Silver getting crushed today

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I usually try not to engage in short-term or technical prognostications on metals, but spot silver is about to test its December 2016 low point of just under $16. Chart jockeys will find that level a significant test of the market's willingness to go well lower. Those of you who know my feelings know I find technical chart watching as sound as voodoo or fortune telling, but people do act on such foolishness in a self-fulfilling-prophesy way.

Watch for language like "testing a support level", or worse yet, "crashing though a support level". Witch doctor stuff - all of it.

Full disclosure: If Daniela Cambone of Kitco wanted to go to dinner and discuss technical analysis of metals markets, I'd play along and go with her and pretend it were a serious subject. That's just the kind of guy I am.

 

If you like voodoo level charts, Kurt, there are several saying gold doesn't have any support until the $1160 to $1170 level, and if it blows through that, the next stop is $950. Wouldn't that be a trip?

 

That would be the coolest thing ever, but I'm not going to count on it. The economy writ large has developed a massive soft spot, automobile dealers suddenly are struggling to push steel, Yellen the Data-Driven has noticed, and we're soon going to actively fending off deflation again. What happens to metals depends not on THAT stuff, but what is done to COMBAT that stuff.

 

Makes me happy that I gave up on Ford stock three years ago, 5 percent dividend or not.

 

I'll save up my pennies for when Gold keeping falling below support levels, then I'll swoop in and buy like crazy at $350 !!

I might even buy a foreclosed gold mine or two too.

 

Not a bad idea. Last time silver was artificially forced down there were many silver miners went out of business because the paper price was below the cost of manufacturing. We are probably very close to that now, if not already there. Same with gold.

 

We've had a long debate here on what it costs to manufacture silver. Some say $9.00 an ounce. What are you saying it is?

 

I'm not, because I don't remember the numbers. All I remember is reading that last time it dropped below about $14 (I think that was the number) then it cost more to mine and refine than the spot price.

 

Could always identify one silver specific miner, look at one years production, check their public P/L statements and determine their total annual cost and profit and figure out the cost of mining to produce xx Oz of Silver.

 

I agree Kurt. But those expecting $1900 may be in for a rude surprise. The last gold rush was fueled in part because of unwarranted expectations that quantitative easing would result in high inflation. Although I think QE may have staved off deflation, it didn't produce the
wide-open inflation many expected, IMO.

Does anyone recall The Who's "Won't Get Fooled Again?"

 

Bman, you're hurting the industry. Get back to buying. LOL

apparently PM ASE/AGE has dropped.
==> http://www.coinworld.com/news/preci...le-bullion-coin-sales-from-mint-nosedive.html

==> http://www.coinworld.com/news/preci...-silver-bullion-bounce-back-in-march.all.html

 

It's another new day in the neighborhood ...
Let's see if Silver will be our Friend today ?
.

 

If you're looking to buy silver has been friendly of late. Still not quite cheap enough for me to buy generics though.

 

Has it bottomed out now.... in the sixteens....or we going to limbo some more....

 

I'm staying in timeout. Too many days in a row of falling.

 

Dealers are expecting the drop to continue. Premiums are down as they are trying to dump inventory.

 

Probably a good choice B-MAN .... This lady want to sell her Morgan for 13.00 a piece........ I arrive there to look and make an offer....... and there walkers not Morgan 13.00 not going to happen made an offer probably thought I was trying to take advantage of her when I said 6

 

I see Premiums going up for ASEs ...
they know *their* buy-in price and always want to maximize profits as long as possible.

 

LOL. As the world turned, Sydney traders said "recovery", then London said "level", and New York said, "Nope, you're all wrong - down again!"