Silver

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I got so wrapped up in grocery store panics that I completely missed silver crapping the bed. Can’t recall the last time I saw it drop that much in one day. Was Friday the bottom? Or will the slide continue Monday?

23 thoughts on “Silver”

  1. By my math, the ratio was ~105 for a while there. Never thought I’d see that. I don’t think financial markets are truly ‘panicked’ yet, though. With equities wildly unstable, I would expect people to flock to PMs, but it clearly doesn’t always work that way. When we see silver double in 1 day, the panic has arrived.

  2. Price is going down, so people are selling off silver for what, TP? I don’t get the shift…

    • Might not be ‘people’ but rather larger holders liquidating to cover market activity or to buy into the low market.

      • From what I read, it’s absolute fear out there and when the brakes were applied the other morning, the markets went to, “sell what you can, while you can” to cover some liquidity issues.

    • Many traders are heavily leveraged. They are required to maintain certain cash/ value balances called margins. When values drop it messes up those margins and they get a margin call. So they often have to sell something, anything, to have cash to cover their margins.

  3. I’m going to watch what it does when the stock and PM, markets reopen tomorrow in Asia along with the U.S. Futures. If the slide continues in stocks which means that assets are being forced liquidated in a hurry to cover margin calls, then mid 12s might be the bottom. If the markets show evidence of stabilizing and reaching a bottom over the next couple of days, then the prices we see in PMs may also be reaching a bottom followed by a rebound. Platinum is a screaming buy right now as well. I don’t have a crystal ball – just owner/operator of my opinion.

    Either way, at this price silver is a “back the truck up” bargain IMO.

    Regards

  4. Thirty nice new, shiny ASEs are now sitting in the safe. Gold had a hell of a slide as well and I had an order put together, but with the Gold:Silver ratio what it is… went back to silver and punched that ticket.

    Kitco has an app that will alert you when market levels hit the lows (or highs) you program in.

  5. Makes me rethink my metal investments. Maybe lead and brass would be better. I don’t think in my 54 years, I have ever head about a silver shortage, except from the company trying to sell me the silver. Time, to rethink!!

    • Panic buyers are proving you right. 7.62×39 was 18 cents a round Monday. Tonight it’s 24 cents. 9mm (CCI brass) jumped from 18 to 27 cents. That’s by the case, online, no tax. How frustrating even for us who’ve tucked “some” away.

      • I’m pretty good on the lead and brass front, but it seem that in times of crises, ammo and food are the only things that increase in value. Silver and Gold maybe long-term, but you have to survive the short-term first!!!

  6. BITCOIN has dropped 50% also. Looks like nothing has value, except what you can actually use right now!!!!

  7. Doesn’t make any sense. I get emails from a PM vendor I’ve been buying from for almost 10 years. They’ve raised their minimum purchase to $300 and are warning about a 4-10 day delay in shipping.

    Yet prices keep dropping…

    Go figure.

    • ‘Volume’. Despite depressed prices, there are large volumes of ‘physical’ on the move.
      Brace for fireworks.

    • Also keep in mind that only a tiny fraction of silver is “stacked” as a hedge by LMIs. The vast majority of it goes into industrial usages – particularly automotives and electronics – which has been one of the hardest hit sectors in China.

      When industries which use a lot of AG slow down – so does the industrial consumption – which can lead to much lower prices until recovery. IF industrial recovery takes a long time then the chances are that AG will have a lot farther to fall.

      Regards

  8. It was been 5 years, according to my purchase records, since silver was close to the 14.50 Friday close. I’m thinking of getting some now, and keeping an eye out for further drops, or locals wanting to sell now.

  9. Now I’m hearing rumors about ammo shortages ( I believe guns as well ). Just one source, nutinfancy. Take it as you will. So, lead now joins the shelf items liquidation

    • It’s true. Seeing it locally here in the SW. Also on the online retailers. Plus I hear that domestic manufacturing will slow due to shift cuts as workers are asked to stay home. I haven’t verified that yet.

  11. The avg joe has missed the boat if he thinks he is going to jump into the silver market and invest heavily. There are few deals if any at this point. Junk silver has been drying up for some time and bullion is seeing its day in the sun after being an ugly step brother to silver eagles. Game over for the time being.

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