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  #1  
Old 05-03-2011, 08:08 AM
Jeff216410 Jeff216410 is offline
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Default Could someone explain the rapid fall?

I was just wondering if anyone can explain how the spot falls so rapidly and so suddenly. Who actually sets that price? Is someone moving the price intentionally in order to take profits over and over again? It seems to me if the price is $45 all week everyone will be in a holding pattern. If the price swings up and down $5 several times a week it is a way to create money out of thin air for those buying/selling at the right time?
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  #2  
Old 05-03-2011, 08:17 AM
Asaro Asaro is offline
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Quote:
Originally Posted by Jeff216410 View Post
Who actually sets that price?
Supply and demand.
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  #3  
Old 05-03-2011, 08:18 AM
AlbyVA AlbyVA is offline
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Quote:
Originally Posted by Jeff216410 View Post
I was just wondering if anyone can explain how the spot falls so rapidly and so suddenly. Who actually sets that price? Is someone moving the price intentionally in order to take profits over and over again? It seems to me if the price is $45 all week everyone will be in a holding pattern. If the price swings up and down $5 several times a week it is a way to create money out of thin air for those buying/selling at the right time?

Simple. There was nobody buying at $48, $47, $46, $45, or $44. Not until
it hit $43 and change did it find some buyers. But now that they've all bought,
there sellers are still out numbering the buyers and the prices keeps falling.

People make the foolish mistake of thinking that Value, Price, and Movement
is dictated by some magical force they can predict. The simple truth is that
Markets work on two forces (Fear and Greed). Nothing more, nothing less.

Something is ONLY WORTH, whatever somebody else is willing to pay you
for it. Silver isn't at $50.00, because nobody is willing to pay $50 for it.
Silver isn't at $5.00, because nobody is willing to sell it for $5. The price of
Silver (or any commodity) is whatever the quoted price is at that moment in
time. Its future price is whatever the degree of buyers and sellers are at that
moment in time.

Silver dropped 10%, because the world ran out of suckers willing to pay
$48/oz for it. Its as simple as that.
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  #4  
Old 05-03-2011, 08:25 AM
Miteysquirrel's Avatar
Miteysquirrel Miteysquirrel is offline
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Quote:
Originally Posted by AlbyVA View Post
Simple. There was nobody buying at $48, $47, $46, $45, or $44. Not until
it hit $43 and change did it find some buyers. But now that they've all bought,
there sellers are still out numbering the buyers and the prices keeps falling.

People make the foolish mistake of thinking that Value, Price, and Movement
is dictated by some magical force they can predict. The simple truth is that
Markets work on two forces (Fear and Greed). Nothing more, nothing less.

Something is ONLY WORTH, whatever somebody else is willing to pay you
for it. Silver isn't at $50.00, because nobody is willing to pay $50 for it.
Silver isn't at $5.00, because nobody is willing to sell it for $5. The price of
Silver (or any commodity) is whatever the quoted price is at that moment in
time. Its future price is whatever the degree of buyers and sellers are at that
moment in time.

Silver dropped 10%, because the world ran out of suckers willing to pay
$48/oz for it. Its as simple as that.
While i agree with your description of supply and demand, this was not that.

The price for anything doesnt fall 10% in 3 min unless there is severe influence.

This was contrived. Employed to stop the run of silver by some very nervous wall streeters and a certain chairman of a central bank. Designed to shake loose the bandwagon jagoffs that have no understanding of why metals are the only safe haven for wealth and only buying in because price is rising.

They got shook off, and good riddance to them. Silver will consolidate and continue (slower hopefully) its climb to 100 and beyond.
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  #5  
Old 05-03-2011, 08:29 AM
JeJjr JeJjr is offline
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one part of it is Some bear says boo and the weak hands crumble like sand and run off a cliff like lemons to sell there silver cause it dint make them rich in 2 or 3 days time as they had hoped so they buy high, sell low and whine the whole way home... Then others see it dropped a lil bit and they panic and wuss out and sell. Intill all the soft no gut holders give there PMs up to someone that has enough gutts to hold on.

Really I don't mind seeing these sorts of drops that cause the week hand sissy's to jump out of window ledges over a perceived loss in a few pcs of green paper with ink on it.
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Old 05-03-2011, 08:29 AM
AlbyVA AlbyVA is offline
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Quote:
Originally Posted by Miteysquirrel View Post
While i agree with your description of supply and demand, this was not that.

The price for anything doesnt fall 10% in 3 min unless there is severe influence.

This was contrived. Employed to stop the run of silver by some very nervous wall streeters and a certain chairman of a central bank. Designed to shake loose the bandwagon jagoffs that have no understanding of why metals are the only safe haven for wealth and only buying in because price is rising.

They got shook off, and good riddance to them. Silver will consolidate and continue (slower hopefully) its climb to 100 and beyond.


What would you call Influence? How does a price fall if there isn't
somebody selling? And if somebody is selling to move the price lower, where
are all the buyers to hold up that price? Because last I checked, nothing
will move lower if there aren't people buying at $48/oz.

Yes, there must have been a seller or sellers unloading their silver, otherwise
the price could not have dropped. So the question you have to ask is, where
are the buyers to hold up the price at $48+? Because nothing moves higher
without buyers.

Last edited by AlbyVA : 05-03-2011 at 08:31 AM.
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  #7  
Old 05-03-2011, 08:34 AM
II DALTON II's Avatar
II DALTON II II DALTON II is offline
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Margin Requirements hiked up several times, scared off a large number of Traders, said Traders took their profits. It's as simple as that really.
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  #8  
Old 05-03-2011, 08:38 AM
nealeffendi nealeffendi is offline
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Quote:
Originally Posted by AlbyVA View Post
Simple. There was nobody buying at $48, $47, $46, $45, or $44. Not until it hit $43 and change did it find some buyers. But now that they've all bought,
there sellers are still out numbering the buyers and the prices keeps falling.
Silver dropped 10%, because the world ran out of suckers willing to pay
$48/oz for it. Its as simple as that.
Having seen a number of your posts it is apparent that you think silver is way overvalued. Now if you think buyers at $48 were suckers then what did you call the sellers a month or 2 back who sold out at $34?
BTW I added all the way up to around $48 over these past 2 months and I don't feel like a sucker at all (especially as I bought so much in the dip down from 36 to 34 ).
I believe certain posters were saying $34 was overpriced in March and certain posters are saying $43 is overpriced today. I also feel that they will say that every month from here until doomsday as we will keep seeing higher highs and higher lows (and yes a few big dips along the way).
BTW would you please post the last time on this forum that you stated that the price was too low and they will run out of suckers willing to sell so cheap?

Last edited by nealeffendi : 05-03-2011 at 08:39 AM. Reason: typo
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Old 05-03-2011, 08:39 AM
AlbyVA AlbyVA is offline
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Quote:
Originally Posted by II DALTON II View Post
Margin Requirements hiked up several times, scared off a large number of Traders, said Traders took their profits. It's as simple as that really.


True, but.

The continued sell off means the world is running out of buyers to keep
Silver's price up. Its the Greater Fool Theory ringing true.


http://en.wikipedia.org/wiki/Greater_fool_theory

The greater fool theory (also called survivor investing) is the belief held
by one who makes a questionable investment, with the assumption that they
will be able to sell it later to "a greater fool"; in other words, buying something
not because you believe that it is worth the price, but rather because you believe
that you will be able to sell it to someone else at an even higher price
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Old 05-03-2011, 08:42 AM
AlbyVA AlbyVA is offline
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Quote:
Originally Posted by nealeffendi View Post
BTW would you please post the last time on this forum that you stated that the price was too low and they will run out of suckers willing to sell so cheap?


When Silver was $5.00, it was low on suckers not buying it.
When Silver was $48.00, it was high on suckers buying it.

Silver is at equilibrium around $20/oz. $15 on the low side and $25 on the high side
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