Silver

[DC]

Spot Price per Ounce
Silver $12.58

Still dropping. Massive profit taking perhaps?

I havn't got a real reason for the drop. I heard it was because of the dollar but as usual when I looked at the currency charts I saw that wasn't it. The dollar barely moved today and wouldn't have caused this big hit in gold and silver.

[Fluff and Stuff]

The only report I saw said the hedge funds were profit taking.

[DC]

I havn't got a real reason for the drop.

The NYMEX increased margin requirements for silver contracts at the close of business last night. Conveniently (for the silver shorts) today is the day before options expiration, meaning that many call options will expire worthless tomorrow and thousands of small investors will be left with losses rather than profits on them. This is the oldest trick in the book and goes back to the days of the Hunt brothers.

Gold and silver are among the most manipulated markets on the planet; see www.gata.org or www.butlerresearch.com to learn more about how and why.

Info on the margin increase:

http://www.nymex.com/notice_to_member.aspx?id=ntm203&archive=2006

Ah that would do it. Thanks for the info.

[Russell Kanning]

Good reason to own actual gold and silver instead of options.

[PowerPenguin]

Yes, that's what I'm starting to do. If you think about it, these futures are essentially just stocks, like every other stock. Put short, you're not diversifying at all by getting them, IMHO. BTW, I just ordered a 1oz bar of gold and will be getting some silver rounds from a guy soon hopefully.

[Russell Kanning]

But if you do not hold a stock or a future on margin, you own something real.
I look at stocks like a slice of a business not like a lotto ticket.

[Russell Kanning]

Interesting

[DC]

But if you do not hold a stock or a future on margin, you own something real.

I own both, so thats not a problem. I also hedge the real with the futures.

[PowerPenguin]

Depends on how well the company is doing

[DC]

I have been going to lots of antique/esate auctions. I have seen lots of sterling silver for sale in them. Sterling silver is .925 silver. does anyone else have experiense buying and selling it and would you recommend it.

[Tunga]

Wow. those  German Mark numbers  from the twenties sure are scary.

It's entertaining at the least to watch gold play off of silver.

What a whacky world we live in.

Mine-d fully yours.

Tunga. 

[Fluff and Stuff]

This article is most enlightening:

A REVIEW OF LAST WEEK'S SILVER STREAK

Last week?s action in the precious metals was exciting and unusual. COMEX silver futures began last week sub 13 dollars, then rallied in melt-up mode over a period of three days to within a whisker of 15 bucks before being crushed down to an inter day low in the mid 11 dollar range. At one point on Thursday, April 20, 2006 ? the price of COMEX silver futures was down more than 20% with the bulk of the fall in price coming in a 45 minute time span shortly after 10:00 am ET.

More:

http://financialsense.com/Market/kirby/2006/0424.html

So, is he saying Silver will go down in price?,

So there you have it folks, three market commentator?s assessments of the current situation. We mutually agree that prices of strategic commodities are under artificial management 24/7. We arrive at this broad conclusion from both a fundamental and technical approach. Our few differences stem from how long we think this charade can continue while being in complete agreement that the end, whenever it comes ? will most assuredly be a train wreck of Hollywood epic sized proportions.

[Fluff and Stuff]

So, is he saying Silver will go down in price?

I think his point is that the ultimate "train wreck" of gold and silver prices will be in the (mega) positive direction, but that the "conductors" of the train will do anything and everything to keep it on track for the intermediate term. In other words, expect volatility. Undoubtedly more short term engineered plunges will be a part of the future scenario.

I was not sure because he also indicated that oil is over priced and that is a commod.

[cpmarch]

http://finance.yahoo.com/q?s=SLV

[BaRbArIaN]

I'm waiting for the rumblings of anti-"metal hording" laws once again, after all they can't let the little people store any real wealth the State can't get to right?  Might reduce their power.