"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput


Sunday, April 24, 2011

Silver reaches within 20 cents of $50

Silver is on fire in Asian trading this evening moving to a session high of $49.82 after which is rapidly dropped a full $1.00 in price before bouncing back over $49 again. It is extremely volatile right now and I mean "VOLATILE". The price is swinging all over the place within mere seconds.

Its strength is helping to pull Gold higher as well which has gone on to hit a new all time high at $1518.40 as I write this.

What is remarkable about this is that the Dollar is actually higher  this evening in Asian trade.


  1. ..and people thought it was funny to imagine the silver spot price jumping a dollar a day! Looks like this is unfolding at an accelerating pace, the train is leaving the station. Silver is your friend, the dollar is a flagging collector's item.

  2. Dan,

    How legitimate is that gap? Silver continued to 47.68 on Friday night before the weekend. We were closed Friday, but they continued to trade to that number before the weekend. This morning actually opened mildly for an hour or so until it went super-volatile. You are correct, the dollar didn't move much and I didn't see any news events to indicate the cause for the jump.

    Hong Kong Shanghai throwing in the towel on all their naked shorts? The Fed may bail out JPM, but would they be as likely to do HSBC the same way? Maybe HSBC has some sense and decided to GTFO????

  3. Dan, aren't London and NY closed on Monday? Since Sydney is also closed on TUE, Asia will continue to rage this trade til tomorrow's London open.

  4. JoeKa:

    The trade will rage (love that, we could call it the Egyptian Strategy) and that Blythe bitch will be off to Venezuela for some fun in the sun

  5. Bolivars! Classic! Too funny...we're talking Turd talk on Dan's site. The interconnectedness of it all.

    Gotta love these guys! :)

  6. My bad! NY Comex is open. Only London today and Sydney continuing tomorrow are closed.

  7. Trader Dan...is there anything we could look for in specific to see this ratio trade unwind, perhaps a "tell"? This is frankly is consuming my every thought, hah. I

  8. Maybe it's because of the speech of this chinese main banker this weekend!
    He declared China should sell 2 Trillion $ of its US bonds!
    Maybe it is the bomb which creates the "meltup" in Asia?
    Dang...I left a sell order at 49.60 and I just sold a part of my long position.
    I'm waiting for FOMC to unfold, along with delivery day and opeing of all western markets after holidays.
    @TraderDan, I would be so thankful if you keep us posted with the continuation of these shorts on the "top fishing" side, who fuel the uptrend.

    Thanks for your dedication and all your precious comments. KWN was a great piece as well :)

  9. Disorderly markets make me feel edgy, like I need to buy more freeze dried foods and sprouts. I'm glad I'm not long or short in this market. Feels much better simply having the metal in hand.

    Exhaustion or breakout? I'm leaning to breakout...

  10. Dan,

    Volatility extreme.

    On the KWN wrap I believe you mentioned "frothy" in your comments - can you say more about that?

    As well haven't read lately in your views here where the demand split is at. I mean which buying/selling segments are playing largest. Is that because there hasn't been much change?

  11. I suggest that anyone trading the metal keep this chart handy....


  12. I'm more concerned with the apparent lack of short-covering in this market that Dan talked about on KWN. The COT report is weird, as Dan said, the shorts are digging in as opposed to running, which means they have to have unlimited backing funds or a backstop of some form to shield against the losses on these shorts.

    Would I be shocked to find JPM is back-stopped by the FED on their Silver shorts? I'd be more surprised if they weren't back-stopping them. It's obvious the market isn't trading normally, the internals are a mess, the gaps are getting bigger and the commercials are waiting for the public to crowd the long-side of the trade before they scalp them.

    This area of $47.50 to $48.00 has to hold through the open this morning or it could get ugly on the downside quickly.


  13. Maybe the bump on the dollar is due to shorts taking gains before Bernie's speech/press conference. We might get that much needed pause in silver to let us take it higher. Buy silver!!!

  14. The markets always attempt to make the Chairman look good before he speaks. Sinclair's Rule #123


  15. BTW, what happens the day COMEX cannot deliver anymore, if we suppose they default?
    What consequences for someone who is long on the Silver Futures market?
    Suppose I went long 40$ for one contract and Comex defaults at 50$, so everything is suspended.
    What do I lose? The whole profit made on the position? Thanks,

  16. The latest from Bob Moriarty at 321gold.com. A very different (negative) view on the current silver market:


  17. Pull up SIL:SLV on Stockcharts and you will see how the mining shares have been totally crushed. Ratio Traders have made an absolute killing the last 6 months.

  18. Wonderful information regarding silver and dollar. Now a days, Dollar again reached at peak. And it sounds like gold and silver market is also going good.
    Vintage rings


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