Go Silver Go!

Originally posted by CosmicCitizen
Has anyone posted that the catalyst for the recent $2+ drop in Silver was that one trader bought a million dollars worth of $25 puts (waaaay out of the market)? FWIW, that trader is rumored to be George Soros.

wow, really, how the H*** did he do that?

As long as the Fed keeps printing paper money like crazy, all metals will continue to go up, especially precious metals.

Now we get to throw in high inflation, meaning gold, silver, and platinum group metals will continue to climb, along with nickel, copper, and even aluminum.

You never really MAKE money on metals, but you can KEEP the value of your purchase, even if you sell it at a "loss."

A "loss" isn't really a loss, as the price reflects the value of the paper money at the time.

And it's a lot easier to make "change" with silver than it is gold.

there is a bubble starting with silver
its just starting to dawn on a bigger audience
and
there is a shortage of physical supply...

reply to post by camaro68ss

Here is one link to the story (they dont mention Soros....I heard that from a silver pit broker).

www.thedailycrux.com...

BTW, the article is technically incorrect. It says "....options to buy.....SLV by July at $25" but that is wrong it is an option to sell (ergo a put not a call). Geez. who wouldnt buy an option to buy silver at $25 for 10 cts???

reply to post by Blarneystoner


Blarney, maybe you should edjucate yourself what really happend with Hunt Brothers...
wealthcycles.com...

reply to post by Zubie

Hunt Bros tried to corner the silver market but ended up being the ones corned instead.
They went bankrupt after the silver collapse.

reply to post by jude11

If Silver dropped to $21~ (the 2008 High area) then that position will be worth $40,000,000!!!! And it is not an all or nothing proposition as the value of the trade will go up as (if) silver goes down....even if still "out of the money" --- provided it happens before the July expiry.

Well, CAD 40.52 is officially the highest I've seen it this year.

US 42.20 also

reply to post by jude11

What is the announcement that we should watch for?

I apologize, the announcement is on April 27, typical state of the economy "strong recovery" mumbo jumbo. Hinting at QE3 maybe?

reply to post by Zubie


Listen Bud... that's the name of the website... I don't need your smart A$$ attitude for trying to help out by providing a little information.

reply to post by FarArcher

As long as the Fed keeps printing paper money like crazy, all metals will continue to go up, especially precious metals.

True, and the best part is even if (on the off chance) there is no QE3, your going to want silver if the U.S. defaults on its debt to exchange it for other currencies.



Why doesn't this thread have more flags? When it gets to $50 I bet we'll see more

reply to post by jude11


May Silver futures hit $42.44 in the night session....

Originally posted by CosmicCitizen
reply to post by jude11

 

May Silver futures hit $42.44 in the night session....

42.31 right now.

You may get your wish.

Originally posted by Blarneystoner
reply to post by Zubie

 

Listen Bud... that's the name of the website... I don't need your smart A$$ attitude for trying to help out by providing a little information.

Your input is valued by many here so I hope this thread doesn't turn nasty as we are all here to share info.

Thanks.

reply to post by Blarneystoner


Blarney, you obviously didnt bother on reading the link I gave you, which would almost deserve a new topic in itself about what really happend and that the Hunt brothers were set up. I know your post was probbably sincere advice ( which i heard way too often when talking to "financial experts" about silver investments, so that is the reason for maybe a bit harsh reply, I apologize ) now do me a favour and scroll up to the link i gave and acctualy read it.

Originally posted by CosmicCitizen
reply to post by jude11

 

May Silver futures hit $42.44 in the night session....

Ok, 42.40 for ya right now. Excited?

Originally posted by Zubie
reply to post by Blarneystoner

 

Blarney, you obviously didnt bother on reading the link I gave you, which would almost deserve a new topic in itself about what really happend and that the Hunt brothers were set up. I know your post was probbably sincere advice ( which i heard way too often when talking to "financial experts" about silver investments, so that is the reason for maybe a bit harsh reply, I apologize ) now do me a favour and scroll up to the link i gave and acctualy read it.

Cool... apology accepted. I actually did read the article,but the point I was trying to make is that the bottom could drop out suddenly. The silver market is historically volatile and easily manipulated. The current shortages could be evidence of price fixing.

I've read that some analysts are predicting the price may go as high as $120 in the next three years. I don't buy silver for investment, but as a silversmith I'm interested in where the price is going.

My personal feeling is that we will continue to have small dips and somewhat larger rises, with a general trend for the price per ounce to increase. My guess is that we will see the gold:silver ratio (currently 1:35) move to about 1:20 over the next couple of years. If gold moves from the current $1475 to about $1600, that would make silver about $80/oz.

Remember when you're checking out the price of silver, also look at the US dollar index. Much of the reason silver is going up is because the US dollar is going down. If silver goes to $120/oz, that may also mean that a loaf of bread or a gallon of gas is $10 US.

Close at $43.05, excellent bump. It will dip down on monday but expect an even bigger rally late next week. This is getting CRAZY

Turning in SLV for physical silver rush. People are figuing out that the silver they pay for and pay to have stored may not be there.

Silver futures surged today to a new 31-year high of $42.80 per ounce.. All we need is for silver to rise by another 15.5% and silver will reach its all time high set in 1980 of $49.45 per ounce.
Silver's high of $49.45 per ounce in 1980 would equal about $140 per ounce in today's dollars adjusted to the consumer price index and about $400 per ounce in today's dollars adjusted to the real rate of price inflation. Despite silver's huge gains in recent months, we have yet to see silver rise by $2 or more in a single day. When we start to see a true "silver mania" with investors around the world rushing out of their U.S. dollars and panic buying silver, we can expect to see silver gain by $5 to $10 in a single day on more than one occasion.
Back in February of last year when silver dipped to below $15 per ounce.
Yet recent gains in the price of silver have surpassed short-term expectations. The gold/silver ratio is now down to 35 and we could see it decline to at least 16 this decade, and possibly as low as 10.
The artificially high gold/silver ratio of the past century will be looked back at as an anomaly caused by the silver price suppression scheme of the Federal Reserve, which was in cahoots with Bear Stearns and now JP Morgan. The Federal Reserve chose to bail out Bear Stearns and not Lehman Brothers, because Bear Stearns was the holder of a massive naked short position in silver that they were on the verge of being forced to cover.
It is not a coincidence that Bear Stearns failed on the very day silver reached its then multi-decade high of $21 per ounce. Bear Stearns was on the verge of being forced to cover their naked short position, which could have sent silver from $21 per ounce to $50 per ounce overnight. By bailing out Bear Stearns and allowing JP Morgan to acquire Bear Stearns' assets with the promise to cover any losses derived from them, JP Morgan was able to continue managing the silver short position and orchestrate a manipulative take down in 2008 from $21 per ounce down to $8 per ounce.
Only ten times more silver has been produced in world history than gold and from the years 1000 to 1873, a period of 873 years, the gold/silver ratio remained between 10 and 16. In fact, the Coinage Act of 1834 defined a gold/silver ratio of 16. The gold/silver ratio started to rise after silver was demonetized in 1873. Despite silver being demonetized, we saw the gold/silver ratio return to 16 on three occasions during the past century: in 1919, 1968, and 1980.
It was only ten months ago in June of 2010 that the gold/silver ratio was 70. With the gold/silver ratio now at 35.
Should the gold/silver ratio decline to at least 16 within the next few years, and that will mean those with silver will once again more than double their purchasing power. Considering that the gold/silver ratio overshot to the upside and was as high as 100 in 1991, we could expect it to overcorrect to the downside and possibly reach a low of 10 this decade. That would mean a more than tripling of ones purchasing power from the current ratio of 35.
When silver rose to $49.45 per ounce in 1980, the government said that the rise was due to the Hunt brothers "cornering" the silver market. The truth is, silver reached $49.45 in 1980 due to the massive inflation that was created by the U.S. government during the 1970s, and the Hunt brothers were used as a scapegoat. The Hunt brothers were accumulating silver in order to protect themselves from a collapsing U.S. dollar.
When the Hunt brothers were accused by the U.S. government of "cornering" the silver market and trying to manipulate silver prices higher, they only owned a concentrated long position of approximately 100 million ounces of silver. JP Morgan today has a concentrated naked short position in silver of approximately 122.5 million ounces, but the U.S. government doesn't seem to have any problem with it.
The problem with the Hunt brothers' strategy of accumulating such a large concentrated long position in silver is that after silver prices rose, their position was simply too large for them to ever sell without causing silver prices to crash. With silver reaching $49.45 per ounce in early 1980, the world was about to lose confidence in the U.S. dollar, which would have caused an outbreak of hyperinflation. In a desperate attempt to save the U.S. dollar and prevent hyperinflation, the CBOT raised margin requirements and limited traders' positions to only 3 million ounces of silver futures. The COMEX also limited traders' positions to 10 million ounces of silver futures. Not only that, but the COMEX and CBOT only had a total of 120 million ounces of silver in inventory, and the COMEX was likely going to default from futures contract holders requesting physical delivery. The COMEX was forced to go into "liquidation only" mode, ending all silver futures contract buying.
Combined with the Federal Reserve rapidly rising interest rates, silver prices began to plunge and the Hunt brothers were hit with massive margin calls. On one single day in March of 1980 when the Hunt brothers were forced to liquidate a large part of their position, silver lost 1/3 of its value, declining by over $5 to $10.80 per ounce. That represented a total decline of 78% from its high two months earlier.
Is it the time to sell silver, and if silver could crash by 78% once again like it did in 1980?
The fact is, while the Hunt brothers' 100 million ounce concentrated silver position was on the LONG side, JP Morgan's 122.5 million ounce concentrated silver position is on the SHORT side.