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Out to buy more on tuesday, thinking it'll hit $80 by the end of summer.Oh btw Bin is dead, confirmed.

yep.

A buying opportunity here. It's been testing $50 for a while and will break through soon... ;)

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Strangely silvergoldsilver.com (presumably the promoter/creator of the video) is asking to people to BUY silver OFF their hands...

Very interesting. All metals dealers should take out paper shorts to cover their physical holdings, making money on the buy/sell spread only.

The only reasons I can image them are wanting shot of physical in a hurry is the paper market is about to burn down or they need to free up capital.

I'm expecting some very violent swings in commodities as fiat dies. Oil, Gold, Silver, it's going to be a very bumpy ride indeed.

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Given the time of day, the fact it is a bank holiday in London, it looks to me like a big player manipulating the market unless the reported death of Osama Bin Laden is the cause, but the reports I have seen were a few hours after the drop in silver (if I am reading the charts correctly silver dropped at 18:00 ET, but the first reports I saw about Bin Laden were time stamped 22:30ish ET)...then again, some special people get the news sooner than others. There will be a lot of stops hit on Tuesday morning, so expect the price to collapse further.

Notice that gold has suffered as well, but not before a spike just as silver plummetted. Someone big selling silver and buying gold? But why would you do it in a thin market all at once...which brings one back to manipulation...or the news....or one covering for the other.

Dollars probably.

Smart move (by whoever decides these things) to take Osama out on a Sunday evening and a London Bank Holiday.

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Strangely silvergoldsilver.com (presumably the promoter/creator of the video) is asking to people to BUY silver OFF their hands...

Yes, not that strange really. A lot of precious metals gurus, i.e. Mike Maloney, Gold Money, etc etc have businesses

which enable people to take ownership of precious metals. It's usually the case that someone who knows the most about something

is likely to be in that business.

I'd be more suspicious of an entity which acts as the custodian for silver ETFs, while simultaneously holding massive

concentrated paper short positions. Silver ETFs are essentially a kind of naked short position as well; with some

small print to say they can settle in paper if they happen not to have any physical silver. Great.

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Yes, not that strange really. A lot of precious metals gurus, i.e. Mike Maloney, Gold Money, etc etc have businesses

which enable people to take ownership of precious metals. It's usually the case that someone who knows the most about something

is likely to be in that business.

I'd be more suspicious of an entity which acts as the custodian for silver ETFs, while simultaneously holding massive

concentrated paper short positions. Silver ETFs are essentially a kind of naked short position as well; with some

small print to say they can settle in paper if they happen not to have any physical silver. Great.

The point is that these guys rather make a living earning a spread in buying/selling the metal (for fiat dollars) rather than

putting their entire family fortune in these metals. This shows that they are far from 100% convince that metals is the way

to go and that fiat/world will go to hell (using charlie mungers words).

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I can see the value in buying silver via a holding company like bullionvault or others but when you hold the physical coins you have to pay the VAT so need a 20% rise just to cover the buying cost.

This has been discussed lengthily in other threads on this forum, have a look. It also helps if you buy silver at £12 per to. :P

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Probably just after you hit the sell button. Fortunately took some profits last week, and as for the physical stuff, who cares?

Yeah, thats pretty standard!!

I think (hope) we're there now, manged to gain a bit in the Bullion Vault account which was nice!

Regards,

Paul.

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Heading back towards the 30's, I don't think I have ever been so happy to see an investment lose value.

A further correction into the high 20's or low 30's would be great to add a bit more to the long term physical stack, though I'm not sure it will drop that far.

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Heading back towards the 30's, I don't think I have ever been so happy to see an investment lose value.

A further correction into the high 20's or low 30's would be great to add a bit more to the long term physical stack, though I'm not sure it will drop that far.

hi mikeinni

30$ would be nice.........

i aim to add at around $30-35 (if it gets there of course)

plenty of charts show support at around $30 btw - and yes these are the same charts showing resistance at $50 before anyone gets on my case

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Real reason for drop in silver price : Comex raised silver margins on 29/4/11

http://www.bloomberg.com/news/2011-05-02/silver-margins-raised-by-comex-for-second-time-in-a-week.html

CME Group Inc.’s Comex unit raised margin requirements on silver trading for the second time in less than a week.

The minimum amount of cash that must be deposited when borrowing from brokers to trade silver futures will rise to $16,200 per contract from $14,513, the exchange said today in a an e-mailed statement. Silver futures dropped as much as 13 percent today after Comex raised margins by 13 percent at the close of business on April 29.

The new rates will be effective at the close of business tomorrow. Margins were at $4,250 a year earlier.

Silver futures for July delivery plummeted $2.515, or 5.2 percent, to $46.084 an ounce, the biggest decline since Jan. 4. Still, the metal has more than doubled in the past year. One futures contract is for 5,000 ounces, valued at today’s closing price at $230,420.

To contact the reporter on this story: Pham-Duy Nguyen in Seattle at [email protected]

To contact the editor responsible for this story: Steve Stroth at [email protected]

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Yup will be interesting to see if the price of physical starts diverging even more from the paper price.

If I might ask what might be a pretty dumb question, if you are holding physical silver, and it has more inherent value than the paper price, then how do you realise this value? This isn't a troll's question, it's a genuine query.
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If I might ask what might be a pretty dumb question, if you are holding physical silver, and it has more inherent value than the paper price, then how do you realise this value? This isn't a troll's question, it's a genuine query.

Various ways, ebay for instance many things often sell for considerably more than spot price.

A few months ago we were talked about this very issue, a bloke was selling 1kilo bars of silver for about £1200 or £1300 I forget the exact price. This was when silver with VAT on it was still around £900 for a kilo.

Selling to numanists won't work as they'll give you below spot price.

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If I might ask what might be a pretty dumb question, if you are holding physical silver, and it has more inherent value than the paper price, then how do you realise this value? This isn't a troll's question, it's a genuine query.

Just a divergent market, that's all. Buying and selling physical will be at the physical price (ie the real spot price) whereas the quotes on Comex remain just that, just an arbitrary number.

It won't be like a dealer selling at real prices but buying back at Comex prices saying "oh but that's spot" as he'd be out of business and stock pretty damn quick, albeit at a brief nice profit.

It'll be a bit like Mugabe saying the price of bread is $1m per loaf, whereas in reality it is 0.1g of gold. Or whatever.

Unlike some others on this forum I see PMs as more of a hedge rather than investment - so I don't really ever intend to "realise" the value of my coins and bars - they are hidden away in case the sun really does fail to rise.

I used PM ETFs for nice VAT/CGT free plays and have some nice profit from that, but am now completely out of the paper PM market. Only holding phys and mining shares now (am a BV skeptic).

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http://www.telegraph.co.uk/finance/commodities/8494041/Silver-loses-shine-in-20pc-tumble.html

Silver loses shine in 20pc tumble
The price of silver futures tumbled again on Wednesday, taking total losses to more than 20pc in a week amid fears that the precious metal represented a bubble bursting.
Silver – which has suffered its biggest three-day fall in 28 years – plunged from a peak of almost $50 an ounce last Thursday to a low last night of below $40.

gold next?

should have sold my silver coin collection. :(

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