Euro Breaks 1.30, Silver Breaks $30, Gold Down on Greek/ French Elections

The Euro/USD gapped down on Monday’s open, and has now broken 1.30 to the downside, with a last of 1.2956.
Gold and silver also gapped down on Monday’s Globex session open, with silver briefly penetrating $30 again before popping back above the critical support, and gold dropping $5 to $1637.
Gold and silver’s plunge is merely a knee jerk reaction to the plunge in the Euro, as rational traders (rather than HFT algos that merely react to forex moves) understand the implications of today’s Greek and French elections will have on Europe’s fiscal landscape going forward.


Live 24 hours silver chart [ Kitco Inc. ]


Live 24 hours gold chart [Kitco Inc.]


  1. We’ve been asking for some volatility in the PM markets.  The French elections are going to provide it 

    Wakey wakey stackers, get ready to pull the trigger   Time to abuse the magic plastic.

  2. Be careful though!
    I’m all for — and — all about stacking.
    But still thinking this is just the beginning of a
    l o n g
    This week may only be the start of “The Mother Of All Smackdowns!”
  3. I agree 4oz it may go down this week but I see it heading back up seeing what’s happening in Greece and France and it is a prime time to Stack! and if it gets lower than I think I’ll just buy more. Lol

  4. I don’t think it will drop much, I will say london & the COMEX will bring it back up until JPM keeps smacking it down. You know the same old same old. QE on the way

  5. I feel $30 is the bottom thanks to JPM there is no more room to go down

  6. 1.2972.  Do I hear 28?  28 anyone?  28…?

  7. With no derivative rules in play the down trend we have been in for about a year now will continue.  We will be lucky if we stay above $26 or else we will see the teens again this summer.

  8. Folks with the French election over

    I feel inflation is baked into the cake

    we may drop a dollar in silver maybe $1.50 or so

    but going forward all i can see is devalue in the frank & inflation

    lets see what the week ahead brings



  9. if it went to the teens, I will buy huge.
    if it got knocked down to the teens would kinda be awesome actually.
    This time around while stacking double physical, the longer the better

  10. So if the EUR drops vs the dollar… we should be able to expect SOME corresponding drop in silver and gold as well, right (dollar relatively stronger generally means lower price for silver and gold, yes?)?

    I’m happy no matter what… if it drops a dollar or 10, just means I can stack more phyz for the same amount of FIAT.  I’d be overjoyed if we DID see mid20′s and over the moon if it ever got back down to the teens… ’cause we know it won’t stay there, but it would give a great opportunity to buy at an even bigger fire sale for now… :)

  11. When we dropped from 48 people said “I can’t wait to buy at 45″, then it was 40, 38, 36…32, 30.  I was hoping the last drop a couple month back was the last time I would see the 20s but that was just the beginning of this latest down trend.  Please remember all the videos we see that are bullish are made by guys selling newsletters and silver products.  I know a guy that stopped working full time to write a silver newsletter and is doing very well.  I think he charges 500/yr and has had the highest number of new customers after the smack down last summer.  Recently he commented how many new sign ups he has had in the past week.  Went on to say he can’t write what he really thinks anymore because they pay for the hope that the market will go back up sooner than later.  When I see all these outlandish videos and think about all the time spent creating them, then see a sales pitch at the end, I think of this guy.  Just be careful and remember it could be years until we see $50.  

  12. I think the Asian buying and price support for industrial use will trump European issues. The purchase momentum will bring shortages into the picture as well.  The drop in prices due the Lehman crash was substantial but this time there are some really large buyers who will keep the price up. 

  13. If stocks and oil crash by 15 to 20%, the Fed will QE. I don’t see them allowing another 2008 to happen.

  14. I hope for some strength to show but many industrial usages for silver have been substituted, this was the major source of demand.  Investment demand (which is also down) will never replace the industrial demand that has been lost due to higher prices.  We are not talking gold, central banks dont buy silver.  The S/G ratio has been as high as 100 so 54:1 doesnt really mean much.  I have searched for weeks for a reason to see higher prices in silver, I even passed up 25 silver maples for $800 today.  All I can say is I am sure you will all get the lower prices you desire.

  15. For the most part, I think overt QE III has been delayed because of the “strength” of the Euro in the past few months compared to the dollar.  This is the worldwide managed devaluation in action.

    Watch for the Euro to drop against the dollar now as the ECB adds a little rum to the punchbowl.  Once the dollar gets a little bit of strength back, oil stays down a little bit, and the markets start fiending for their next hit off the crack pipe, its time to watch out for the Bernank’s helicopters.

    I think the next couple weeks/month are probably a particularly good time to stack… I don’t really see how there can be much downside from here.

  16. I don’t see silver prices going much lower and I see it taking off with the results in France. People are going to be putting thier money into PM’s to fight the inflation which is bound to come over there and eventually here.

    The Elite want unrest and there going to get it, in Greece, France, Germany, Spain, Portugal and the rest of Europe and the Middle East. It’s getting close friends, keep Stacking.

  17. It is not going to be a 2008 crash event this time, think about it, if they allow it, the US will enter on official depression and the cost/unrest will be much much higher to recover from it, politically speaking they don’t want that. The US needs/wants a devaluate dollar in order to push its economy: there is no consuming, not private investment=high unemployment and fiscal spending has not work, but they knew it all along: is all about the dollar folks!, I think metals could be stagnant for a while in the worse case scenario but they will no crash this time. TPTB know that if they allow too low prices on metals there will a run on physical that can bring banks bullion down. Once the situation here in the US and Europe worsen there will be more stimulus, there is no doubt about that, once metals get the sign then expect a hell of a rally, specially on silver. if we see some Israel-Iran action by September-October, again, expect oil to rally to new highs. This is just the beginning of a slow motion collapse until they introduce/change the whole financial system, and gold-silver (and a basket of other commodities) are a key gear of the new one. 

  18. Jiggys, please do us all a favor, and don’t pretend to a be a silver bull with that ridiculous photo and then say clinical things like “could be years, we’ll be sitting on losses for dozens of months!”  Ok? 

    If you’re gonna troll, that’s fine, but be an honest troll.
  19. Should be an interesting week wit these European elections now behind us. I suspect more manipulation to take centre stage – the distance to the endgame is inversely proportional to the frequency of visible market manipulation.

  20. With the French once again turning to the party that got them in the crapper, how can their situation possibly get any better?  Answer:  it can’t.  It will get worse… a LOT worse.  France will become more like Italy and less like Germany.  While that may feel good at first, it will be devastating to their economy in the mid to longer term.  A lot of money will be fleeing from France quite soon, I suspect. Yes, some of that may well go into dollars, giving the false and temporary impression that the dollar is gaining strength.  We can count on the MSM to trumpet this long and loud but it is no more true than about 98% of the other nonsense they spew on command.  Some of that money will go into gold and perhaps also into silver, as people try to protect their wealth from socialism and currency devaluation.

  21. Cleburne61. Touche’. We all would like to stack as much as we can. And we will likely get that wish in the near term. Yes, France is faltering and Greece is all but a done Jesse. Don’t forget about Spain and Portugal and all the others. Once the Euro goes, so goes the PM prices (temporarily) as the PIIGS flock to the dollar. However, the dollar will not last long after the fall of the Euro and people will speed out of US treasuries and into the PM’s. All the while, China and the rest of the BRICS countries will be licking their chops at the amount of PM’s they will have already bought. Jiggysmb say central banks are not buying silver? Maybe not Western central banks but the Eastern countries have either stopped exporting silver and/or are adding to their central stores.

  22. Cleburne, I would not call reality trolling but I understand how most here would agree with you. Hell I may have said the same thing at one time.  I will keep my comments to myself if they are not welcome here. Good luck to all.

  23. I count my wealth in ounces and pretty much ignore the manipulated fiat price movements of silver. 

  24. You All May Have Seen This Already, But If You Haven’t Here is the Article:

    France’s Hollande Plans Visit to Berlin to Discuss EU

    “French President-elect François Hollande will be inaugurated next
    Tuesday and head to Berlin soon afterward for a meeting with Chancellor
    Angela Merkel that will offer early clues on how far the two leaders are
    ready to go in reconciling their approaches to restoring confidence in
    the euro zone.”

    “…the French Socialist said he would seek to renegotiate the fiscal
    treaty agreed by European leaders last year, in order to promote
    Europe’s struggling economy and create jobs. Ms. Merkel and her
    government, fearful of popular resistance in Germany, have made clear in
    recent weeks that they won’t soften their austerity demands, a point
    the German leader made again on Monday.
    “We in Germany, and me personally, are of the opinion that the fiscal
    pact is non-negotiable,” Ms. Merkel told reporters at her party’s
    headquarters in Berlin.”

    “…If Germany fails to give Mr. Hollande enough of a pledge on boosting
    Europe’s anemic economy to take back to his voters, the new French
    leader could remain aloof and tensions between Berlin and Paris would
    likely unsettle financial markets.”

    “…Mr. Hollande has spoken with a slew of world leaders, including U.S.
    President Barack Obama and Japanese Prime Minister Yoshihiko Noda, and
    prepared a string of international meetings…”

    “A few days after his inauguration, Mr. Hollande will cross the Atlantic
    to meet
    President Obama before a summit of Group of Eight leaders set
    May 18-19 at Camp David.”

  25. Jiggysmb,

    Keep posting but explain why you feel the way you feel. I sometimes say things but follow up with it’s strictly my opinion. If at all possible give a reference or a back up link. AGXIIK, Jake, silverbullion, Mammoth and most of the other readers are excellent about posting a link. Your comments are welcome. Remember though, before the DOC required us to sign up, there were a lot of trolls here. We’re just being cautious. Post on.
  26. Thank you 2oz, it is sometimes hard to watch all the positive commentary when I see the opposite in the market.  I have bought below $6 and around $46, but am in it for the long haul.  I feel the pain of the newer guys who invested the most in the past year or two.  I dont feel my comments were in any way trolling, but will keep all that in mind when posting in the future.

  27. You’re quite welcome Jiggysmb,

    One thing to remember (and I am quite guilty of it) about posting, when you write something, no one can hear the infection in your voice or see the expression in your face. This makes it very easy to take something in the wrong way from the readers point of view, so trying to be accurate and clear is of the highest importance. Honestly, I had to agree with Cleburne61 at first read. I think you have made yourself clear now.
    Keep stacking and post away.

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