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 Replies: 41 / Views: 5,710 |
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Pillar of the Community
United States
757 Posts |
What's up with this drop? I know that around 3/4 of the people here had predicted it would continue to steadily rise, so I'm wondering:
to what would any of you attribute this recent drop? maybe renewed faith in the economy since the new house started?
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Pillar of the Community
United States
623 Posts |
Nothing goes straight up. The metals are pulling back a bit and then will continue to rise.
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Pillar of the Community
United States
4000 Posts |
Also, when there is a small pullback in price, a lot of profit taking takes place before it goes any lower, which drives the price down even more.
Eventually, support will come back in when people sense a bargain, or the next release of bad economic data.
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Valued Member
United States
287 Posts |
my opinion is that this is a buying opportunity! But hey, I could be wrong DYODD
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Pillar of the Community
United States
2661 Posts |
Large holders of the metal can and will manipulate market moves within gray areas of the law, but not enough to be probed by the SEC. They will buy a quantity of metal sufficient to drive up prices in the short term in order to sell at a small profit per ounce which in turn equals an overall large profit for them. The influx of available metals will trend prices downward for the short term thus creating opportunities to buy back in at a lower price. We all benefit from the price fluctuations in the same way. The one most important rule to remember when trading (buying and selling) any type of commodity or security is this.........In order for you to make money, someone has to lose money in some form or fashion.
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Bedrock of the Community
United States
10982 Posts |
Silver made a big run in a very short time. Wouldn't be surprised to see it drop back to $24 in 1Q11.
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Valued Member
United States
212 Posts |
Just an adjustment period right now. Patience is the key. Russ789 (above) is in the "know"!!
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Valued Member
United States
60 Posts |
I'm very bullish on Silver. I think that from now till March will be an excellent buying opportunity. China has become a consumer instead of seller of Silver for the first time in a long time.
The Markets are being manipulated by the big boys. There's a little more too it than even I understand. The short selling is being done on purpose because a lot of Electronic fund traders are are demanding physical silver instead of currency. The big boys have gotten away with selling paper they couldn't back up in Silver for years. If everybody went to trade in their paper for physical Silver there would be pandemonium because there's not enough!
Silver ain't like Gold! Silver actually gets used for a lot of stuff other then jewelry!
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Valued Member
United States
60 Posts |
Think about what it will cost in gas to get out of the ground in the next few years? The price will certainly increase! I say it's still a safe bet and can't see it going much under $24
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Bedrock of the Community
Australia
21786 Posts |
If you want to invest in anything (in this case silver), get hold of one year, 10 years and 100 year price charts. and plot on those charts moving average graphs of the duration of the investment period you think suits you.
When the current price differs from the moving average, decisions to buy or sell are more easily made, with far less emotion.
If you are interested in this approach, an hour's worth of Googling to learn about moving averages would be helpful for any silver or gold investor in the CCF. I think it would be well worth the exercise of educating yourself.
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Pillar of the Community
United States
3592 Posts |
No matter what everybody says, there is a 50/50 chance it will continue to rise or drop.And speculation is the name of the game.
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Pillar of the Community
 United States
2448 Posts |
 I agree with Maineman. I've been expecting this since Christmas. Just a market belch, the dollar is still weak. Wait until China's next round of buying and Congress' move on the debt ceiling. A lot of folks taking profits and some prophets catching their breath. |
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Pillar of the Community
United States
2600 Posts |
Short sellers push the price down to protect themselves as it tried to push through $30. When it hit $26/27 a while back, it was a short sale trigger. The run towards $31 moved them into the market to ease pressure until the options are gone. The continued run down was typical of profit taking, ride it while it is going up and sell when you think the short term peak has been reached. I said earlier, on another thread, $25 range was likely. It may be $24 or $26 but a backdown from $30+ was predictable. There will be other opportunities. It will push through $30 this summer. IMHO
Jim
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Valued Member
United States
60 Posts |
I agree with Jim. I don't care what our corrupt Government promises, I've been around long enough to know we're not in the clear yet! Silver is not only a hedge against a dollar you could flush in the crapper, but also an industrial commodity.
A pull back from $31 was a given. Helping Silver achieve the $31 mark was the Congressional investigation for unfair market manipulation. As soon a the suit was levied, prices shot through the roof. Basically the big boys quit playing games to not risk getting caught for a few. This gave us a glitter of what the metals "free market" value was. The free market will return when there is an all out shortage of physical bullion to solder joints ect. We are on the brink now if you ask me.
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Pillar of the Community
Canada
3692 Posts |
Buying opportunity or not, some dealers are still treating it as if it's still around the $31 price.
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Valued Member
United States
212 Posts |
I've been keeping track the A-Mark 10oz silver bars just for the heck of it. Been saving them in my watch list on ebay since Jan 4th of this year through Jan 24th. Just 17 10oz bars randomly picked. Sold For Range: $306.00 - $340.00 AVG Per 10oz Bar: $321.29 AVG Per Ounce: $32.13 What does this all mean? Not sure. Just thought it was interesting and wanted to share. |
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Replies: 41 / Views: 5,710 |
Posted 01/24/2011 5:37 pm
