$27 Handle in Silver As Algos Tip off Monday Sell-Off

27Friday’s strange algo patterns in the gold and silver charts apparently were tipping off the upcoming silver raid, as silver traded exactly down Monday morning to the $27.88 spike low seen on several silver feeds last Friday when global markets were closed.

The cartel appears intent on forcing a re-test of crucial support at $26 in silver- the question is at what cost in the physical market as a massive shortage of 90%, Silver Eagles, and Silver Maples grows? (and will undoubtedly intensify on any visits back towards $26)

Silver was smashed back to a $27 handle during Asian trading (prior to the LBMA open), with concerted selling beginning again this morning in NY:

silver

 

Gold remains capped under $1600:

gold

While the bottom still appears to be in for gold, the same can not be said yet for silver as its 4 week range trade between $28.40-$29.50 has been breached to the downside.   $26-$26.50 will be absolutely crucial support for silver (and the cartel knows this, which is why they are attempting to force the issue), as if the quadruple bottom can be breached at $26, a brief wash-out trip down to $22 and back is possible (likely resulting in a complete vaporization of the physical bullion silver market, ala 2008).

Comments

  1. bring on $22 !!!

    • $22 won’t matter a bit if no one will sell us physical silver at that price.  Anyone actually selling real silver at that price will see it disappear in a hurry!  My guess is that it will be just like when silver prices dipped below $10 an oz. a few years ago.  The price was great but NO ONE was selling any.

  2. LOOKS  MORE AND MORE LIKELY THAT LARRY EDILSONS PRICE PREDICTIONS ARE COMING TRUE. THEY WILL ABSOLUTELY SMASH THE PRICE DOWN TO 22 OR EVEN LOWER AND I BELIEVE THEY WILL KEEP THE METALS IN CHECK FOR ALL OF 2013 DESPITE WHAT ALL THE PROS ARE SAYING. EVERYONE HAS BEEN CALLING FOR THIS BOTTOM NOW FOR MANY MONTHS AND THEY HAVE ALL BEEN PROVEN WRONG. I GUESS IF YOU KEEP REPEATING THE SAME THING OVER AND OVER AGAIN EVENTUALLY YOU WILL BE RIGHT..LOL.

  3. I guess the price on the futures market doesn’t matter except for propaganda reasons. Meanwhile who knows what silver is actually trading for in the dark bowels of the forward market.
    Hang them all and hang them high.

  4. Actually, early this year they were calling for a price smash around the end of the first quarter.
    TPTB are afraid of an April price spike like we has two years ago, and they are doing everything possible to prevent a repeat of this.  Those who have some fiat laying around may do well to incrementally pick up silver as the price continues to slide, because who knows for certain when it will reverse its direction?

    • “Those who have some fiat laying around may do well to incrementally pick up silver as the price continues to slide, because who knows for certain when it will reverse its direction?”
       
      That’s usually a good plan and one that I try to follow.  Buying regularly without a lot of regard for prices is a good way to build a substantial stack and that IS the object of the game many of us are playing.

  5. Here’s a wicked thought.   Gold holds at $1,600 and silver goes to $25  GTSR ratio?  64 to 1.  I’m would trade that ratio or better all day long. My LCS likes trading gold for silver as I found out in the recent past.

  6. Or sell at the LCS,  avoid their $2-3 mark up per oz and buy from Doc, if SD Bullion has silver available at these lower prices.

  7. AGXIIK, THAT’s the rub – as the spot price drops, not only will availability of Physical drop as well, but prices will increase.
    By picking some up on a regular basis, a person may not get the lowest price as he would if he could exactly time the bottom, but he will accumulate Physical that way. 

  8. Bring on the smash, the easter bunny wash just in town and he left me some cash!!
    These criminals are only digging their own grave.
     

  9. One thing that lends some hope that silver will remain available at lower prices, is that the mints also have had some time to gather their silver chpealy over the past month and change.
    However, what rate do they buy at? Before I pay my silver, it’s been minted, capsulated, transported across the globe, imported, taxed and 1 or 2 dealing entities have made their rightful profits. And yet I pay ~15% over spot. Until this current dip, that was low in the 11% actually. So how does that calculation work exactly? 

  10. I guess if I sold gold I’d sniff out silver somewhere.  If there is a fear factor liquidation event then the markets might have a small and temporary supply for those with dry powder.  That’s my plan in any case

  11. One thing that lends some hope that silver will remain available at lower prices, is that the mints also have had some time to gather their silver chpealy over the past month and change.
    However, what rate do they buy at? Before I pay my silver, it’s been minted, capsulated, transported across the globe, imported, taxed and 1 or 2 dealing entities have made their rightful profits. And yet I pay ~15% over spot. Until this current dip, that was low in the 11% actually. So how does that calculation work exactly? 
    Notice the other PMs are doing fine today. This is a silver only thing. 

  12. @XC Skater, while some Silver will likely still be available at lower prices, those of us who prefer pre-1965 ‘Junk Silver’ coins will be sh!t out of luck, since the supply of these will disappear.  The Doc himself has acknowledged there is already a junk shortage.

    • I spoke a junk specialist investor here in Euroland, he still manages to get large lots under spot (I can’t). He says the supply is diminishing, but still there.
      If supply gets tight on a finite item such as junk, that’s fine, as long as other kinds of silver can still be had. I prefer semi-numi silver as I can quickly turn it around with ounces profit.

  13. I just got back with a Santa Claus-sized bag of–my favorite–90% silver.  Well, that was an exaggeration, but it was a good chunk of 90%!
    I’m just going to chase the price down wherever it goes.  Don’t care, just so long as I can find silver.
    AXIIK:  Please don’t swap silver for gold.  You will rue the day!!!

  14. No worries silverrrr  I am a gold to silver trader and have done a few like this when the GTSR was 55 to 1 or higher.  Ilike silver way more than gold.   If I can get some more weight of silver and the GTSR hits 60 or higher I’m a trader.  Whether its a sale of  gold  for cash and a buy with Doc or a direct trade gold FOR silver  and happy to acquire more door stops and  boat anchors. 

  15. Just amazing that Silver is going down, Gold is slightly up and Dollar is dropping. Not possibly possible without manipulation. They are more worried about Silver than anything else. Crazy

    • Silver prices are practically independent of the demand for silver. Therefore, any reference to the demand and the deficit is meaningless.
      Silver prices depend primarily on the price of gold and index GSR.
      - GSR does not depend on the ratio of gold and silver in nature.
      - GSR does not depend on the price of gold or silver.
      - GSR does not depend on the demand for gold or silver.
      - GSR depends on the degree of public trust, to the main fiat currency, ONLY!
      Look at the historical chart of GSR, and you can see this. When faith in the dollar is like faith in God, GSR is 100 or more.
      But when faith in the dollar tends to zero, GSR is 40 or less.

      This rule always works for GSR, – like the law of gravity for my ass.

      Right now, the euro is a big problem. Against this background, the role of the dollar is strengthening. The dollar now, is the most beautiful girl at the party.
      And what do we see? We can see how the index GSR rising up to the level 56 and above!

  16. 800,000 oz of silver sold as of April 1st 2013, that should be a big talking point here at silverdoctors.  I’m guessing that’s a daily silver purchase record?

    • There is more to the world of silver than American Eagles you know. They make up about 15-20% of registered investor demand for silver I believe.
      It’s an oddly high figure though, good catch.
      US Mint sells these only to distributors and dealers, right? Would they have been waiting for a batch to clean quality control or did they truly receive so many orders all today? Or is this some delayed response to a Cyprus thing? Or a typical US way of window dressing, delaying or advancing sales figures as it suits them? I worked for a US exchange traded company so I’ve seen the ugly side of that.

  17. Man I was going to buy Sunday but I’ve decided to hold off to see what happens with the spot price. There are a lot of people selling right now here in Maine so things are looking good for me when the time comes. So I’ll just stack my Fiat and wait. Lol
    I never thought I would be saying that. Lol

  18. As the price drops premiums will rise. Plus miners are going to say the hell with it and quit mining at a loss.

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