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3 Weird Things About Tonight's Huge Silver Selloff (-9%)
TBI ^ | 5-1-2011 | Joe Weisenthal

Posted on 05/01/2011 6:07:53 PM PDT by blam

3 Weird Things About Tonight's Huge Silver Selloff

Joe Weisenthal
May 1, 2011, 7:49 PM

After last week's manic action, silver is falling out of the bed to start the new week, declining by over 9%.

A few quick thoughts on the weirdness:

* Nobody really knows what's up. Querying around, nobody has any solid sense (yet) of what's driving the decline. There was no particular news that would seem to be feeding into this. Update: There's a little bit of chatter about the weak Chinese PMI report from this morning, but it doesn't seem that convincing or robust of an explanation. There's also talk about margin hiking (which has been going on forever).

* Silver is a major standout. Gold isn't moving the same way. Other commodities are down a bit, and the dollar is up, but not on the same scale.

* US futures remain higher. This is a big surprise, given how consistently silver has traded in the same direction as equities.

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: commodities; copper; gold; silver
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Sell in May and go away.
1 posted on 05/01/2011 6:08:02 PM PDT by blam
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To: blam

The bubble burst. It was expected to.


2 posted on 05/01/2011 6:09:56 PM PDT by BenLurkin (This post is not a statement of fact. It is merely a personal opinion -- or humor -- or both)
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To: blam

Somebody cornered the market and is profit taking?


3 posted on 05/01/2011 6:11:20 PM PDT by saganite (What happens to taglines? Is there a termination date?)
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To: BenLurkin

A little manipulation Joe?


4 posted on 05/01/2011 6:11:27 PM PDT by UB355 (Slower traffic keep right)
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To: blam

Normal. Probably trade sideways a while. Won’t drop below $35/oz.


5 posted on 05/01/2011 6:12:15 PM PDT by BipolarBob (The Obama COLB was just a joke folks. The real one is in Kenya.)
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To: blam

I’ve been wanting to buy junk silver, so maybe I still have a chance of getting it at a decent price.


6 posted on 05/01/2011 6:12:16 PM PDT by ChocChipCookie (Jonah is my patron saint.)
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To: blam
The Nikkei Is Making Another Explosive Move Higher

Explosive?

The Nikkei-225 is up 1.2% as I type.

7 posted on 05/01/2011 6:12:18 PM PDT by blam
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To: blam

Must be shifting their assets to lead instead.


8 posted on 05/01/2011 6:12:52 PM PDT by WorkingClassFilth
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To: blam

IMHO:

Chicoms.

They’ve reached the conclusion America is tired of their bullcrap.

They unloaded a huge amount of silver, and will be re-buying after the revaluation.

Want to screw them? Buy now before they can.


9 posted on 05/01/2011 6:14:19 PM PDT by Cringing Negativism Network ("Saul Alinsky, meet Donald Trump...")
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To: blam

10 posted on 05/01/2011 6:14:27 PM PDT by blam
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To: WorkingClassFilth

Silver bullets aren’t what they used to be.


11 posted on 05/01/2011 6:15:06 PM PDT by Jim Robinson (Rebellion is brewing!! Impeach the corrupt Marxist bastard!!)
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To: saganite

I agree profit taking ... after all ya can now buy it back at a lower price and make some bucks.. we have to wait til wed or so to see where the market really is


12 posted on 05/01/2011 6:15:51 PM PDT by RnMomof7
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To: blam

It’s not a surprise to anyone who has been reading the Kitco pundits for the last two weeks.


13 posted on 05/01/2011 6:15:56 PM PDT by ponygirl
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To: blam

Jim rogers says he is waiting for this selloff to buy some more.


14 posted on 05/01/2011 6:16:35 PM PDT by sickoflibs ("It's not the taxes, the redistribution is the federal spending=tax delayed")
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To: blam
Here's a helpful tip from wise ol’ Uncle Ape... Buy silver like crazy on this dip... I am...
15 posted on 05/01/2011 6:17:10 PM PDT by April Lexington (Study the Constitution so you know what they are taking away!)
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To: saganite

“Somebody cornered the market and is profit taking?”

Wasn’t me. I bought $4 face value in old half-dollars and quarters yesterday at 10% below their spot price. I’m still 1% ahead!


16 posted on 05/01/2011 6:17:10 PM PDT by Rebelbase
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To: blam

No real mystery, profiteering.

Somebody has been driving gold and silver to super highs and when there was indication that their potential was maxed out, they sold their share.

The only question is whether this could cause a massive sell-off and a collapse of commodities.


17 posted on 05/01/2011 6:17:40 PM PDT by Jonty30
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To: sickoflibs

Nothing personal, but I hope Jim Rogers loses his anti-American shirt.


18 posted on 05/01/2011 6:17:58 PM PDT by Cringing Negativism Network ("Saul Alinsky, meet Donald Trump...")
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To: blam

The Hunt Brothers revenge.


19 posted on 05/01/2011 6:20:08 PM PDT by DaGman
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To: Jim Robinson

Persoanlly, I’m putting my money into garlic. I’ve got three kinds in now for dividing into planting stock this fall. Next year around election time, I should have enough to repel the entire nation of Transylvania.


20 posted on 05/01/2011 6:20:14 PM PDT by WorkingClassFilth
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To: BenLurkin

I know Warren Buffet was huge on silver for the last few years.

Wouldn’t surprise me if he sold everything he had.


21 posted on 05/01/2011 6:21:11 PM PDT by Jonty30
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To: blam

bump


22 posted on 05/01/2011 6:23:16 PM PDT by WashingtonSource
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To: WorkingClassFilth

[Must be shifting their assets to lead instead.]

Pardon my ignorance, but is lead a play? I know copper has been.


23 posted on 05/01/2011 6:23:16 PM PDT by DaxtonBrown (HARRY: Money Mob & Influence (See my Expose on Reid on amazon.com written by me!))
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To: WorkingClassFilth

[Must be shifting their assets to lead instead.]

Pardon my ignorance, but is lead a play? I know copper has been.


24 posted on 05/01/2011 6:23:39 PM PDT by DaxtonBrown (HARRY: Money Mob & Influence (See my Expose on Reid on amazon.com written by me!))
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To: Cringing Negativism Network

“...I hope Jim Rogers loses his anti-American shirt.”

He and Soros have been betting against the USA for years. No one would cry if they went under.


25 posted on 05/01/2011 6:23:43 PM PDT by kittymyrib
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To: blam
How To Buy Gas For $0.25 Per Gallon

Pre-1965 quarters.

26 posted on 05/01/2011 6:23:58 PM PDT by blam
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To: kittymyrib

IMHO Rogers will do well on his silver. Temporarily.

But end up bankrupt, as a result of US protectionism.

Aw.

Poor guy.


27 posted on 05/01/2011 6:25:45 PM PDT by Cringing Negativism Network ("Saul Alinsky, meet Donald Trump...")
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To: Jonty30

Buffett was bought tons(almost literally)of silver when it was 6 to 8 bucks an ounce. Great time to back up the truck and unload.


28 posted on 05/01/2011 6:25:52 PM PDT by cornfedcowboy (Trust in God, but empty the clip.)
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To: Jonty30

Buffett bought tons(almost literally)of silver when it was 6 to 8 bucks an ounce. Great time to back up the truck and unload.


29 posted on 05/01/2011 6:26:11 PM PDT by cornfedcowboy (Trust in God, but empty the clip.)
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To: Jim Robinson

Damn.

How are we going to take out the Democrats now?


30 posted on 05/01/2011 6:27:02 PM PDT by Jonty30
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To: blam

Whenever some trusted investment advisor opines, “It’s different this time...” the bubble is about to pop.


31 posted on 05/01/2011 6:27:35 PM PDT by BlazingArizona
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To: blam

Accumulation-markup-distribution, the classic market cycle. This is a healthy thing, nothing can go up forever.


32 posted on 05/01/2011 6:28:09 PM PDT by Free Vulcan (Vote Republican! You can vote Democrat when you're dead.)
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To: WorkingClassFilth

I’m fully invested in lead. Now branching out into commodities, corn, wheat, beans, pork bellies. Stocking up on burritos.


33 posted on 05/01/2011 6:28:16 PM PDT by Jim Robinson (Rebellion is brewing!! Impeach the corrupt Marxist bastard!!)
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To: cornfedcowboy
Great time to back up the truck and unload.

Hurry, it's already recovering.

34 posted on 05/01/2011 6:28:43 PM PDT by Big Bronson
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To: WorkingClassFilth
"Persoanlly, I’m putting my money into garlic. I’ve got three kinds in now for dividing into planting stock this fall. Next year around election time, I should have enough to repel the entire nation of Transylvania."

You won't believe it...80% of the garlic consumed in the USA comes from China.

The World Garlic Festival is still in Gilroy, California though.

35 posted on 05/01/2011 6:29:33 PM PDT by blam
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To: cornfedcowboy

I had read somewhere that he bought about 10 percent of the world market or so.


36 posted on 05/01/2011 6:30:06 PM PDT by Jonty30
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; ColdOne; Convert from ECUSA; Delacon; ...

Price too high? Blame the speculators. Bubble bursts? Blame the speculators.


37 posted on 05/01/2011 6:30:11 PM PDT by SunkenCiv (Thanks Cincinna for this link -- http://www.friendsofitamar.org)
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To: blam
The large banks who are short silver have been starting to cover their short positions. I think the key is that this is May Day, Labor Day in most countries, where the markets will not be open. If JPM shorts the market down to cause margin calls, they will be covering their shorts tomorrow as longs who have margin calls will have to sell to JPM.

China has recently been the floor under the price, but they will be closed today, so its all JPM's to buy.

38 posted on 05/01/2011 6:30:33 PM PDT by Vince Ferrer
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To: blam

While all commodities are due for a 25-40% drop, Silver is the most likely to drop 50% +.


39 posted on 05/01/2011 6:30:54 PM PDT by Mariner (USS Tarawa, VQ3, USS Benjamin Stoddert, NAVCAMS WestPac, 7th Fleet, Navcommsta Puget Sound)
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To: blam

Actually you can get it for a dime. At $47.00 an ounce a junk silver dime is $3.60.


40 posted on 05/01/2011 6:31:09 PM PDT by Graneros ("Two things are infinite: the universe and human stupidity; and I'm not sure about the universe.")
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To: DaGman
Sitting here trying to recall their name ~ the Hunt brothers tried to corner the market on silver and the bubble burst.

I love the way the Wiki article begins on their story: "Nelson Bunker Hunt (born February 22, 1926) is an American oil company executive. He is best known as a former billionaire whose fortune collapsed after he and his brother William Herbert Hunt tried but failed to corner the world market in silver.[1] He is also a successful thoroughbred horse breeder.

See that FORMER BILLIONAIRE!!

41 posted on 05/01/2011 6:31:17 PM PDT by muawiyah
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To: Jim Robinson

I should stock up on Pepto-Bismal.


42 posted on 05/01/2011 6:32:17 PM PDT by Jonty30
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To: Jim Robinson

Don’t forget the hot sauce.


43 posted on 05/01/2011 6:32:43 PM PDT by ponygirl
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To: BipolarBob
"Won’t drop below $35/oz."

IMHO we'll see $20 by the 4th of July.

44 posted on 05/01/2011 6:32:43 PM PDT by Mariner (USS Tarawa, VQ3, USS Benjamin Stoddert, NAVCAMS WestPac, 7th Fleet, Navcommsta Puget Sound)
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To: blam
Glad I don’t have the money to invest - don't have to worry about loosing it.

Wish I had some of these, tho’

http://lakotasilver.com/catalog2/product_info.php?cPath=22&products_id=38

See their quote in this page

http://www.freelakotabank.com/aboutfreelakotabank.php

They have foreseen today's debacle coming for some time - and they have established their own, independent - untouchable - bank...

They have also built their own power plants. They are ‘going Galt’ - (they legally own a lot of land out there - they could, if TSHTF, control who comes and who goes. They may be more prepared than most - and they are sovereign.

45 posted on 05/01/2011 6:32:51 PM PDT by maine-iac7 ("We stand together or we fall apart" mt)
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To: Jonty30

Buffett bought silver right around $5 and sold out of it around $7. It was a profitable trade for him. He claimed to understand the fundamentals when he bought it, but he sold most of it forward because he did not like the idea of a “dead” investment that not only did not generate any money while owning it, but actually *cost* money in storage costs. So he was “taken out” of his position by virtue of having sold calls against the physical metal he had.

Buffet hasn’t been in silver for at least 6 years.


46 posted on 05/01/2011 6:33:45 PM PDT by Attention Surplus Disorder (The New Normal. Same As The Old Awful.)
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To: WorkingClassFilth

LOL! Heck, I don’t even have my peas planted yet. The wind today was enough to knock me over.

Good luck with the garlic futures. Loves me some garlic!


47 posted on 05/01/2011 6:33:45 PM PDT by mplsconservative (Impeach Obama Now!)
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To: Jonty30

Well it just went down by 10% so far today. Result of the sale?

By tomorrow he’ll be sorry. It’s already going back up.

Reminder:

He supported Obama.


48 posted on 05/01/2011 6:34:33 PM PDT by Cringing Negativism Network ("Saul Alinsky, meet Donald Trump...")
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To: Jim Robinson

Good good plan.

Get it before its gone.

And all the silver in the world won’t buy it back.


49 posted on 05/01/2011 6:35:33 PM PDT by bigheadfred (Beat me, Bite me...Make Me Write Bad Checks)
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To: Mariner

“IMHO we’ll see $20 by the 4th of July.”

What’s your reasoning?


50 posted on 05/01/2011 6:37:14 PM PDT by Comparative Advantage
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