Silver is taking a dive

[MO-SILVER!]

Be prepared to buy regularly. If you buy today and it goes up kep buying. If it goes down keep
buying. If it goes way down buy alot more. I don't see pouring billions of paper dollars into the economy doing anything but increasing the value of precious metals in the long term.

[Sheikh_yer_Bu'Tay]

Oh, all this worrying about the price fluctuations is making me smile. Take a guess how much I paid for my first ounce of silver? $1.40!!! Hahahaha!!! That was 1962 and I was 8 years old! I would mow lawns and get paid anywhere from $2.50 to $5.00 per lawn. I was almost always paid in silver coin. I still have a lot of that silver, so, watching it hover from $20 up to 28, then back down... so what? I am almost giddy! Silver is a wild ride. Always has been, always will be!

Like the Lone Ranger used to say: "Hi-O, SILVER!! AWAY!!!"

[frugi]

I woke up yesterday morning.........

[Devil Soundwave]

That's tough, but hey, still sounds like you're getting a better deal all round.

Out of interest - how on earth do you manage to find enough stuff to scrap cheap enough to do that instead of working? I'm no competition to you - I'm 2000+ miles away!

[frugi]

[..

[frugalcanuck]

Just a thought I had...

The silver price has been very volitile this last little bit. Going sharply up then sharply down.
There has been a change. The margins were increased.
Some may think the increase of the margins caused the silver price to go down. I believe that to be true in a way.

When changes are made there are people making those changes. These changes are not thought up and then two seconds later enacted. There are many cogs in a burocracy and many eyes could probibly have read about the upcomming margin increases. These eyes could have acted on their knowledge and bought some PM's before the change took place. As the time comes closer to the change there are more eyes seeing the information.

I think people who are in the know like to profit from it when a chance arises.

When the Conservative Party in Canada announced they were going to change the laws on Income Trusts that will not allow them to be as profitable (causing their share price to go down 10% in one day) the were a few big sellers of Income Trusts leading up to that.

My old boss actually got a call telling him to sell all Income trusts 2 days before the announcement. He didnt own any at the time so he didnt have to. My dad drove home when he heard the announcement to sell and then buy 5 hours later. He made much more than he would have at work.

Just think how many people got that call a few days ago saying to buy silver before the margins increase.

I think that may have caused the increase in silver price. Theose who knew about the changes probibly have alot of available cash to purchase with. Their friends that were called also probibly have lotse of cash too. Enough to cause the silver price to rise rapidly and then fall suddenly.

That is part of what I am thinking

[Sheikh_yer_Bu'Tay]

I don't know enough about the inner workings of commodities trading to try to calculate a price shift up or down. The fundamentals have not changed at all. If anything, they have only gotten better. Yes, I also expect another price dip... that is only natural, but I also expect the long term trend of commodities to go up, up, and away.

I have not heard anyone talk about the velocity of the trades going on. High velocity always makes prices go up, with erratic price swings. How about that?

[Country]

I think we're seeing consolidation of SILVER around the $27 level; GOLD around $1405. I would like to see our previous gains validated by some time spent at these levels. A constructive move higher can occur if the metals base around here for a few weeks. Previous consolidations occurred for SILVER at $18 (long time spent there and a breakout in late August), $23 (some backing and filling here for a few weeks in October), and now around $27. After a couple more weeks at this level, the overbought RSI condition will disappear and a strong move upwards could occur in December. If the consolidation occurs here near the most recent highs, a BULLISH flag pattern should develop signifying that we are seeing only a pause in the intermediate uptrend before the next leg up ensues. Hopefully, the next leg up will be more like the slower September grind up, unlike the spiky move of the past week.

http://stockcharts.com/h-sc/ui?s=$silver&p=W&yr=1&mn=0&dy=0&id=p61303821656

[beauanderos]

I think we're seeing consolidation of SILVER around the $27 level; GOLD around $1405. I would like to see our previous gains validated by some time spent at these levels. A constructive move higher can occur if the metals base around here for a few weeks. Previous consolidations occurred for SILVER at $18 (long time spent there and a breakout in late August), $23 (some backing and filling here for a few weeks in October), and now around $27. After a couple more weeks at this level, the overbought RSI condition will disappear and a strong move upwards could occur in December. If the consolidation occurs here near the most recent highs, a BULLISH flag pattern should develop signifying that we are seeing only a pause in the intermediate uptrend before the next leg up ensues. Hopefully, the next leg up will be more like the slower September grind up, unlike the spiky move of the past week.

http://stockcharts.com/h-sc/ui?s=$silver&p=W&yr=1&mn=0&dy=0&id=p61303821656

I agree with you... but it would be nice if this happened at $32 instead of $27

[AGgressive Metal]

If you don't get regular pullbacks then that is how you know it is either the end of the dollar or a mania is underway and its time to sell. Pullbacks are part of a normal, healthy, bull market. It is how real price discovery happens. Imagine you are a hedge fund manager and you buy silver at $20 and see it shoot to $29 in a few weeks - you are going to take some money off the table! Thus, it drops back to $27. Then buyers come in again, then its back at $29, then more sales back to $28, then it climbs to $30! Get the picture?

[stateofmind]

Here come's silver dive round #2.
Currently down in Asia -$0.89 or 3.22%.
What will happen with NY opens?

[frugi]

i

[Devil Soundwave]

I reckon it'll be the mid- high 25 mark by close...

[beauanderos]

Hard to say, could go either way. Buying opportunity or panic mode? Probably depends if you're leveraged or not.

[TXBullion]

Appears to be trending up , I vote what frugi said

[appjoe]

I see it just took another dive but is slowly climbing back. Still down $1.38 from yeterdays closes. I see all metals are down.

[AGCoinHunter]

Ouch, this is hurting. Down $1.73 currently. Gold tanking too.

[Rodebaugh]

hmmm....how to read this.

[appjoe]

I reckon it'll be the mid- high 25 mark by close...

It looks like you may be right it's at $25.95 now.

[MO-SILVER!]

Apparently Chinese might raise interest rates to slow inflation and industry there might start a slow down and it's
scaring people out of silver according to apmex facebook updates.

[slickeast]

ouch.....if you were waiting to sell. Time to buy?

[stateofmind]

Well, here we are. Speculation is rampant that China will drop interest rates, leading to a decline in demand for commodites, including silver. This worries me, as it may negatively affect the prices of PM's in the short-mid term. Everyone here will have a chance to buy more silver at a lower price, however, when this correction is over.
Today was another high volume day, and after two up days this again could be signaling a downward trend. Expecting modest gains Monday. We wil see. Stop buying now and let the pool fill up with water before you jump in.
Current price point = $22-24

[Country]

$27 SILVER did not hold today. IMHO, a retest of the preceeding breakout level, $23-$24, would be the logical next test. At minimum, the previous gap up at $24-$25 should be filled interday some time next week. It should go there quickly as traders always push at the support levels. That could be a good level to put some CASH to work. We'll see next week....

[Ardent Listener]

Well, here we are. Speculation is rampant that China will drop interest rates, leading to a decline in demand for commodites, including silver. This worries me, as it may negatively affect the prices of PM's in the short-mid term. Everyone here will have a chance to buy more silver at a lower price, however, when this correction is over.
Today was another high volume day, and after two up days this again could be signaling a downward trend. Expecting modest gains Monday. We wil see. Stop buying now and let the pool fill up with water before you jump in.
Current price point = $22-24

I agree. I addition, there is now pressure on the Euro again.......

[Devil Soundwave]

I see silver is hovering just pennies above 26 now. I'm personally pleased as it means I have more of a chance to get in. No point getting upset about the fall as it will surely go right back up again soon.