Topic: Silver down 5

[Weisshaupt]

I have been watching Silver for years now, and I have NEVER see a 5 dollar move like the one today
 
http://www.kitcosilver.com/charts.html

Silver decoupled from Gold on Friday - that  was weird as well.  I can think of 3 possibilities:

1) this  is massive naked shorting,  dramatic  and  desperate. 
2)   this is speculative profit taking - but why do it on May 1st? And not last Thursday or Friday?  And why would Gold, whoich reached a new high on Friday be subject to only a small drop ( as a %)  Are silver investors not the same group as Gold investors?
3) Golds demand is largely investment based. The majority of Silver's demand  is actually industrial.. so this drop could be in anticipation in a huge drop in industrial demand for the metal - but I can't find a particular bit of news that points to this

Any other ideas? 
If this is industrial fall off- it may be a good opportunitiy to buy in to silver. If this is speculative, it means that I am wrong, we are in the silver bubble already (with still a small number of investors - perhaps a few huge players. )  and the roller coaster ride has begun..

[charlesoakwood]

Interesting.

IRRC from Kudlow's last week, in today's dollars, silver would have to reach $137._ _ to match the Sept. _ _, 1980 high.  I'm sure the administration is intent on buying its way out of debt by inflating the dollar.  If this rationale is so then the drop, although very curious, is transitory.   

It could possibly have something to do with the regulators.  The 1099 form, that has now been dropped, raised a lot of hackles.  Roosevelt stopped gold. It would be of no surprise to see new regulations take precious metals out of the money loop.  This would go hand in glove with its Passport nightmare.  The nightmare created by the new form that will stop anyone they choose from receiving one which will prohibit selected individuals from leaving the country. That would be a typical onetwo punch from this type of team.

[Weisshaupt]

The 1980 High was the result of the Hunt brothers trying to corner the market using margins so its not a real market driven high, but the result of an artificially imposed scarcity - and it was done more or less in the open. And back then you saw the $5 moves, and it was a result of the Hunt Brother's manipulation.

FDRs attempt to confiscate (steal) gold was America's first monetary default... though no one calls it that. . .the gold that was collected went to pay our foreign debts (mostly in Europe)  However all it really did was create a black market in gold. Gold is really, really easy to hide- and FDRs law exempted coin collections, jewelry etc.. so people were melting their coins down and having them made into jewelry ( and according to the guy in Argentina - "junk gold" jewelry brought the same price as .999 gold  during their collapse...  Keep that in mind..) .Silver has industrial uses and it would be subject to similar exemptions if they tried that.  FDR confiscated gold because that is what our debts were denominated in at the time.  Now they are denominated in dollars, and we can just print those. 

In the end though, Russia and every other oppressive top-down economy had very successful black markets. If the government tried to stop trade in bullion they would fail. You can really only enforce laws if the majority  of people obey them on their own.  Once "everyone is doing it"  you might get pinched, but you have the safety in numbers thing going on - and they will be going after the big players - not worrying about some guy buying bread.

Not sure what is going on here, and there could be all sorts of backroom deals - banks working to issue naked shorts on behalf of the fed, with the fed bailing them out when they need to buy them back? Who knows.
 

[Libertas]

40% of silver action is driven by industrial production - solar batteries, water purification systems, cellphones, circuit boards, plasma TVs and radio frequency identification devices (RFIDs).  China & India are big players in that market, so I am wondering if they already bought up more supplies when it was lower curtailed new purchases and perhaps other players saw/anticipated this and shorted silver.  There is also some word of a drop in demand that is driving down silver options.  How much is at play here and how realistic drops in demand are remains an open issue.  It seems to fly in the face of retail outlets offering premiums to by silver to replensh inventory for re-sale at these levels if they didn't expect continued demand from that sector, but we're talking two different players with different customers and vastly different scales so that could happen.  Time will tell.

[Weisshaupt]

so I am wondering if they already bought up more supplies when it was lower curtailed new purchases and perhaps other players saw/anticipated this and shorted silver.

Thats a big drop in 15 minutes, whichs suggest a co-ordinated market actoion..  There would have to be some news or industry report to trigger it, wouldn't there? 
Silver dropping by 5 over a week would look like a normal demand function. its the sudden and steep nature of the decline that disturbs me.. like a country sized entity just decided to put all of its silver on sale at once ( and who would do that, knowing that if you did it over a few weeks you could get a higher price) - the only real explanation I can come up with is its someone - like the fed  whose goal is to keep silver prices down- and so need to do it in these sudden bumps - because they get more bang for the buck that way -  but Silver is already on its way back up. what do they buy from this 3 days? And then they do it again? How long can they keep it up?

[Libertas]

It wasn't a triple witching hour so yes there does seem to be some form of insider/major player action driving such a sizeable move, but I am not seeing any other info on it.  Stay tuned.