Short term metals direction?

I cannot figure it out , :) , so I bought some beer, copper, bacon , shrimp , pork and gold. Fuck em :)
 
SLV closed below 30 today (29.95). Based on my original speculation, this could be the buy point (for those who attempt to buy at lows).

Then again, breaking through the 30 barrier may mean we go back to yearly lows (bounce at 26?).
 
Brian4Liberty said:
Obama wins. Where do metals go tomorrow?
Click to expand...

Up, up and away.

EDIT: Too bad, I wanted time to buy some more while the market was in a holding pattern. Half the electorate voted for the Fed's dollar to continue plummeting, which will give the illusion that all commodities elevators are taking off at once, when really it's only the FRN elevator on a descent.

I have always said that I pity whomever is sworn into office in January, because that President AND his party are going to be left holding a TERRIBLE Fed/Bankers/Bush/Obama bag.

Happy scapegoat, Obama. That's not a can you're kicking down the road. It's a bundle of sweaty dynamite.

[SOURCE]

“An Obama win favors a continuation of the current easy money policy,” Axel Merk, president and chief investment officer at Merk Investments LLC, wrote in an e-mail. “The Fed’s increased emphasis on employment is here to stay. The market rewards this certainty by bidding up gold, selling off the dollar versus all major currencies.”

The incoming president will need to address a so-called fiscal cliff of more than $600 billion in tax increases and spending cuts that take effect in January unless Congress can reach a budget compromise.
Click to expand...
 
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This almost feels like the perfect storm for a dollar crisis...

Already high unemployment and debt/deficit numbers - check
Large tax increases looming - check
Large federal spending cuts looming - check

We all know how this plays out, if Obama and the Republican House cant reach an agreement, then Obama's only lever to pull in trying to stop another recession is to inflate his way out of it...
 
thoughtomator said:
If you're trading day-to-day, you can pretty much count on intervention to slap down the price of silver whenever it goes above $35. It practically begs a trading strategy of shorting silver whenever it goes above, and going long when it drops below. If you'd played that over the past few weeks you'd have made a ridiculous amount of money off it.
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Hmm there are a couple of rules in trading that actually endorse this:

1. Sell high and buy low
2. Never try to catch a falling knife
3. Always listen to people with a tomato in their name
 
With Colorado and Washington, I expect Metal Halide to spike?

300px-Metaalhalidelamp.JPG
 
Gold and silver dropping just a little, but the rest of the market is crashing. The Obama Dump!
 
$29.44 silver today.

What to do now? Back up the truck to buy under $30, or panic sell?
 
Brian4Liberty said:
$29.44 silver today.

What to do now? Back up the truck to buy under $30, or panic sell?
Click to expand...
Short term silver might go to 28 or even lower. Speculative positions in silver in the paper markets haven't been flushed out yet like they should: http://www.pmbug.com/forum/f13/open...s-watch-gold-silver-679/index2.html#post18904 Technically silver is oversold as of today, however. Tommorow at 2pm ET, the FED posts their January minutes: http://www.pmbug.com/forum/f2/fomc-takedown-709/index5.html#post18909 I'd wait for the outcome of that before purchasing anything. It might cost you 50c per oz but it might also save you $1.5.

For gold, the picture is totally different, I think 1600 is the bottom: http://www.pmbug.com/forum/f13/im-calling-bottom-gold-2128/
Speculators have fled the gold market already. The physical market is ultra tight as indicated by rapidly falling forward rates: http://www.pmbug.com/forum/f2/negative-lease-rates-gold-silver-341/index6.html#post18806
and backwardation in the April futures contract: http://www.pmbug.com/forum/f2/april-gold-futures-now-minimal-backwardation-2130/
The FED could still cause damage to gold tomorrow, though.
 
Silver down to $28.50. I'm not sure what's going on, but my guy won't sell this cheap... Grrr...

I'm expecting a jump anytime now, but I'm not sure why it hasn't happened, yet. I was expecting this dip and planned on using it to buy, but right now, I'm a little flummoxed. Anyone care to explain?
 
CaptUSA said:
Silver down to $28.50. I'm not sure what's going on, but my guy won't sell this cheap... Grrr...

I'm expecting a jump anytime now, but I'm not sure why it hasn't happened, yet. I was expecting this dip and planned on using it to buy, but right now, I'm a little flummoxed. Anyone care to explain?
Click to expand...

Options expiry is on monday. That's why all pm prices are magicly pegged to round numbers today, gold to 1575, silver to 28.5 and platinum to 1600.
It works like this: a bank sells options to clients. Options are contracts that offer a client the right to purchase an underlying asset at a point of time in the future. The price of the future purchase is fixed at the day the option is created, it's called the strike. The customer of the option pays the bank a fee for that, called the premium E.g.:
On August 1st 2012, Bank A offered customer B to purchase 5000 oz of silver for $29/oz on January 25th 2013. B therefore paid 2% of the transaction value to the bank as the premium. Bank A will therefore cash in the premium and the options will expire worthless on January 25th IF the price of silver is at or below $29 (+2% premium).

The formula for the Bank to make money by selling options is therefore:
At the expiry date, move the price of the commodity right to the level with the highest number of outstanding options. This way, the bank can cash in the premium and the customer loses it.

You would assume that such manipulative behavior would be visible on a price chart. You bet it is, see (as an example) this gold chart back from 2011. Options expiry dates often marked monthly lows for gold:

golddaily26.PNG
 
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