Silver is volatile today

Silver is jumping up and down today. Any idea why? It was up to almost $15, and down around 14 and change. Que pasa?

 

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Here's the chart from today. Notice the jumps this afternoon. Where will it settle?
http://www.silverseek.com

 

Just another day in Silverburg. Right now up 6¢

 

Silver and gold just don't follow any rhyme or reason lately .
Maybe the Hunt brothers are at it again .

 

Actually it is more the BRIC and 3rd world nations who 'stacked' petroleum, figuring it would always be there and they could pursue riches in stocks, real estate, and other derivatives easy to buy/sale/ and hide profits. China miscalculated that they could also recover as well as the US from real estate, and 'penny stock' type of bubble investing. We hear a lot about China's problems, but most of Asia is in the same boat. With all of this. these countries which were once large buyers and investors in PM, but switched into the risky stocks because the governments said it was the thing to do, had no nay sayers to argue the other side, not to just buy pm, but to maintain a balanced portfolio.

If you are USD based, go here for current exchange figures and remember the values for the EUR, JPY, CAD, AUD, etc. of 6-7 years ago. What a difference.
http://finance.yahoo.com/currency-investing

Precious metals will be a factor when the values are reversed again. My opinion.

 

You think this is crazy? I hope you weren't buying when the price went over $45. No, let me rephrase that. If you had bought when the price went over $45, you would have died from heart failure when it plunged to the mid-30's.

Chris

 

Who knows where it will settle?
One thing is for sure, where it settles won't last long.

 

I'm waiting for a pattern to emerge, then I'll make my move.

 

That's just your typical smash and grab by somebody in the futures market. I wouldn't make anything out of that. It's when those moves stick for a day or two that it means something.

 

Patterns are wrong as many times (or more) than they are right. The reason patterns seem reliable is cause you only see the pattern when it didn't fail.

 

I don't just look for one pattern, I look for any and all possible patterns. I'm not the perfect investor but I don't like losing my hard earned money either. I'm also patient and I think about the possible consequences to my actions. Just saying.

 

Are the Hunt Bros. still alive and if they are, are they in a secured nursing facility?

 

I'm heavily invested in pyrite futures.

 

Nelson clocked out last year. Maybe when the other one leaves the seeming silver hoodoo will leave too.

 

I started buying at $5, quit at $25, resumed again in 2009, and have been buying ever since. I just get the heebee jeebies when it goes over $30, but I wouldn't mind if it hit that level again!

 

I think I see a pattern. I would not be a buyer at this point

 

Your back from your high road so soon. Did a Big Giant TARP Blob splat down and block your advance?

Hey that could be song: There's a TARP Blob in the middle of the road...

 

I'm waiting for $10 silver and $7-800 gold .

 

I see another pattern. The red line is drawn in the wrong place when one looks closer. One can see the drop and the sell-off but if you look closer you can see that after the high of $48.55 it took 2 years to drop to $25.00 or close to it. (I'm rounding) Then then next 2 years shows another pattern. While the drop continues the drop is not as substantial.

The first 2 years after the high silver dropped $23.00 +/-, in the following 2 years it dropped $11.00 +/- during all of which highs and lows were created. As silver drops, one buys on those dips and sells at a lower high, thereby making a profit on the downside. But while that the luscious metal is still dropping, it's taking longer to get lower. I can afford to buy now and buy more as it drops as I know I will never buy at it's lowest point. When it goes back up to $42.00, and it will, at today's prices I will triple my money. I can live with that.

 

What drivers do you see that would push Silver to 2 1/2 times fair value (cost of production)?????