Today's Silver Jump

[Doctor Steuss]

Hoping one of our silver market experts might have some insight on possible reasons for today's bump.

Up over 5% in about 3 hours.

[TXSTARFIRE]

I am curios about the price jump also.

[Recyclersteve]

The SLV (silver) ETF closed at $19.09, up a whopping $1.59 (9.1%) from Friday’s $17.50 close.

9.1% is considered a decent YEAR to some people, let alone day! Also, the volume of 39.9 million shares traded was the highest since July 1.

Per a Jim Wyckoff article on Kitco, investment bank Credit Suisse may be in serious financial difficulty. Whether that means they are on the verge of bankruptcy or a bailout of some kind is something I don’t want to handicap.

[Cu Penny Hoarder]

My take... The stock market dragged the price upwards with everything else. There's no way to tell if Ag had any relative strength because everything was up yesterday. +9% is a big move, but silver has always been much more volatile compared to gold. Probably some big shorts positions got covered too.

Higher Ag is better higher than lower Ag.

[68Camaro]

It was due largely to a significant drop in the previously inflated US dollar, which had started to approach 115. As to the amount of change, silver almost always overreacts both on rhe way down as well as on the way up (I suspect the overreaction is essentially one type of market manipulation used once the market makers realize the direction the USD is going. They have less control over the price of gold and you will see it make the same direction move but lower in magnitude.)

One small sub factor in the change in the USD was the decison of the new UK government to drop a plan to reduce taxes on the those making over 150,000 pounds sterling (I believe that was the amount - at least in that range). The pound had been tanking but reversed on that decision.

[wagsthadog]

Hi all!

Definitely not an expert, and agree with the previous posts.

My take is that the stock market is betting that central banks can't handle the modest rise in interest rates, and are going to collectively 'give up' and resume QE. This means that more inflation is probably coming down the pike, combined with lots more unemployment and higher prices. The 'stagflation' that we so often hear about... very good for commodities, I think.

Plus it remains to be seen what will happen now that Russia seems willing to defend its new territory with full force military response. Interesting times!

Wags

[Cu Penny Hoarder]

Only 8 days has passed and it's back down to $18 again. Spike was because it went up with everything else. +9% is impressive for 1 day, but no relative strength on that move.

I maintain it's going back to $12-14 area, possibly lower. Keep lots of dry powder ready. Premiums are a bit discouraging though.

[NDFarmer]

I maintain it's going back to $12-14 area, possibly lower.

I'm hoping for $10

But the premium will probably also be $10 so the actual price you will pay will still be $20

[Silver4face]

The price, while always interesting, is also irrelevant because there will be MONSTROUS PREMIUMS. Someday we might see 8 dollar silver with 24 dollar premiums!!!!! The best way to buy silver is from banks for face value. That way you pay NO premium unless you consider your time a premium. I personally like to hunt it down.

[silverflake]

Did anyone else get the email today from APMEX? They are buying back silver eagles for spot + $10!!!! They are selling (at the time I checked) for spot + $20!!!!! (unless you buy bulk, then it's spot +$18)

Wow! I am almost tempted to sell my eagles then buy some kangaroos or something like that.....but, nah.

Stack like you mean it

[Cu Penny Hoarder]

Did anyone else get the email today from APMEX? They are buying back silver eagles for spot + $10!!!! They are selling (at the time I checked) for spot + $20!!!!! (unless you buy bulk, then it's spot +$18)

Wow! I am almost tempted to sell my eagles then buy some kangaroos or something like that.....but, nah.

Stack like you mean it

Please don't do that.

The rest of the world has not caught on yet... but when they do... yikes.

I believe premiums will go 200-300% above spot.

[silverflake]

Cu Penny Hoarder, it was only a fleeting thought. My Eagles are safe and would probably be some of the last silver i ever sell. But thanks for your 2 cents. Much appreciated.

[Cu Penny Hoarder]

Cu Penny Hoarder, it was only a fleeting thought. My Eagles are safe and would probably be some of the last silver i ever sell. [u]But thanks for your 2 cents.[/u] Much appreciated.

They're copper, not zinc!