Silver Crashes, Gold slides, Dollar bounce, CME increases margins

The silver market has crashed from its near all of $50 an ounce. Silver has made a bull run from August of 2010 to April 2011. In that time frame silver has went form $18 to $50 silver. The main period of consolidation for the silver market was at around the $30 level. From thirty dollar silver, the silver market blew past $40 dollar silver and went straight to $50 bucks an ounce. The silver price came down because there was no consolidation period after $30 dollars. And the way futures contracts work is in order to push up a price you have to enter long positions, and the only way to book a profit on the futures exchange is to close out you long position by entering a short position. At 50 dollar silver we say many long positions go short and at the same time we also saw many speculators enter short positions. This these shorts put great downword pressure on the price of silver. The next leg down in the market was coused by the CME raising margin limits on silver contracts. the CME will raise margin limits a total of five times, and this will increase almost double the ammount of money it takes in order to buy into one futures silver postion, and forcing out the small speculator. Last week it took two ounces of silver to buy one barrel of crude oil. This week it now takes three ounces of silver to buy that same barrel of crude. Silver has fallen so far so fast that is has become undervalued once again. Gold has had a correction of its own, but not nearly to the extent as silver does. The reason the gold market has been slower to correct is because the market did not make the same parabolic run that silver did, and slowly step by step pushed to higher prices. Also for the first time in a generation central banks are a net buyer of gold instead of net sellers. This has helped creat a floor under the gold price.

Category:

News & Politics

Tags:

• Silver
• Crash
• Gold
• Correction
• Crude
• Oil
• Bullion
• Coin
• Collection
• Market
• Fundamentals

[msungs]

The CME, aka the traitors at the Federal Reserve as Federal as Federal Express turned up the printing presses to "Owe"bama blast and manipulated the markets. We should hang everyone at the Federal Reserve. They are starting to make me angry. Good thing I am in Europe far away for the time being. They will bring silver down because they know if everyone goes all in (silver) than the Dollar will collapse even sooner than it already will.

[SilverFreedom1776]

@msungs Thanks for your comment! Silver has made one hell of a run & needs time to consolidate for a while. The inflation that has been created is working its way in the system, so this temporary breather in silver will allow us all more time to accumulate the metals. Silvers long term trend is still up. Keep stacking.

[Azazel226]

Excellent video. Question: The margin raises seem to be a very overt way of manipulating the silver market down. How many more times can they do this or how far can they raise the requirements before it's no longer effective as a manipulation tool?

[SilverFreedom1776]

@Azazel226 Great question! What the CME is realy doing is risk management. Silver futures contract are for 5000 ounces, and last weeks margin requirements were 12,000. Today silver moved over $5, & on a full size contract that would be a loss of $25,000. The traders margine would be wiped out, and the CME would be risking default if the trader could not come up with the cash to cover the loss. Margins increase as volatility and risk increase, and decrease with lower market volatility and risk .

[drewstarr71]

silver as I type silver is $34.80...those crooks selling silver want $40.99!!

[SilverFreedom1776]

@drewstarr71 Check out providentmetalsdotcom for fair deals.

[MrSelfWealth]

Dig it...subscribed.

[SilverFreedom1776]

@sidkings I like to play the G/S ratio also. It is a great way to keep you position in the metals, take profits, and add more metals to your holdings. You got in at a good time. This market still has years to go. It's going to be a wild ride. Thanks for watching!

[SilverFreedom1776]

@brown55061 Great point! The gas stations raise the prices the same day crude goes up, and it takes them weeks to bring them down. #$@$

I agree, silvers big move is still a few years away. Lots of time to keep stacking. Go Ron Paul!

[SilverFreedom1776]

@crusader1492 providentmetalsdotcom has reasonable premiums and shipping. There silver rounds are only 2 bucks over spot.

[SilverFreedom1776]

@TruthOverFacts I like your thinking. If you are trying to buy as close to the bottom as possible, Its always good to wait for a bottom to be put. A bottom can possibly be confirmed by silver trending higher for a couple days. In this event silver should start making higher highs and higher lows again.

[SilverFreedom1776]

@TruthOverFacts I like your thinking. If you are trying to buy as close to the bottom as possible, Its always good to wait for a bottom to be put in, which will be confirmed by silver trending higher for a couple days. In this event silver should start making higher highs and higher lows again.