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 ...
I dunno.
IMHO the Chicoms are much more aware of what’s happening in American, than we are of what’s happening in the PRC.
They’re very much focused on us, particularly.
If Chinese intelligence concludes America is about to become protectionist, they’ll respond. Heck, they may even reach that conclusion before our own PC-hobbled intelligence can. Perhaps by months.
IMHO they’ve concluded that will happen, and we’re seeing the first response.
The question now: Is America nimble enough to enter this new phase of our international contest?
I think so. Let’s start.
Beautiful coin all in itself. I may get one just to make a necklace. I have a Mexican silver dollar on a chain - had it over 50 years (Quetzalcoatl) - and another large piece of expertly worked Tasco Silver - signed...larger than a silver dollar - about 32 grams) - head of Indian chief in Eagle headdress.
I don't get them for ‘collective’ value (don't have enough money to bother with that) but for beauty.
(Money and I have never had much of a ‘relationship’. If I have what I need, I'm content. Not chasing after money leaves me time for other things. ;o)...and I don't have to stay glued to the Dow
Selling puts, not buying. Should be some nice premiums in the morning.
Dumping a little volume into a soft market is a great way to clear out some stops. Same thing happened last week and we were fully recovered by Thursday. With the silver market being as tiny as it is, and the significant amount of attention being generated, volatility is going to be the keyword. Buy the dip!!!!! I now have a year end target on $108. Since I started buying silver at $7.42 / oz, I am not surprised by the actions of those that are late to the party.
I tend toward junk silver myself. Morgans, Franklins and Mercury’s in my case. Long term they should do ok, at least keeping up with inflation.
Now please.
Are you actually claiming the world’s largest foreign exchange reserves cannot function during a mainland Chinese holiday?
Where, incidentally.
Monday morning began just a few hours ago...
Let me first apologize for this example.
Seriously. Profoundly. I’m sorry and I assure fellow FReepers I’m not trying to dredge up any bad memories, or be a drama queen with this comparison.
But. Wasn’t very much the same, said about Tet?
ahaha - ever been through Gilroy, Calif? An acre would like minuscule.
Hey, who knows, it may become the coin of the realm. Back in Roman days, it was, literally, worth it weight in gold.
http://www.walkaboutmag.com/22unclepaul.html
The 'stinky rose' has a long and illustrous history.
Yup. A number of times. I used to live in San Jose.
Everything has a value. If an asset’s valuation is currently below what it is worth, then it’s an investment opportunity.
My pleasure! Didn't know I was a person of such influential opinions.
I don't think Bernanke needs any help from me trashing the dollar.
I agree with your second sentence above. But I don't believe that is the case with the dollar right now. I'm not knowledgeable enough to trade currency, but I don't see any reason to see the dollar doing any real appreciating under the current bunch in DC. I think they are lying through their teeth and they are deliberately destroying the dollar. But be it malevolence or incompetence, they are doing it.
Jack up interest rates and we'll see it go up. But that doesn't change the fact that one way or the other, Washington has got to pull a trillion or so *each year* out of its metaphorical ass. And that is a doomed enterprise.
I own my silver at about an average of $12-$14. Even if I sold it now, the profit wouldn't be enough to change my life. I prefer to hold it as a disaster hedge. No disaster? Well, it will just sit there.
The volume is heavy for globex, moderate for a day session. That much coming in collapsed the bid no doubt. Real selling or a test? Volume is stlll pretty healthy and it’s heading back for that low.
I short-sold 50,000 ounces on Friday...(in a mock futures trading account...RATS!)
buy local folks or grow your own...
Advance knowledge of Osama announcement?
I like your style....we need more like you....
I believe the fundamental forces at play in the real economy are still aggressively deflationary. I also believe the Fed has surrendered in frustration.
That’s right! I just sold about 9 or 10 old dimes (Mercuries and Barbers)I had found in my closet and forgotten I had. Apparently I had bought them a year ago or so when the price wasn’t nearly as high as it has been! Those little bits brought me about 30 dollars; I was thrilled!
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