Silver Almost At $17.00

Silver hasn't been over $17.00 since last May. It's up almost $.80 cents from last night's close, just pennies away. Gold is up almost $23.00 today. Since the beginning of the year Gold is up $200.00 +/- and silver is up about 20%.

Have we gone crazy? Is the world in trouble? Are people waking up to find the dollar is not what it used to be? Is it too late to buy or did we miss out?

What is your take on this sudden price increase? And will it last?

 

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nice to see prices rebound finally. Price went down a lot faster than the upside is happening. Hope trend continues.

 

1. Metals were oversold
2. Fear is rising globally
3. China and others are acquiring
4. It was found that several were attempting to "make" the market through strategic buys and sells

Mostly, fear is rising - in my opinion. Dow at 18k, dollar is barely holding strength, US presidential election is a wildcard in the direction of the country.

I still see silver at 18 by end of year. I'm not a professional, but I watch and participate in the markets daily in my own small way - and have for over a decade. I put my money where my mouth was all year, and it's paying off.

Caveat Emptor!

 

I'm as mystified by what's going on with PM's as I always have been, despite all the data, opinions and explanations. But, I'm thrilled to see Silver consistently rise again since I would need about a $20.00/oz melt to break even or make a few bucks on the small holdings I automatically add each month---beginning about a year and a half ago.

 

I'm curious about what's going on, too. Maybe metals were/are oversold, but I don't know what would perturb the people who are selling at those oversold prices. Wish I had more attention to give to the action during the day. (Being back at work full-time has its drawbacks, but its financial return is better than anything I was likely to get sitting at home all day and refreshing charts. )

 

Election year?

Chris

 

It sucks, I was hoping for $10. silver.

 

Lots of people were, and for $8 silver - and may have missed the boat entirely. It will come around again someday.

 

At $17.11 currently. I was expecting a rebound but nothing this dramatic.

 

It held overnight which surprised me a little this morning. Can wait until the market opens to see if people think it's a bargain and on the move or if they sell to take some profit.

 

The markets generally hold dramatic changes for 3 business days. I think a lot of this is because most accounts have a 72 hour "clearing house" process they must go through on funds (ETF's in this case).

The industry term is Free Riding, and it has something to do with floating buy/sell on unsettled funds.

https://research.scottrade.com/know...rticle?docid=4a6477b554ba4533a91ea5835c5aa4e2

Example – Free Riding using unsettled funds

Violating Reg T is sometimes called “free riding” because you're trading with money that isn't yours. Let's look at an equity example:

1. You open a new account and deposit $5,000 in cash. All of the funds in your account are settled and you do not have any securities, so your total account money balance is $5,000.

2. Day 1, Monday – After depositing the $5,000 mentioned above, you buy shares of Company A at a total cost of $5,000. Your total account money balance is now $0.

3. Day 2, Tuesday – You sell your shares of Company A for a total of $5,250. Stock transactions have a settlement date of T+3, meaning the trade date plus three market days. This transaction will settle on Day 5 (Day 2 + 3), or Friday. Your account now has $0 in settled funds, $5,250 in unsettled funds, and a total account money balance of $5,250.

4. Day 3, Wednesday – You buy shares of Company B for a total of $5,150. Your account has $0 in settled funds, $100 in unsettled funds and a total account money balance of $100. Even though you bought Company B with unsettled funds, this is not yet a Reg T violation because you have not sold Company B prior to the settlement of your sale of Company A.

5. Day 4, Thursday – You sell your shares of Company B for a total of $4,900. This is free riding, a violation of Reg T. The proceeds from the sale of Company A on Tuesday will not settle until Friday. Any purchases made with those funds must be held until the funding transaction, your sale of Company A, has settled.

 

I know we always try and come up with reasons for the price changes, but I am starting to lean towards the opinion that we should just start looking at it like any other stock that has price changes. It is as much of an investment vehicle as anything else with the paper versions that have emerged and seems to be behaving more like a stock with it's ups and downs.

If we really need a reason probably a combination of a slowing market and election year, but personally I am starting to view it much more as a stock that is going to just move up and down and traders make their plays.

 

You are right Baseball21, we are only responding to some musical whim. We are responding to the pied piper leading us all to the cliff. We don't understand or allow ourselves to the request. When it's to late, we ask, why did we buy? Then we are looser's in our own right.

 

Silver is doing well in Sydney and Hong Kong right now. At $17.30 as I type.

 

$17.38 and still climbing. Up $.44 overnight. A little more of this and there will be panic in the streets.

 

I could push these prices up another 10% in a week if I wanted to. I could sell a bunch, and shortly after, the metals would soar.

But I can't. I gotta hold out for gains the hard way. I hope I don't jinx us by not selling.

 

I'm just glad that we all have personal market influence through you - our ultimate bellwether.

Ask of $17.70 this morning means that you must have sold last night!

 

I'm thinking about it. The market wizards are trying to coax me in. It won't take a whole lot more and I'll sell. If my land deal comes up, I shed some, and depending on % of my holdings, it could set in motion the biggest rally we've seen since 2011.

 

And as soon as you said that, silver dropped to $16.90 and gold to $1250.

You sir - are the PM Whisperer