Silver in a nutshell

[Slamz]

I this this sums up what has been normal lately for silver.

I can't help but feel someone is making an awful lot of money doing something.

[Vanraw]

I really think we are at the mercy of the market makers. I see way to many gap opens like that chart shows that make little sense when you compare things to the major indexes. For instance SLV opens with a huge gap up but the Dow was for the most part, opened flat.

I see this stuff all the time, that doesn't seem to make sense.

[Breand]

just read this guy:

<!-- m --><a class="postlink" href="http://www.tfmetalsreport.com/">http://www.tfmetalsreport.com/</a><!-- m -->

He seems to have the best handle on the situation, which is basically that the fix is in on Silver ETFs, it's being grossly manipulated, and that physical possession is really the way to go.

[Vanraw]

<!-- m --><a class="postlink" href="http://www.cnbc.com/id/44638898">http://www.cnbc.com/id/44638898</a><!-- m -->

Good read on why Gold went down when the market puked the last 2 day's. Basically the huge hedge fund managers are popping out. I do think your right about that money getting ready to funnel into the market. Just need a bit of good news.......

If not Im not sure where they will put the money. Perhaps some other commodity scheme.

[Grieve]

Silver certainly got murdered today...biggest drop in 31 years.

Pretty scary out there...nowhere to hide except cash or treasuries right now.

[Slamz]

Yeah, I was hoping to see it hit 45, which would have made a nice sale for me (it hit 47 earlier this year, then dove to around 34, where I got in, but only got back to about 43 before this mega-crash). Looks like I'm holding my SLV long term now!

I think it'll come back, but who knows. Silver is still way up for the year. 2 years ago silver was around $15. Only within the last year or so did it really skyrocket. I guess the question is whether this was a correction and the new rise starts here, or whether this was the first half of a longer dive, back to 2009 prices.

(I can't really believe in that second choice though, because I still feel like there's way too much instability in the world economy for people to bail on precious metals. Europe and the US still appear to have very ugly budget problems.)

[Kiefer]

What are folks thoughts on the new low for the year on silver? Down to around $28 and I am wondering why? I missed the last silver rush and am wondering if this new low is another opportunity. I think it is, but would like to see what this board has to say. Between its industrial consumption, its anti-inflation capability and its resource like nature (supply) my amateur intuition says this is a buying opportunity.

[Slamz]

I dunno. On one hand, silver still has a lot further it could fall relative to the historical average. On the other hand, it seems like a heavily manipulated market and this feels like another "dip so that we can make money again on the next bubble". I also think precious metal hording coincides with feelings that the economy may be doing poorly so that may be a question of how you feel the future is going to go: the US gets its debt under control, GDP continues to rise at a good clip, unemployment drops to 5%, silver will fall -OR- the US debt continues to spiral out of control, GDP has only risen temporarily thanks to massive amounts of deficit spending and will crash once that's forced to stop, unemployment will stay the same or may get much worse, European economy = hell in a handbasket, silver will probably skyrocket as investors look for something to shift their Dollars and Euros into, fearing big inflation or worse.

Pick yer prediction of the future. I think you could lose half your money or see it doubled over the next year.


I do think this article is pretty reasonable, though:
<!-- m --><a class="postlink" href="http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CGoQFjAA&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FBT-CO-20120419-708757.html&ei=2n2yT4CwPIq36QG4__nUDA&usg=AFQjCNGTof0GMombVHcVpV6xiZnWuEoQJg&sig2=Hhk5_gPwiuJZIfoyLJqsPA">http://www.google.com/url?sa=t&rct=j&q= ... IfoyLJqsPA</a><!-- m -->

Less than a month old and pretty accurate in its forecast so far. Gold went under $1600, silver reached a low of about $28. Now it's just a question of how you feel about their prediction of a summer upshoot.

Not sure how I feel about their prediction of more stimulus this year....but it is an election year, so maybe that bet isn't too far off. Another QE would surely see silver blast off. Not sure what you think of Peter Schiff but he basically says QE3, by that name or some other, is eventually inevitable as we are now reliant on stimulus to keep the economy rolling. April job growth being weak does seem to have people speculating that another stimulus will be done.

[Breand]

SLV and GLD are manipulated by powers much greater than us. So while it may look like a winning bet, it is in the interest of every government on the planet to keep those prices suppressed so they are most definitely gaming the system. Unfortunately it took me until after buying SLV and GLD to realize this. =) (Tho I am still up on both of them overall).