WOW! What just happened?

rbaggio said:
Did the longs get out, because of the increase in margin requirements last week?
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That's a distinct possibility. The hike in margin requirements may be enough to scare out some of the longs, but I'd say there are now shorts coming in, which is why the price seems to have recovered a bit.
I'd suggest that the shorts will get nuked again when silver goes back up to say $46 or $47 again.

I'd suggest that this should be marking the top of the silver price action for the intermediate term, and that now I've revised my 1-month and 3-month target of about $35/oz and $28/oz respectively.
Gold, on the other hand, is continuing to ramp in value likely due to the silver volatility which means buyers are flocking to gold. I'd say that's a wise move because silver IS volatile at even the best of times, and gold will always outshine silver in this regard.

I'd be going long gold, if I was going to go long the metals now, and I'd advise anyone else considering going long metals, to do likewise.
 
Don't be a bunch of fraidy cats. Even at $50.00 physical silver is still undervalued. Everybody talks tough as the price rises, don't be panicked by a dip like this, particularly before you find out why it happened....
 
Dynoman said:
I wonder if the same guys that made the big sell on Friday and took a big profit are the same guys driving the price north again? Ya know, sell off (profit) reinvest (price increase)

If your talking about market manipulation corps like JPM could easily do this. After all they need to cover their physical sort position. So induce volatility by major buy/sell and take the profit. Simple strategy when you have a lazy couple of bills to play with.
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Possible, but very unlikely. Futures traders generally consolidate around key resistance levels. So this is nothing to do with short positions.
I'd say the volatility in the past week have scared a lot of longs, and so they resolved to unload those positions, and it just happens that they saw the price going down, so I presume they accepted the bids and took them all out at the same time, which explains the flash crash. It reminds me of May 6 2010. But instead of the stockmarket, it's the futures market.
 
Jonesy said:
Don't be a bunch of fraidy cats. Even at $50.00 physical silver is still undervalued. Everybody talks tough as the price rises, don't be panicked by a dip like this, particularly before you find out why it happened....
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If you don't mind buying silver now and having your position worth getting cut in half, then fine, no problems with that at all.
But be sure to keep some cash on hand because the silver price is very likely to get cut in half. Of course it has nothing to do with fundamentals. Rarely does market action correspond with fundamentals. It's 99% emotion, and right now the sellers are calling the shots. Make of that what you will.

I know why the crash happened. Margin compression tends to do that, quite regularly I might add.
 
Jonesy said:
Don't be a bunch of fraidy cats. Even at $50.00 physical silver is still undervalued. Everybody talks tough as the price rises, don't be panicked by a dip like this, particularly before you find out why it happened....
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Lol so say you got 50K - 100K invested in it, walk away now and you get 200K+ or stay strong , true to the cause and not be a fraidy cat and walk away with 30K- 60K ?!? respectively ?

I dont think thats called investing :)
 
Bear Trap! :lol:

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goldpelican said:
Must say though, to anyone out there having a heart attack over the POS dropping so quickly, now is a good time to examine why you're having that reaction and re-evaluate why you're holding physical silver. Are you stacking for long term wealth creation, speculation, investment, insurance or SHTF? How does such a price drop fit with your strategy?
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As new as I am to buying/owning silver, this move hasn't freaked me out like the dip at the end of January did. Eek! (where's the "freaked out" smilie face?) I was going backwards then, but I think that gave me some insight into what to expect if I'm going to play this silver game. I do think the POS is going to keep climbing and the GSR shrinking, but it can't all happen at once, can it? I've never seen a chart without dips. As long as I keep looking at the average value of my stack and not just what I paid last time, I don't freak out so much. The price has some way to go before I hit the "despondency" part of the cycle.

Hopefully, if it gets close to $35 again (where I start to lose), I'll have some spare $$ to buy in again. I was hoping to have my first go at swapping some of my meagre stack for gold, but I think that train might have left the station. Have to wait for the next one now.

Starting to get more of a thrill from this PM bizzo, rather than just being a 'fraidy-cat. But I guess that's easy to say, given my modest stack.
 
Well I did it....I went and bought 34 Mercury dimes, 106 Roosevelt dimes and 8 Franklin half dollars for $590. I was looking for a short term investment and a safe place to put money ....hope I made the right choice??
 
bushfaery said:
goldpelican said:
Must say though, to anyone out there having a heart attack over the POS dropping so quickly, now is a good time to examine why you're having that reaction and re-evaluate why you're holding physical silver. Are you stacking for long term wealth creation, speculation, investment, insurance or SHTF? How does such a price drop fit with your strategy?
Click to expand...

As new as I am to buying/owning silver, this move hasn't freaked me out like the dip at the end of January did. Eek! (where's the "freaked out" smilie face?) I was going backwards then, but I think that gave me some insight into what to expect if I'm going to play this silver game. I do think the POS is going to keep climbing and the GSR shrinking, but it can't all happen at once, can it? I've never seen a chart without dips. As long as I keep looking at the average value of my stack and not just what I paid last time, I don't freak out so much. The price has some way to go before I hit the "despondency" part of the cycle.

Hopefully, if it gets close to $35 again (where I start to lose), I'll have some spare $$ to buy in again. I was hoping to have my first go at swapping some of my meagre stack for gold, but I think that train might have left the station. Have to wait for the next one now.

Starting to get more of a thrill from this PM bizzo, rather than just being a 'fraidy-cat. But I guess that's easy to say, given my modest stack.
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Well said.
 
Izaana said:
Well I did it....I went and bought 34 Mercury dimes, 106 Roosevelt dimes and 8 Franklin half dollars for $590. I was looking for a short term investment and a safe place to put money ....hope I made the right choice??
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How do you feel about it?...if you don't feel safer, there's no point holding them and try another format or metal, at any point you can sell them off and get your cash back!
 
It's market manipulation. They chose today because of the Asian public holiday, less resistance that way. Don't worry, it's going back up, they're just using today as an opportunity to buy back some real silver to cover their short positions.
 
Love your pic Clawhammer (lol..oh my god...did I just use this term...sorry, only recently discovered what it was...first time user). Am starting to throw that term 'Bear Trap' around now too...helps overcome the emotional surge trying to over take the strategic mind.
 
Peter said:
Flip said:
down is good
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Well ,you might just get alot more "good."
Possibly all the way to $30.
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Yeh i dont get how down could ever be good. I thought up was good ?! :/

You buy at $9 then it goes to 18 then good
You buy at $18 then it goes to 25 then good
You buy at $25 then it goes to 45 then good
You buy at $45 then it goes to $60 then good

So on and so forth (if it keeps going up no matter when you buy it is will ALWAYS be good)

If you buy at $45 and it goes to $30 i thought that was BAD !? :|
 
I'm another newbie but raring to go- just bought a few oz on saturday night, watched it go backwards fast :o------ so bought some more today. figure that you have to be in it ...:)
 
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