Silver is dropping

Even the stock market is taking a big hit! Are people selling off everything to pay their taxes today?

 

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I went to my silver shop, $10 Face for $84.... I'm a happy camper!

 

Wow nice pickup half off melt. :thumb:

 

I'm thinking he picked up some 40% halves.

 

Fear of Chinese economy slowing down so you have people taking $$$ while they can.

 

That makes more sense.

 

The only ETFs for PM that I have read their prospectus ,and posted the link here, is SLV and GLD. Common shares ( non-principle shares) can not be dispersed as physical, except in large baskets with a wait time and high cash out premium. The shares that are traded on the market belong to the people firms trading, and do not affect the amount of silver /gold the fund owns unless one or more of the principles want to jump ship, and that would be in SEC filings. This fall gives the custodian and principles a great chance to increase their pm level so they can issue more shares to the public in the future when some recovery appears visible. The "Fund " makes most of their value by selling the initial shares of the ETF, not by the market reselling ( buying selling). Nice chance for JPM and all of the financial principles to build for their future gain and use some of their recent profits in 'regular' banking . IMO.

 

Thanks for the background Jim. So ETF's would only be a canary, if the traded price exceeds or is less than the NAV?

Still, I am sure stuff is going on, I am just unwilling to say illegal stuff unless I knew for sure. Its highly likely its a motion play, with some large investors seeing momentum on the downside. Action begets action. In such a situation ANY price is possible, up or down, so I try to sit on my hands until it shakes out. I am still hoping it shakes out on the low side, what I personally consider fair value, so I have an excuse to start buying pm again.

 

It's gonna go lower, it's not at the bottom yet. But I'm gathering my buying cash so I'm ready to roll. Volatility aint for the weak of heart.

 

I called five big (junk) silver firms this morning, just out of curiosity.

The industry standard now seems to be 3~5. Three to five weeks for delivery, three to five dollars over spot.

 

I would wait until at least the cat bounces 3 times before I would call a floor and make significant decisions.

 

Looking at the graph, it looks like it's trying to break $23, but hasn't quite done it yet.

Once it does, then there's nothing stopping it till it gets down to $22. Kinda like me with the alarm clock in the morning. I try to get out of bed before 5:45, but once it hits 5:46, I might as well stay in bed until it hits 5:50.

(Yes, of course I know the price of silver can't try to do anything, I'm just sayin' )

 

BREAKING NEWS! Two explosions at Boston Marathon! If terrorist attacks, will this have any affect on PM prices?

 

I was at my local dealer picking up an auction item from the weekend and he was swamped with silver buyers. One of the staff told me they're getting spot plus $5 on the purchase. He will be cleaned out by the close of business.

 

not this decline.

 

It fell below $23. $22.86 right now.

 

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$22.62...hmm....wanting to stay up tonight so I can say I was awake when it hits $22.

 

need another cup of coffee? I love the prophets here.

 

23.72 this morning. going back up?