Massive silver crash to 20.2 (May 2011 redux)

Welcome to the Precious Metals Bug Forums

Welcome to the PMBug forums - a watering hole for folks interested in gold, silver, precious metals, sound money, investing, market and economic news, central bank monetary policies, politics and more.

Why not register an account and join the discussions? When you register an account and log in, you may enjoy additional benefits including no Google ads, market data/charts, access to trade/barter with the community and much more. Registering an account is free - you have nothing to lose!

S

swissaustrian

Yellow Jacket
Messages
2,049
Reaction score
0
Points
0
Silver got smashed over 2 dollars at the opening and touched 20.2. Trading at 21 and change now.

That's a freaking 10 percent drop within minutes...

1z5kmth.gif


This usually means more trouble ahead tomorrow.
 
It could go lower tomorrow during COMEX trading, but it's already trading below production cost.
 
Guess things have really improved for us economically folks!

Sell your PM's NOW!

(psst..pm me if you are really selling he he)

-Q
 
If anyone will sell to you at this price...

I saw an article recently on ZH that showed when silver fell 25% the avg. price of a silver eagle only fell 8%. Now that as SA said it's below production cost doubt there'll be much for sale.
 
Silver inventories are still relatively high due to weak industrial demand (ie problems of the real economy, not the fake stock market). It might take a few months for silver shortages to become an issue.
 
That's the rub. The mark-up on coins is remarkably high. Perhaps it's time to buy raw metal and mint your own coins. Not sure exactly how one mints coins but I am sure somebody has a coin minting machine for sale on eBay by now.
 
Unbeatable said:
If anyone will sell to you at this price...

I saw an article recently on ZH that showed when silver fell 25% the avg. price of a silver eagle only fell 8%. Now that as SA said it's below production cost doubt there'll be much for sale.
Click to expand...

If you don't mind buying larger coins APMEX claims their Australian Kilo Koala Coin (say that fast 10 times) are only $1.59 over spot. Kind of hard to fit in your pocket though.
 
Aubuy said:
If you don't mind buying larger coins APMEX claims their Australian Kilo Koala Coin (say that fast 10 times) are only $1.59 over spot. Kind of hard to fit in your pocket though.
Click to expand...

It's not $1.59 over spot. It says: "Any quantity only $1.59 per oz over spot!" (cut and paste from APMEX site)

So with about 32 Toz in a kilo, you're looking at a premium of over $50.
 
swissaustrian said:
...
That's a freaking 10 percent drop within minutes...
...
Click to expand...

Only 10%? Good thing silver is one of the few items that the CME group does not have any limits on.

CME Group U.S. equity index price limits (and corresponding CME and CBOT rules) are designed to coordinate with circuit breakers provisions as applied by the New York Stock Exchange (NYSE).

The 7%, 13%, and 20% price limits are applied to the futures fixing price (and are effective from 8:30 a.m. CT – 3:00 p.m. CT. Mondays through Fridays). The 5% up-and-down limits are effective from 5:00 p.m. - 8:30 a.m. CT Sundays through Thursdays, and from 3:00 p.m. - 4:15 p.m. CT Mondays through Fridays. Additionally, the 5% futures price down limit between 3:00 p.m. - 4:15 p.m. will not be allowed to breech the 20% daily limit.

The fixing price is the volume weighted average price, VWAP, calculated during the 30 seconds of trading from 2:59:30 p.m. – 3:00:00 p.m. CT. These fixing prices are published to the CME Group website; see the link provided in Resources below.

Where to Find Price Limits

Price limits currently in effect are located in the Hi/Lo Limit columns of the delayed quotes page for each product:
...
Click to expand...

http://www.cmegroup.com/trading/equity-index/price-limit-guide.html

... silver's quotes page:

http://www.cmegroup.com/trading/metals/precious/silver_quotes_globex.html
 
Something is up. There is no other logical explanation for shit like this. Either someone is de-leveraging in advance of some bad shit, or we are being massively set up for something. With physical demand off the chart, logic continues to be defied day in and day out.

Better get it while [if] you can.
 
Last edited:
Meanwhile gold is trading green at 1360 up from overnight lows at 1337.
Silver is touching 21.8 up from 20.2
 
You must log in or register to reply here.
Back
Top Bottom