Rogers also added that he thinks silver looks more attractive than gold at the moment because of the sustained rise in the gold price. This is the same thing that Ron Paul told me when I met with him. The thinking is that as price inflation heats up and more people look to the precious metals for protection, the high price of gold in terms of dollars will make it prohibitive for many to buy gold and will result in their buying silver. So while, gold and silver will both continue to climb in price, the gains, percentagewise will be greater for silver. http://lewrockwell.com/wenzel/wenzel160.html
Just a thought to add to the above. If you adjust the all time high price of Silver ($49.50 Hunt brothers era) to today's funny money then the price would be north of $120 I imagine.
According to http://silverprice.org/silver-price-history.html silver closed Thursday at it's highest level since early October ($35.56/oz.)
Options have fixed expiry dates and these dates are always at the back end of a calendar month . Often the spot price declines on the run up to the date which must be in the in the next two trading days , presumably -- or even today . Some have suggested that this end of month correction is manipulated to help punters holding big Call Options . I do not know what truth there is in that . However , the upward forces are presently so strong that any correction -- if indeed there is one -- will be very short term .IMO .
Silver closed out the week at $35.35/oz.. That's up $2.10 (about 6+%) for the week. http://silverprice.org/silver-price-history.html
contract expiry is usully on the third friday of a calander month. This is usually a volatile period as people close positions and/or open new positions.
'European banks gorged themselves on a second helping of cheap European Central Bank loans as the ECB moved with alacrity once again to avert a banking liquidity squeeze and take the edge off the sovereign debt crisis. On Wednesday morning, the ECB lent €529-billion ($712-billion U.S.) of 1-per-cent money to 800 banks, which was slightly above the consensus figure but well below one or two predictions that as much as €1-trillion would be soaked up. In the last auction, in December, the ECB loaned €489-billion to 523 banks. The loans, known as the long-term refinancing operation (LTRO), were introduced by then-new ECB president Mario Draghi late last year as the bank’s prime effort to prevent a Lehman Bros.-style banking collapse on home ground. While the ECB had hosed out cheap loans in the past, under Mr. Draghi’s predecessor, Jean-Claude Trichet, they were short-term loans. The new loans have been for an unprecedented three years.' http://www.theglobeandmail.com/repo...-billion-us-in-loans-to-banks/article2353680/ Oh looky....more money 'printing'.
In anyone else looking at the live spot price. I have watched it go from $37.45 at 2.50pm to $35.85 an hour later. Gold as well from $1785 to $1725 in an hour. Both still dropping like rocks. WTF? What has changed from yesterday to cause this sort of sell off?
Gold Retreats on Bernanke Comments http://online.wsj.com/article/SB10001424052970203986604577253251233362924.html?mod=googlenews_wsj
Upbeat US economic news? Strength in Dollar? Last time we had "good" news out of the US (jobs data) it was a classic bear trap.
All Bernanke basically said was...things are going a little different then we expected, but generally good overall....so no QE3 now or anytime soon...but we will keep rates at present levels like we said before...probably. He says that and gold/silver plunge. EDIT - silver is now down 8%. Gold over 4%. I guess this profit taking at months end as well as Bernanke speaking as well as...? Did they change the margin requirements again? That's quite a fall.
Nearly caught a cold . Sold the whole lot at 7.95 and was a bit cross that I twiddled my fingers at 8.10. However , with it showing 7.39 as I write , I am feeling much better . Next task is to get back as near the bottom as possible . I love this bit -- like guerilla warfare -- come out of the shadow , empty everything and retreat . Then sit waiting for that little window of opportunity . Silver Gooks at five o'clock !!!!!
Thanks for posting this. I agree about a lot of what this guy is saying...I think some gold/silver holders were hoping for something more positive (precious metal wise) or at least more neutral then they got...the fact that gold/silver PLUMMETED right after Bernanke spoke proves this (imo). I doubt they were expecting QE3 (surely they can not be THAT ignorant - could they?). But I think they were expecting much more of a status quo statement. And this one was more positive (overall)...which makes sense given the recent unemployment/stock market numbers/consumer confidence rise AND the 3% GDP growth revision this morning of the last quarter. I still think those that are doing most of the trading lost their heads (a bit). Bernanke said EXACTLY WHAT HE SHOULD HAVE SAID...EXACTLY WHAT I THOUGHT HE WOULD SAY...and I am a nobody. And these dumb dumb's panic like this? I guess there are more dumb dumbs in the gold/silver market then I thought...I shall have to try and remember that. FUNDAMENTALS PEOPLE....REMEMBER THE FUNDAMENTALS OF GOLD/SILVER. MONEY 'PRINTING'/'ARTIFICIALLY' LOW INTEREST RATES EQUALS MONETARY INSTABILITY/INFLATIONARY CONCERNS. THAT IS WHAT POWERS GOLD/SILVER (IMO). NONE OF THAT CHANGED TODAY...AT ALL. When Barnanke comes out and says 'It might be time to reign in inflation'...THEN SELL. But I am NO expert.
I am just now listening to the Peter Schiff radio show. http://www.schiffradio.com And he is saying more or less what I was thinking that Ben Bernanke said nothing that bad. He thinks the sell off today is mostly profit taking. He knows more then I do (WAAAAAAY more). But I think it's also people expecting Bernanke to be more positive (as far as precious metals), considering his last comments which were somewhat negative about the economy. But today, he was more neutral then before - and maybe that spooked people.
Here is an interesting take on the gold/silver sell off on Wednesday: 'Market Recap: Ben Bernanke’s speech had almost nothing to do with today’s sell-off in precious metals. It was based almost entirely on the second round of ECB loans, given to approximately 800 banks in Europe. The ECB loaned over $700 million worth of Euros to these banks. These banks immediately proceeding to lock in the favorable interest rates by selling sovereign bonds (including U.S. Treasury bonds), and the selling didn’t stop there. The mass movement of these banks transferring these Euros caused a massive sell-off in the Euro and other Dollar-denominated assets, especially commodities. These banks don’t want Euros on their balance sheets; they want dollars instead. Why do we say this? Because this is exactly what happened in December, the first time the ECB offered these loans (489 billion Euros worth). Gold sold off for four days in the aftermath. This has nothing to do with U.S. domestic policy, although we are sure Bernanke is happy to print dollars while demand is high. In the end, there may still be a QE3, but even as we speak, dollars are being printed in Europe. In conclusion, the ECB is giving Euros away. Why would anyone want them? Especially, a trader whose bonus depreciates with every additional Euro lent.' http://www.fmxconnect.com/fmxmetals...-Options-Report-ndash3b-February-29-2012.aspx I do not know if it is true or not, but it is interesting, IMO.
It fooled me . I got back in the moment Gold went under 1700 . I have changed my pants twice since yesterday p.m . but my heart rate is lower now , with Gold at 1720 and Silver fiddling around 35.00 . 09.45 GMT
It fooled a lot of people. If it was sell offs due to EU banks getting into the dollar after LTRO 2 or just over-reaction from Bernanke or both...I don't know. If it was the Former, then I suppose it was knowable since a similar thing happened in December with LTRO 1. If it's the latter, then people just (IMO) flat out over reacted. Or maybe it was also profit taking? I dunno. But I sure wish I did.
Silver is up 0.91 cents so far today and is currently at 35.49. http://silverprice.org/silver-price-history.html So as of right now, silver is back where it was at the end of Monday trading. Pretty good considering the blood bath silver took yesterday.
Silver closed out the week at $35.35/oz.. That's down $0.61 (or just under 2%) for the week. http://silverprice.org/silver-price-history.html
