Silver getting crushed today

if folks had to only hold physical PMs then that would slow down the trade of PMs as you would have to physically deliver/obtain it.

Also think of logistics. If you have to physically have the PM with you when you buy/sell it your also reduce the locality of where/how you sell it. That could lower or raise it's value .. all dependent. As you further limit the locality of how one can sell/buy PMs you isolate regions in their buy/sell patterns and it becomes more difficult to use PMs, ie commerce. Thus the reason they evolved to a central coinage. Just read about how the money supply evolved to what it is today from the Colonial days.

Paper based allow people, just like in stocks, to "day trade" it. Thus you'll see volatile up/down spikes like we see. Unless someone shows up with a ton of silver to sell and there was ample people to buy it, otherwise the price would drop and may saturate the local market depressing the valuation in that local market.

By holding PMs physically you have transferred some wealth into a physical asset. Just like buying a house (though no maintenance, etc) [ ignoring numismatic valuations ], and houses used to be strictly a localized, in-person transaction. But now with online transactions you can buy a house/condo/etc from around the globe too.

 

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Must be everybody scrambling for silver to ransom their files.

Or maybe whoever's getting all that BTC ransom is dumping it into silver.

Or maybe this is the usual sort of fluctuation that's so strongly correlated with days ending in "y".

 

Dead cat bounce?

It was due for a spike. Bargain hunters are out in force this morning. The questions is, what will it do next? If the fundamentals still aren't there, the price wont hold. Those that are buying right now will take their profits and run, and the price will fall back down.

 

interesting read (albeit short) ... https://www.bloomberg.com/news/arti...ng-gold-bets-at-fastest-rate-since-2008-chart

 

Thanks for sharing. Hedge funds have been doing ridiculously bad in recent years in the stock market, so I don't know if that's necessarily good or bad for gold prices. The funds certainly have been zigging when they should have been zagging.

 

It's got some hot air in it's balloon ...

 

I as reading about hedge funds recently too. Imagine 1 billion in outflows in one month .. yikes .. ==> https://www.bloomberg.com/news/arti...dge-fund-suffered-1-billion-outflows-in-april

 

One billion is small change. The military budget alone uses up that much in about an eight hour shift.

 

$1 billion for hedge funds is not small change by any count for hedge funds. Any comparison with government spending is simply off the mark.

 

Perhaps that is why I don't have any faith in hedge funds.

 

No one should. Their entire business model is to screw the client with more dollars than sense. 2% vig up front, they take 20% of all gains, and are on the hook for no losses.

 

Nice exaggeration, except for the night of the Syria cruise missile attack.

 

I thought some people may find this article, What should the gold/silver ratio be?, interesting:

http://news.goldseek.com/SpeculativeInvestor/1493733600.php

 

another boring days it seems ...

 

Yes it is claw....guess I turn on the tube and see Breaking News....... DRIP DRIP

 

Right now it's at $17.07. That's like 4-5 days in a row it's gone up. I have other financial priorities right now otherwise I'd be buying. I could have gotten a tube of 2017 ASE's for $380 over the weekend at a show but passed. Very unusual for me to do that.

 

Gold is up $20.40 already today.

 

The cost was 59 million for the tomahawks. Plus variable expenses incurred by the operation: fuel, parts, wear & tear. Plus outside support to prep the ships. For example the crane operator at the weapon station who had to re-arm the ships.
with more tomahawks and smiley faces. The salaries are fixed. Food for crew would be more of a step expense than a fixed or variable. There's always a food expense whether your in port or not. But, I'm guessing it's less in port since some eat dinner off the ship because they are married or because they get off early and don't want to go back.

 

Nothing like a good old fashioned political mess -- this time at home -- to run gold prices up.

(This is NOT intended to be a political statement or to invite political commentary. It is a simple statement of a factor affecting action in all financial markets today.)