20110507 - Bob Chapman - Explains Silver Take Down

[merkabaradio]

I think the explanation is silly, the margin requirements for silver is now the same as sugar. Spooky? Not really. The spike on silver was redonkulous and ended up being corrected, long term this is good for silver investors, especially if you're buying during the dip. The only people who got screwed were the ones who were speculating and bought high and were forced to pony up the cash to hold the contracts. If you're playing big boy games, expect to get burned time to time.

[Ra6b1t]

@merkabaradio Are you saying the margin increases were meant to control the price? Margin increases are used to control volatility, not the price. However the margin increases actually increased the volatility.

[merkabaradio]

@Ra6b1 eh my bad, should have clarified. The price was redonkulous and a major sign of volatility from speculators getting in and buying on margins when silver was already high at the time. The media was partly to blame by all of a sudden jumping on silver news which lead to people wanting to get involved in the silver market. Long term I see silver going up further but for now all I see are buying opportunities for physical.

[merkabaradio]

@obenreizer The markets rigged, this isn't really new at all. There's tons of market tricks most people aren't familiar with. It would be comparable to someone getting pissed because they were driving too fast and got a speeding ticket. In all reality the market was driven up at the time by media attention and people leveraging large amounts of silver via contracts with little money. The margin requirements were brought down to the same levels that sugar is. Bullshit, yes, but it's all gambling.

[obenreizer]

@merkabaradio You bet, I would be mad if I got a speeding ticket...in a zone in which the speed limit is arbitrarily changed according to revenue needs of the city, and I'm not allowed to know when or how much it will change.

Don't misunderstand, I agree with you: it's gambling! And gamblers usually lose to The House. My points: our system is, indeed, a gambling house where The Big Boys make and leverage the rules; they should be held accountable; and somehow, a fairer system must be restored.

[merkabaradio]

@obenreizer Totally agree, if there's anything people should be pissed about : when the margins came down the big boys were able to get loans to cover the increase. Everyone else either had to cough up the money or sell which is why silver dropped hard to the mid 30's. Joe-Blow got screwed there if he was over leveraged in silver and couldn't cover the bet you had to sell. Commodity prices all around took a hit because of it but bounced back and so will silver I'm guessing.

[obenreizer]

@merkabaradio True, but what a shame. "If you're playing big boy games, expect to get burned time to time." Translation: our markets, no longer free in a "level playing field" sense, are rigged to favor the powerful, aka The Big Boys. Hopefully, there will be a day of reckoning between 'The Big Boys' and 'We The Public,' limiting Bernie Madoff's prison to standing room only. As to the idea that the recent spike in margins is divorced from the Ag correction--hmmm, heck of a coincidence, eh?

[JDLindskog]

Thanks for posting this.

[Nobious2]

Anyone hear opinions like these?

Brian Hunt's Market Notes: "Silver is now trading in the low $30s. But the mindless "silver is in a bear market" headlines are wrong. A little more weakness into the high $20s will be cause for us to buy."

Jeff Clark: "It won't be a straight shot lower for the metal. In fact, after the recent violent selloff, silver is oversold and poised for a temporary, short-term bounce. But I suspect once that bounce is out of the way, silver has lower to go."

[3687steve]

Ezekiel 7:19 : "They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD..."

The word "REMOVED" is translated from a Latin word that means "To be taken from you". Don't think the elite are not looking at the price of gold / silver. The governments are not going to sit back while the price of silver sends the price of electronics to the moon. Silver is not going to save you

[silverismysuccess]

We will hang them in the future.

[obenreizer]

Yeah, that Bob Chapman, what does he know? A few months ago he advised me to buy silver at $17. I did. And what a disappointment---now, it's all the way down to $35. And his recommendation to buy into the gold bubble (when gold lay at the extravagant price of $900) has been equally disappointing---it has tumbled all the way down to, oh, about $1,500. Seriously, Bob, if you can't coach people into better than 75% gains every year or so, maybe you should consider sewing your pie hole shut.

[Ra6b1t]

@obenreizer Well played sir.

[silvermaniamania1]

silver $500

[bastardchildofmary]

buying today, buying tomorrow, a year or so from now a 10-15 dollar manipulation will be laughable.stack and forget, stack and forget [physical] just don't forget where you put it! lol

[panam77]

@ThomasAchord I agree there HAS to be a dislocation... I mean, cmon one's real and one's fake! It's why I never buy shares, physical silver doesnt have margin requirements. It's ALL greed.

[Luiyi385]

Whatever the details the ISSUE is that "they" can take the price down whenever they feel like it. And that's bloody scary.

[gasdorf]

@Luiyi385 you got shovel lets dig hole for our silver ?

[Luiyi385]

@gasdorf Got rid of two thirds of my Silver these last few days, waiting for new developments...

[johnnycaboosehead]

I know a lot of folks who were planning on selling some of their positions around $47 and up...

... until they heard guys like Bob Chapman saying, "$50 is NO resistance !"

Bob Chapman was wrong, wrong, wrong...

... or lying.

[labartic]

The market always wins in the end. The endless printing of money cannot continue and when the dollar crashes, it wont matter how many bullshit rules they pass, the metals will take off. They can manipulate the paper market all they want, but the physical market is a different thing. Notice how even when the paper spot price might be 35, the actual market price is around 40 bucks an ounce.

[wizardofounce]

Bob said everybody who bought high in 1980 is dead now so $50 would not be resistance--price would fly right by $50.

Now he's talking about manipulation and his 29+ years of trading in the markets didn't help see this coming?

Be careful who take financial advice from and DYOD.

[Ra6b1t]

@wizardofounce Bob was wrong about the $50 resistance, which happened on Sunday 4/24, but wasn't much of a pull back. What he is explaining in this video was what started big time on Sunday 5/1 for all intended purposes. This take down was unprecedented. You have good advice "Be careful who take financial advice from and DYOD"

[BlunderCity]

@wizardofounce

Yep I agree, Bob Chapman is extremely suspect in my opinion. His record is not very good and keeps talking about his "inside sources", these anonymous people who tell him things. It doesn't take a genius, or not even a critical thinker to work out something is stinks with this guy.

Oh and he's also the guy who said "a third of the population of northern Japan will be decseased very shortly" which not only is nonsense, but it's tremendously disrespectful to the people of Japan!

[panam77]

@BlunderCity lol his sources in Washington, puhleeeease

[jimbobubbadj]

@wizardofounce Remember you're talking about paper silver price. Physical is becoming scarcer. Even the USGS says that silver mines will be running out in 10 years. The USGS is known for inflating the amount of natural resources. Blythe is having to offer cash settlements at huge premiums to bribe people to not take physical delivery of silver that JPMorgan and the comex do not have. There will be a comex default or a disbandment of the SLV.

[222Miller]

I wonder if all the "Gurus" we listen to made money on the dramatic pull. I am so guessing they did. Good for them, kinda shitty for those who bought above 35 . It

'll be a while until Silver shoots up. Atleast a year or two. Lessons learned I am sure. Take care all.



[Ra6b1t]

@222Miller I watched some of them bragging how they made money by shorting silver, I thought that was bad taste. But everyone has to make their own decisions. I'm not ready to admit defeat just yet, perhaps I'm just stubborn :p

[smasila]

Is this the beginning of the control of gold/silver?

[pdxeddie1111]

well wheres our bailout?

[Nathan21122012]

Good Video(:

[Zalahblue]

I smell more government controls over silver and gold coming down the pipes.

[trademarc66]

Paper SUCKS! Physical bullion is THE WAY!

[silverfuturist]

Thanks for making this video, I am not able to keep up with all of Bob Chapman's interviews.