Silver is dropping like a rock.........

[BayAreaDigger]

Under $28 an ounce right now from the $40 it has been hovering around for quite some time now. I might be buying a bit tomorrow... Anyone else got some input?

EDIT: Wow, it is at $26.07 now. Keep dropping, I can't wait to buy some up tomorrow. Down almost 40% since the 21st!

 

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[ramjet2187]

Bought a roll of Franklins Friday, and will probably buy another one tomorrow. Or maybe a 10oz bar.

Hey, I'm a little fish; not rolling in the dough like some of the high rollers on this forum.

 

[Cappy Z.]

Heard this morning on Squawk Box: "Why is oil still at 80 if we're dropping off a cliff..."

And yes gold and silver will continue to nosedive. Why? Supply and demand. The demand side is crashing. We are in a world wide depression, Greece will choke the world's economy by defaulting, and simply put the industrial and commercial demand for PM's is nosediving.

I sense from the show that many believe the world economy is in fact "going over a cliff".
Things are a lot worse than gov'ts are telling. Kind of reminds me of the Titanic when it hit the iceberg.
The depth of damage was not known or if known not shared.

 

[Henry2]

I hope it drops more then I can load up APMEX is starting to sell out on some items already.

 

[mts]

Heard this morning on Squawk Box: "Why is oil still at 80 if we're dropping off a cliff..."

And yes gold and silver will continue to nosedive. Why? Supply and demand. The demand side is crashing. We are in a world wide depression, Greece will choke the world's economy by defaulting, and simply put the industrial and commercial demand for PM's is nosediving.

I sense from the show that many believe the world economy is in fact "going over a cliff".
Things are a lot worse than gov'ts are telling. Kind of reminds me of the Titanic when it hit the iceberg.
The depth of damage was not known or if known not shared.

I totally agree with this. If Greece defaults and Europe goes down the dumper it may return us to near 2008 levels. I can see silver dropping down to $20 and potentially below. I'm holding off on any PM purchases until the market settles (which may take a month or more). If I miss a short term buying opportunity then so be it.

 

[jim4silver]

And yes gold and silver will continue to nosedive. Why? Supply and demand. The demand side is crashing.

That demand is crashing is completely false. Below is a link that describes how new bullion storage vaults are being built due to the high demand in owning bullion. Many of the big storage companies are running out of space. A 3 day correction does not change this fact.

Further, many often use the word "manipulation" to describe how some very large institutions use their great wealth to move PM markets down, particularly silver. I do not like that term "manipulation" because it seems to infer illegality in my opinion. I prefer to say they are using favorable trading rules and their vast wealth to their advantage. But make no mistake, whatever this use of advantage is called, it is happening. There is no other way to explain an over 40% drop in silver's price in 3 days, especially when there have been no news developments to warrant such a correction. Everything we know about Greece, etc, is no different now than it was as of last Thursday. But these powerful institutions can only use their great advantage for so long before the tide turns and the prices go up again.

This correction, however long it takes, is going to give another great lower buy in price for PMs. Whether said buyers are individuals like on this site, or large institutions who wanted more PMs but wished they had a lower price than was available last week. Gonna need more vault space as the weak hands sell and all that bullion comes rolling in.

Further, tomorrow ends the Hindu holiday of Shradh, which during said two week period it is considered bad luck to make certain types of purchases (like PMs). They are normally huge buyers of PMs like China.

http://www.advisorone.com/2011/09/22/gold-vaults-bursting-at-the-seams

Heard this morning on Squawk Box: "Why is oil still at 80 if we're dropping off a cliff..."

And yes gold and silver will continue to nosedive. Why? Supply and demand. The demand side is crashing. We are in a world wide depression, Greece will choke the world's economy by defaulting, and simply put the industrial and commercial demand for PM's is nosediving.

I sense from the show that many believe the world economy is in fact "going over a cliff".
Things are a lot worse than gov'ts are telling. Kind of reminds me of the Titanic when it hit the iceberg.
The depth of damage was not known or if known not shared.

I totally agree with this. If Greece defaults and Europe goes down the dumper it may return us to near 2008 levels.

I don't have a crystal ball, but I can tell you that you will not see $9 silver again, like it dropped to in 2008 (at least not priced in dollars). If it even gets near that, I plan to sell everything I own that is liquid and put it into silver, but I doubt I could find an ounce of the metal anywhere near that price level.

Jim

 

[mts]

I don't have a crystal ball, but I can tell you that you will not see $9 silver again, like it dropped to in 2008 (at least not priced in dollars). If it even gets near that, I plan to sell everything I own that is liquid and put it into silver, but I doubt I could find an ounce of the metal anywhere near that price level.

Jim

I didn't mean to imply that it would go back to the lowest level of 2008. That year saw prices fluctuate between about $20 and $9. I can see silver going back to below $20 but probably not below $15.. But as you pointed out, even if it does go to that level on paper it doesn't mean that you could buy physical at that price.

 

[jim4silver]

While paper prices get slammed, physical demand seems to be increasing.

http://www.financialexpress.com/news/gold-buyers-rush-in-after-price-slump/852608/0

Jim

 

[hombre_de_plata_flaco]

It's not called "The Devil's Metal" for nothing. It rebounded nicely, but still has a way to go to make up for last weeks slide.

Does anyone know how low it dipped Friday or Monday? I think it was under $27.00/toz. at one point.

 

[Marchas45]

It's not called "The Devil's Metal" for nothing. It rebounded nicely, but still has a way to go to make up for last weeks slide.

Does anyone know how low it dipped Friday or Monday? I think it was under $27.00/toz. at one point.

Hi! Barclay the lowest it got was $28.1600 which was on Mon 26th. Seems like everyone thought it went lower but not yet. Charlie

 

[jim4silver]

It's not called "The Devil's Metal" for nothing. It rebounded nicely, but still has a way to go to make up for last weeks slide.

Does anyone know how low it dipped Friday or Monday? I think it was under $27.00/toz. at one point.

Hi! Barclay the lowest it got was $28.1600 which was on Mon 26th. Seems like everyone thought it went lower but not yet. Charlie

Actually it did hit 26 in the early Mon hours I believe in the Hong Kong market. You can still see it if you click on the kitco charts to show the past 3 days.

Jim

 

[Marchas45]

It's not called "The Devil's Metal" for nothing. It rebounded nicely, but still has a way to go to make up for last weeks slide.

Does anyone know how low it dipped Friday or Monday? I think it was under $27.00/toz. at one point.

Hi! Barclay the lowest it got was $28.1600 which was on Mon 26th. Seems like everyone thought it went lower but not yet. Charlie

Actually it did hit 26 in the early Mon hours I believe in the Hong Kong market. You can still see it if you click on the kitco charts to show the past 3 days.

Jim

I stand corrected Jim. I was looking at the London chart.

 

[blai745]

Silver came back up today around $32...And becuase of me trading my scrap gold for silver...I Paid $29.50 out the door....Today

gotta love those gold/silver Ratio's Changing

 

[iceman0xh]

Heard this morning on Squawk Box: "Why is oil still at 80 if we're dropping off a cliff..."

And yes gold and silver will continue to nosedive. Why? Supply and demand. The demand side is crashing. We are in a world wide depression, Greece will choke the world's economy by defaulting, and simply put the industrial and commercial demand for PM's is nosediving.

I sense from the show that many believe the world economy is in fact "going over a cliff".
Things are a lot worse than gov'ts are telling. Kind of reminds me of the Titanic when it hit the iceberg.
The depth of damage was not known or if known not shared.

Isn't economic failure what caused prices to rise? With the world diving into depression, the value of paper money dropping, and the stock market dropping more and more each day, the price of precious metals should be skyrocketing. Gold and Silver are the counterbalance to the economy, the better the economy is the worse prices should be. The worse the economy get the more silver/gold should cost.

 

[jim4silver]

Heard this morning on Squawk Box: "Why is oil still at 80 if we're dropping off a cliff..."

And yes gold and silver will continue to nosedive. Why? Supply and demand. The demand side is crashing. We are in a world wide depression, Greece will choke the world's economy by defaulting, and simply put the industrial and commercial demand for PM's is nosediving.

I sense from the show that many believe the world economy is in fact "going over a cliff".
Things are a lot worse than gov'ts are telling. Kind of reminds me of the Titanic when it hit the iceberg.
The depth of damage was not known or if known not shared.

Isn't economic failure what caused prices to rise? With the world diving into depression, the value of paper money dropping, and the stock market dropping more and more each day, the price of precious metals should be skyrocketing. Gold and Silver are the counterbalance to the economy, the better the economy is the worse prices should be. The worse the economy get the more silver/gold should cost.

Yes, but sometimes things take time to take place. Gold has ranged from around 250 to 1900 per ounce between 2000 and 2011, and silver from 4 to 48 or so in that same time span.

During a commodity bull market it is normal and healthy to the bull market trend to have some violent corrections. It has happened in the past and will happen in this bull market. Unfortunately, it is a normal reaction for many to think the bull is over as soon as the violent corrections take place. An opposite but related feeling is to think the price is going to spiral to unimaginable heights when it takes off and starts to look parabolic on the charts. But neither feeling/reaction turns out to be reality until either the bull market is broken for good or is on its last parabolic run up. Personally, I don't think either of those has happened yet.

I believe that when the Europe financial situation really does hit the fan, initially some big traders might sell their PM paper positions to offset their stock losses. This has happened a few times so far I believe, like in 2008 and this year. But in time the big money will need a place to go, if there is a loss of faith in paper instruments/currency, PMs and other forms of commodities will receive the lion's share of investment capital and new highs will be reached. The only way this will not happen is if the gov STOPS all new printing and raises the interest rates to high levels like former Fed Chairman Paul Volcker did in the late 70s/early 80s. The prime rate rose to 21.5% in 1981. If they did that now the belief is that a depression would happen immediately. Whether or not that is true, I don't think they want to risk it. The current Fed has made it clear they will do whatever it takes to prevent another great depression, hence more Quantitative Easing is probably forth coming, and that is inflationary which should favor higher PM and other commodity prices.

All just my opinion.

Jim

 

[Goose-0]

You explain it very well Jim....Thanks.

 

[Cleetus]

Well, with the Feds meeting next Tues. and Wed. the Summit in Europe to solve their toxic debt, I think we can count on QE3 to infinity. Bernanke has already said that in so many words. So the QE3 printing presses will be turned on, or I should say, turned up, and they will run them full speed until something snaps. A fiat currency deficit spending government, like any Ponzi scheme, cannot survive without growth, so outside funny money must flood in, just to keep interest rates down, hoping it stimulates borrowing, and also to fund (loan) government overspending. Our currency has inflated almost 30% in three years. Of course the government will lie about that, but it has. So in effect, Americans have been taxed an extra ten percent per year on top of everything else by this Fed's policy.......With run away money printing the precious metals can only go one direction UP, until the government stops spending like drunken sailors, and they are not about to do that. You see, Silver didn't really go up yesterday and today. It stood still. It was our Fiat Currency, our Federal Reserve Notes, that moved. (I can't even call them money anymore!) They are worth less each and every day, and an increasing number of them will be required to buy the same ounce of bullion that sits on the table right now. .......Take a look at the 10 year gold chart...It is a thing of beauty....silver's not to shabby looking either! Kind of easy on the eyes, if you know what I mean. Don't listen to the talking heads in the Marketplace TV shows, half of them are just shills and in on it too. Anything to convince the American people that their money is as Good as Gold. Don't panic, Gold is just is a Commodity and not real money....LMFAO....I just keep buying whatever I can, just a few ounces each paycheck or when a nice chunk of cash comes in....I buy on the dips.....what ever the price, even as the price goes up it is still a bargain. When the crap hits the fan and inflation goes parabolic and the big investors realize they have to have a good position in gold, you will hear a sucking sound, as millions of ounces are gobbled up almost overnight. There won't be any left to buy. You could buy all the silver on the market at today's spot price for only 40 billion dollars, think about that. Buy silver NOW and keep buying as much as you can afford. Sell everything while you can still sell it. Put everything into metals, keep only absolute necessities and basic living supplies and do without everything you possibly can. You will learn you don't really need them anyway.