WARNING: Apologies in advance for the ramblings... Thanks for the post Renovator, I think this type of movement is sobering for everyone, kind of like the mug of black coffee the morning after a hard night on the sauce... it starts people thinking clearly again, looking at the fundamentals, re-analysing their strategy and re-evaluating their own drivers for being in the game in the first place. I think it also provides for a valuable learning experience, for me, I think even with solid fundamentals driving the rise, there are always forces acting in the shadows that are stronger than those we see on the surface, and these forces have the ability to push the market any way it feels, you can't predict it (except if your Stella!) and you certainly cant control it. It also confirms that nothing can rise at such a sustained rate for such a reletively long period of time without a comparative correction, you always have to remember that this is normal, especially as though all pricing indicators are fundamentally based on a system that is much more directly affected by consumer sentiment and fear than rationale and sound thinking. It will be interesting though as to whether either the $50USD or the 1kg:1ozt GSR will be a psychological barrier the next time round... will people decide to take profits or swap to a more stable option in the future at these points just becuase of this movement or will there be other factors involved? after all, fear drives choices... and this experience has to have instilled fear in the minds of many. My fear is that people will take this correction as a sign that the "run" is over, that the fundamentals of precious metals are in fact flawed and that the global economy (US/EU/at all) are not in such a bad shape after all and decide to just jump back into the ponzi pool... If this occurs and we see a turn away from the fundamentals, then THEY have won and we might as well climb back under our wooly sheep skins and start bleeting with the rest of them
Last time i bought spot was $27.42 average inc post and premium is $28.08/ozt i might have kept buying all the way up if my GF and I hadn't bought a new car, started a kitchen reno and made a few other large purchases. I'm happy our fiat went into these items instead of silver over the last few months. We need a couple more big purchases then we can start accumulating more silver. Those that are in the red, hold you stack - silver will go much higher eventually.
I have the same fear apollo that the $50 mark will stay for a lot longer than we think because of the weak hands dumping atm shows that they dont have the gonads to ride it out & the big end of town will get what they want with our help
I am not certain that the only factor here is market suppression by raising margins. The initiator, I think, was the "Crash JP Morgan, Buy Silver" followed by the small SLA internet media campaigns (and US dollar cratering fears). This lead to the run up and resulted in a push back by raising margins. As has been said elsewhere (was it by Stella?) once the Crash JP/SLA campaigns are flushed out we will see where the "true" "market" price is. We had an internet media bubble.
i was fortunate to get in when the price was hovering around AUD$21.5 /oz.......i am not anticipating that it will pull back that far......one never knows with this sort of volatility.... EDIT:....just preparing more funds quickly for another purchase.................
Well this is only my opinion but i think they let it ride high so they could take big profits then send it crashing to get physical back on the market to buy up at a price they could get maximum oz for their fiat.so all this talk about not having the physical to back the paper will be unproven now because they will have the physical or close to it . heres a question for you hobo ..why did it tank to a point where stop losses come into play ? in a market where demand outstripped supply ? supply & demand drives a market up not down .In a real market if theres a scarcity of product that everybody wants it usually means theres a premium to pay not get cheaper Please give me your take on that turn of events
Yea I think the power wheeled against silver has been an eye opener for most people, I don't mind sitting on it for a few years anyway.I'm still in the green with my silver but the way there going I might be red soon.Only good thing is cheap Dragons if there is enough to go around.
I'm still in the black a little (average cost price around $30 AUD per ounce) but hopefully the price will drop even further on Monday and take me into the red so I can I buy some more silver on Monday. I love price drops. I had stopped buying when silver went over $40 per ounce and knew there was rampant speculation but due to my strategy of taking a long-term view and a not being a trader I didn't sell any at $44 AUD per ounce even though I thought it was overheated and likely to pull back. I generally buy when I feel something has good long term potential and sell after it becomes substantially overvalued or I find somewhere better to invest the money. I generally don't try to trade in and out of things. Let's all hope there is another large price drop on Monday so when I go to the dealer to buy some silver it'll be cheaper. Plus if 1 kilo PAMPS drop to under $1000 per kilo as an added bonus we get to see Yippe-Ki Yay eat humble pie which he deserves to eat after confidently proclaiming they will never get to that price.
Apparently you are not the only one, but we are still very happy! I came to the market at AU$34, buying at $42 and still buying...well not for the moment, run out of paper:/
+1 i would like a little more insite from HBJ's perspective as well. From all experiences over the last few weeks, supply of available silver through most of the major bullion dealers in Aus has been dwindling rapidly, either stating long delays or even no stock in certain items of more than a few months. With a mind on standard economic drivers such as supply/demand, quality etc, I would have thought demand is still high and supply is low, why havent some of these drops in the paper market been buffered by this physical situation? are there other factors involved?
I dont get these claims of manipulation, its just people selling... its normal for the prices to drop. Crude dropped 10% but nobody claims manipulation lol its just the silver market
by this large a percentage in a little over a week ? 10 % would be understandable... im not buying it... simple market driven economics says it shouldnt happen.In the words of judge Judy if it doesnt make sense its not true lol
CME prices are set by the bullion banks JPM ect, they own it, they just took heaps of liquidity out of the market. bit like the hunt bro's got caught in 80's when the usa gov cut there bank credit off.
Silver still has fundamentals but who actully thinks it can do 160% a year besides bob chapman and his followeres on this forum lol... last time something rose like that it was u.s realestate lol
Yes, very good lesson learnt! Due to my recent buys I am in the red, I even brought my average down buying yesterday. My cost average is now $39.04 (ouch). I eat humble pie no problem. It's investment money so that's ok & I have more. I hope it goes back to $22 & stays there. I will hold & keep buying.
I think it is all stella's fault. He sold out part of his stack and everyone followed............ But seriously, the spot price is set by the paper market more than the physical market. Everyone who has sold paper or physical is part of the manipulation, and there seems to be plenty of us here. Sure maybe there was a gentle push by the EE, but they arn't that powerful, and only all all us participants who can cause a crash like this. By buying it up and then selling it down, we are all part of the manipulation. For the record, I hold physical but I haven't sold anything, but then I didn't buy anything on the big run up either. I'm looking to buy in soon though.
Ok im gonna come clean & fess up on why im so happy apart from my education. I was just about to start a little silver adventure & if i would have gone down that path at the time about a month ago i would be down around 30K as of today but something told me it had to correct & i was waiting for it to happen The fact that i listened to my gut instinct saved me .Theres something to be said for gut instinct. I know someone that wasnt so lucky
