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?
Thanks. I'll add him to my daily reading list.
BTTT - Fellow FReepers, thanks for all the feedback, but if anyone is inclined to comment more today, I’d really like to know your thoughts or what you’ve read on the likelihood of seeing silver prices take a drastic drop due to the market chaos, similar to what silver prices did in 2008’s market crash. Do you think silver will behave more like a commodity (like copper) and drop dramatically because of anticipated recession, or do you think it will behave more like a safe haven as gold does. Thanks again. - OB1
Good day to buy a slug of silver, 37.80-37.90. Right now.
Yes it does. Looks like it took another drop to $37.11.
Silver has a habit of taking good sized dumps overnight. That was a very snappy move today.
You can buy on the APMEX site 24 hours; give a credit card number to secure the price and then replace the credit card (for which they and almost all bullion dealers charge extra $$) with a personal check via mail. They won’t charge your CC if you say (meaning, specify on your order) that you are going to send a ck. 10-12 days later you get your Ag in the mail. Might see some $36.high silver tonight. I wish they didn’t charge so much for shipping = $25. It pretty much forces you to buy in larger qtys.
I have only bot from them once; I have not asked the question of whether I could make three buys, say, for 10 oz each overnight, and have them all shipped for $25. Probably could.
They have used generic rounds for .79 over spot.
I bought from APMEX once too, and was very pleased with the results. Good idea on the combined shipping. I might check into that myself.
Thanks for the tip.
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