Silver getting crushed today

What, did everybody suddenly realize that they could sell their silver and put all the money into Snap's IPO?

 

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watch out for that CLIFF !!

 

PANIC SELL ...

 

The good thing is I read a report yesterday that said it would happen because of some darn interest rate thingy. So I could have gone to the local pawn shop this morn at 8:00 and unloaded, But This is just a small bump in life, LOL

 

Yup, here's where all the "buy the dips" folks get to chime in on whether this is a "dip" or a retreat to a new level. No fair coming back in a day or a week to answer, either.

 

The offer at pawn shops is so low you would still be better off selling at spot on price drop.

 

If you are a "technical" trader, you would have been expecting a large move (up or down). Price traded in a tight range between 18.20 and 18.50 for about a week or so. Something had to eventually give. Looks like it was the support.

 

It's good to be a technical trader. With the powerful tools of technical analysis, you can tell with near-perfect certainty that a big move will happen eventually.

The three specific tools used here:

1) Avoid defining "eventually".
2) Avoid defining "large".
3) Avoid stating a direction for the move.

 

We wayward stackers are so lucky to have so many wallstreet Stellas to keep us straight.

 

I'm glad I sold my 5 trillion ounces just before it sank

 

Paper traders have the same worries as physical at this point. The ones with puts contracts are making money , the ones with calls are losing money. The exchange balances them out. No physical was destroyed in this action. My concern is that the action is so strong, when to pull the trigger.As I mnetioned in post 1015, I bought straddle options @ GDX=24.00. My PUT contracts are up close to 40%, My CALL offset is down equally, I can sell the PUT part and bank the cash and hold the CALL part in case it goes up, if it does before the end of March, I can bank extra when I sell it. If not, then my overall gain will be about 20%. Down Baby Down!! (At least for a while).

 

The darn interest thingy is the increasing expectation that the Fed will raise interest rates 0.25 percent this month. It looks like that expectation is getting baked into gold and silver prices today.

 

Gold down 1 % silver down 5 %

 

Must be a local show coming up where I was thinking of selling some.

 

Yes this is one of my favorite nonsense statements I always hear on the silver side.

"I always buy the dips". LOL -- its been dipping for years. Its been doing nothing but dipping since it hit $49 something a few years ago. Anyone who "always buys the dips" would have a DCA so high they would never get close to even.

Amazingly the "I always buy the dips" crowd all also claim to have DCA's between $7- $12. There is nothing more impossible.

 

Why is everyone so excited? Nothing has happened which has not happened before. Life will continue. You will still own the same amount of silver tonight that you did this morning. Unless you are a paper silver gambler who got stop lost out.

 

I know silver has been crushed before, but a 5% loss in 1 day is kind of a lot.

 

That's the problem. They failed to swap it for "worthless fiat paper" that will suddenly buy 5% more than it would last night. At least, it'll buy 5% more silver. I don't suppose I'll be seeing 5% cuts across the board at the grocery store this evening. (I guess that's the signal that I should buy more silver instead of food for the kids, right?)

 

Wrong. You should never buy silver with money needed for anything else. It and gold (and coins) should only be bought with anything left over after all other things are taken care of, including putting money away for retirement. People who panic and feel they have to rush out and buy when it drops, or sell when it goes up have the wrong idea. Those people should be investing in paper silver.

 

Sure, but I have seen much higher. I've also seen it go up over 5%.