Southerner said:
Technical vs Fundamental
Disregard for a minute the manipulation of silver pricing, and imagine this and all stock pricing were subject only to genuine market and societal forces.
Can someone explain to me why, in human and fundamental terms, when prices are falling and breach a technical support line, they should then continue to fall. Is it simply pessimism, or is there another explanation.
If you want my 1oz worth, and you're telling me to put aside the manipulation, then I see the following bullet points as being truths:
- Silver and Gold are rare commodities, one can be used industrially and monetarily, the other has slight industrial use, but even greater rarity.
- Silver is underpriced. It was underpriced at $50/oz, and it's even better value as I write this (AUD$33.40/oz).
- Regardless of upcoming SHTF/Recession/Stagflation/Deflation, one should be in this for the long haul (I am).
- The fundamentals will ultimately win the day - they
must. Why? Because one day, Jimmy Bob is going to dig out the last ounce of silver on the face of the planet. USGS predicts in 8 years. What you think is going to happen then? Price will reflect this!
The question - in my humble opinion, is more along the lines of "How soon do you see the current manipulation lasting?". That, rephrased, really equates to "How much longer are we going to be able to build our stacks?". Once the manipulation ends, and the true value of these metals comes through in market pricing, I for one, am sure you won't be able to casually turn around and order multiple ounces of Silver - and you'd be unlikely to trust them to a registered post item, either (you're going to want full value insured courier, and won't bat an eye at paying for it either).
I know this doesn't answer the question of "Why is it falling though technical support lines" - the answer to that, I strongly suspect, lies partly in the manipulation, and partly in a scared "investor". The times we live in, to quote an ancient Chinese proverb, are "interesting". Moreover, a bulk of small time investors are panicked at the moment - consider they've seen shares look like the Titanic on a yoyo, T-Bonds are effectively a negative return when considering inflation, so many in recent times flocked to Gold and Silver, now these too have - in the eyes of the impatient and/or uninformed, "failed" (Gold going sideways and leaking a little, Silver going down).
