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Price Of Physical Silver Moving Away From Spot Price

|Includes: GLD, iShares Silver Trust ETF (SLV)

What a week just ended in silver market.

On Friday, Nov 26th 2010 I’ve sent another mailing to my AgAuPM Newsletter subscribers at 3:38am EST (when spot price of silver was around $27.2).

Most important info in this mailing was…

Why price of silver dipped today during Asian stock exchange hours?

Simply, Shanghai Futures exchange announced raised margins from
Monday, Nov 29th 2010 on practically every commodity that trades there – which also includes gold futures.

This dip has nothing to do with physical gold and silver but just
another attempt to suppress prices through trading with paper gold and silver derivatives.

For traders that added new long positions in silver and gold futures,
this margin increase today will probably again end up in stop losses triggered and paper money lost on such trades.

But for owners of physical silver and gold, this is one more great chance to add more physical to their stack…

As it turned out, I nailed it with thinking this margin increase news will be good for buyers of physical gold and silver (Dec 3rd 2010 closing price of silver at $29.39) and bad for traders with open long positions (on Nov 26th 2010 price of silver down to $26.43), since traders had their stop loss orders triggered and losing all the money (nothing else to expect in this paper silver and gold rigged markets).

Where is price of silver going in coming week?

Read the rest of this entry »

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