What happen to the Silver Market?

Oh, this made me wince:

OMG, I've got over 100 ounces, I must be down more than 1700%!!!

I'm picky about dimensional analysis.

 

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Silver Fell Into A Burning Ring Of Fire
It Went Down, Down, Down
And The Flames Went Higher

And It Burns, Burns, Burns
The Ring Of Fire
The Ring Of Fire

Silver Fell Into A Burning Ring Of Fire
It Went Down, Down, Down
And The Flames Went Higher

 

You had to go there so...[video=youtube;gRlj5vjp3Ko]http://www.youtube.com/watch?v=gRlj5vjp3Ko[/video]

 

I personally don't think it is going to fall much more, I think at $31.00 it is a steal. I went and bought some today. If it falls on Monday, I will be going and buying more.

 

Except that you most likely will not be able to buy it at a dealer for these prices. Physical PM is very "sticky", meaning at times not easy to buy at spot, nor sell at spot. Its a deficiency of the market, and the reason electronic markets for it were invented.

 

and thats probably another reason you won't find an ounce under $40 on ebay. So far I haven't seen anything close to $30.

 

Went and bought a handful of Morgans... luckily we have a coin & bullion dealer that prices off real-time spot for many items.

 

This is the 2nd time this year I've witnessed a freefall in the POS and after it occured the CME announced in an email that they're going to have a margin hike. I can't imagine how this drop occured without any of the sellers knowing this was going to happen. If somebody has a reasonable explanation, I'd like to read all about it. The 2nd thing that amazes me is I wonder if we'll see any improvement in the COT report next week from the big shorts, JPM, HSBC et al or if it will be just as naked as always. Again, reasonable explantions are welcome.

 

it's always the big guy screwing the little guys, no different than the stock markets here. I'm pretty much done with any type of investments for a long long time. The funniest part about this is I went into my local bullion dealer this week when silver was around $42, He had about 50 silver eagles, and nameless bars and various bullion scattered in the cases. I went back when it dropped to $35 yesterday and it was practically emptied. The strange part is never had i EVER seen that much stuff lining their cases. whoever is in the know definately knew what was going to happen this week. I can see no reason for a demand drop that huge, this was an obvious perpetrated event.
> IN MY OPINION.

 

I bought some today, but only because I got 3 rolls of mercs (including an almost complete set, missing the keys) at an estate sale for 15x face.

 

You could also look at it as an event that needed to happen. If it stayed at the status quo, we all would've paid a lot of money to bail out these banks from their positions in silver and gold. While I want them to be squeezed and bled as much as the next person, I don't think the US taxpayers should be the ones footing the bill. Now, if they don't get the positions straightened out and it's the same garbage going into Dec with them holding 90% of the short side naked, then I hope it goes to 100% margin and we'll find out what PM's are really worth. While I agree the gig is gamed in their favor, the situation was not a good one for anybody in this country.

 

The only people directly affected by the margin levels are those who were holding large quantities of contracts, as the volatility increased. They were margined to their pocket change and had to sell contracts quickly, or other margined accounts such as their forex deals, might have to be let go. So they sold.

If the margins had been raised and the price range was a true indicator of current desire by others, the contracts would have been absorbed with small to minor drop. However, the price range was drastically inflated by speculation and few stepped up to buy it, so the price dropped until someone would buy a small amount and then drop more as there were few buyers and many retail holders ( us) had their stop losses on GLD and other ETFs broken and the downward "crash" continued until some finally supported the low level.

Perhaps it oversold, but there is much less speculation in the price now. Is it over? maybe, but probably not unless the US messes up the dollar at this point. If a person is 100% sure it will go up, now is a time to buy. However, I would recommend waiting for at least a 33% + retracement over todays price loss before buying any. At least that way you have a level above a resistance level. IMO.

 

coin talk but this is the bullion forum...did you notice that whenyou clicked on bullion to get here?

 

well I bought a bunch of silver today I was saving up for to get it with a better shipping rate all at once...so..naturally....silver will hit $15/oz soon...
I got the colorized one for my fiancee... hope to get her involved in coins and such and seemed like the best route to go...she loves chickens...but unsure about dropping $150+ for a 2005 year of the rooster... so yea... honestly hope it doesn't drop to $15 but hey I did buy so... course if it does drop like a rock...more then already has...at least i got stuff that is low mintage or high demand for....


Qty Item Price Ext. Price
26 2012 1 oz Silver Canadian Cougar (Wildlife Series) (Oct 7th) $36.03 $ 936.78
31 2011 1 oz Silver Chinese Panda (In Capsule)(Oct 4th) $41.54 $1,287.74
21 2011 1 oz Silver Australian Year of the Rabbit Coin $52.04 $1,092.84
1 2011 1 oz Silver Australian Year of the Rabbit Coin (Colorized) $44.04 $ 44.04


US Dollar Sub-Total: $3,361.40
S & H: $ 24.95
Total: $3,386.35

 

Interesting to see people are more than happy to purchase silver this evening at 40-41 an ounce even for generic rounds and bars on Ebay. Could take that same money go over to provident and buy eagles/maples and libertads for $35 and change.

Curious indeed.

 

you are correct, you have to pay the dealer mark up. Luckily, I found a dealer that was selling ASE's for a little over $2.00 + spot. I bought as many as I could afford as I was looking to buy when spot was $40.00.

 

Alex - the thread was originally mis-categorized under the "Coin Chat" forum... Jim moved it to where it belonged. See my post #31.

 

Actually I am very happy for the silver beatdown because that means that I can find 1-oz silver art bars that I like to collect at a lower price to add to my collection. That hoping that I can find some at a decent premium.

 

Silver prices has everything to do with numismatics since a lot of what we collect contains silver and the value is affected by the traded price of precious metals.

 

I agree, but doubt that will happen. I enjoy buying silver coins, eagles, art bars, etc.... but all are expensive. Unfortunately the prices will go back up to 40 per.. but enjoy the dip!