Reply to Thread

Message:: [QUOTE="qsilver007, post: 1471662, member: 34667"]FROM A WALL STREET PERSPECTIVE BY QSILVER007.  Yes it is true that many investors trade the precious metals, many more than in previous years.  There are also a lot more of algos(computer driven machines) that trade very quick and have no opinion except to make money.  These machines all make the same bets, and as one shi psinks so do many.  Rewind to last summer Bonds 140, Gold 1900, Silver 44.  All were viewed as a safe investment. My how quickly times have changed, Gold is iffy, some days machines buy some days they sell.  As for Silver, it is currently being used as the short leg in the PM space.  Many machines are long gold short silver, long gold short platinum, long platinum short silver. It is well know that if every person who owned a COMEX future tried to take delivery, it would not be available.  But, in the futures world less than 2.5% of futures are actually delivered. It is very similar to the banking sysytem as all of our major and local banks keep only a tiny part of the reserves in cash. Another problem is with The ETF's.  You have PLSV which is a true bullion fund owned by Eric Sprott of Canada, He DOES OWN the bullion.  That is why his funds always trade at a premium to the silver market. The etf problem is SLV, double long and short and triple long and short ETF'S.  We as Silver and coin investors may believe it is manipulation, but it is simply trading and the way the world works.  Trading and investing are about making money.  Being early to a trade or investment simply means you are wrong. Will SIlver ever go above 30.00 again in our lifetime? ABSOLUTELY. But, it could go to 24.00 first.  That is not my personal belief, but time will tell. With Futures, you do not need to locate a short future, so the selling can be amplified as it has been recently. At least with the ETF's one must locate the underelying, and if you choose to short it you have to pay to do so.  This is telling us that there are excessive shorts in the market as the Shorts are paying more to be short SLV than the longs are to own it. I posted a blog a week ago and said I would work on my spelling, and grammar.  I hope this has made those happier.  The blog was regarding Europe and the metals. The metals are driven by emotion right now.  Most traders do not know why they are long or short. Aftert the FED announcment of no QE PM's took it on the chin.  Option volatilities rose dramatically.  Technically funds will bea or are short Silver as we are near the year low of 26ish. The WS crowd is waiting for the US to announce QE.  It will never happen as the funds have done the heavy lifting and put govt paper at or near all time low yields.  There is not much upside left in 2s, 5s, 10s, or 30s.  Metals will have there day sooner rather than later. Gold continues to form a solid base above the 1530-1550 level. Silver made a year low in the cash market and did close up on the day.  Although it was only a few cents that is a bullish sign. Options: Large call buyer contiue to come in to Gold adn SIlver.  Gold in DEC 2012-AP 2013.  SILVER there was a massive call purchase of 80,000 SLV lots of the JAN 2013 36.00 call.  As long as Silver can continue to base above 26.00 it may be scary, but it sahll be very rewarding. Disclosure: I am a Wall streeter, and I am simply sharing some info that some of you may or may not know.  I hope this message is imformative for my fellow coin collectors.Sincerely,Qsilver007[/QUOTE]

Create my FREE Account!

Log in or Sign up

Reply to Thread

Useful Searches