Silver down to $4.88. EDIT: Kitco made a mistake, price really around $5.90.

ddink · April 28, 2004 12:04AM

link

DominusDeus · April 28, 2004 12:06AM

If only I had the money to stock up on silver right about now...

MICHAELDIXON · April 28, 2004 12:06AM

Incredible!!! Thanks for the information!

ER · April 28, 2004 12:06AM

WOO HOO!!!

jbsteven · April 28, 2004 12:08AM

I wonder where those $12-$14 a ounce people are today?

cough***SM1***cough***deadhorse****cough

ddink · April 28, 2004 12:10AM

My question is "where to buy silver?" Most dealers aren't going to have a clue what spot is until the end of the day or a couple of days from now lol.

SportsModerator · April 28, 2004 12:11AM

Right here!

It appears that the Kitco chart is inaccurate as I am seeing 5.97 elsewhere

IrishMike · April 28, 2004 12:11AM

<< I wonder where those $12-$14 a ounce people are today?

cough***SM1***cough***deadhorse****cough

>>

They are climbing up on their roofs tossing their crystal balls away.

jbsteven · April 28, 2004 12:12AM

Tonelover · April 28, 2004 12:13AM

Kitco is indeed incorrect. It's at $5.95 according to a wholesaler I use.

Steve27 · April 28, 2004 12:14AM

Wow, if this is real, I'm going to buy 500 ounces from Tulving soon.

ddink · April 28, 2004 12:15AM

If Kitco is wrong, they are about to lose a ton of money. They are selling all their silver products for $5 an ounce.

link

Bothuwui · April 28, 2004 12:18AM

I started searching for a place to buy also, and am still seeing yesterday's prices everywhere. I bet if prices rebound tomorrow, they will be quicker to update their sites then they are today.

Deadhorse · April 28, 2004 12:20AM

It's really nice to see people enjoying other's suffering. Thank you all very much, it gives me such a warm feeling.

This is unprecidented, but it does help to find out what some people are really made of.

On both sides of the issue, I might add.

ddink · April 28, 2004 12:21AM

Deadhorse, if you've read ANY of my posts you know that I'm a hardcore silver bull

I believe the price will go back up (when the manipulation is ended), and am excited because this dip gives more people (like me, who missed the first bus) the opportunity to buy before the increase.

Now I must pause while I await Russ to say something cynical

jbsteven · April 28, 2004 12:22AM

come on deadhorse, if it was at $12 a ounce would you be gloating......I bet you would.

Deadhorse · April 28, 2004 12:24AM

<< come on deadhorse, if it was at $12 a ounce would you be gloating......I bet you would. >>

Nope, not my style and I said as much several times on this forum in the past.

jbsteven · April 28, 2004 12:25AM

let me rephrase

would you mention it at all to me in person?

ddink · April 28, 2004 12:27AM

Ya'll please take it to PMs. I just wanted to bring up an interesting observation: I've never seen a commodity lose 25% of its value in an hour. What do you think? If Kitco has the price wrong, isn't it going to lose LOTS of money since they are selling their silver products for $4.97 an ounce? Talk to me!

Deadhorse · April 28, 2004 12:28AM

The odd part is that no one has any silver to get rid of. I've tried several dealers over the last 10 days and nobody has any. What good is a low price when you can't take advantage of it?

Something very strange is going on here.

I'll make some more calls today, but I'll bet I can't find any............still.

ER · April 28, 2004 12:29AM

<< It's really nice to see people enjoying other's suffering. Thank you all very much, it gives me such a warm feeling.

This is unprecidented, but it does help to find out what some people are really made of.

On both sides of the issue, I might add. >>

Silver can go up to $100/oz or down to 1cent/oz for all I care! I collect coins because I enjoy them, not because I want to make a quick profit, or worry about how much money I am going to lose.
Sorry you feel that way Deadhorse, but I don't think anyone here is "enjoying other's suffering".

IrishMike · April 28, 2004 12:32AM

My post wasn't meant as a gloat if you are referring to me. I've been saying the same thing about the metals market for years. You I assume consider yourself intelligent and understood the risks. Its no different then sitting at the blackjack table expcept you do have some control over the outcome. My comment was in regards to all the folks who think they can outsmart the market not meant to be directed at you or any individual. If you are going to take things personally on here then don't post your views, I guarantee no matter how right you are on a subject there will be those that disagree, its called an opinion. If one never questions their own opinion then nothing ever changes. I ate lots of money when silver went from 12 to 7, btdt. That's why I prefer playing blackjack.

elwood · April 28, 2004 12:33AM

This has to do with China.

No market manipulation but worries about demand.

Inflation is getting out of control in China and the Chinese Government is planning to get it under control.

Since China is the major purchaser of raw materials in the world and now they say they are going to get inflation under control.

It means they will be buying less gold and silver and other raw materials.

When the major buyer says they will not be buying as much as they were, then the price is going to go down.

fishcooker · April 28, 2004 12:38AM

Well I see one crystal ball was kept.

People wonder how the Enron investors lost so much, again and again, and then history goes and repeats itself. I had friends who loaded up on Enron at $10, because they knew it had to go up....

Good luck everyone!

dbldie55 · April 28, 2004 12:40AM

I don't know any dealers who cannot find out what spot is at any time.

ddink · April 28, 2004 12:43AM

Elwood:

If I think Coca Cola stock is going to tank tomorrow, I can short their stock. What that means is that I sell Coca Cola stock today and the revenue that I make from the sale goes into an escrow account. Then tomorrow when the stock tanks, I buy the same number of shares that I sold short the day before, using money from that escrow account, and whatever is left is profit. The same thing is done in the silver markets. If you don't own any physical silver but think the price will go down, you can sell it today and buy it back at some indefinite point in the future.

COT stands for "Commitments of Traders" report, which is issued by COMEX (commodities exchange) to show how much silver has been sold short but not yet covered, as well as how much silver has been bought (as futures). The last COT report that I read stated that there was a net short position of 550 million ounces of silver. That means that some people with deep pockets have sold 550 million ounces of silver but have not yet bought it back. Remember, when a lot of silver is sold, the price goes down. When a lot of silver is bought, the price goes up. Consequently, when you sell an ounce of silver short, you drive the price down just a little bit. When you sell a few million ounces of silver short, you drive the price down a lot.

Why is this a problem? Well, annual silver production is 500 million ounces. COMEX has 100 million ounces of silver bullion in their inventory. If you wanted to buy 200 million ounces of silver, you could (in theory), but you could only take delivery on 100 million ounces. The short position in silver is greater than annual silver production, and five times greater than outstanding reserves of silver bullion (yes, there is a lot of silver in terms of coins, small bars, grandma's silver, etc., but it isn't very liquid).

One of these days the short sellers will have to cover their positions, meaning they will have to BUY 550 million ounces of silver on the open market. When that happens, the price of silver will skyrocket. However, right now the regulators are allowing them to sell MORE silver short than they buy. So when the price of silver falls, the short sellers can choose how much silver they want to buy to cover their positions partially; they aren't required to cover all their positions at once, or even within a given period of time. As it stands now, the regulators continue to allow the short sellers to push back their commitments, essentially saying "Well, I'll cover my short position tomorrow." But tomorrow hasn't come, and won't come, until the regulators stop turning a blind eye to the manipulation.

So nah! No manipulation here!

AValde · April 28, 2004 12:45AM

The only conclusion that I can come up with years in the stock market and 2 years in the gold and silver market is that everybody is a scoundrel. Everybody wants to make a buck off by ripping you off.

****Period*****

edsondl · April 28, 2004 12:53AM

If you look at the dollar today, it is trending up across the board on all foreign currencies.

The only question is "What has changed today that the dollar is rallying? (at the expense of PM's)"

-Dan

Edited to add:

The dollar rally alone doesn't even explain the whole picture, as gold and silver have dropped in value relative to the other currencies as well.

Trooper · April 28, 2004 12:57AM

I went through the kitco hoopla and 100 ounces is at $558. I'm assuming that's the $4.88 spot with the vig.

Anyone ever buy online through them? and is $.70 an ounce the usual mark up?

Tom

elwood · April 28, 2004 12:59AM

ddink

We were discussing today's drop and the reasons for it.

The reason was as I expressed in my thread.

Todays drop has nothing to do with market manipulation. It's new information that demand may go down.

If people who are long or short are now scrambling to cover their positions, they are reacting not manipulating.

keets · April 28, 2004 1:00AM

evidentally something is amiss as Kitco has now listed silver prices as N/A. it could be an interesting day.

al h.

RedneckHB · April 28, 2004 1:08AM

edsondl,

The dollar has been rallying for over a month now. It took a pretty good dive over the last 1 1/2 years. Even a dead cat will bounce if you drop it from a high enough window.

ddink · April 28, 2004 1:11AM

Trooper: looks like you lucked out. They were mistakenly quoting silver at $1 less than it actually was. You just made $100 profit

Russ · April 28, 2004 1:12AM

<< It's just an expected temporary correction. >>

<< Silver will never see $5 an ounce again. >>

Russ, NCNE

MICHAELDIXON · April 28, 2004 1:13AM

I apologize if anybody thought I was gloating. Over the years, I have seen silver yo-yo. It seems like everytime there is a development in China, silver rises. Years ago there was talk of China opening up and becoming a Democracy. "When this happens the demand for silver will escalate!" was the rage. The reasoning was logical: "Silver will be in demand for photo processing, for computers..." Silver jumped and then went back down. I personally don't see silver staying above $5.30 an ounce long. Maybe I'm not an optimist, but I sold all my bullion about a month ago.

jbsteven · April 28, 2004 1:16AM

Kitco's website has updated with the correct silver price

cladking · April 28, 2004 1:17AM

Silver was down $.25 in pre-hours trading and is down $.28 in Chicago now.

Just as I said on the way up... ...one day doesn't make a market.

These markets are not always a reflection of the real world but the real world
always wins out in the long run.

Trooper · April 28, 2004 1:18AM

ddink..

I never went through with the purchase...... There's the stipulation on the site that says if there is a computer price mix up they don't have to honor the price.... So I just cancelled the darn thing.

Tom

SportsModerator · April 28, 2004 1:27AM

This is why I NEVER depend on one source for current pricing.

jbsteven · April 28, 2004 1:31AM

so SM! when is silver gonna be at $12 an oz?

DominusDeus · April 28, 2004 1:40AM

You know... I would dearly love to own a set of 1/20 Oz ingots of the folowing metals: Gold, silver (yea, silver is cheap, but for the sake of having a set of the same weight), platinum, rhodium, palladium and iridium.

That set of 6 metals would be cool... Too bad I can't afford it.

SportsModerator · April 28, 2004 1:50AM

JB

IF Kitco screws up again like this, it could be this afternoon

jbsteven · April 28, 2004 1:52AM

should I buy 10,000 oz's now?

DominusDeus · April 28, 2004 2:01AM

If you can afford it.... Lord, I can hardly afford TWO ounces right now.

Russ · April 28, 2004 2:03AM

<< so SM! when is silver gonna be at $12 an oz? >>

Stop putting words in his mouth. SM1 didn't say it would go to $12 an ounce. Here's an exact quote:

<< Silver will surpass $50. >>

Russ, NCNE

jbsteven · April 28, 2004 2:05AM

Thanks for the clarification

SportsModerator · April 28, 2004 2:07AM

Yep, I said that

and I still stand by it

laceupboots · April 28, 2004 3:23AM

<< Silver can go up to $100/oz or down to 1cent/oz for all I care! I collect coins because I enjoy them, not because I want to make a quick profit, or worry about how much money I am going to lose. >>

Well said, even though I'm glad Walkers are made of silver and Sols too.

dollardude · April 28, 2004 3:46AM

<< wonder where those $12-$14 a ounce people are today?

cough***SM1***cough***deadhorse****cough >>

Amen to that! I feel like I must to rant on precious metals again.

I feel very strongly about sound long-term investment principles, like dollar-cost averaging, good growth stock mutual funds, and paid-for real estate. Precious metals are GAMBLING, as they are short-term only. You can easily lose your BUTT on this CRAP if it falls quickly like it has the past few days. You could VERY EASILY own thousands of dollars in precious metals, go on a weekend vacation, and come back to on Monday morning to find out you've lost half your money. Trying to make money in precious metals is nearly impossible, as there is simply NO WAY to predict the future. Don't play this game. It's a losing game for most people. Do what rich people do and stick with long-term investments where you make money slowly over time. If you try to get rich overnight, you're almost guaranteed to become poor.

keets · April 28, 2004 5:46AM

This is unprecidented, but it does help to find out what some people are really made of.

..........and if you haven't noticed who's made of what, you haven't been paying attention.

al h.

MoneyLA · April 28, 2004 6:00AM

technically, both gold and silver are still in a bull market -- but the BULL RUN is over. look for a perod of base building. gold and silver cannot compete with rising interest rates for treasuries and paper assets. but when inflation rekindles, the metals will come back to life.

more in the money alerts section of www.moredeals.com and cheers, alan mendelson

Silver down to $4.88. EDIT: Kitco made a mistake, price really around $5.90.

Comments

Leave a Comment