Central NE | I didn't mean to sound alarming. Let me rephrase by saying that I think it will require more paper to buy the same thing if you wait three days. Buying silver on paper is giving a free loan to the seller and assuming all the risk. You would have more fun in Vegas.
After 336,000+ contracts representing 25% of annual global silver production have been sold in less than 10 minutes and triggered stops to sell thereby driving the price down, the physical product is on sale. The cost of silver production is skyrocketing when measured with paper just as it is with farming $14,000 per acre ground.
The timing has to do with what will be the focus of the worlds attention. By Monday night the Hurricane story will be a week old, on Tuesday we elect the president, and by Wednesday the news will start to turn to what happens between now and January 1. Debt celing, Fiscal Cliff, Taxmageddon, Credit rating downgrades, the breakdown of the Greek parliament coalition (and what it was going to resolve), and the clash between the German Bundesbank (sp?) and the European Central Bank. These are all major day of reconing type issues.
Will congress raise the debt celing with Obama still in office? Will congress let automatic cuts and taxes kick in? Will the US get another credit ratings downgrade? how can it not? What will happen to the banks that hold Greek debt if the ruling coalition falls apart? And most Importantly is the question of whether the European Central Bank will be allowed to assume the authority explicitly forbidden by the EU constitution and monitize the debt of the Piggs. The German Bundesbank has it's directives as well and the two are at loggerheads. something has to give.
Add to that the end of the pre-election proping up by the Federal Reserve and I think we may see something in precious metals like we saw last August.
just my .02
Edited by Hayinhere 11/3/2012 14:38
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