$37 silver!

I don't see why China would sell considering that PM's are going to retain their value better than any fiat currency unless the interest rates get a lot higher than they are, in spite of their recent rate hikes.

I'm with you on the projections, however I would only sell if I needed the money to spend on something immediately. You never know when things might become too volatile to get your hands on some physical metal, or when there might be a rush to get in causing a supply shortage. I'm not calling for that to happen, but I'm not willing to risk my neck on the off chance either. If the gov shuts down you can bet there will be a rush though. Even though the projections are pretty clear to me, recent rises have typically been accompanied by significant global events. If we are to assume that will need to be the case for things to continue at their current pace, the timing is impossible to predict. Then again, maybe it will all be frenzy driven as people see the price go through the roof =)

 

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China is actively pursuing a path to take the #1 spot as the world's dominate economy and have big plans for the role of their currency as well. I don't think its beyond the realm of possibility for China (with their stellar human rights record) to have their citizens heavily invested in silver and gold and then require them to turn it in for paper at some point. Yep, some wild speculation on my part but I think they are taking steps to de-couple from the dollar. Difficult to do but perhaps beneficial for their long term aspirations. :scratch:

Bluesboy65

 

I generally trade intermediate tops and bottoms with options, not bullion. More leverage and lower transaction costs. Although if I want more bullion, which isn't often anymore (I bought enough under $10), it would be at the bottoms and then hold it.

I think the Chinese are smart enough to realize that an economy based on precious metals in the hands of the people is the path to future prosperity for everyone, including (especially) the government. They've had enough inflation and currency pegging issues to have witnessed the inherent failures of fiat. Historically, fiat currencies often end up in the same garbage bin as their ruler's heads. All they have to do is look at America and do the opposite. We're falling fast from the throne of most admired economy in the world by debasing our currency. I've read enough from the Chinese finance ministers to know they realize this and want to do the opposite. They've used cheap labor to transfer our vast industrial and technological knowledge to their factories, now they just have to finesse a way to get as much real stuff for their Dollar holdings as possible before they yank the rug out.

 

Welcome to the price correction...

 

Yep, right on cue. Here's what I said in this thread on 4/2...

It's hard to imagine being more right than that

Anyone who sold at $37 missed an awesome trade up to $50. Now we're back to where we were before. What did anyone gain by selling at $37? You can only pray that it now goes much lower so you can get in again and be net positive after your trading costs. I wouldn't bet on it. I'm buying now after having cashed up in the mid-$40s. It'll go over $60 by year end, so you don't want to get left in the dust.

 

I'm not buying in again, just yet. I sold a little over 300 ounces when it was bouncing at 47-48/oz. I'll watch for a bit longer before I jump back in. It will be nice to buy back that same 300 ounces for 30ish per ounce though!

 

Spot now around 34. Are you still buying. I know I would if I had the funds. Did you buy bullion bars?

 

I just picked up a couple handfuls of Pandas and Canadian Timberwolves and one Philharmonic on my lunch break today when spot was 35.50. The premium wasn't ideal, but it wasn't a large commitment.. and I so love the T-wolves. It's already gone down another dollar in the hour since then. I will keep buying in small doses on the way down until I see mid 20's I'll get some larger bars, hopefully at one of the coin shows in my area later this month. I won't be buying at prices higher than today's though, only because I don't need more, but I can't ignore a buying opportunity.

 

gotta love kitco.com for those up the the minute prices. I was going to buy some silver eagles at $43, but decided to wait. Glad to see the correction has begun. Of course, I'm hoping to see it at $20-$25 again soon. THEN I'll really start...

 

Nice!

 

If I see $ 20 silver and can get it at that price it we be a load the boat senario

 

I highly doubt it will get anywhere near $20 again. That would be a 60% drop from the top. I think we're already overdone at these levels. Neither gold nor mining stocks are confirming the silver collapse. It seems to be a futures market artificially induced move -- raising margin requirements 5 times! Plus a leaked rumor about Soros selling silver. Gold only fell 5%. Many of the stocks are back to where they were a week or so ago. And silver is already at the 100-day ema, which is what defined the bottom in January. I'm all-in at these levels and putting it on margin if it goes any lower. I think you'd be a fool to be in cash now, expecting to get in lower.

 

and we're back to $37!

 

Yup, we're right back where we started on March 24.

 

A normal correction in a market that got way overheated ...

 

It will be an interesting week for silver...bargain hunters abound. TC

 

I anticipate that the mining stocks will participate this time it goes up. SLW is a great buy at these prices. If you don't own anything else, pick some up. Or better yet, some 2012 or 2013 call options.

 

I think I will bump this so someone will log in, see the title and get all excited.

 

An old thread back from the dead...super neat

 

Cruel, just cruel.