Silver drops below 12 pound

[Pipers]

I believe there are a few factors in play here.

 

1,  Currency war with Russia over Ukraine  

2   Falling gold prices gives confidence for fiat currencies

3   A low gold price helps bullion banks close on there shorts  (only Morgan Stanley are long Gold).

4  Currency war with BRICS 

5  Have the West got all the physical gold stated, the Bullion Banks may settle in paper so driving the price down suits this purpose

6  Maybe china, easier and cheaper to short a market and then buy physical, than to let the price get to high.

[Danny-boy]

I wonder how silver will open tonight, I'm expecting it to jump above £12 and then drop back down by close.

[Richardski]

I wonder how silver will open tonight, I'm expecting it to jump above £12 and then drop back down by close.

This week is going to be quite turbulent for the PM market. Lots of data coming out of USA. Possible large movements on Wednesday (US Factory Order data and Non-Farm Employment Change data) culminating in US Non-farm Payrolls on Friday.

 

Most pundits say prices could go anywhere this week and trends may then be set - i.e. whether we are in a bull or bear market.

 

It does seem to be conventional wisdom that Precious Metals tend to suffer from around May - August (I haven't checked the charts to confirm this) - but if true, then there could be some excellent buying opportunities ahead.

 

I'm being cautious this week to see where we are heading!

[ChrisSilver]

I have a couple of planned purchases in about a week or so. So I am hoping silver is at the same level or lower then.

A continued bear market would be nice, but I don't think silver can go much lower for much longer. But lets hope.

[Richardski]

I'm impressed how well silver has held up in the past week or so compared to gold (down just under 2% as opposed to a little over 3%) Short-term, the market manipulators will win, but its not sustainable for ever.

 

Although silver is strengthening a little today I still have the thought that it could be pushed below the $19 level and even perhaps down as far as $17.50. In the overall scheme of things this is still relatively insignificant taking a 5 - 10 year view. 

 

I'm watching out, at present for any recent mine successes which could increase the supply further. Ironically, should silver fall to as low as $15, this will cause the 'pure silver mines' to eventually close after a year or two, thereby having a significant 'upside in the silver price' - but that is perhaps too hopeful.

 

Geo-politically, the Europeans are falling over themselves to attract China's trade so I'm not convinced sanctions on Russia will increase that dramatically, as i will cause a closer bond between China and Russia with Europe suffering 'gas supply' issues. Therefore the precious metals may fall further. As I mentioned earlier, this week will prove quite revealing I believe.