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Post by jeffolie on Feb 24, 2011 14:26:29 GMT -6
Silver was above $34.00 decline $2 As I post this spot silver is below $32.00 at $31.74 www.livecharts.co.uk/MarketCharts/silver.php Oil plunged, silver plunged... totally unsupported RUMOR: Libya's ruler Moammar Gadhafi has been shot
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Post by jeffolie on Feb 24, 2011 14:31:29 GMT -6
And now, for the real reason for the oil plunge: the ICE has just announced it is hiking oil margins for the second time this week, this time increasing both Brent and WTI by about 8%. www.zerohedge.com/
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Post by jeffolie on Feb 24, 2011 14:34:25 GMT -6
Update: U.S. government has no reason to believe that Gaddafi is dead Just a completely unfounded rumor for now. If it proves false, watch the vicious snapback... www.zerohedge.com/
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Post by jeffolie on Feb 24, 2011 14:38:01 GMT -6
Silver Backwardation did not prevent a $2 plunge in silver from over $34 to below $32. So how meaningful is Silver Backwardation...apparently is means almost NOTHING useful to traders ============================== Silver Backwardation Surges To Over $1.00 The last time we presented the silver backwardation chart, it was "only" $0.50 or so between the front month and the long end. In the week since then the difference has jumped to what we believe is a new record of $1.50 or so. Now that the CBOE is issuing CEBOs and allowing plain Jane investors to bet on imminent corporate bankruptcies, would it be so kind to issue a contract or two on the COMEX... Pretty please? www.zerohedge.com/
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Post by jeffolie on Feb 24, 2011 15:15:17 GMT -6
Now for a much a better reason for the silver plunge: =================================== 24 February 2011 Silver Market Hit Hard With Bear Raid - The Dr. Evil Strategy Yesterday I said: "Today was the option expiration on the Comex, and those options which are 'in the money' and have not been settled for cash are now converted to March futures positions. Depending on the size and distribution of those conversions we may see some 'action' in the front month because they are sometimes notoriously weak hands and will receive at least one 'gut check.'" And a gut check to run the stops was very obviously delivered in the afternoon trading session at the Comex and across the monthly contracts. This is remniscent of the 'Dr. Evil' strategy that got Citi warned and fined in Europe a few years ago. Memories of Citi's Eurobond Manipulation At the time one of the defenses offered by an ex-pat trader was 'in the US everybody does it.' Large players can come into a relatively small market and drive the price by selling in size, running the stops which they often can see through positional advantage, and essentially bomb the market, manipulating the price in the short term to their advantage. The profit is made through derivative and correlated bets that depend on the price of the metal, index, or bond such as shorts on mining stocks, currencies, bonds, etc. This is why the 'uptick rule' in stocks served a purpose, and why regulators are in place to keep an eye on big players with deep pockets and a far reach. In a properly regulated market the CFTC would immediatly pull the trading records for today and track the big sellers, and inquire as to the reasons for their sudden selling. It *could* have been a hedge fund margin call. There were rumours being spread all week keying in on the day after expiration. And so there it all is. I was ready for it. I may make money from it, but at least I had flatten my positions as I had said and did not lose from it. But it sickens me to the heart nonetheless. www.jessescrossroadscafe.blogspot.com/
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Post by unlawflcombatnt on Feb 25, 2011 1:16:03 GMT -6
It looks like silver is back up a little.
Qualitatively, I can't see a lot of difference in the price movement of silver in comparison to gold. In recent times, when there's been a gold and silver price fluctuation, silver was always more exaggerated--either upward or downward.
That seems consistent with what happened here. Silver declined about -2.3% over the last 2 days, while gold fell about -0.3%. At first this seems like more than the usual amount of variation between the 2, but it's only over 2 days. And despite the seeming variation, the major price dips and rises occurred at exactly the same time.
Silver's price rise over the last month has also been much larger than that of gold. But then true to form, silver's most recent decline has been greater than that of gold as well.
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Post by jeffolie on Feb 25, 2011 10:17:28 GMT -6
It looks like silver is back up a little. Qualitatively, I can't see a lot of difference in the price movement of silver in comparison to gold. In recent times, when there's been a gold and silver price fluctuation, silver was always more exaggerated--either upward or downward. That seems consistent with what happened here. Silver declined about -2.3% over the last 2 days, while gold fell about -0.3%. At first this seems like more than the usual amount of variation between the 2, but it's only over 2 days. And despite the seeming variation, the major price dips and rises occurred at exactly the same time. Silver's price rise over the last month has also been much larger than that of gold. But then true to form, silver's most recent decline has been greater than that of gold as well. I agree. Central Banks and governments buy gold NOT Silver. Silver is a late bloomer compared to gold. Silver is more explosive UP and DOWN on a percentage basis. Supply v Demand Tons have been written to hype metals but the marketplace has changed with Demand driven now by fear mongers, speculators and investors chasing the gains plus momentum. Paper Silver in ETFs have 50% of the world's silver. Supply continues from copper manufacturing that produces silver as a biproduct (see Wikipedia) that China/India's copper use in making twice as many cars/buildings than in America.
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