Gold & Silver Down Hard Overnight

Live 24 hours silver chart [ Kitco Inc. ]Gold and silver’s correction continued throughout the overnight Asian and London session, with silver trading as low as $28.24, and gold down to $1555. 
Silver bounced quickly back into the $28.40′s, and has traded as high as $28.69 on Monday’s COMEX.  If $28 cannot hold as the final bottom, silver is looking at a 3rd dip to $26, which as we have mentioned, now also provides massive support as the bottom of the rising 12 year trend channel for silver.
Ted Butler estimates JP Morgan is now down to 12,000 net naked shorts in silver- their lowest short position since they acquired Bear Stearns’ short position in 2008.  It appears that The Morgue is perhaps getting ready to extricate themselves from their short silver position, likely with one final smash. 

Live 24 hours silver chart [ Kitco Inc. ]

 

Gold was also down hard overnight to support at $1555.  It looks like gold is likely to test $1500, and possibly briefly dip into the upper $1400′s, which would provide an extraordinary buying opp for gold.
The silver/gold ratio has widened to 55/1 however, so we will not be buying any gold anytime soon until the ratio narrows considerably, as silver is simply too great of a value compared to gold at current prices in our opinion (although as seen in 2008, this ratio could still widen considerably during a crisis).

Live 24 hours gold chart [Kitco Inc.]

Comments

  1. Yep. Time to buckle up. Will be cautiously looking to add to my position.
    This would be a fine day to read about some sort of “Slingshot Effect” about to
    happen sending prices to the moon Doc, lol
  2. Damn timeouts>

    Look to split any large purchases between 26.10 and the possibility of 22-24.  If we go below 24 it wont be for long.  I believe JPM meant for this to pan out over the summer months but Europe and the credit rating decrease may have helped shorten our timeline of the return to the bull market. 

  3. I told you all that silver was going to go down and hit 26. No one listened and called me a sheep. Hence my lack of posting. I love to leave the uber bulls to themselves. ALl i can tell you is that if 25 doesn’t hold, see will see 20-18. Doc, this has nothing to do with manipulation, the dollar is getting stronger as I told you at the beginning of the year. Stop listening to Willie or ya gonna lose your own to the bankers. 

  4. Olive, I said the same about PMs going down but I think it is more how you say.  You cant expect analysis opposing the silver gods to be taken well on a silver bull site.

  5. Ya, jiggy, 

      I listened to Willies analysis on China hammering the price of gold down until they get their fill. Such utter nonsense, one day he is saying they put a floor under silver and gold from the far east buyers, the next he is saying they are taking it down till they get their fill. if that was the case why not clobber the price down to 1000 and get your fill. if that was the case, why did they let it rise to 1900!! 
  6. Personally I don’t care all that much about what the ‘dollar’ price is. I say that because I often find myself asking… what is a dollar?

    Okay, if Gold and Silver are commodities, then what is a dollar? Is it not a commodity too? How easy is it for those in charge of it, with their ‘legal tender laws’, to produce it? My understanding is that it’s pretty inexpensive to create a piece of paper with green ink on it. I also understand that sometimes that’s not even done, and instead, just some keystrokes are performed on a keyboard to ‘produce’ more dollars as digits that are electrons in computer memory. Would it be too much of me to ask the guys that can do that, “where’s my bailout?”

    How about producing Gold and Silver? How easily is that done? Might that actually take a fair amount of capital investment and labor?

    Some economists such as myself ask, how is wealth actually created? What is an actual unit of account? Is there really anything such as ‘easy’ or ‘free money’?

  7. ILUVPMs:

    Thats not true, I did not see any ware anybody calling you a sheep. I in fact said you were right, but would not want to see it go that low (26.00). You should not stop posting at SD, everybody’s input is valued hear. Again it looks like your right again. And again I hope I do not see 20-18oz. I do not stop or start buying over any price always a constant flow of silver hear. However if it going to hit a 4 month low or a year and a half low I’ll be buying a lot.
  8. Just bought 8 .999 silver buffalo rounds.

    Screw U Blythe
  9. This market is irrational.

    And sorry ILUVPM, but you are right the dollar is getting stronger, but you will see gold and silver will get stronger as well. It is the euro which is getting weaker. PMs will rise along with US dollar.

    No way we will see 20$/oz again. No way. Ever in this bull market.

    The COT is as bullish as it can get, silver is way oversold… Shorts will get squeezed very soon.

  10. I do remember ILUVPMs taking a lot of flak for his bearish calls. He was called a troll more than once.

    ILUVPMs – I sure hope you continue to post here – it is always a good idea to examine a number of opinions/viewpoints before making any investing decisions.

  11. ILUVPMS and Jiggys will continue to post because it is their way. Glad to have you here. Biggest thing is back up what you say with proof or express it in your own opinion. And don’t just post when  the price is dropping. That is why people think you are a troll. A stronger dollar does mean weaker PM prices, but, that is decoupling. I’m sure with the Eastern countries (and now even the IMF) sucking up every ounce they can and trades in gold rather than the dollar, the strong dollar will not matter much soon. It’s effect on PM’s is living on borrowed time.

  12. Bloomberg Just Ran an “Options Update” Saying “Gold-Rush is Over”.
    The little girl reporter said, “After a 5 year run, traders are just bored with it now”. HAHAHA!—just thought that was funny.

  13. Concerning ILUVPMs…  Whether he or she is right or wrong about the currency price prediction of silver is immaterial.  Over the course of time, ILUVPMs has posted very negative sentiments about silver, and about the silver ‘bulls’ in particular.  The manipulators want to ‘prove’ the silver ‘bulls’ wrong on price action in the short-term, but no one can argue that silver and gold ‘bulls’ have been right about gold and silver prices for the past 11-12 years and counting.  If anyone had listed to them since that time, they’re much better off even with all of the price volatility, in silver in particular.

    It is OK to urge caution and a thorough understanding of the conditions of the silver and gold market and fundamentals before making any investment decisions, but to come out and always put out negative sentiments about buying silver or about listening to the people with experience who are promoting precious metals as the sound alternative to fiat paper currency does not make one ‘ILUVPMs’.

    So, are people at SD now going to say Barron’s, WSJ, Forbes, Warren Buffett, etc, etc, are right about gold and silver because the prices are currently trending down?  Just because prices are trending down does not mean their views are correct.  Their job is to put out propaganda and instill fear and doubt in investors so that the precious metals do not come to the forefront.

  14. A “five year run”?  You gotta love it. Hall of Shame. No, Hall of Stupidity.

  15. Well,well said Plebian.

  16. Who knows, maybe silver will get down to $26.00 or lower but for anyone to claim that the price drop has nothing to do with manipulation is complete and utter nonsense.

    Secondly, the USA at a state and federal level is broke, running $1.5 trillion deficits, has real unemployment of 22%, 47 million on foodstamps, lowest workforce participation rate since 1981, housing a disaster and Uncle Ben has the printing presses running 24 hours a day. The US government will have no choice but to announce a massive round of “official” QE probably in the next month or two, which is hardly bullish for the US dollar ie QE to infinity.

    The USA with their endless
    wars and bullying (ie Swift) have also managed I would say to alienate the
    rest of the planet.  For some bizarre reason 4000 US marines were sent here to Australia a few months ago. I really wish they’d go home.

    Unless there is a complete and disorderly collapse of the Eurozone I
    would very much doubt that China, Russia, India, the middle east and
    asia will be flocking enmasse to the perceived safety of US government debt. Even if they did, it would only be short term. You may even find that after Greece, Spain and possibly Italy leave the Eurozone, the US dollar will actually start to weaken against the euro.

     

  17. Plebian, 

       You are definitely mistaken. Ive given negative sentiment only to the DOC posting bullish and utterly nonsense predictions from Stewart Thompshon, Hubbart, Moolman, and Jim Willie. I urged people to buy based on their own needs knowing the future fundamentals of gold and silver are intact. But not to listen to people who have a paid subscription and are gain sayers of this market game- Selling people hope. yes, i come with negative sentiment but only because I am extremely critical of everything i do especially when money is involved. As I’ve stated before, only Christ himself knows the future and I truly believe that- all else with respect to price predictions in the near future is guessing. 
    Anyways, good news to us bulls, we will experience some more bloodshed but it will be fast. I urge those who are investing in miners to get their stink bids ready- Just set them in a pyramid fashion and hope they fill. 
    God bless. 
  18. ILUVPMs – I also appreciate views from both sides to help me make an informed decision, so help us all out. It sounds like you’re on the dollar band wagon, or are you perhaps promoting some other form of paper? Are you saying the deficit will get paid off and the dollar will rule without question again one day? Are you denying PM performance over the last decade? Are you saying we shouldn’t be stacking because central banks around the world need our gold? Are you saying it’s time to sell? Are you saying not to buy until silver hits $18-20? Are you saying you don’t own any PHYZZ, and if so, you don’t have a stack because you much prefer what as a long term investment? Are you saying silver is being used in a way that allows it to easily be recycled? Are you saying a silver dime buys less today than it did in 1964 so we better start collecting dollars in a savings account at 0.5% interest? What are you saying about the gold to silver ratio?

    You obviously feel quite intelligent considering how proud you are of your bear calls. How ’bout helping us all out with a little insight from your side of the fence regarding these questions?

  19. OK ILUVPMs thanks for the clarification you posted while I was typing my interrogatory. Answers to any of my questions not already covered in general by your 12:22 post would be greatly appreciated.

  20. Bulls are ‘right’ sometimes, and bears are ‘right’ at other times. I was wrong when I said we had a solid floor under us at $30. With enough sledge-hammering, algo knee-jerking and endless media doom-saying, it indeed punched on through to the 20′s.
    If investors from Europe are going heavy into the dollar, it is only because the old FRN is the best looking horse at the glue factory. It won’t last. Big Ben will have to print to keep up in the race to the bottom.
    And don’t forget, JPM is under the microscope, last time I checked their stocks were down to $36.XX, a $10 drop in a few days.  Gains in silver would be their Waterloo.
    This is the roller coaster ride we have to learn to love.
    Hold fast.

  21. When the SHTF Gold and Silver will be more valuable the $ Bills. Don’t worry about the value off the PM’s or where the bottom is. As a Stacker I’m Stacking for other reasons and I’ll buy when it’s low and I will buy when it’s high. Prepare Folks Prepare!!!

  22. Actually, this site has seen a lot of trolls, and I never thought ILUVPMs was a troll.  He just didn’t seem to be on the same Kool-aid that so many of us on this site are on.  I’m a critical thinker as it seems is ILUVPMs, and I appreciate good critical thought.  I think very critical thought is lacking here as too often I see parroted bullish memes over and over again (“so glad the price is dropping; now I can buy another monster box” and “oh the manipulators are at it again this morning”).  Repeating these memes does nothing for helping us understand the complex nature of these markets, nor does, in my opinion, listening to the SiGo Cheerleaders on KWN and the likes of Jim Willie.  So I think ILUV is right on that. 

    There are some critical thinkers here and we need more of them.  Doc I believe is one of them despite posting a lot of SiGo porn.  I think the folks over at ScrewTapeFiles are also critically bullish.  But unfortunately, for whatever reason, people were downright hostile to ILUVPMs last year and earlier this year.  I realize part of that is on him for being so assertive in his communication style.  It would be better if all of us were more neutral when we discuss these things.  I think this is what often leads some to think one person or another is a troll, or bull-y. 

    Happy stacking!

  23. 40 OZ, let me tell you something. Im not on a dollar bandwagon at all. Im already invested in precious metals. However, I can tell you that if you are in miners and metals, it would best to hedge. The best option is to PRESERVE YOUR CAPITAL!!! CAPITAL PRESERVATION IS KEY, then you can buy more at a lower price. YOUR DOLLAR help you buy silver so get use.  the gold is going to go down and silver. Then close to 26 silver is should rebound or form a long bottom. 

  24. Super words Conax. Right on Edward. Remember all, we are on the same team and we have to have both sides of critical thinking. Once again, without those like ILUVPMS and Jiggys, we would become self absorbed and not see what we are trying to accomplish. Thanks to all of you.

  25. Edward London, 

    Yes i am extremely assertive in my view points. Reason being is i know how volatile silver is. Most people here think a small dip deserves a buy of the monster box. YOu kidding me? Silver can go so low it can make you convulse.  Having the doc publish UBER bullish articles from from paid analysts, (geez no conflict of interest there folks) is not critical thinking. Thinking of manipulation as the major result of silver dropping is not a good excuse People need to start looking more at technicals, fundamentals, and stop listening to “gurus out there”
    I will let you guys in on one thing. During the last run up, we heard so much talk about a comex default looming, physical silver being tight, and refineries being behind.. Most of this was pumped by KWN, sprott, turk and all. However, not once did Bill Hanes of CMI silver say that there was a SUPPLY ISSUE, he always spoke of their being a bottleneck or refinery issue.  Please during this next run up do not be fooled by talk. Look at price and sell at a high number. Money talks in the end. 
       Now with respect to silver and gold: as i stated 26 is in the cards, if we don’t hold, we go to 20. Gold will probably hit 1400 if that happens. This will be the buy of the lifetime. 
     
    If you have any questions ask. WE are all here to help each other. However, there is no point in summarizing Willie and the rest. Thats not thinking and those guys are shills IMO. They get paid, and in all honesty probably don’t trade or invest to the amount the majority of us do. 
    God Bless. 
  26. New poster here.. I would just like to add to ILUVPM’s post.. 

    There are a lot of people here calling PMs “money” and how it’s a real store of value, and blah blah.. you have to remember the people trading these commodities don’t give a shit about any of this. They’re here to make money, so “logic” doesn’t apply here.
    Gold and Silver WILL go up, but not because of your own reasons as to why someone should own them. This market doesn’t care that your daddy and grandpa used to tell you to “stack silver” or what have you.. the market doesn’t care that silver “should” be at $50/ounce, it simply DOES-NOT-MATTER.
    What matters is where the price is at, and how it’s being traded.
    Current world events dictate silver and gold might go lower in the short term, this is logical since the investment world believes cash is the place to be right now.
    This may be harsh for PM lovers, but you have to shed your “love” of PMs and treat this like any other market or you’ll grow to hate them.
  27. ZDRux, 

        Yes, if you don’t treat your PMs as another trade, that will allow you to hedge against inflation, then you will lose in the end and hate them. People, you need to understand that inflation is the shift of wealth from those who have to those who have hedged against it. All asset classes eventually get lifted due to fiat debasement. Now PMs will benefit. BUT, in time you will need to sell and buy something tangible such as a house. I will give you some personal information as to what PMS can do to you. I know someone who bought silver, all his life savings, that he saved during his time, during the last bull run. He bought silver at 13 dollars an ounce when it crashed. A lot of pundits, Aden sisters, Howard Ruff and others were saying that the high interest rates will still hurt the american economy and the dollar and PMS were the place to be. Well guess what, that guy who happens to be 66 years old is still holding his silver. He refused to sell. However, his family didn’t live well because of him having to start from scratch. He had to work and SAVE ALL OVER AGAIN, and watch the value of money decrease, and know that the BANKS had him on his silver trade.  That man happens to be very close to me. That is why i tell you, in all honesty, that precious metals have the potential to destroy people if it goes wrong on them. DO NOT, treat this as an ordinary trade and don’t fall in love with it. Eventuall you will need to sell. If you don’t, and if you ride the PM from bottom to top but don’t sell cuz you have strong hands, guess how much money you made. NONE. Remember sell and be happy with your money. Love you life, your family, and enjoy it to the fullest. 
        
  28. ZD says:

    “What matters is where the price is at, and how it’s being traded.<—It doesn’t matter to most here from what I have observed–this is a physical holders site for the most part. Yes, price is a fun guessing game, but it isn’t going to change the view of true stackers.

    Silver is held not as an investment but as a way to preserve the cost of the future labor required to produce goods and services needed, period. The rest is crap about trading paper—If you want paper trading discussions, I suggest TFMetals is a better site for you. There are not many pure stackers over there. I like this site precisely because paper traders don’t gobble up the space with all their charts, picking tops and bottoms, babbling about some moving average cross-over that predicts nothing.

    This site appeals to the people who get it, not transient trader talk about—“like I said…it’s going to 26 them 20″ BS.

    If you want to predict the future, discuss your guesses with information that backs up your claims with sensible, rational reasoning–but this crap about…”if you want to know something, just ask me” crap gets old fast. 

    Current
    world events dictate silver and gold might go lower in the short term,
    this is logical since the investment world believes cash is the place to
    be right now.

    Ok, so what?—are you here to save us from ourselves with high talk about what you can cut and paste from another article, or can you tell us something we don’t yet know backed up with references and logic?

    This may be harsh for PM lovers,
    but you have to shed your “love” of PMs and treat this like any other
    market or you’ll grow to hate them.”

    Since when do I have to shed my love for a silver coin? What are you talking about? Stackers don’t come to love silver and a few months latter “grow to hate it”. You are obviously some trader. Okay fine, what position do you have on right now? What price and when did you enter the trade?

    We’ll monitor how good you are, but in the mean time, back up your high talk with sound reasoning about your opinions.

    ILUVPMS said:
    “Yes, if you don’t treat your PMs as another trade, that will allow you
    to hedge against inflation, then you will lose in the end and hate them.
    People, you need to understand…blah blah blah”<————-Ok, so metals are “all about trading?—We’re supposed to trade that paper in and out and make tons of cash?—Ok, so what are your trades?…What positions do you have on right now? Why did you enter this trade?…Tell us so we can learn!
  29. Jake, 

       PMs are a way to preserve wealth. But all assets eventually have their time. We will reach a mania phases and then correct to the mean. If you believe that you should always hold PMs then thats your business. I hold EDR, EXK, GDXK, Silver Physical and Certs, as well as DUST. Im not going to give you a step by step breakdown of my trades. I don’t believe that we should hold each others hands. 
    I entered this trade in 2007 with all my monies in order to hedge against inflation and to make money in the end so that I can buy a house, cottage, and farm land. POint is, I’m trading it all in in the end for other tangible assets. if you want to hold forever then thats your business. We all have different lifestyles and outlooks on life. 
    Just remember, when you hold from the bottom, and you hold till the top, but ride it back down how much profit did you make… NONE. 
  30. Jake, I also didn’t say to trade in and out of your physical. I hold both, but i don’t agree with buying on the dip because its there… dips in silver can be small and very large. 

  31. Well said Jake;
    A hole hell of allot of BULL SHIT ON THIS PAGE. The only trade I cair about is trading the fiat I earn for silver. I sell my silver only as I need cash for something. I never stop buying over prices, silver is my bank.
  32. Thanks 427.

    “ILUVPMS” —Go build a Mattress Fort.
     

  33. @ILUVPMs
    There are reasons that the US dollar will get weaker.
    1. It will be no QE3.
    2. The debts ceiling will be raised before August 2.There will be no chance to default.No one buy the default insurance.
    3.The oil price is going down because of IEA.
    4. The Greece problem has been solved.
    5. The US dollar is getting stronger against the Euro and it has the potential to maintain the trend.
    6.The FED is likely to raise the fund rate to curve the inflation.It is 3.1% already.
    But there are some risks.
    1. the unemployment rate has no sign to go down.
    2. the big budget cut,demanded by the Republican,would harm the economy.
    3.China will resign as an engine of growth of the world economy because of inflation at home.

  34. From Harvey: SIGN OF MANIPULATION?—NOPE—MOVE ALONG! NOTHING TO SEE HERE! READ MORE

    “WE
    NEITHER GAINED NOR LOST ANY GOLD AT THE GLD today. Amazing that we have
    had a 100 dollar drop in the price of gold during the past two sessions
    and yet no gold liquidation from the GLD and little gold withdrawn at
    the comex.”

    “we
    have no change in silver inventory.  Surprisingly we have had over a $1
    drop in silver these past 2 days and yet no physical liquidation.  And
    the comex silver vaults were quiet as well today.”


  35. Man I’ve been missing this post glad to look in again. As for me, Yes I’m a Physical Stacker and Yes the Paper Market is going to crash and Yes the Dollar is going to be Devalued and all hell is going to break loose. Now would I want Pysical Silver, Paper Stocks, Devalued Dollars? Hell I’ll Keep My Physical Silver. That’s Why I’m Stacking Not To Make Money but To Survive. Be Prepared!!!!

     

  36. Perfect VID’S jake!!

  37. Jake, here comes 27, thanks for the mattress at least it will cushion my blow. Don’t forget to buy the dips every 10 cents down, I’m sure its doing you good financial health. 

  38. Not SD, too- bearish sentiments, sell your silver when it goes up, take the money and have fun.
    Enjoy your jet-ski, but I’ll be waiting a bit longer than the next blip.

    Some of us are BIG PICTURE bullish. Not tomorrow, or next big spike in December. As Eric Sprott and others will tell you, the next ten years are going to be silver’s time to shine.
    It’s real simple- a multi-faceted asset with industrial, monetary, chemical, and medical applications, most of which is buried in the worlds land-fills, (more has been used up and disposed of than currently exists, unlike gold which is always hoarded) that just happens to be deliberately under-priced due to a zombified fiat money empire thrashing and sinking in its tar-pit is not something to just blow off and swap for some toys to play with at the beach.
    I’ll sell when it is absolutely unavoidable, otherwise the grand kids can have it.
    Anyone that has 5000 ounces of silver, in the year 2025, is going to have financial security and the respect of his entire clan.  It is unavoidable. Low prices are just hastening the day, that’s all.

    Traders and stackers have this same discussion on every silver board in the country, two or three times a week. :)

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