Silver Smashed to $33.50 As 50% of US Annual Silver Production Dumped on Market in 5 Minut

[sailingaway]

Silver Smashed to $33.50 As 50% of US Annual Silver Production Dumped on Market in 5 Minutes

h/t daily paul:

Apparently Blythe’s monkey’s are burning the Sunday midnight oil in order to prevent silver clearing $36 and triggering JPM’s rumored silver derivative losses.

A miniature replica of the May 2nd, 2011 drive by shooting was just completed, as silver was knocked down the proverbial mine-shaft moments ago, dropping nearly a dollar in nano-seconds on Monday’s Asian open.

Volume data indicates that 3,297 contracts, or 16.5 million paper ounces of silver were dumped on the market in a mere 5 minutes between 9:00 and 9:05pm EST.

In other words, approximately 1/2 of the entire US annual silver production was dumped on the market by the cartel in a 5 minute period on a Sunday night.

more: http://www.silverdoctors.com/silver-...on-asian-open/

[FSP-Rebel]

Shady sh!t but this is a buy-in op imo. ~90% of the silver produced annually comes from outside the US. The key countries are Peru, Mexico and China which is why this dump is just a short term reset, hence a buying op.

[Brian4Liberty]

Heck, this isn't a smash. It didn't even get below 30.

[Romulus]

time to buy!

[Seraphim]

The irony is that it WAS a takedown - it just so happens that the takedowns are not working like they did before.

It now literally taking DOZENS times more paper silver/gold to send the price down then it takes PHYSICAL to bid the price right back up.

A lot of these smash days are seeing (loose example) - 100 millions ounces of paper smash the price down by a dollar, but then only 6 million ounces of physical purchased to bid it right back up (often, now, on the SAME day).

http://www.kitcosilver.com/

Since the morning take down - the price has been bid right back up to higher then it was right at the start of the price drop.

As the paper markets collapse, just like hyperinfaltion (in reverse) it will take more and more paper to budge the price down a bit, and then astute physical buyers will bid the price right back up, by buying TINY fractions of physical in relation to the paper take down.

Heck, this isn't a smash. It didn't even get below 30.

[Dr.3D]

The irony is that it WAS a takedown - it just so happens that the takedowns are not working like they did before.

It now literally taking DOZENS times more paper silver/gold to send the price down then it takes PHYSICAL to bid the price right back up.

A lot of these smash days are seeing (loose example) - 100 millions ounces of paper smash the price down by a dollar, but then only 6 million ounces of physical purchased to bid it right back up (often, now, on the SAME day).

http://www.kitcosilver.com/

Since the morning take down - the price has been bid right back up to higher then it was right at the start of the price drop.

As the paper markets collapse, just like hyperinfaltion (in reverse) it will take more and more paper to budge the price down a bit, and then astute physical buyers will bid the price right back up, by buying TINY fractions of physical in relation to the paper take down.

I have to wonder when that paper silver is going to bite them in the ass. I mean, it's gotta be accounted for someday doesn't it?

Edit: Maybe it's already biting them but it's happening so slowly I don't notice?

[Zippyjuan]

Half of the US annual production would have been about 600 tonnes of silver.
http://en.wikipedia.org/wiki/Silver_..._United_States

The United States produced 1,200 metric tons of silver in 2007,

That converts to over 21 million ounces. http://www.metric-conversions.org/we...-to-ounces.htm

[Dr.3D]

Half of the US annual production would have been about 600 tonnes of silver.
http://en.wikipedia.org/wiki/Silver_..._United_States


That converts to over 21 million ounces. http://www.metric-conversions.org/we...-to-ounces.htm

I have to wonder what the production was in 2011.

[1000-points-of-fright]

M'eh. One man's "smash" is another man's "still up $20".

[Athan]

ERMAHGERD!!! SHILVER!!!

[Pericles]

Worth reading yet again:

http://www.ronpaulforums.com/showthr...-III-September

[Tinnuhana]

Wow! My dealer said this was going to happen this week when I saw him Saturday! He said it's mostly "paper" silver. Time to buy, though I imagine most dealers know it's going to go back up soon, so they aren't going to sell at or below spot.

[LibertyRevolution]

Wow! My dealer said this was going to happen this week when I saw him Saturday! He said it's mostly "paper" silver. Time to buy, though I imagine most dealers know it's going to go back up soon, so they aren't going to sell at or below spot.

Yep, my local dealer said that is just the price of paper silver, he was at $35/oz+ still.

[oyarde]

I can buy at or slightly below spot three days a week , and this , is nothing, , silver still around $34 , gold , still around $1765 , most silver I have bought below $27 ,some, way , way below.What do you think the National Debt Clock will say in 2015 ? What do you think the unfunded Liabilities will be ??

[NickOdell]

Definitely need to buy more silver.

My dealer is at 35.29 for 1oz silver rounds, 37.54 for 1oz American Eagles, and 355.50 for 10oz bars.

[Zippyjuan]

Wow! My dealer said this was going to happen this week when I saw him Saturday! He said it's mostly "paper" silver.

Curious- was that "dump" a large amount of expiring options which were replaced with new ones? The market seemed to bounce back pretty quickly after the drop- within minutes. It has been hanging around $34 for the last couple weeks now- moving up and down a bit.

Marketwatch indicates that September 22nd was a date for expiring silver options. http://www.marketwatch.com/optionscenter/calendar and that Friday the 21st was the date that options trading was supposed to end prior to the expirations.

Drop was probably traders cashing in before the deadline.

From the article in the OP:

Volume data indicates that 3,297 contracts, or 16.5 million paper ounces of silver were dumped on the market in a mere 5 minutes between 9:00 and 9:05pm EST.

IS a two percent decline a "smash" in the price of something?

[Seraphim]

2% in a matter of minutes is enormous, Zippy.

If that happened to an index such as the S&P, there would be a couple of suicide notes found.

[Dr.3D]

2% in a matter of minutes is enormous, Zippy.

If that happened to an index such as the S&P, there would be a couple of suicide notes found.

That, and it is pretty interesting how coordinated everyone would have to be to do that in just a few minutes.

[NickOdell]

That, and it is pretty interesting how coordinated everyone would have to be to do that in just a few minutes.

Just shows how manipulated the markets can be, at least priced in dollars. The true value of silver remains constant, which is why we must fight for sound currency.

[Seraphim]

This is also incorrect.

ALL items fluctuate in value - including silver.

Paper fluctuates more rapidly and is easier to maniuplate, but that is not to say that silver/gold do not ALSO fluctuate in value against other goods/services. They most certainly do.

Just shows how manipulated the markets can be, at least priced in dollars. The true value of silver remains constant, which is why we must fight for sound currency.

[Zippyjuan]

That, and it is pretty interesting how coordinated everyone would have to be to do that in just a few minutes.

Easy with computerized trading. The dump may have been expiring options (it was the right weekend for that) and the "bounce" could have been computers programed to buy if it went below a certain point kicking in.

[NickOdell]

This is also incorrect.

ALL items fluctuate in value - including silver.

Paper fluctuates more rapidly and is easier to maniuplate, but that is not to say that silver/gold do not ALSO fluctuate in value against other goods/services. They most certainly do.

I agree. I meant to say relatively constant (when compared to something like fiat currency).

Whether the face value of the silver changes, you still physically have 1 silver coin. Supply/demand will still effect the purchasing power of that silver coin, however.

[oyarde]

Commodities all look strong today.