silver market: something interesting happening?

[lektrode]

seems like somethings up in the sliver market today?
http://www.kitcosilver.com/equities.html


kinda odd that volumes seem high in these 2? (tho i really dont know what i'm talking about, why i'm asking the i2lip braintrust ;) and kinda odd that my CDE is going up, (after droppin about 3bux since 3jan), while most of the rest are dropping?

comments?

Silver Wheaton Corp	NYSE:SLW	15:14	31.66	USD	13529055	-0.84	-2.59%
	Silver Wheaton Corp	SLW.TO	14:04	31.09	CAD	2752074	-1.02	-3.18%

[nero3]

Re: silver market: something interesting happening?

seems like somethings up in the sliver market today?
http://www.kitcosilver.com/equities.html


kinda odd that volumes seem high in these 2? (tho i really dont know what i'm talking about, why i'm asking the i2lip braintrust ;) and kinda odd that my CDE is going up, (after droppin about 3bux since 3jan), while most of the rest are dropping?

comments?

Silver Wheaton Corp	NYSE:SLW	15:14	31.66	USD	13529055	-0.84	-2.59%
	Silver Wheaton Corp	SLW.TO	14:04	31.09	CAD	2752074	-1.02	-3.18%

I would not put to much into single day moves of the silver stocks. Maybe some player taking a position. I think there have an been an increase in the volume of CDE lately. The last week or so. Sometimes those stocks can get hammered on days silver fall, only to rebound the next day even silver did not recover. However as I see it the silver and gold bubble too is under attack from short sellers that's smelling blood. Like a desperate animal with a flesh-wound from a fresh attack running up some hill, with a groups of wolves chasing. That might be how I see it now. That could be why the volume is higher. Because the short sellers is starting to smell blood. The stakes are definitely getting higher.

[Spartacus]

Re: silver market: something interesting happening?

My explanation below; ( fair warning, the most extreme, globe-spanning conspiracy theories, Securely affix tin foil and PROCEED WITH CAUTION !!! ) :

seems like somethings up in the sliver market today?
http://www.kitcosilver.com/equities.html


kinda odd that volumes seem high in these 2? (tho i really dont know what i'm talking about, why i'm asking the i2lip braintrust ;) and kinda odd that my CDE is going up, (after droppin about 3bux since 3jan), while most of the rest are dropping?

comments?

Silver Wheaton Corp	NYSE:SLW	15:14	31.66	USD	13529055	-0.84	-2.59%
	Silver Wheaton Corp	SLW.TO	14:04	31.09	CAD	2752074	-1.02	-3.18%

2 reasons, pick one or some combination thereof:

1. somebody offered to sell at a certain price (or "market"), and a buyer took them up on it
2. somebody offered to buy at a certain price (or "market"), and a seller took them up on it.

[Master Shake]

Re: silver market: something interesting happening?

There is no silver or gold "bubble."

[lektrode]

Re: silver market: something interesting happening?

My explanation below; ( fair warning, the most extreme, globe-spanning conspiracy theories, Securely affix tin foil and PROCEED WITH CAUTION !!! ) :


2 reasons, pick one or some combination thereof:

1. somebody offered to sell at a certain price (or "market"), and a buyer took them up on it
2. somebody offered to buy at a certain price (or "market"), and a seller took them up on it.

yeah, yeah, yeah... everybody's a comedian... and mights well pick on the new guy, right?

but seems like theres an uptick in volitility all of a sudden? i mean, i recall CDE bouncing about 4bux on tues this week b4 dropping off again:

doesnt anybody here have some sort of theory to explain this kind of swing?
eye recall EJ mentioning something along the lines of 10% moves in the gold market portending bigger moves ahead?

Today 5d 1m 3m 1y 5y 10y
	52wk high:	28.20
	52wk low:	13.41
	EPS:	-1.38
	PE:	N/A
	Dividend:	N/A
	Yield:	N/A
	Market Cap:	1.94 b
	Volume:	3.91 m

then there's this:

(Reuters) - Gold dropped 1 percent on Friday to notch its biggest two-week loss in nearly a year, after China tightened bank reserves to rein in inflation and as safe-haven demand faded on a better economic outlook.
Gold fell to a one-week low and hovered above its lowest in two months after China's central bank raised lenders' required reserves for the fourth time in just over two months, vowing the fight against inflation would be a top priority.
"China's move is perceived (to show) that the country is capable of slowing down the level of inflation, and that takes some of the run of gold and industrial metals such as silver, platinum and palladium," said Frank McGhee, head precious metals trader at Integrated Brokerage Services.
Bullion is used as an inflation hedge and benefits from a low interest-rate environment.
Spot gold fell 1 percent to $1,359.50 an ounce by 3:22 p.m. EST, having hit a one-week low of $1,354.99. U.S. gold futures for February delivery settled down $26.50 an ounce at $1,360.50.
In the first two weeks of this year, gold notched a decline of 4.3 percent, the largest consecutive two-week loss since late January, 2010.
Earlier this week, Federal Reserve Chairman Ben Bernanke said the U.S. economy should grow around 3 to 4 percent this year, a healthier clip than in 2010, but Fed officials said the economy still needs support from the U.S. central bank even if growth prospects appear firmer.
U.S. data on Friday showed that underlying inflation remained tame, suggesting the recovery was strengthening modestly with little price pressure building, while sales at U.S. retailers rose slightly less than expected in December.
Spot silver fell 1 percent to $28.39 an ounce.
U.S. futures turnover remained stronger than usual, as COMEX gold futures volume totaled one-third above its 30-day average and silver was nearly 30 percent higher, preliminary Reuters data showed.
The gold-to-silver ratio -- the number of ounces of silver needed to buy an ounce of gold -- rose to a one-month high on Friday at just below 48, showing that silver is underperforming gold in a falling market.


GOLD BREAKS BELOW 50-DAY MA
On charts, gold prices continued to face headwinds as selling pressure seemed to be reasserting itself after bullion broke below its 50-day moving average this week, said Rick Bensignor, chief market strategist at Dahlman Rose.
Gold briefly rallied above $1,390 an ounce on Thursday, its highest this year after an unexpected jump in weekly U.S. jobless claims.
Safe-haven buying also decreased this week after successful euro zone bond sales lessened worries about the bloc's debt crisis.

[nero3]

Re: silver market: something interesting happening?

These etfs is quite an indicator of the silver market. Like this one:

http://finance.yahoo.com/echarts?s=Z...urce=undefined

watch the volume.

http://finance.yahoo.com/echarts?s=G...l=GLL;range=5y

Also an interest in shorting gold through an ETF,but smaller.

And oil:

http://finance.yahoo.com/echarts?s=D...l=DUG;range=5y

The volume on the oil ETF was similar in the peak of the oil bubble as it is with silver now.


With all the experts of various kinds wanting gold to become a big bubble, I must say I question it. Maybe the current silver bubble is all there is, and will be. It's not a prediction, but I won't rule it out.

[jpetr48]

Re: silver market: something interesting happening?

doesnt anybody here have some sort of theory to explain this kind of swing?
eye recall EJ mentioning something along the lines of 10% moves in the gold market portending bigger moves ahead?

Thank you for asking. No one has a corner on intelligence and instincts so with that said here are some facts
1. EJ said more than what you stated and it was in the context of the great convulsion
He said while we see a '10% move in gold, you will see bond yields moving up in low inflation and stock market correction of 30% or more. ' We are a ways off for this, but you never what could happen tomorrow.
2. End of year there was a lot of buying instead of profit taking in silver especially. After running up the prices that's when the short term fading started. The shorts have deeper pockets than you and I so they are capitalizing on those who like to buy high and sell low.
3. This type of volatility is normal especially for silver. The long term trend is bullish but we may see a correction in gold and silver. What I see in my work and in people more experienced in these markets is a moderate pull back in gold maybe 1270 and silver 24-26. No crystal ball, just get ready to buy some more gold.

[Adeptus]

Re: silver market: something interesting happening?

seems like somethings up in the sliver market today?
comments?

Clearly you didn't watch the 3rd episode of the Silver Bears on Youtube that was released on January 9th. They warned us that Silver would take a hit starting on the same day as the CFTC meeting!

Skip to 4:08 and listen carefully.

They were refering to this Jan 13th CFTC meeting regarding the rule change to implement 'position limits' on certain comidities (i.e. PMs) as per the 2300 page long "Dodd-Frank Act" (summary here) that is supposed to reform wall-street so that we don't get a repeat of 2008 in the future (except by the time they figure out what to do it will be 2020 and the USA will have 1/2 imploded). Helicopter Ben would want you to believe it's going to solve everything, but even Rob Schiller at a Yale University conference in Sept 2010 knows it's too vague and incomplete (1.5 hour youtube video) not to mention that the Tea Party wants to repeal it!

Specifically, 'some' of the rise in Silver recently was in naive hope by the "Crash JP Morgan - Buy Silver Lady Gaga Fan Club" that such position limits would prevent the likes of JP Morgue from controlling more than 40% of the silver market via naked short postions. In order to please the CNBC sheeple, the 5 member council voted 4:1 to pass the restriction implementation, with one teeny winsy exception - the rules won't apply to JP Morgan!

Anyway, don't be mad; instead send a thank you note to the scum sucking lying CEO of JP Morgan - Jamie Dimon, whom aside from keeping the silver prices depressed so you can load up, makes billions on the backs of the American middle class by exploiting every possible loop hole and getting new ones created (i.e. CFTC) where appropriate, seems to find the time to lecture Hardvard MBA grads on Ethics and Morality in the business world - un F'in believable!! No wonder the Chinese Professor has started a new Internet Meme.

Woah, I think I been reading way too much ZH lately hehe.

Adeptus

[Spartacus]

Re: silver market: something interesting happening?

yeah, yeah, yeah...

Adeptus' response below makes a lot of sense.

I've been wondering for a long time what JPM was going to do about the position limits. I commented before that I did not believe those "unofficial reports" of JPM reducing their positions; if true I thought JPM was shifting them to subsidiaries or allies.

Now we may have part of the answer. we'll have to wait for COTs to confirm if JPM added a ton of short paper OR some silver longs bailed on hearing the news that the big, quick payoff they expected if JPM were forced to cover at increasing prices.

The game will go on a lot longer than many suspected.

EDIT: (IF THESE REPORTS ARE TRUE) one thing that's becoming obvious is that JPM and its supporters know what they're doing. This Silver thing is not something that they can now disclaim as an historical accident that snuck up, catching them unawares[0]. They HAVE BEEN planning and lobbying in the background AND sending up trial balloons to friendly outlets.

If JPM got special treatment (their money & power got them, literally, privilege - "private law") on these issues. I now doubt we'll ever see JPM being prosecuted for price manipulation by CFTC.

It will be up to the civil suits to get some blood out of that stone. And now those plaintiffs can expect zero official sector help.

[0] to clarify: they cannot now claim "we inherited this massive short from our past staffers, came as a total surprise to us to find the books in this shape"

[thisandthat.nowandth]

Re: silver market: something interesting happening?

seems like somethings up in the sliver market today?
http://www.kitcosilver.com/equities.html


kinda odd that volumes seem high in these 2? (tho i really dont know what i'm talking about, why i'm asking the i2lip braintrust ;) and kinda odd that my CDE is going up, (after droppin about 3bux since 3jan), while most of the rest are dropping?

comments?

Silver Wheaton Corp	NYSE:SLW	15:14	31.66	USD	13529055	-0.84	-2.59%
	Silver Wheaton Corp	SLW.TO	14:04	31.09	CAD	2752074	-1.02	-3.18%

Positive news pending, and someone knew (the nebulous "someone" always knows).

Silver Wheaton Target Raised To C$40 From C$32 By Cormark >SLW
10:06a ET January 10, 2011 (Dow Jones) - Link

Nice little ramp into the 10:06 news release...then comes the sell-off.

Chart

-joaquin-

[FondoFinder]

Re: silver market: something interesting happening?

Here is some more detail on the possible scenario of the Chinese suppressing the silver price temporarily, so they can buy and get physical delivery on 300 million oz at lower prices (through JP Morgan and HSBC).

Many respected folks such as David Morgan say the worst case for silver is $25 (note the link will change the default content each weekday). David says he is not buying now (also says he holds $28.50 silver puts).

Note that the China monetary system was on a silver standard in the past, and it seems likely they would mint exponentially more legal tender coins in silver (in addition to those minted in gold) to expand their money supply, due to the price of gold. Contary to this previous video I posted though, the 2011 Panda Silver coins have a measly 10 yuan/$US1.52 face value, so they are not yet doing what the author proposes. If they did, this year the 2011 1oz Panda silver coin would have a face value more like 6.5851 * $25, or roughly 165 yuan/renminbi, not a measly 10 based on todays silver price.

300 Million ounces would equal roughly 3 times their internal yearly production, but its still only less than $10 billion dollars. Storing it would give the government more stable purchasing power, but it doesn't help them to increase their money supply to the level of a reserve currency without inflation.

Any thoughts on what the wise Chinese will do with their physical silver (and gold)?

[FondoFinder]

Re: silver market: something interesting happening?

I guess there's nothing stopping them from introducing new gold and silver coins. The gold dragon @ 8000 yuan, and perhaps the silver horse @150 yuan. Sell $500 billion or so of those to your own citizens over many years and and you've got enough liquidity for a reserve currency, backed by precious metals.