What is up with the crash in silver prices

My theory is that dealers will want to dump all of that silver before it hits $5.00 an oz. I think we will see more physical silver come on the market. They will lose the hope of breaking even on their holdings.

 

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the futures exchange doesn't change the spot price. In fact, it is the reverse. The spot price affects the futures prices.

Ruben

 

Clembo What You Think

Will Dealers Want To Sell Before They Lose ?

 

They will want to get $11 or $12 today instead of $6.50 or $5.50 in a month.

 

brace yourselves.

 

This is all crazy... platinum and gold are almost equal... today gold is under $800... silver looking like it's going well below $10... palladium under $200... strange... next tin or copper will skyrocket... who knows?

 

They affect each other because the number of contracts that stand for delivery for the nearest contract date influences the movement of the spot price as the delivery date nears, and spot influnces the futures. It's a feedback loop between the two.

 

that is 100% correct but your overstating the affect of futures on spot prices. At best they can create a temporary blip. Their not driving the spot market down 50%

Ruben

 

I think you've underestimated the impact of the futures market on the spot price since there is a huge short position at the present time. It's something for you to look into.

 

I wonder how many coin shops will close their doors before they sell all their bullion at a loss?

 

Ebay is now selling 2008 silver maple leaf coins for 14.75-$15.50. They have even reduced the top prices that 1 oz silver was selling for. A lot of sellers and dealers Will be holding back for a better price rather than loose money. I know I will.

 

Now would be a great time to be in the coin making business. Spot prices aren't just about paper. You can get industrial silver a less than at buck an ounce over spot from Ampex, and they are two stepping it.

http://www.apmex.com/Category/860/Industrial_Silver.aspx

The big disconnect is from a high demand for the manufactured product, coins. If I am not mistaken the mint has churned out approx. 18 million bullion quality ASEs this year, which is 50% higher than previous years, and still they are holding what I consider to be an outrageous premium. If the true value of a mass and badly produced bullion coin is in the metal, then now is the wrong time to buy. I'm waiting until the premium is less than 1.75 on ASEs and have already sold what bullion I had, except for the ones I got from the mint where they got confussed about which die hubs to use. And all those shinny little proofs I do so love to look at. I wouldn't pay a premium for panic.

 

You guys are totally crazy. When prices go down, you expect prices to fall as sharply as the market price. But when prices go up, people will be yelling about how expensive it is. Dealers are forced to absorb some of the cost under pressure. When prices go down, this is when dealers recoup some of their loss during the price hike. Typical example: air fares.

Market price is nothing but a rough indication of what the metal prices are. It DOES NOT mean what goods SHOULD be priced as such. Spot price DOES NOT dictate at what price you must sell at or buy at. If someone else wants to pay more than the market price, you win. If not, that's life. Back a few months ago when people were screaming about how oil prices are so high and companies were trying to get deals on trying to hedge against future prices, this happened with metal commodity market. Sure, prices seemed to become more expensive hence buyers or rather dealers are forced to pay high price. What sane dealer must sell them at a lower price?? Would you? If you say yes, I recommend you to do business right now - you'll be popular in here but you'll be broke really fast. Now shut up and quit moaning about the prices. It's nothing but pure business practice.

This is one reason why I have really strong dislike about discussing bullion prices in coin forums - bullion coins aren't bullions. Period.

 

I find this message incomprehensible

 

..all of that being said the spot price does indicate that there is downward momentum in price. Holding silver now will lead to greater losses unless you are a true long term hoarder.

 

Markets fluctuate and nobody can really predict what the prices will be in a year or what this prices will mean... common

 

I want to see $5 Ounce Silver, like the good old days.

 

When an ounce Silver cost about the same as a gallon of milk and less than a pack of cigarettes, I'll know there is something seriously wrong.

Ruben

 

whoa! watch this today, it may get interesting

 

24 hour graphs can easily become interesting...