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Silver's (SLV -0.6%) 9% plunge in the first minutes of trading overnight is being linked to...

Silver's (SLV -0.6%) 9% plunge in the first minutes of trading overnight is being linked to hawkish talk from Japanese Economy Minister Akira Amari who warned the yen's (FXY +0.7%) fast decline may be hurting the economy. One fails to see the connection but dollar/yen did dive along with silver and Andrew Wilkinson suggests hedge funds short the yen were forced to raise cash by bailing on stale silver longs. 
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Comments (11)
  • Interesting Times
    , contributor
    Comments (13099) | Send Message
     
    What a difference a few hours make eh? Where is silver trading at now...Gold looks like it attracted a few biggies like Soros and company.

     

    Patience is what physical accumulators are use to. Daily noise is just that . Noise !!
    20 May 2013, 01:00 PM Reply Like
  • pparaska
    , contributor
    Comments (191) | Send Message
     
    But if you were ready when the foreign markets opened (Sunday evening, 1800hrs Eastern Time) you could have saved yourself almost $20/oz on gold if you bought physical online. Not a huge discount, but one I would have taken if I hadn't bought over the weekend at the Friday close price...my concern was that it would immediately go up, but it waited until about noon EDT to go consistently above that Friday close amount.
    I'm patiently waiting for it to go below $1320/oz before I buy again.
    20 May 2013, 01:48 PM Reply Like
  • Interesting Times
    , contributor
    Comments (13099) | Send Message
     
    Folks

     

    Don't forget about silver. The poor mans gold!! It is on sale right now at these prices!!
    20 May 2013, 01:58 PM Reply Like
  • pparaska
    , contributor
    Comments (191) | Send Message
     
    I'm not buying silver until the ridiculous premiums go away. 7% premium is stupid in my opinion, even with the low price of $21/oz. If it gets to $15/oz with a 7-8% premium, I may buy some.
    20 May 2013, 02:44 PM Reply Like
  • Interesting Times
    , contributor
    Comments (13099) | Send Message
     
    " If it gets to $15/oz with a 7-8% premium, I may buy some. "

     

    DON'T hold your breath on that one! $15 buck silver?? I think that ship left port a long time ago !!
    20 May 2013, 02:56 PM Reply Like
  • User 6571511
    , contributor
    Comments (12) | Send Message
     
    It looks rather greenish on my screen right now, with a day high of $23.24 so far and firmly in the green territory. In my humble opinion, silver bottomed out.
    20 May 2013, 01:41 PM Reply Like
  • User 6571511
    , contributor
    Comments (12) | Send Message
     
    It was a great profit opportunity for the one who watched closely and participated in the trades.
    21 May 2013, 02:27 AM Reply Like
  • oldscaler
    , contributor
    Comments (69) | Send Message
     
    I don't believe anyone can state for certain what is causing this volatility in the paper silver market but I suspect it may have to do with the certain large bullion banks holding massive short positions and hedge funds bailing out of these basically paper instruments. Looking at the physical silver market we can see that premium on Silver Eagles are around 5.00 or around 23% and on Ebay near 40%. This is still far below what the premiums were on physical bullion when silver peaked at $20.92 on March 17/08 then began its decline to around $8.88 on Oct. 24/08.

     

    After the peak and shortly after silver began its decline, the shortages that occurred because of the huge demand (much as it was recently after the April 15th takedown) was such that dealers all over the country ran out of product and waiting periods were huge. The U.S. mint had to suspend minting Silver Eagles as unable to obtain blanks and 400 oz bars were non existant. The premiums for junk silver were as high as 100% and even after the price went below 9.00 the minimum you could purchase for was as though the spot price was 20.00. I believe we are entering a similar situation now and the next few weeks should tell the tale. It appears that we have once again been presented with a great buying opportunity for physical silver. We have to thank those responsible for manipulating the paper market for this. We can be certain that the buyers in the east (China and India in particular) are laughing all the way to the bank.
    20 May 2013, 01:43 PM Reply Like
  • thirulingam
    , contributor
    Comments (2) | Send Message
     
    Inflation is up in China. The rich are taking out their money to more attractive places like Australia. Yuan is dropping just like the Yen. Chinese and Indians have a big crave for the gold. Time for the metals to react.
    20 May 2013, 05:36 PM Reply Like
  • yliu54
    , contributor
    Comments (171) | Send Message
     
    It seems to me these Japanese are playing games with their own economy, fortunately our crazy Fed is not so mad.
    20 May 2013, 07:54 PM Reply Like
  • WRC_168
    , contributor
    Comments (95) | Send Message
     
    "fortunately our crazy Fed is not so mad....."
    Well, not yet may be. But I heard the rumour that big Prof Ben may announce his resignation. If that turns out to be true, then all bets are off.
    21 May 2013, 12:29 AM Reply Like
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