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The silver landslide


#1

Isn’t anyone going to talk about this?

It has been days since the landslide started and no one on this
forum has brought it up!!!

It isn’t like silver is some incidental anymore, it is a primary
metal that we rely on for our kind of work.

In the last year the increase in price has been so steep it has been
hard to gauge pricing and then in one fell swoop the price of silver
plummets back to where it was months ago.

This silver, not gas!!!
The price is supposed to fluctuate but not this much!!!

I apologize for my tone, but this needed to be said


#2

It makes me wonder how much of this mess has been artificially
manipulated to begin with…Gold also fell majorly…at one point,
it had fallen just over $50/oz, but did rebound a bit.


#3

You can all thank me for the dramatic fall in silver prices–I seem
to live by Murphy’s law, so of course I bought a bunch of it last
week when it was $49! I just chalk it up to taking one for the team
:). You are all welcome. Want me to buy a boatload of gold too? :slight_smile:


#4
This silver, not gas!!!! The price is supposed to fluctuate but not
this much!!! 

Say’s who? I didn’t know anyone was setting rules…

:slight_smile:
Peter


#5
Isn't anyone going to talk about this? 

OK. I will…

Nya Nys! Ha ha! Told ya so!!!

I’ve been saying for the last year over and over again to any one
who would listen, that what goes up will come down. So many folks in
and out of the biz have been asking me where and when to buy metals
etc. I kept telling them that if you buy in a bubble you will loose
money. I said the same about the housing bubble for years before it
burst. I timed the stock market and sold all but 10% a month before
it crashed. Folks told me I was crazy to sell then.

I started to stockpile silver when it was 4-6 bucks an ounce right
after it fell from $40.

I plan on selling my sweeps today and using the cash in a few months
to buy that much more metal.

I’m glad it’s sliding down becuse it’s been heart breaking to see
all of that lovely old silver melted down.

Have fun and make lots of jewelry.
Jo Haemer
www.timothywgreen.com


#6

I bought silver today. Spot $36 is still a little over the moving
100 day average, but less by a lot than the highs of last week. I
will need the material soon for production, so the landslide presents
a buying opportunity.

Why was it up? Why is it down? Who knows? “Rumors” and “leaks” by
the Soros Foundation seem to have something to do with it as well as
new higher margin requirements putting the brakes on price.
Apparently if you put the words “rumors” and “leaks” in “quotes” you
can insinuate that they were not authentic and that Soros was not
"manipulating" the market, but the story I read does not actually
deny that this master speculator was working some mischief.

Silver crash: The COMEX margin trick and Soros “rumors” worked well

The thing I try to remember is that when I make silver jewelry that
the cost of the materials, even at $50 and ounce, is still a fraction
of the retail price that can be absorbed with only a small increase
in price. If a piece weighs half an ounce, the silver cost, even with
milling is probably not much more than $30. That same piece at $20
spot silver might have cost $13. I just took a necklace from my case
that weighs half an ounce and see that it is priced at $110 retail.
It was priced that way since last year. So add the new cost
difference to $110 and you get $127, an increase of 15% retail. What
will the chain cost me now? I don’t know. How long will it take to
sell it for 15% more? I don’t know. My hope is that with silver
having a higher price it will get more respect as a precious metal,
but I suspect that it will take the culture a few years to adjust to
new perceived values.

Stephen Walker


Andover, NY


#7

yea me to- murphy’s law. i decided to stock up anticipating that
silver would rise over the summer with other commodities (oil/gas).
crap! all we can know is that it’s unpredictable…sigh.


#8

I am thinking that a lot of money is being taken out of investments
and speculations from Japanese investors and in Japan itself. They
need yen, not silver or gold to rebuild. What I don’t understand is
why mining companies have been hot as well since there will be a lot
of copper, steel, aluminum etc needed for rebuilding. And then
there’s uranium…


#9

Jo is what is known in the stock market as a contrarian. It works
sometimes. Glad it worked for Jo this time.


#10
You can all thank me for the dramatic fall in silver prices--I
seem to live by Murphy's law, so of course I bought a bunch of it
last week when it was $49! 

Right from the outset I must say that I have no idea what future
holds. Silver may go to a $1000 an ounce, or be sold for $1 per
pound. Simply have no idea. But, as I type this, I am keeping my eye
on developing story right this minute, that there are secret meeting
of European leaders on the subject of Greece exiting the union.

If this actually happens, all bets are off. The financial world as we
know it today, will be nothing like what we will see tomorrow. With
this in mind, having some silver in the basement, seems like a good
thing.

Leonid Surpin
www.studioarete.com


#11

My husband and I were at our financial planner’s office this past
week reviewing our investments, and she told me the “report” on
metal prices was: declining prices for the next 6 weeks, then rising
again. Of course, no one has a crystal ball, but she suggested buying
in the next 6 weeks in 4 installments to best hedge against upswings
and instability.

Dana Evans


#12
This [is] silver, not gas!!!! The price is supposed to fluctuate
but not this much!!! 

Yeah, the price is “supposed” to fluctuate as much as it does. In a
free market prices fluctuate. It’s the Keynesian’s who have us
thinking everything should always go up in value. If gas was freer
(not taxed at every level of production, etc.) its price would rise
and fall more too.


#13
It makes me wonder how much of this mess has been artificially
manipulated to begin with......Gold also fell majorly..at one
point, it had fallen just over $50/oz, but did rebound a bit. 

Every time the price of a commodity rises, the value (or price) of
our currency falls. When gold falls, the purchasing power of the
dollar rises. And this happens in spite of all the artificial
manipulations by our government.


#14

Tell me about it. I just invested for next season in a sick way at
the highest price (assuming we’d be hitting $100 per TO by year’s
end). At the same time I’m still waiting for several of my pieces to
be cast, which will now happen at a lower spot price so this is
somewhat of a blessing. I figure at this point I’ll just average
everything out. Assuming there is a good chance it will go back up
again, at least I’m somewhat prepared. Trying to find the positive in
all of this…trying! It’s all we can do unlesssome of us here are
filthy rich and can take one for the team and control the market a
little? Anyone? :slight_smile:


#15

The correction in precious metal prices has been coming for a while.
It has a lot to do with the strength of the dollar and the increased
metal demand by gov’t and individuals. Of course, speculators have a
lot to do with the current swings in the price of metals. So follow
the old adage—Buy on the dips…Teddy (and this is a BIG dip)

Don’t take life too seriously…you’ll never live through it.


#16

Dana- Actually you’d probably be surprised at how many of us do have
crystal balls mostly purchased at mineral specimens. Lovely to look
at but not much help in this volatile market:) So does your financial
backer charge per purchase or are you buying your metal direct from
the refiners?

Jo


#17

This is what happened when we rely on a global market economy
system. For investors metals are not a source of inspiration and a
way of making life, is just speculation… a way of taking more money
no matter what is metals, oil, weapons, crops, workers, houses,
people, etc, etc…

Gustavo


#18
When gold falls, the purchasing power of the dollar rises.

Actually, it’s the other way around. When the dollar falls, as it is
doing now, (thank you Mr. President), commodities which are priced
worldwide in dollars rise in price since it takes more dollars to buy
them.

Jerry in Kodiak


#19

Whether metals have an intrinsic value for jewelry or an investment
value for the market, this is an outlook for the prices of gold and
silver that some may want to take into consideration…

Monday, May 09,2011
Gold, silver prices recover after carnage

Gold and silver prices were recovering Monday after a painful
selloff last week as the U.S. dollar weakened and bargain
hunters stepped in. 

Gold for June delivery was adding $15.70 to $1,507.30 U.S. at
the Comex division of the New York Mercantile Exchange after
falling 4.8% in a week. The gold price Monday has traded as high
as $1,510.70 U.S. and as low as $1,489 U.S. The spot gold price
was rising $12.30, according to Kitco's gold index. 

Silver prices were adding $1.75 to $37.04 U.S. an ounce after
plummeting 27% last week. 

The consensus seems to be that silver has more downside now than
gold. Barclays Capital thinks that silver will find support in
the low $30s as "retail demand" takes the lead but that
"longer-term investor interest in gold remains robust." Barclays
cites Asian demand as a key factor for higher gold prices. 

Goldman Sachs seems to be in agreement issuing a 12-month silver
price target of $28.20 U.S. with silver slipping as low as $24.70
U.S. in the next three months, while gold's one-year target is
$1,690 U.S. an ounce after falling to a three-month low of $1,480
U.S. 

One expert thinks the ratio could move even higher, as much as
50:1 but that long term he is sticking by his ratio of 16:1. 

The Commodity Futures Trading Commission's bank participation
report for May shows that gold long positions fell 7% as of May 1
compared to April 1, but short positions stayed relatively the
same, whereas silver's long position rose 25% and short positions
fell 18%. 

Gold and silver were breathing a sigh of relief Monday as the
U.S. dollar index fell. The currency rallied more than 3% last
week as the euro tanked on rumors that Greece might leave the
European Union and on speculation that the European Central Bank
won't raise rates at its July meeting, which had been widely
expected. The lack of consistent and aggressive rate hikes will
leave negative real interest rates in the E.U. for longer than
anticipated, now at a negative 1.55%.

#20
This is what happened when we rely on a global market economy
system. 

From another perspective, rising silver prices signal to consumers,
a higher value and the desire to own fine silver jewelry again is
renewed. Thank you, global economy!