Gold and silver. Discuss

[mikeman]

Holy ****! Silver down 5 bucks!

 

[rnoldh]

Originally Posted by mikeman

Holy ****! Silver down 5 bucks!

That is amazing! A 10% drop from Friday close to today's international market opening.

You do realize this loss ( drop ) is as of now (6:16 PM ) on the world spot price market, and in all probability it will recover most of the loss when the NY spot market opens and closes tomorrow.

A corresponding 10% drop in gold would be $150!!!!!!

Here is Kitco.com prices. It will be changing but Silver has already recovered to a 9.17% loss in the few minutes that I have been posting.

Also, as iamatt points out ( not in Gold and Silver, but in investing in general ), there is a huge difference in trading and investing. If you are worried about daily, or hourly % changes in precious metals you are a trader. If you hold for a while ( whether in physical form, ETF, or whatever ), you are an investor and should only worry about your average basis of acquisition, and your exit strategy.

BTW: Silver has recovered a little more to a 8.74% drop as I end this post. If you watch changes hourly or less you will go nuts. Or why not just learn day trading.

What goes up must come down. Or so they say. Silver is probably solid but no way will it match the last 12 months gain of approx. 150%.

 

[mikeman]

I am a investor. I just can't help but look at the price...as of now, its down about 6%, and i'm sure people will be buying tomorrow, I wonder if this is the drop we were waiting for, or if there is more to come!

 

[Crane's]

This is the second time in a week that I played off the pool account for profit taking. I'm thinking you'll see a lot of this until silver breaks 50 an ounce.

 

[javyn]

Yeah will probably channel a bit. Already @ $46, I don't think this is causing a panic, or the bloodbath that there would be if this really was a bubble bursting.

 

[Valproate]

There's enough blood in the streets now. Going to buy more PSLV tomorrow.

 

[javyn]

Even though I'm tapped out and already in silver, is it nuts to enjoy this kind of volatility? It's almost like my college days trading OTC stocks.

 

[Crane's]

Originally Posted by javyn

Even though I'm tapped out and already in silver, is it nuts to enjoy this kind of volatility? It's almost like my college days trading OTC stocks.
Javyn, that's why you fund a pool account. What I'm holding stays put. It's the long term side of my PM investing. The pool account is great for playing these ups and downs and I use it to leverage my position and take short term profits. It wouldn't surprise me to see this up and down short term trend to continue. Once it hits over 50 an ounce I think you'll see the same thing as it approaches 60 an ounce. Now that it's back down I'll be buying bars and adding more funds to the pool account.

 

[javyn]

Yeah, I just bought a bunch of bullion, no pool here. Don't get me wrong, I'd prefer to see it go up up up, but I'm just not freaking out over this correction, even thought it's a nasty one.

Not to mention, the USD is still tanking.

 

[mikeman]

Originally Posted by javyn

Yeah, I just bought a bunch of bullion, no pool here. Don't get me wrong, I'd prefer to see it go up up up, but I'm just not freaking out over this correction, even thought it's a nasty one.

Not to mention, the USD is still tanking.

Right, and thats what I keep telling myself when I think about how much I want to panic sell and take a small profit.
The fundamentals are still intact, and stronger than ever. Just hope that they hope QE3, because if not, it june I think we will see pullback again. But, I have been seeing from TA that we will probably hit around 30 an oz... I hope not, though.
Regardless, long term, silver will be fine.

 

[javyn]

Well, I'm always surprisingly serene during volatile periods like this. Which has caused me to both lose and win big in OTC stocks heh. Whether it hits 30, 20, or 15, I'm holding

Guess it's because I'm a lunatic who was "weaned on strife and chaos" as Akira Kurosawa put it in Ran

 

[rnoldh]

Is a 30% silver drop ( $49.50/Oz to $34.60/Oz. ) a correction or a bloodbath?

It makes no sense since the fundamentals point to a rising silver market or certainly a flat market with "slight corrections".

I've lost a nice chunk with gold. As a hobby, I buy physical gold and sell for the margin I make. Gold has lost about 7% recently which seems small compared to silver's drop. Luckily, I am holding very, very little gold scrap right now and I sold off the last appreciable amount at $1520/Oz.

But I generally keep any gold coins, or solid gold running watches that I buy, and I hate to see even the 7% drop, since I have some of each. But I am not going to sell coins at a small premium or running watches at melt value.

The 30% silver drop is huge! When 9-11 happened, didn't the stock market drop about 30% then? What is the 9 - 11 that caused the silver drop.

 

[javyn]

No idea!! It's getting ugly out there though

Could be a Bin Laden bounce for the dollar? Margin hikes from CME? Both?

Fundamentally nothing has changed, and there is so little silver out there that huge swings like this are probably going to be the norm.

 

[mikeman]

I think its all the big boys covering their shorts, as well as the FIVE margin rate spikes this week. We were climbing pretty fast, and what goes up, must come down. Many are saying the bottom is near. But only time will tell. Hopefully tomorrow will be the last beat down...Guess I have no option, but to go LONG now. Just sucks, as I have a good chunk of my money in silver...yet another lesson learned.

 

[Monaco]

The recent drop is a correction. Panic if you want but it just makes the market that much friendlier to the real players.