What Happens To Gold And Silver Next? Look Out Below?

Let me first apologize for not being good with the market lingo. Just to see if I understand what you are saying, Gothic - you think PM's are about to start going up again and the big banks that need the PM's to hit a certain lower price point are aware of this. So, they are able to manipulate it enough and for just long enough to get it to drop so that they can make money on it before the price starts its long upward climb? (By the way, if my question sounds smart-aleck or sarcastic, I assure you that it isn't. It's just me trying to understand what people see as what is going on so that I can learn from it and decide if I agree or not.)
Also, I am fuzzy on how shorting works. Do short positions have to hit a certain low price at any time before a certain date/time in order for the person shorting to make money? Or are they an agreement to buy on a specific date/time in the future, which would obviously be good reason to want a low price at when that buying moment occurs? I'm trying to understand what you mean when you say "close out their big short positions". That makes it sound like something that they can do when they want, but I thought shorting was somehow tied to a specific time.
And, sorry to be uneducated one in the room, but how does clearing the stops work? If they had a stop at a certain price, doesn't that mean they sell when it hits that price, to avoid further losses if it continues down? If they believe the price is going to go up, why would they manipulate it down and sell?
I guess I am confused or mistaken in my understanding of what's going on.

I believe you are thinking of puts, which are time involved contracts to sell.
A short is done this way
Suppose you have 100 shares of ZZX valued at 100 each
I believe that ZZX will go down in price, so I borrow those shares from you, promising to replace them in the future.I sell your shares at 100 and if I am right, I buy the replacements from Mr Market at 60 to return to your account. You always own your 100 shares ( or their value based on mypromise to replace) and I profit immensely,
OTOH, if I amwrong, and the price of ZZX takes off in bull manner, I may have to replace your shares with some that cost me 140
The interesting thing with silver, is that the banks and manipoulators have sold short more silver han what exists. Where did they borrow it from?

what Gothic posted is what all gold bugs typically say- that the big banks are keeping the pressure on silver and gold from rising. That gold miners had their stops run. Gothic is wrong and here is why-

1- Flash crashes in the market are a very common thing and happen more than you think. I see them happen every week.

2- Who is the "they"? and why is it "banks". Tell me, with all certainty, what banks own these stocks? tell me who is the "they".

3- The flash crash happens when someone that is holding a major position liquidates in a heartbeat. It is someone who has a big stake and they want out NOW out of that position. Sometimes it happens because they are in a hurry and they dump an incredible amount of shares and are FORCED to sell.


more and more, flash crashes are treated as "nothing to see here". But of course, because it happened to happen in the GDX miners ETF, now the conspiracy gold bugs have something more to obsess about lol, I seen the talk since last night lol

Flash crashes DO NOT happen because someone is covering their position short. Again, it is someone with a major position exiting out in one big chunk. What happens when a fund sells, they sell into strength, slowly, methodologically, masking what they are doing.

Gothic is not an active market participant, since he would have known this basic fundamental in trading. As always, those who believe in conspiracies such as Gothic try to make it seem like truth lol

Lunck Money




Running the stops is a thing that does happen from time to time.

When I was an active trader, I did not use STOPS.

Running the stops is mostly a Holiday thing, because the market is THIN. IMPO

The speculators who are selling short do not run stops lol sorry Gothic but it dosnt work that way lol.

You are confusing a short squeeze and a flash crash. Also, this notion that "they" are running stops is also very laughable.

No one really knows whats going on on the other side of trade. Furthermore, investors generally as a rule do not sell short, that is the job of speculators. Speculators and investors are two entirely different things my friend, please learn the difference, in fact I'll help you learn the difference :D

You have it completely mixed up, sorry to say.

A speculator invests money--and most investors are speculating about prices :). Of course we don't know precisely what is going on, but it is rational to think that some market makers have information about where stops are concentrated and they will act on that information. Richard Ney pointed this out many years ago and it happens in many markets, not just PMs. Its good to be a banksta and that has nothing to do with any particular market.

An investor and a speculator are entirely different. Again, investors do not sell short.

Finally, I believe you are out of step with who's doing what in the markets. The banks, many of them are closing down their desks that deal with commodities, in fact this trend is accelerating. But you didnt know that did you? :D

Its not the banks that make a market,just so you know.