20110507 - Bob Chapman - Explains Silver Take Down

http://www.theinternationalforecaster.com/

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• Bob
• Chapman
• Silver

[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.

[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.

[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"

[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 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 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 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?

[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.