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 love the way the Wiki article begins on their story: "Nelson Bunker Hunt (born February 22, 1926) is an American oil company executive. He is best known as a former billionaire whose fortune collapsed after he and his brother William Herbert Hunt tried but failed to corner the world market in silver.[1] He is also a successful thoroughbred horse breeder.
See that FORMER BILLIONAIRE!!
I should stock up on Pepto-Bismal.
Don’t forget the hot sauce.
IMHO we'll see $20 by the 4th of July.
Wish I had some of these, tho’
http://lakotasilver.com/catalog2/product_info.php?cPath=22&products_id=38
See their quote in this page
http://www.freelakotabank.com/aboutfreelakotabank.php
They have foreseen today's debacle coming for some time - and they have established their own, independent - untouchable - bank...
They have also built their own power plants. They are ‘going Galt’ - (they legally own a lot of land out there - they could, if TSHTF, control who comes and who goes. They may be more prepared than most - and they are sovereign.
Buffett bought silver right around $5 and sold out of it around $7. It was a profitable trade for him. He claimed to understand the fundamentals when he bought it, but he sold most of it forward because he did not like the idea of a “dead” investment that not only did not generate any money while owning it, but actually *cost* money in storage costs. So he was “taken out” of his position by virtue of having sold calls against the physical metal he had.
Buffet hasn’t been in silver for at least 6 years.
LOL! Heck, I don’t even have my peas planted yet. The wind today was enough to knock me over.
Good luck with the garlic futures. Loves me some garlic!
Well it just went down by 10% so far today. Result of the sale?
By tomorrow he’ll be sorry. It’s already going back up.
Reminder:
He supported Obama.
Good good plan.
Get it before its gone.
And all the silver in the world won’t buy it back.
“IMHO we’ll see $20 by the 4th of July.”
What’s your reasoning?
Love that Atlas quote on their website! The Navajo here in Arizona also have their own power plant and are mining coal. The enviros have been trying to shut them down and they told ‘em to stick it.
Protectionism is as certain as the day is long...as is sovereign default. And, they are not related.
Keep an eye on Beijing.
If the Chicoms decide Trump is going to win - they’ll proactively get in front of it, and revalue the Yuan to stave off protectionist measures.
Could be, they’re unloading tons of silver now, to re-buy with more valuable Yuan later.
Which would be a (huge) money-making opportunity for anyone who were to buy, before then...
Just saying.
I wasn’t aware he sold his stake.
It’s probably the big banks then.
I drive thru the Navajo reservation quite a bit. You see them selling coal on the sides of the road quite a bit.
Yeah, well, I don’t have any money.
And from what the doctors tell me, by the end of the summer/fall I won’t have any.
So what the heck.
A silver correction is way overdue. It actually started to drop a while back, but then the Japan earthquake hit and everything skyrocketed again.
Tell me about it. I did the 30-miler version of the Minnesota Ironman with my kids ("The Velocity Twins") today.
31 degrees when we left with 20 mph headwinds. Have you ever been pelted in the face with wicked little snow that stings like a sandstorm? In MAY?
...and there were tendrils of snow being blown along the surface of the pavement, just like in midwinter.
*Brrrr*
Cheers!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.
