http://www.nasdaq.com/article/cme-h...-times-sunday-as-prices-slid-9-20130520-00633 Interesting,well not really, but glad that this is happening. Surely silver is not dropping so quick that they had to put the brakes on. Ideas?
Why stop trading? Why not let the sales proceed? It's more silver for others. In the end, all that happens is people selling what they previously bought. Imagine you'd buy a silver stack and later on they block you from selling it. Also, what the use of trading halts, those that attempt to sell, can just wait to sell later. It won't make the end of the day different.
This is why we're not having wall street / stock market crashes any more. 75% of trades are done as EFT's therefore when something beeps, "Hey Look, QUICK, I'm moving too fast" the computer pulls the plug. Its like frog in hot water - experiment. (No sudden movements)
6 days ago the silver futures net position was 13218, about 66Moz, only twice an annual US Mint sales. A decade recordlow was 12011 on 26/06/2012, and they started the october 2012 downtrend with 57840 which is over 4 times that much, they thus dumped 77% of their positions since. Then I wonder, if the futures market trading halts prevented a $20, then the Comex net position must have sat nearly at an all time recordlow. At a net position of zero, the futures market ceases to be able to drive the price further down. Of course they still can generate any trading volume they want, only that they will need to buy/dump same positions much more. Imagine they didnt do the futures market trading halts. Then what, if they ran out of positions to dump, they couldn't have pushed the price further down anyway. And the CME (I think?) only covers the futures market, so sales from stackers or sales from non-futures based ETF's (like IShares Silver Trust); they can't stop anyway. Or does IShares have its own measures in place?
Since we saw a short touch of almost $20, that will be my next purchase point. No matter the pictures of launched rockets etc. And I think by now alot learnt to not buy after those much faster than inflation uptrends anymore.
Psychology sub twenty in US$ would/must be a target whether a intra day spike or a sustained sub $20 session close who really knows However with recent exchange rate volatility with the Auzzie there's the possibility out tide has turned early.
It might have bottomed, of course - nothing is 100 % certain. If you want to stack up, then buy a bit now, then buy more if it goes later. 22-23 $ is a very good level for buying. Suppose it has bottomed or will, the next week - it will shoot up much higher... Not buying now is missing a great opportunity. But if it dips further, then you will simply buy more. Thing is, the next strong support level isn't that much lower... so, if you risk waiting more, you will gain at most 3-4 $ per ounce. But the premiums are so high. I think it's not worth waiting without buying. Split the risk: buy some now and see what happens. If it the price grows, you will gain. If it dips, it's less likely to take a deep dip, but you will be able to buy more. In a few years your stack will be worth a whole lot more!
