The silver price looks weird
- Thread starter SteveS
- Start date
Pirocco
Well-Known Member
How do they name this weirdness?
"Sell on strength" ?
Big entities big money big positions.
:BOTTOM
Buy 100K on weakness. No more. As to not make the price shoot up too much and cause some optimism / refusal to sell further.
Instead, maintain the pessimism, allow suckers to further sell low.
Still suckers found? -> goto BOTTOM
:TOP
Sell 100K on strength. No more. As to not make the price shoot down too much and cause some pessimism / refusal to buy further.
Instead, maintain the optimism, allow suckers to further buy high.
Still suckers found? -> goto TOP
"Sell on strength" ?
Big entities big money big positions.
:BOTTOM
Buy 100K on weakness. No more. As to not make the price shoot up too much and cause some optimism / refusal to sell further.
Instead, maintain the pessimism, allow suckers to further sell low.
Still suckers found? -> goto BOTTOM
:TOP
Sell 100K on strength. No more. As to not make the price shoot down too much and cause some pessimism / refusal to buy further.
Instead, maintain the optimism, allow suckers to further buy high.
Still suckers found? -> goto TOP
Topherclaus
Active Member
Spike, smackdown, rinse, repeat. Weird few days.
Pirocco
Well-Known Member
Just people that buy and sell silver positions or derivatives of it (alike a futures contract)
And, the other side of the equation, our denominator here (fiat) that changes, look at today, up in dollars, down in euros.
It's not weirdness, only that it may appear as such to people that have a narrower scope than the price mechanism.
Some info is avail for free though, and it already explains quite alot.
And, the other side of the equation, our denominator here (fiat) that changes, look at today, up in dollars, down in euros.
It's not weirdness, only that it may appear as such to people that have a narrower scope than the price mechanism.
Some info is avail for free though, and it already explains quite alot.
Silver_Dealar
Member
Just wondering are people still bullish for silver over the next few months?
Pirocco
Well-Known Member
Stock markets sit on decades recordhighs.
Look at the S&P500
Won't last.
And it's not just stocks what will be dumped, to materialize the now still paper profit.
Like always: a next crisis, a next opportunity, for those that didn't waste the means to take the opportunity.
Look at the S&P500
Won't last.
And it's not just stocks what will be dumped, to materialize the now still paper profit.
Like always: a next crisis, a next opportunity, for those that didn't waste the means to take the opportunity.
RotalSnart
New Member
The price looks weird? Really?
There is really only one thing you need to know about the price of PMS.......THEY ARE FIXED BY A CARTEL!
Otherwise, the LAW of supply and demand would hold true. It's a LAW, btw, not a theory.
Tell me of any other commodity where the DEMAND skyrocketed when the price fell.... demand for physical silver was very low at $45 and ounce, yet shot to the moon on days like Black Friday 2015, when you could get it delivered to your door for $14.13 an ounce!!!!!!! aaaahhhh the 'good old days'......
And once silver climbed back above $20, all of a sudden the U.S. Mint has a glut of ASEs, and have for the first time in years been able to stop rationing them to their dealers. SUPPLY AND DEMAND?????? HA!
And don't even get me started about large Commercials selling a billion or two ounces of silver on the COMEX all at one time, TO MAKE SURE THEY GET THE LOWEST PRICE POSSIBLE!....
The price of Silver and Gold are manipulated down by the FEDERAL RESERVE BANK. What can't they buy with the SEVEN TRILLION DOLLARS they printed for themselves under Obama alone? Imagine 93% of the stupes in this country thinking the FED is owned by the Government......
There is really only one thing you need to know about the price of PMS.......THEY ARE FIXED BY A CARTEL!
Otherwise, the LAW of supply and demand would hold true. It's a LAW, btw, not a theory.
Tell me of any other commodity where the DEMAND skyrocketed when the price fell.... demand for physical silver was very low at $45 and ounce, yet shot to the moon on days like Black Friday 2015, when you could get it delivered to your door for $14.13 an ounce!!!!!!! aaaahhhh the 'good old days'......
And once silver climbed back above $20, all of a sudden the U.S. Mint has a glut of ASEs, and have for the first time in years been able to stop rationing them to their dealers. SUPPLY AND DEMAND?????? HA!
And don't even get me started about large Commercials selling a billion or two ounces of silver on the COMEX all at one time, TO MAKE SURE THEY GET THE LOWEST PRICE POSSIBLE!....
The price of Silver and Gold are manipulated down by the FEDERAL RESERVE BANK. What can't they buy with the SEVEN TRILLION DOLLARS they printed for themselves under Obama alone? Imagine 93% of the stupes in this country thinking the FED is owned by the Government......
Pirocco
Well-Known Member
RotalSnart said:
CoOl dOwN A price mechanism is driven by a demand/supply ratio.
There is a guy named "Joe" at its buttons, Joe receives purchase orders for numbers of ounces, and sale orders for numbers of ounces.
If there is a difference, Joe adjusts the price, and continues to do so, to "convince" traders, until purchase and sale ounces match.
Now, imagine:
At a moment t1, Joe sees 300 Moz purchase orders and 100 Moz sale orders.
Joe adjusts the price $1 upwards.
Joe sees 250 Moz purchase orders and 150 Moz sale orders.
Joe adjusts the price $1 upwards.
Joe sees 200 Moz purchase orders and 200 Moz sale orders.
Bingo at price +$2
At a moment t4, Joe sees 0 Moz purchase orders and 400 Moz sale orders.
Joe adjusts $4 downwards
Joe sees 200 Moz purchase orders and 200 Moz sale orders.
Bingo at price -$4
That's how it works.
And also illustrated what happens at a major trend reversal.
Being when both trading sides simultaneously go in the same price direction.
Ex purchase orders halving and sell orders doubling.
The price is then adjusted at a doubled rate.
That "price fixing", is the negotiation process to make purchase and sale orders amounts match.
Without that, trading would be impossible for a part of the traders.
Just imagine, you want to buy and you're told you can't / have to wait.
Just imagine, you want to sell and you're told you can't / have to wait.
Would you like that?
The phenomenon you describe, is named "hedging".
Hedging, is locking in a future cost to pay, to achieve a target profit.
When alot stockpiling / destockpiling on a market, producers and consumers can be confronted with unexpected costs.
Their customers placed orders at a price then, and producers cannot just tell their customers "sorry it's more than what you signed for".
So, producers and consumers hedge their cash market orders, by taking futures positions, that deliver compensating dollars when the price indeed has changed.
Those compensating dollars, origin from those that caused the price change between cash market order and cash market delivery + payment.
To take into account is, that those compensating dollars ALSO compensate eventual windfall gains.
Imagine that a producer orders 100 Moz on the cash market (ie a long position on the cash market), and hedges it on the futures market along 20000 shorts, and the price has dropped by the time of delivery and payment, then he will have lost on his futures account the same he would have to pay less due to the lower price.
To also take into account is, that one cannot sell a position he didn't take before, which implies that he drove up the price before, OR that the price already was too high than real supply/demand ratio suggested. Even naked short selling, is nothing but a manifestation of reality, and part of the price mechanism.
Those that are against short selling - which is in itself a negative information about the product / its producers, are against punishment of overpriced/bad companies - overpriced/bad products That's why governments like to restrict it, they and their sponsored buddies are among the worst companies in the world: they take and don't deliver.
So you should rise your eyebrows already when the price goes up, not when it goes down.
Pirocco
Well-Known Member
I thought he swapped terms.hamannmj said:
But not?
And did you mean here the 93% instead of the 7% ?
A central bank is a company that government gives the privilege to create fiat money and to (use it to) manipulate prices of whatever, upto macro economical scale.
That's the same as tax: forcing to pay whatever for whatever the "seller" choses.
A central bank is even more worse, just imagine, they are proud, yes, proud, that they are so called "politically independent".
Well lol, that's just like a political party that can do whatever it wants, even without any elections that might inflict them a public bad reputation and a need to replace the heads.
A central bank isn't independent from politicians, it's independent from majorities' will within the population.
The FED isn't "owned" by government, it IS government, a dictatorship on top of a bogus democracy.
Btw I'm part of the 93% stupes and I'm Proud on it.