Dropping in price: Gold is down considerably, as is silver. Is it possible events in the Middle East are having an effect on this?
Precious metals follow the dollar, just in the opposite direction. I doubt the drop will last long, the underlying reasons for the weak dollar aren't going away because of one specific military goal being reached.
Did anybody read the article on Numismaster titled: Take that you Silver Bulls" ? http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=19596&et_mid=426531&rid=2182846 It opens with: "In my judgment, the extreme measures taken by the U.S. government to suppress gold and silver prices in the past week........." What measures is the author referring to?
Just dropping blame. Government hasn't manipulated bullion prices, the market has based on fear. Maybe people are finally realizing their hoards of metals aren't paying the bills and have slowed buying, forcing the market to re-adjust to a more realistic level. Guy
I think the world is just messing with me. I put one item on ebay and BAM! price of silver drops nearly 15 dollars...
Not sure how the Government is manipulating bullion prices when they can't get us out the recession effectively. Mr. Davis, I was being sarcastic about the Middle East comment lol
Most likely to the margin increases required to hold silver contracts. There has recently been 2 margin increases and 1 more is expected soon. They all tend to mistakenly think the Comex owned by the CME group is a public company ( current stock about $280 share) and they make the commodity buy/sell basis for exchange, including metal delivery for a fee, is really the "FEDS". http://investor.cmegroup.com/investor-relations/stockquote.cfm To make a story simple, they adjust the "bets" so there is a price for buying and selling, like the NYSE. When volatility of a commodity (or stock in case of the NYSE) becomes skewed so that the CME group is becoming lopsided, one way to limit volatility is to change the margin requirements of the Comex traders. As volatility increases or decrease too rapidly, this tends to limit financial liability. Think of it like a sports line. if too many people jump on one team, the odds are changed until each side is close to equal. The CME group has a responsibility to its stockholders to not lose money if possible. Silver just went up too fast and there were not as many sellers as there were buyers, so a margin increase happened. Thus a speculator on silver contracts had to come up with more cash to hold the same number of contracts. If they had felt silver was a better deal, they would have sold other holdings to make the margin calls and kept their silver. They decided to sell the silver contracts for going price and keep their other holdings. Perhaps if silver had gone up .25 /day, it would still be going up, but when it hit 5% or more a day, limits had to occur for CME protection. There was no conspiracy. Silver may reverse and go up, but if you play the market, watch the volumes of buy/sell to decide when another change might occur ( by the CME and not the federal gov.) that would turn it downwards again. These types of changes are often ignored in analysis of how high and fast, or how low and fast, can prices change. IMO. Jim
1400 was once resistance which has now turned support. Without a significant close below that level I don't think we can say much. These are just daily ups and downs. A close below 1400 would in my opinion be a reason to short and target 1250 with extensions being much deeper than that.
