changes they're toast and those that are suppressing the prices know this.  

They also know they cannot be suppressed forever, and they know this.  Thus, their goal is to kick the can. Then the question is ... to what end? 

Kick the can indefinitely or kick it until they are sufficiently prepared for what is to come? Only a handful of people on the planet could answer the question. 

In reply to by thunderchief

Der Libertäre Haus-Targaryen Wed, 02/28/2018 - 06:31 Permalink

"... if you look at it from their point of view -- if they do and the PMs take off -- they've screwed themselves. "

No, they screw(ed) the people! Nobody in leading positions takes responsibility for anything. In Germoney you see how a good place goes down the drain without any reason. Billions for refugees nothing for old people and Die Tafel [a place which gives food of less quality (brown bananas etc) to poor] gets blaimed being Nazi, as they decided only to accept poor Germans instead of all the migrants on top, they cannot feed also. Leaders (politicians etc) are protected and we are not. They stand over the law (immunity) and we do not. They did not paint themselves into the corner but us.

 

" It amazes me they allow literally no steam out of this pressure cooker over the past few years..."

I admit there was a moment I took a day off and listened to "motivation videos". And that day I changed my perspective - I do not count anymore in currency, but in "ounces of...".

Chris Duane helped me a lot to jump over my shadow and find inner peace. My retirement fund is there and what its price is in Euro (this sad joke of a currency) I do not care (anymore). I am always happy when the other side takes this ponzi paper - what a relief!

 

There is no need to become rich, one should avoid to become poor. I fear very much for the Germans. Other nations meanwhile have adopted to poorer times, only the Germans think they are rich as all the others own them. Germans will fall very deep when reality sets in. And reality always prevails.

 

“Just make sure you’re not one of them.” Ayn Rand, when asked what to do about the poor.

In reply to by Haus-Targaryen

Haus-Targaryen Der Libertäre Wed, 02/28/2018 - 06:34 Permalink

As always, I agree with most of what you said.  

I suppose I meant that "They've screwed themselves from a 'this is sustainable indefinitely' perspective" 

Not becoming poor is very important. I really encourage you to get yourself a nice little place off the beaten path somewhere. 

Nice places in Sachsen, Thüringen, MeckPom, Brandenburg and Sachsen-Anhalt can be had for basically nothing.  

In reply to by Der Libertäre

Theosebes Goodfellow Haus-Targaryen Wed, 02/28/2018 - 07:54 Permalink

~"Chris Duane helped me a lot to jump over my shadow and find inner peace."~

And I guess that's really the rub, isn't it? If you are losing sleep at night over your savings/personal wealth, you're doing it wrong.

After getting completely out of central bank exposure, (save for day-to-day checking), I've opened a brokerage account to be able to take advantage of what I think will be a once-in-a-lifetime opportunity to buy PM miners at rock-bottom prices. I add to that list miners who are digging up molybdenum, nickel and cobalt. My total exposure in these areas will still be less that 5% of my total holdings. Call it "playing the PM casino game". 

In reply to by Haus-Targaryen

jimbrown Hillarys Server Wed, 02/28/2018 - 06:58 Permalink

can you imagine the price of goods that require silver and even gold if they allowed the market to determine prices? my god , what is left of the electronics market would come to a screeching halt....it is for this reason industries collude to make certain silver remains as cheap as possible while they can, silver is not to be seen as a get rich scheme, its a form of wealth preservation whereby one buries it and moves on with life, its insurance without any third party liabilities or obligations, it is the only realistic thing one can invest in when they don't have standing armies to defend any other wealth preservation method. hard physical metals in this paradigm are not meant for physical daily trading with expectations of profits on such frequency basis.... its for SHTF....and those occasions do come along on a long enough time line, that......... and death.

you bought metals for all the wrong reasons, yet most importantly if one does not possess a strong moral and ethical human spirit then they ought not participate in purchasing physical precious metals, especially since it may be necessary that such metals need be held for long periods of idle time, those with young familys understand that silver is not a get-rich-quick tool but a means by which to pass on to their children a proxy for the ability of their off spring  to reason in the future with that which their parents left them......without physical precious metals men and women are left with few ways to develop and maintain self worth, sound mind and maturity and without these three components of human spirit the other three vital components of spirit love, empathy and forgiveness have no hope in being seeded and nurtured............

 

In reply to by Hillarys Server

Nostradalus Wed, 02/28/2018 - 04:27 Permalink

OT: Can someone please tell me how to get notified that someone has responded to my comment?

Thanx for info in advance! Now back to your regularly scheduled fisticuffs!

Magnum Wed, 02/28/2018 - 05:39 Permalink

All the BS about buying junk silver bags from Tulving while reading Chris Martinsson doomsday prep courses ....       

raise your hand if you went so far as to getting a monster box

jokes on us

Ron Paul 2012  !!

martydz Wed, 02/28/2018 - 05:45 Permalink

Shepwave traders made a great sell call on Monday before Tuesday's big sell off. They KNEW something. I would like to know where they get their inside info.

martydz Wed, 02/28/2018 - 05:45 Permalink

Shepwave traders made a great sell call on Monday before Tuesday's big sell off. They KNEW something. I would like to know where they get their inside info.

Jambo Mambo Bill Wed, 02/28/2018 - 06:10 Permalink

Since 2011 our Silver investment is around -25% DOWN ! in fact, we have 2 pools, one is 0% for the last 7 years and the other -50%...

How excited I am with Silver ? Not much... we dream that it can go up at least above $500 one day... which would be a decent price of it... however there is so much silver out there... everyone you know has some silver jewelry, as the price goes up, all that silver will be inundating the market bringing the price down for every round number.

It would take a lot for Silver to go higher... and time... decades maybe...

With a fraction of our silver holdings, we made an insane return on Cryptos... over 10000%... We will be happy if silver goes over $100 in the next 3 years, dividing that for 10 years would give us an average of 50% return per year, a bit of something.

U. Sinclair Wed, 02/28/2018 - 06:33 Permalink

Actually it is quite simple.
Central Banks are destroying the fiat currencies in a rapid pace.
At the same time they are suppressing the pm's.
What do you want to hold in the coming years?
Pm's or fiat-(related assets) ?

Don't let them bully you and stick to your plain common sense.

jimbrown Wed, 02/28/2018 - 07:15 Permalink

can you imagine the price of goods that require silver and even gold if they allowed the market to determine prices? my god , what is left of the electronics market would come to a screeching halt....it is for this reason industries collude to make certain silver remains as cheap as possible while they can, silver is not to be seen as a get rich scheme, its a form of wealth preservation whereby one buries it and moves on with life, its insurance without any third party liabilities or obligations, it is the only realistic thing one can invest in when they don't have standing armies to defend any other wealth preservation method. hard physical metals in this paradigm are not meant for physical daily trading with expectations of profits on such frequency basis.... its for SHTF....and those occasions do come along on a long enough time line, that......... and death.

you bought metals for all the wrong reasons, yet most importantly if one does not possess a strong moral and ethical human spirit then they ought not participate in purchasing physical precious metals, especially since it may be necessary that such metals need be held for long periods of idle time, those with young familys understand that silver is not a get-rich-quick tool but a means by which to pass on to their children a proxy for the ability of their off spring  to reason in the future with that which their parents left them......without physical precious metals men and women are left with few ways to develop and maintain self worth, sound mind and maturity and without these three components of human spirit the other three vital components of spirit love, empathy and forgiveness have no hope in being seeded and nurtured............