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What's Driving Silver Prices? (Thoughts?)
Vanity ^ | 8/8/11 | OB1

Posted on 08/08/2011 1:33:39 PM PDT by OB1kNOb

As I type this, the Dow is down over 600 points. Gold shot from $1,660 on Sunday to $1,717 currently, while silver dropped last Friday to $38.32, then up to above $40 on Sunday, and has dropped today down to $38.94 currently.

What's driving the whipsaw pricing on silver? Thoughts were Friday's downturn was driven by forced sales of silver investors needing to cover other positions, then Sunday saw overseas markets drive price back above $40. Is today's market slide causing more forced silver sales to cover other positions today, or are there other dynamics at work? I read earlier today that this is similar to the market meltdown of 2008 where silver tumbled down from $20's? down to $9 on anticipated lower industrial use caused by market crash. the article speculated that silver may drop down to $20 range this time. What are FReeper metals investor thoughts on this matter? I'm vacillating between buying now at the dip below $40, and waiting to see if the 2008 scenario plays out again. Thoughts?


TOPICS: Business/Economy
KEYWORDS: commodities; currencies; economy; oil; preciousmetals; silver
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1 posted on 08/08/2011 1:33:42 PM PDT by OB1kNOb
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To: OB1kNOb

I also read a tweet today saying we may hear the Fed make their first solid stmt on a coming QE3 at tomorrow’s Fed Reserve meeting. If that happens, I have to believe that both silver and gold will really take off to the upside.


2 posted on 08/08/2011 1:36:18 PM PDT by OB1kNOb (Obama will heretofore be known in history as the downgraded President.)
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To: OB1kNOb

Silver is being held down on massive manipulation on the market by the trading houses and banks. It is a transparent scheme that will eventually implode.


3 posted on 08/08/2011 1:38:15 PM PDT by Nachum (The complete Obama list at www.nachumlist.com)
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To: OB1kNOb
Supply?

Demand?

Both?

Manipulation/hoarding?

4 posted on 08/08/2011 1:40:12 PM PDT by Paladin2
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To: OB1kNOb

The price of silver is way easier to manipulate down. Plus, silver is seen also as an industrial metal whereas gold is basically only a monetary metal.

I actually just bought some more silver today. If it goes down enough I’ll buy some more.

I have found this website to be a very useful source of information on the economy, gold, and silver.

http://goldismoney.info/forums/


5 posted on 08/08/2011 1:40:33 PM PDT by Silver Sabre
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To: OB1kNOb

First I have to identify myself as not really a precious metals investor, just an observer without any qualifications beyond being particularly interested in silver as a more accessible precious metal for me. My understanding is that silver is still priced below the historical ratio it has with gold, and that it will eventually catch up to this, reasons for it (whatever those are) being the same. Buying now would later be more profitable than buying gold now, if what I’ve just described is true.

I think part of the slight downturn might have been what you mentioned: industrial use of silver falls when industry and the economy falls. I think it’s rebound tells that it’s use as a store of value overcame that. It was closing in on $50 an ounce just a little while ago. I could easily see it doing that again.


6 posted on 08/08/2011 1:40:49 PM PDT by OldNewYork
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To: OB1kNOb

I would say it is a battle between those that are hit by loses and need to cover their margins and those that see a huge wave of inflation coming and think that silver will go up.


7 posted on 08/08/2011 1:41:18 PM PDT by taxcontrol
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To: OB1kNOb

Gold is money.

Silver isn’t.

Simple.


8 posted on 08/08/2011 1:42:17 PM PDT by Jim Noble (To live peacefully with credit-based consumption and fiat money, men would have to be angels.)
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To: OldNewYork

*its*

I wish there were another color of squiggly line under words commonly misused: its/it’s, there/their/they’re.


9 posted on 08/08/2011 1:42:17 PM PDT by OldNewYork
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To: OB1kNOb

One ounce coin for $1785 or 45 coins of silver, it is logistics in part.


10 posted on 08/08/2011 1:43:28 PM PDT by mountainlion (I am voting for Sarah after getting screwed again by the DC Thugs.)
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To: Nachum

I agree, but I wonder if even the big boys be able to keep silver prices artificially low if the Fed makes any intimation towards any new program (whatever the name) that smells of QE3 in tomorrow’s meeting?


11 posted on 08/08/2011 1:45:27 PM PDT by OB1kNOb (Obama will heretofore be known in history as the downgraded President.)
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To: OB1kNOb
Simply put, Silver is Bi-, it is a prescious metal while at the same time it is an industrial metal.

So if we (or the world) are/is going into recession/depression the "precious" aspect wants to go up but the "industrial" aspect wants to go down.

12 posted on 08/08/2011 1:50:09 PM PDT by Positive (Nothing is sadder than to see a beautiful theory murdered by a gang of brutal facts.)
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To: All

So does anyone think there is a chance we’ll see a significant price drop in silver this time around like we did when the stock markets tanked from the financial crisis in 2008? Am interested in your reasons why or why not.


13 posted on 08/08/2011 1:50:26 PM PDT by OB1kNOb (Obama will heretofore be known in history as the downgraded President.)
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To: Silver Sabre

Thanks for the link, SS. Will check it out.


14 posted on 08/08/2011 1:51:32 PM PDT by OB1kNOb (Obama will heretofore be known in history as the downgraded President.)
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To: OB1kNOb

The world banksters are putting the fix on currencies and other things in order to try to keep the debt/imbalance regime going against the USA for their pocketbooks today (and their government-dependent family members). Their anti-free-market tendencies are going to come around to bite them very hard in the future (reactions toward nationalism and conflicts). During the years to come, we’ll probably see the devolution/deconstruction of globalism.

We’ll also continue to see ever more crazy political speech. Most who have large incomes are quite dependent on the debt regime of the various levels of government to funnel the inflating currency their way (killing the dollar). Those are the constituents who influence both political parties.


15 posted on 08/08/2011 1:53:01 PM PDT by familyop (We Baby Boomers are croaking in a noisy avalanche of rotten politics smelled around the planet.)
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To: OB1kNOb

Reasons to buy physical silver.

http://www.silverbearcafe.com/private/04.09/roota.html


16 posted on 08/08/2011 1:53:37 PM PDT by Silver Sabre
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To: Positive
So if we (or the world) are/is going into recession/depression the "precious" aspect wants to go up but the "industrial" aspect wants to go down.

Any thoughts on which camp you think has greater force on the price direction? Industrial?

17 posted on 08/08/2011 1:55:06 PM PDT by OB1kNOb (Obama will heretofore be known in history as the downgraded President.)
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To: OB1kNOb

Sure, Silver is worth nothing, it will always be worth nothing. Those that can’t afford gold tried to make it worth something by stirring up a frenzy about it, but the smart folks realized, silver, ya, it’s worth nothing.


18 posted on 08/08/2011 1:55:26 PM PDT by Scythian
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To: OB1kNOb

Futures and Margin Calls....great opportunity to buy it cheap relative to gold


19 posted on 08/08/2011 1:56:43 PM PDT by dila813
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To: OB1kNOb

Your best bet now would be .308 or .223.


20 posted on 08/08/2011 1:58:49 PM PDT by GranTorino (Bloody Lips Save Ships.)
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