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I know that tomorrow is something potentially important for silver prices. Could someone explain what it is and what bearing will it have on the price. I believe options expiration day.......

Silver, Gold to Surge on Wednesday?
By Patrick A. Heller

In the United States, some people might not feel like counting their blessings this Thanksgiving. With unemployment and underemployment running above 20 percent (see http://www.shadowstats.com), surging bankruptcies, massive numbers of home foreclosures, a record number of people eligible to collect food stamps, a plummeting U.S. dollar, the U.S. military fighting in two countries and stationed in more than 100 other countries, it is easy to be overwhelmed with bad news.

However, those with the foresight to own physical gold and silver have at least some blessings to count for Thanksgiving. Since the end of 2009 through Monday, Nov. 22, the spot prices of gold and silver are up more than 24 percent and 64 percent, respectively.

Beyond that, those who have acquired and still hold physical gold and silver can appreciate the blessing of the price suppression tactics used by the U.S. government, its trading partners and allies.

The manipulation has enabled people to acquire precious metals at lower prices, though the current trend makes it look highly likely that far higher non-suppressed prices could be achieved within the next year or two.

The weekend edition of the Wall Street Journal featured a front page headline story titled, “U.S. in Vast Insider Trading Probe.” The story details a U.S. government investigation into insider trading activities by investment consultants, investment bankers, hedge fund traders and analysts, and mutual fund traders and analysts.

As part of this investigation, the Federal Bureau of Investigation raided the offices of three hedge funds on Nov, 22: Diamondback Capital Management LLC, Level Global Investors LP, and Loch Capital Management LLC.

The article only cites an investigation into the manipulation of paper assets. It doesn’t mention the Commodity Futures Trading Commission’s two-year investigation into the manipulation of the COMEX silver market, for which a report has yet to be issued. Last month, CFTC Commissioner Bart Chilton issued a statement that he believed that criminal violations of the Commodity Exchange Act have been perpetrated in the silver market and should be prosecuted. There are now at least 25 lawsuits pending against JPMorgan Chase and HSBC alleging illegal market manipulation.

As just one example of what I consider to be blatant market manipulation, the COMEX last Tuesday raised the gold and silver margin requirements for the second consecutive Tuesday. There was substantial selling of gold and silver the previous afternoon by entities that could be classified as “insiders.” Did the word get around to these insiders in advance of the announcement so that they could sell before prices fell last Tuesday? This is just one of more than a decade-long string of blatant signs of insider trading and rigged gold and silver markets.

At the close of the COMEX on Tuesday, Nov. 23, the latest round of gold and silver options will expire. I expect to see prices surge shortly after that. The would result in even more blessings to count this Thanksgiving – as long as you already own your physical gold and silver.


Does this answer your question?

Oh bollocks. I don't get paid until Friday either...

beauandros, i was hoping youd chime in . I saw a that article on coinflation and wanted to see if opinions here matched that article

beauanderos wrote:gold and silver options will expire

Is this the question? what are "options"?

TXBullion wrote:explain what it is and what bearing will it have on the price

Do any of you think this Korea bull[excrement] will impact the markets tomorrow?

TXBullion wrote:beauandros, i was hoping youd chime in . I saw a that article on coinflation and wanted to see if opinions here matched that article

There are others who could explain this better than me... (Michael?) I'm not going to try and explain options (look it up), but suffice it to say, if certain entities take the opposite side of a bet, then it is in their interest to see the options expire worthless by keeping the price of silver below the strike price. Don't understand a term? Look it up, this is how you learn. There are plenty of great educational sites online for investing. You don't need to understand how it works, just be aware that takedowns usually occur just before options expirations day, and then prices are free to rebound subsequent to that. Eric, looks like Korea scared a few gold bugs, didn't it? Would have been nice if silver hadn't diverged today.

Ahhhhhh options. Wonderful things, really.
Options are derivatives which give you the option to buy or sell a stock at a certain price, called the Strike Price.
I won't go too far to explain in depth how they are valued(Black–Scholes method), but they are extremely speculative. Call options allow the buyer of the option (you!) the option, but not the obligation to buy the stock at the Strike Price. Put options allow the buyer(again, you!) the option, but not the obligation to sell the stock at the Strike Price.
Call options are bullish, put options are bearish. You can sell them at any time.
Today, I bought a $3000 stake in AIB(Allied Irish Banks) which expire in May 2011 and IRE(Bank of Ireland) options which expire in July 2011. They (all options in general) tend to move MUCH more than if just the stock was bought, since they are so speculative. If you are willing to risk money, options can be a good instrument to make lots of it, as well.

As to the effect it will have on the PM market, I can tell you that it will not be as big as many are thinking. The vast majority of options are not held to expiry, which means that the vast majority have already been sold and renewed.

I'm out of PM's (paper wise), but still have a hoard of coins. They could literally go either way, so I'm getting out of them and making money in different places. The long term trend is still up, however.

Predicting that will have a relatively good up day tomorrow, yet I'm probably wrong.

Silver probably should have been "lock limit up" today, give the activity between the Korea's. I think the pump monkey's were in full force keeping the price from going vertical however, given the options expiration tomorrow. I think it will trade sideways tomorrow, perhaps losing a bit of ground in the end. Given the rest of the PIIGS nations on the horizon, and the fact the EU is now doing QE as well to combat this, the short-to-mid term prospects of silver look strong to me. I think we'll see $30 before the 1st of the year. If the conflict in Korea heats up further, all bets are off, I think the volatility will be truly insane from that point forward. "If you don't hold it, you don't own it!"

I have a rough idea of what options are. I meant more so in the specifics of the silver market, i think i just need to read and understand some before before I ask questions, thanks for the input

JJM wrote:Silver probably should have been "lock limit up" today, give the activity between the Korea's. I think the pump monkey's were in full force keeping the price from going vertical however, given the options expiration tomorrow. I think it will trade sideways tomorrow, perhaps losing a bit of ground in the end. Given the rest of the PIIGS nations on the horizon, and the fact the EU is now doing QE as well to combat this, the short-to-mid term prospects of silver look strong to me. I think we'll see $30 before the 1st of the year. If the conflict in Korea heats up further, all bets are off, I think the volatility will be truly insane from that point forward. "If you don't hold it, you don't own it!"

Wow, that quote just reminded me of Ponce. Where is he?

stateofmind wrote:Ahhhhhh options. Wonderful things, really.
Options are derivatives which give you the option to buy or sell a stock at a certain price, called the Strike Price.
I won't go too far to explain in depth how they are valued(Black–Scholes method), but they are extremely speculative. Call options allow the buyer of the option (you!) the option, but not the obligation to buy the stock at the Strike Price. Put options allow the buyer(again, you!) the option, but not the obligation to sell the stock at the Strike Price.
Call options are bullish, put options are bearish. You can sell them at any time.
Today, I bought a $3000 stake in AIB(Allied Irish Banks) which expire in May 2011 and IRE(Bank of Ireland) options which expire in July 2011. They (all options in general) tend to move MUCH more than if just the stock was bought, since they are so speculative. If you are willing to risk money, options can be a good instrument to make lots of it, as well.

As to the effect it will have on the PM market, I can tell you that it will not be as big as many are thinking. The vast majority of options are not held to expiry, which means that the vast majority have already been sold and renewed.

I'm out of PM's (paper wise), but still have a hoard of coins. They could literally go either way, so I'm getting out of them and making money in different places. The long term trend is still up, however.

Predicting that will have a relatively good up day tomorrow, yet I'm probably wrong.

I everyone knows this will transpire on Wednesday, should not the market already have reacted to this. In other words, might the current spot of silver have contained within it the activity of tomorrow? I guess we will find out soon enough.

A flat day...
Guess you were right.

Thogey wrote:Do any of you think this Korea bull[excrement] will impact the markets tomorrow?

humbly, it's just one more piece of dry oak firewood, on a pretty large pile.

The NK's are some pretty serious folk, they're pretty desperate, have a real upside down view of the world, are armed to the teeth, and live in a country built for defense. and to complicate everything, the Chinese will stand behind them, because the Chinese do not want an American presence along their northern border.

the NK's want 500,000 tons of rice and 300,000 tons of fertilizer, which they asked South Korea for, and were denied, so when the ROK Marines hold an exercise, the NK's rattle the cage.

Nobody in the region wants war, and thats how they usually start.

silver's trading higher on numerous bits of bullish news.....but do pray for peace.

respectfully, neil (USN-ret, stationed in Korea back in the daze)