Message:

<p>[QUOTE=&quot;Juan Blanco, post: 1606661, member: 41665&quot;]In this PM Bull we&#039;ve already seen one -20% decline in POS; Silver recovered somewhat but has been trending down ever since. </p><p><a href="http://blogs.wsj.com/marketbeat/2011/09/23/silver-has-its-worst-day-since-1987/" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://blogs.wsj.com/marketbeat/2011/09/23/silver-has-its-worst-day-since-1987/" rel="nofollow">http://blogs.wsj.com/marketbeat/2011/09/23/silver-has-its-worst-day-since-1987/</a></p><p><br /></p><p>[ATTACH]226759.vB[/ATTACH]</p><p><br /></p><p>The Late April 1987 Silver Death Spike may be useful perspective on Ag&#039;s downside risk in US market-history (even where circumstances are obviously different today.)</p><p><br /></p><p><b><u>4/27/1987: </u></b>&quot;Silver Outshines Gold as Price Surges in Month : Inflation Fears, Concern Over Tightening Supplies Spur Strong Buying Spree&quot; : </p><p><a href="http://articles.latimes.com/1987-04-27/business/fi-966_1_precious-metals" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://articles.latimes.com/1987-04-27/business/fi-966_1_precious-metals" rel="nofollow">http://articles.latimes.com/1987-04-27/business/fi-966_1_precious-metals</a></p><p><br /></p><p>Takeaways:</p><p>- POS rose 60% in mone month (in Bernuckle&#039;s Inflated Fiatscos: ~80% - 120%?) </p><p>- POS rose 3x faster than POG : &quot;vicious rise&quot; </p><p>- Rumors of supply concerns (shortages) : Peru &amp; Mexico combination</p><p>- &quot;Buying binge&quot; from institutional players &quot;some using computerized buying programs&quot; (LOL) on very small ILLIQUID market </p><p>- Flippers reported, &quot;rediscovering Silver&quot; : &quot;Individual investors are buying 100-ounce or 1,000-ounce bars, with some selling them back to Deak at a profit&quot;</p><p>- Poor alternatives &amp; investor fears: &quot;faltering stock market, falling dollar and rising inflation&quot; </p><p>- RING THE BELL! Market Peak.</p><p><br /></p><p>Early in the trading session on April 27, 1987, silver commanded a price above $11 per ounce and the London silver fix was set at $10.92 on April 27, 1987. On the ILLIQUIDITY of the Silver Market, this (unsubstantiated/hearsay: wrong date?) comment: &quot;I remember that spike in 1987 well. It was the first time I tried to sell a large amount of silver. What I found was that nobody was buying that day. When I did finally get ahold of a buyer three hours away, his typical spread between spot had mysteriously widened in his favor. It was a big lesson for me, as I watched the price quickly fall over the next couple of days.&quot; </p><p><br /></p><p>Anatoly Veltman has some very informative perspective on &#039;the market trap&#039; to digest: LOCKED LIMIT UP flipped LOCKED LIMIT DOWN.</p><p><a href="http://www.dailyspeculations.com/wordpress/?cat=263" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.dailyspeculations.com/wordpress/?cat=263" rel="nofollow">http://www.dailyspeculations.com/wordpress/?cat=263</a></p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p>Does anyone here remember this event?[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in