Silver and Gold are taking another dive.

[theo]

Gold is down 1.5% and silver 2.5%. Lets see if silver breaks 19 over night.

[ZenOps]

Its quite unusual to see it collapse at this time of day on the Hong Kong market.

Its very possible that this is the sound of capitulation to the bear (markets and commodities)

[aloneibreak]

sub 19 is here...

[aloneibreak]

and that gsr ticks up another point

[stlouiscoin]

just saw it at 18.91... I think it will drop to between 18.50 and 18.70 and steady out before the next dip.

[Jonflyfish]

$17.77 is even more in focus now.

Cheers!

[theo]

What is your rationale for 17.77 again?

[theo]

18.88

[lewbo]

18.77

[Jonflyfish]

What is your rationale for 17.77 again?

It is a technical super magnet level. It's also the key cyclical level I pointed out as silver shifted into a cyclical uptrend. Clearing all positions back to that level is a common pattern in parabolic market shifts. I know that won't mean much to some here who believe that debating and attacking (sadly several folks here have taken this route in ire against me all the way down in the price trend) the reasoning of others somehow influences price, but it is what it is.
My analysis ignores the cries of the dot com blogs and bullion supplier pitches, reports etc as to why price must (seemingly always) go up. I keep it simple and only look at price- the ultimate indicator.
Cheers!

[Jonflyfish]

Additionally, $17.77 is not guaranteed to print. It is a super magnet that has attracted price all the way down to within a buck thus far.

Cheers!

[Ecotic]

Gold down to $1227 and silver down to $18.52, damn. It's just time to abandon all metals. The pattern is clear, gold and silver drop quite a sizable amount, it's declared a correction, physical bargain hunters flood stores and prop up the price for 2 months, but then even they can't fight the negative sentiment around precious metals and gold and silver drop another sizable amount, repeating the cycle. The fed has announced an end to quantitative easing, it's just time to abandon all metals. I'm trying my best to sell my last copper hoard.

[scyther]

Shouldn't copper fair better in a good economy than gold and silver, since it's an industrial metal rather than a precious metal?

[IdahoCopper]

I know how JFF does it. He is either a time traveler from the future with good price data for his previous decades, or he has a time-pinch device on his modem cable that allows him to see future data today.

Cheers!

[barrytrot]

I'm going ALL IN today for sure. I kept holding off, but now I'm going all in on all accounts.

My personal (cash) account with it's $29 exercise price is looking like the bad-investment of the year, of course Fortunately that is far and away the lowest valued, especially now

[beauanderos]

I'm going ALL IN today for sure. I kept holding off, but now I'm going all in on all accounts.

My personal (cash) account with it's $29 exercise price is looking like the bad-investment of the year, of course Fortunately that is far and away the lowest valued, especially now

I dropped my limit order of USLV from $5 to $4, if it triggers great, if not, great.

[InfleXion]

It's a good thing I didn't get around to buying metal last weekend. This discount is unreal! Now that we are well below cost of production, the bullish fundamentals grow even stronger. I have a feeling this will persist as long as the COMEX has metal that can be retrieved.

[inflationhawk]

Hard to catch a falling knife

[Jonflyfish]

It's a good thing I didn't get around to buying metal last weekend. This discount is unreal! Now that we are well below cost of production, the bullish fundamentals grow even stronger. I have a feeling this will persist as long as the COMEX has metal that can be retrieved.

Where is it being sold at a discount (to spot?)
Production cost is extremely low for silver because it is primarily a byproduct in most mining operations. I remember quite a few very large contracts executed for Silver Wheaton to buy production close to the $10-14 range. That is an interesting price level.

Cheers!

[Jonflyfish]

Hard to catch a falling knife

True. most fought it ardently with any reason possible. But the markets don't care about opinions or personal beliefs. Now those folks seem to be dealing with reality.

Cheers!

[InfleXion]

While I would like to take your word for it common sense dictates that I defer to the most reliable sources, and the CEO of SLW recently stated their cost of production for silver is $20/oz. Barrick has put cost of production for gold at $1300 as of Q4 2012.

Additionally due to silver being mined as a byproduct that actually defers its cost of production to other metals, so in those cases it is an undervalued number.

[Jonflyfish]

While I would like to take your word for it common sense dictates that I defer to the most reliable sources, and the CEO of SLW recently stated their cost of production for silver is $20/oz. Barrick has put cost of production for gold at $1300 as of Q4 2012.

Additionally due to silver being mined as a byproduct that actually defers its cost of production to other metals, so in those cases it is an undervalued number.

I am a very reliable source. I said many large contracts were executed. I didn't say what a production cost was. In the event that you are buying production from someone else, you don't have production cost, only transfer cost at the contracted price. Silver Wheaton is a first purchaser, not producer. But you can believe anyone you choose. Some believe in Sprott, Schiff et al. when silver was near $49 and calling for an explosive price higher. Beliefs and market reality when dealing with a fungible commodity aren't the same thing.
Price is where people disagree on value but agree to transact. It is the ultimate arbiter and the ultimate indicator or truth i.e. "put your money where your mouth is". One can believe in snake oil or reality. In the end, the price is the price.

Cheers!

[barrytrot]

Hard to catch a falling knife

It's easy if you use your face

[CardsNCoins]

I am a very reliable source..........

Says you. With all due respect of course.

[InfleXion]

While I would like to take your word for it common sense dictates that I defer to the most reliable sources, and the CEO of SLW recently stated their cost of production for silver is $20/oz. Barrick has put cost of production for gold at $1300 as of Q4 2012.

Additionally due to silver being mined as a byproduct that actually defers its cost of production to other metals, so in those cases it is an undervalued number.

I am a very reliable source. I said many large contracts were executed. I didn't say what a production cost was. In the event that you are buying production from someone else, you don't have production cost, only transfer cost at the contracted price. But you can believe anyone you choose. Some believe in Sprott, Schiff et al. when silver was near $49 and calling for an explosive price higher. Beliefs and market reality when dealing with a fungible commodity aren't the same thing.
Price is where people disagree on value but agree to transact. It is the ultimate arbiter and the ultimate indicator or truth i.e. "put your money where your mouth is". One can believe in snake oil or reality. In the end, the price is the price.

Cheers!

You are an anonymous person on the Internet, not the CEO of a mining company. You said yourself that cost of production was very low, and then threw a number out in the next sentence so obviously were implying as much I don't care what the price is. I care about fundamentals, long term perspective. You can catch the waves if you want, but I'm following the tides.

Cost of production sources:
Silver @ $20 - http://money.cnn.com/2013/06/05/investi ... index.html
Gold @ $1300 - http://seekingalpha.com/article/1225891 ... ld-edition