What in the world happened to silver over night?

It's been an extra volatile month in the markets, and my index funds have been taking a beating the last few days. But I decided to speculate on a chunk of silver ETF earlier in the week and woke up to this today:



Silver spot dropped $1.50 between market close last night and open this morning. I had a more conservative stop loss set for this (1%), but that doesn't do much good with these types of overnight moves!!

Any ideas about why things went off a cliff? I'm holding in hopes of a rebound, but if things continue to drop through the floor then I might just !

 

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Looks like profit taking…imo…Spark

 

My Magic 8-Ball wouldn't even try to give me an answer.....

 

The markets go up and down. Nobody complained when the markets went straight up. If you are a long-term investor, all is good and this is normal. If you are a trader, good luck.

 

A few news articles have suggested "profit taking" as well. Of course, I understand the general concept of what that means, but how does it result in this type of move?

I suppose a few whales decide to dump silver into the market (the profit taking), this drops the price, which triggers a bunch of other limit sell orders, which drops the price even more, so on and so forth?

 

I'm a long term investor for the most part, mostly index funds and so forth. But, I enjoy using around 20% of my cash for "Swing Trading".

I don't have what I'd call a problem, but I really enjoy gambling. I figure that buying into some volatility (earnings reports, when metals seem to be on an uptrend, meme stocks, crypto, etc) and crossing my fingers in hopes that they go up is better than craps or blackjack. But when things like this happen while the markets are closed, that doesn't necessarily seem to be the case .

I have benefitted from a few violent upswings in metals prices in recent months, and you are right, I certainly didn't complain then. I'm still up overall when it comes to metals, but when something like this happens it'd be nice to understand why (Were there indicators? Is it just random chaos?).

 

Short answer, market correction. The market has been climbing at unrealistic rates for a long while. We were overdue for a correction. We will have another major correction when all the people that have charged credit (borrowed money) default on payments because they can't afford the crushing interest rates. The market has plummeted over the past week and precious metals followed. Most people freak-out when the market goes down; I grin and buy more.

 

PMs will never go to zero. Some solace in that as an investor. I’m buying SLV on the way down. Double my position every $1.00/oz from here.

 

The length of your horizon is the key. I look at this as a buying opportunity. Catch any dip and increase your position
As the stock market sold off, margin calls forced investors to sell gold & silver. Not a supply/demand move. That will change.

 

That's certainly the perspective that I have with my retirement accounts and so forth. Best case scenario would be for stocks to remain dirt cheap up until the day before I retire .

But with swing trading, a big sudden drop is really painful. It's fun, and money can be made quickly, but of course, this is the obvious downside of these activities.

I did buy a chunk of IBM yesterday before the earnings report. So, at least my daily chart isn't looking as horrific as it could have!

 

This isn't something that I had considered, but makes total sense.

I never paid much attention to markets until the last few years or so. My general idea about metal price behavior had always been "Stocks go down, metals go up". This was based on the extreme spikes that are typically observed during times of economic crisis (during the housing crash, covid, etc).

However, on closer inspection, I've come to realize that, initially, metals crash right along with stocks before possibly going through the roof. The explanation that you give here would be a plausible reason for why that would happen.

In the end, I guess responsible investors have to pay the price for big money being way over-leveraged. What's new?

 

Profit taking
Market correction
Political has caused movement
Rise in price for a long time

it just happened all at once. Like all precious metals, it goes up and down. And sometimes it doesn’t take much to make it move fast.

 

Several of the big AI based stocks such as Nividia dumped. Approx 2.5% down overall, today is better, but some warnings are still in for the near future it seems.
I called the local coin/metals shop and they said their silver is still in the $30 range as "It will come back very soon and will go higher." Love those guys

 

How's that working out?
It's like martingailing at the blackjack tables until you hit the table limit.
SLV doesn't have a limit, just what you're pocket book will allow.
The blackjack works every time but the last time.

 

What happened?? Some of the CRH crowd cashed in
their recent finds. Close to $8 in dimes alone

 

I complained then. You might not have heard me though.

 

I look at metals as insurance against politicians. If the price of the insurance goes down while the risk is going up, I load up. Since my cash position far exceeds my PM holdings, the value of my savings is always at risk. I doubled down this morning at $27.74 equivalent
Just bottom hunting

 

Hm.........I wonder what they would said especially the last sentence if your call had been regarding them buying PMs from you.

 

Just wait until tomorrow!