Posted on 05/19/2013 10:36:27 PM PDT by blam
The Week Begins, And Silver Is Instantly Getting Destroyed
Joe Weisenthal
May 19, 2013, 6:18 PM
Fans of precious metals have been getting creamed lately.
Thanks to declining volatility and a growing sense that real interest rates are on the rise, gold and silver have been getting taken to the woodshed.
And in early Asian trading there's no letup. Silver is getting demolished.
From Kitco, here's the sharp downward spike.
Screen Shot 2013 05 19 at 6.16.13 PM
Kitco
As you can see here, the decline in gold is more muted, but still visible.
Silver's not the only thing going wild.
The yen — which everyone is watching — has been jumping around in early going, with it sharpening notably right at the open, before weakening again.
Meanwhile, fans of the precious metals are likely to point to various excuses for the bad price action.
The latest talk is that it has something to do with ETF liquidations, and big mysterious trades that happened on Friday.
(Excerpt) Read more at businessinsider.com ...
Good, I need some new fillings...
Didn’t Chase buy a boatload of silver not long ago?
m
So if precious metals can’t buy as much goods as they used to, I guess that means they are suffering from very bad inflation.
Looks like a good week to buy more silver! :)
As long as you buy physical silver.
Part of the reason people are dumping silver is concern that there is more silver certificates outstanding than there is physical silver to redeem it.
Kind of like fraction reserve banking applied to the precious metals industry
"We have been saying this for many months: keep buying physical gold and silver regardless of price. At some point in time, it may not be available to buy, except at substantially higher prices, or not at all. "
If you’re buying metal like a stock, to hold and then sell for a short-term gain, you can easily get burned. If you want gold and silver sothat when the SHTF, this is a good moment for you. Put another $1000 into silver this week if you can. An ounce or two will buy a weeks groceries some day, IMHO.
Don’t buy silver (or anything) from a “company” called “Bullion Direct”
I paid them for silver and got nothing
word!
glad to fill in details for anyone who mails
There's an old saying from former generations in central Texas-- "gold for the mortgage and silver for food".
It's probably been around for many hundreds (thousands?) of years before that. In fact, my guess is that the deep emotional reaction is hard wired into our brains. The thing is that there are so many things we're hard wired with that we learn to adapt to succeed in our ever changing world, and mho is that this is one of them.
If there are too many silver certificates and not enough silver to cover them, then wouldn't demand for physical silver skyrocket?
Also, Northwest Territorial Mint has terrible reviews.
Just for some perspective-— Around 1982 I bought some silver at $16/oz
We call it fictional reserve banking and yes the paper gold and paper silver pushers don't have the physical to cover their paper. Not by a long shot, there is too much money to be make by hypothecating the precious metals
Thanks for the heads up. After a couple of negative experiences with ordering silver online, I now only buy locally from a nearby coin shop. I get a lower price over spot than the online joints, and I don’t have to pay shipping, and I get possession of the silver immediately. My local shop even throws in a free plastic storage tube if I buy 5 or more American Eagles or Canuck Maple Leafs.
I’ll never go back to ordering it.
There are certainly many tales of long lines, high premiums over spot, and empty shelves, which is what you’d expect. It should follow that the “paper” price in the markets would rise to restore equilibrium, shorten the lines, etc.
But it’s the Bizarro World in the markets these days. Silver dropped two bucks in fifteen minutes because one guy got a margin call. You’d think the market would correct in no more than an hour of Hong Kong trading, but here we are still a buck down from Friday’s close.
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