Silver price discussion and analysis

sinner · 10 November 2010

Re: SILVER

sinner said:
NYSE ticker CDE trades as a CDI on the ASX, under the ticker CXC. Volatility is definitely at a 6 month low. We smacked into the last weeks Parabolic SAR value, and the OBV indicator shows some hopeful signs of accumulation (correct me if I'm wrong).

CDE is a mostly silver play, with assets in the US and Americas in general. They had a mine in Broken Hill NSW but sold it I believe in 2009 and retained a non-operating stake. General interest to enter this stock as an almost pure silver+some gold producer play with no current exposure to the mining tax kerfuffle, low debt/equity, plenty of silver ounces in reserve for sale as well as strong silver and gold production numbers as well as increasing cash flow.

Am looking to accumulate in the $19-$20 per share region with some initial shares purchased yesterday.

As the recession becomes worse and worse, I am shifting more and more of my monthly savings allocation into relatively big stocks with a proven track record and high asset reserves/low debt levels. Am wary of holding lots of stock shares, but even more wary of remaining undiversified in such an uncertain time.

Remember this game is about putting your money where your mouth is.

I posted my thoughts, put my money on the line. Traded my plan, and my plan pays off.

CXC close the day 24.25, various parcels accumulated between $19 and $20 per share are sitting in 20-25% profit region.

Definitely taking some of those parcels off the table here and leaving the rest in the bottom drawer with the Aussie gold miners parcel purchased earlier (see gold thread for call).

Love this game. No leverage on this trade!

Updated chart below. Click quote to see original chart:

electronicmaster · 10 November 2010

Re: SILVER

explod said:
We are starting to get lift off. US$30 the next target.

Yes, and someone seems to have placed a massive short position thinking US$30 is the next resistance level for a major correction.

They must think they are smart or know this is planed or something.

They had better be correct about that bet because my sources say Silver has a long way to go in a short time before it starts to consolidate at best.

Well have to see.

electronicmaster · 10 November 2010

Re: SILVER

sinner said:
Remember this game is about putting your money where your mouth is.

I posted my thoughts, put my money on the line. Traded my plan, and my plan pays off.

CXC close the day 24.25, various parcels accumulated between $19 and $20 per share are sitting in 20-25% profit region.

Definitely taking some of those parcels off the table here and leaving the rest in the bottom drawer with the Aussie gold miners parcel purchased earlier (see gold thread for call).

Love this game. No leverage on this trade!

Updated chart below. Click quote to see original chart:

Yea, I have CXC. Is it confirmed that they will be de-listed from the ASX?

I'd like to keep this stock as long as possible

nukz · 10 November 2010

Re: SILVER

Not sure if this was posted yet.

Silver Slumps After Comex Raises Margin Requirement; Gold Slides
November 09, 2010, 5:09 PM EST

Nov. 9 (Bloomberg) -- Silver fell from the highest price in 30 years after CME Group Inc.’s Comex unit raised margin requirements. Gold dropped from a record.

The minimum amount of cash traders must deposit when borrowing from brokers to trade silver futures will rise to $6,500 per contract from $5,000 for exchange members, said Michael Shore, a spokesman for the exchange in Chicago. Silver surged as much as 7 percent to $29.34 an ounce in New York today, the highest price since March 1980, before retreating.

“The exchange wants to rein in the volatility,” said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago. “The threat of margins going up will cause people to liquidate. They may not want to tie up as much of their money.”

Silver futures for December delivery rose $1.1474, or 5.4 percent, to settle at $28.906 an ounce at the close of floor trading on the Comex. The most-active contract fell as much as 3.7 percent to $26.415 in after-hours trading and was at $26.82 at 4:15 p.m.

Zeman said margin selling “spilled over” to gold.

Gold futures for December delivery rose $6.90, or 0.5 percent, to settle at $1,410.10 an ounce. The metal climbed to an all-time high for the fourth straight session, touching $1,424.30. In after-hours trading, the price dropped as much as 1.5 percent to $1,382.20 and last traded at $1,390.70.

Before today, gold had rallied 28 percent this year and silver had gained 63 percent.

Source - http://www.businessweek.com/news/20...ex-raises-margin-requirement-gold-slides.html

electronicmaster · 10 November 2010

Re: SILVER

nukz said:
Not sure if this was posted yet.

Silver Slumps After Comex Raises Margin Requirement; Gold Slides
November 09, 2010, 5:09 PM EST

Nov. 9 (Bloomberg) -- Silver fell from the highest price in 30 years after CME Group Inc.’s Comex unit raised margin requirements. Gold dropped from a record.

The minimum amount of cash traders must deposit when borrowing from brokers to trade silver futures will rise to $6,500 per contract from $5,000 for exchange members, said Michael Shore, a spokesman for the exchange in Chicago. Silver surged as much as 7 percent to $29.34 an ounce in New York today, the highest price since March 1980, before retreating.

“The exchange wants to rein in the volatility,” said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago. “The threat of margins going up will cause people to liquidate. They may not want to tie up as much of their money.”

Silver futures for December delivery rose $1.1474, or 5.4 percent, to settle at $28.906 an ounce at the close of floor trading on the Comex. The most-active contract fell as much as 3.7 percent to $26.415 in after-hours trading and was at $26.82 at 4:15 p.m.

Zeman said margin selling “spilled over” to gold.

Gold futures for December delivery rose $6.90, or 0.5 percent, to settle at $1,410.10 an ounce. The metal climbed to an all-time high for the fourth straight session, touching $1,424.30. In after-hours trading, the price dropped as much as 1.5 percent to $1,382.20 and last traded at $1,390.70.

Before today, gold had rallied 28 percent this year and silver had gained 63 percent.

Source - http://www.businessweek.com/news/20...ex-raises-margin-requirement-gold-slides.html

This is a classic example of the fraud that has been going on (in Silver and Gold) for years.

You have to own Physical. No negotiations.

It is the only way to win this game.

The little guys are going to be out priced, I can see it

Mr Z · 10 November 2010

Re: SILVER

What rubbish... MARGINS ALWAYS RISE WITH PRICE! it has always been that way, it needs to be that way, they'd be remiss in their duty if they did not raise margins in line with price!

Now stop this silliness!

Go silver !

electronicmaster · 10 November 2010

Re: SILVER

Mr Z said:
What rubbish... MARGINS ALWAYS RISE WITH PRICE! it has always been that way, it needs to be that way, they'd be remiss in their duty if they did not raise margins in line with price!

Now stop this silliness!

Go silver !

By 30%

Mr Z · 10 November 2010

Re: SILVER

electronicmaster said:
By 30%

What has the price done recently? eh? It's quite normal in this situation.

electronicmaster · 10 November 2010

Re: SILVER

Mr Z said:
What has the price done recently? eh? It's quite normal in this situation.

Yes your right. Interesting recovery

Mr Z · 10 November 2010

Re: SILVER

Silver might be good for 4x by May 2011... Lets see where we are in Jan.

nukz · 10 November 2010

Re: SILVER

"CME confirmed silver margins raised from $5000 to $6500 (30%) effective 11/10 settl - no other metals effected"

Presumably, this affects the maintenance margin. And is a lovely way to kill paper longs.... but not shorts, of course.

Source: http://www.zerohedge.com/article/pm-selloff-reason-cme-raise-margin-requirements-silver-5000-6500

Interesting that they would increase margin's on long positions only and not short positions... this indeed does sound interesting.

nukz · 10 November 2010

Re: SILVER

Invariably the parties disadvantaged by these moves complain that the exchange is "changing the rules in the middle of the game". That's a naive and pointless perspective. The fact is that the ability to change the rule is itself a rule. The exchange is not changing the rules, they are just utilizing an alternate set of rules that are already in place. Traders should stop complaining and read the rule book. It's all there.

What is more intriguing is what motivates the exchange officials to use these rules? Is it truly a disorderly market (the usual reason) or is it part of a larger coordinated effort involving Federal regulators and policymakers to do whatever it takes to push up prices of risky assets such as housing, stocks and junk bonds and push down prices of safe-harbor assets such as gold and silver?

The point is, when buyers and sellers transact in futures markets, they're never alone. Exchange monitors are always looking over your shoulder. Never ignore the power of the exchanges and regulators and always remember they will use this power when it suits them, not you.

Source: http://kingworldnews.com/kingworldn...s_-_Threes_Company,_Silver_Margin_Change.html

A little more food for thought

explod · 10 November 2010

Re: SILVER

nukz said:
"CME
Interesting that they would increase margin's on long positions only and not short positions... this indeed does sound interesting.

Of course, the rules are made for the shorts (read bullion banks). And taking delivery of physical is the only way to go and will squeeze the crooks out.

It's Snake Pliskin · 10 November 2010

Re: SILVER

When bars are compared to Gold they are cheap and affordable. When Gold gets too expensive to buy will silver be picked up?

Mr Z · 10 November 2010

Re: SILVER

nukz said:
Interesting that they would increase margin's on long positions only and not short positions... this indeed does sound interesting.

Margin is margin, per contract regardless of side (long or short)... $6750 for silver unless you are a member then its 5K...

Members get it cheaper because they are a known and tested entity credit wise.

Don't believe the goldbug BS, many of them are mad ignorant idiots.

sinner · 10 November 2010

Re: SILVER

Mr Z said:
Margin is margin, per contract regardless of side (long or short)... $6750 for silver unless you are a member then its 5K...

Members get it cheaper because they are a known and tested entity credit wise.

Don't believe the goldbug BS, many of them are mad ignorant idiots.

Agree with Mr Z, this is standard operating procedure for the exchange, nothing to write home about really.

Weak hands is all. Strong hands supposed to be scared of a huge drop in the price of silver? If I woke up tomorrow and it was running $3 an ounce I would definitely be out buying.

explod · 10 November 2010

Re: SILVER

Mr Z said:
Don't believe the goldbug BS, many of them are mad ignorant idiots.

Would you care to itemise and eloborate on that statement Mr Z

Trembling Hand · 10 November 2010

Re: SILVER

Mr Z said:
Don't believe the goldbug BS, many of them are mad ignorant idiots.

explod said:
Would you care to itemise and eloborate on that statement

Firstly you guys are always jumping at shadows. Margins change all the time but when it happens to silver or gold its a conspiracy! Just laughable. Price goes up. Margin will after a certain time as per SPAN futures models. Its just how it is.

Then from a simple market admin move you get this BS,

Interesting that they would increase margin's on long positions only and not short positions... this indeed does sound interesting.

LOL just making it up to help the CCB (Confirmation Conspiracy Bias).

Shorts and longs put up the SAME margin. Why don't you experts know the most basic functions of the market you dudes profess to know the inside story on????

Mr Z · 10 November 2010

Re: SILVER

explod said:
Would you care to itemise and eloborate on that statement Mr Z

Nope...

I'm a gold investor, I loath goldbugs and all they desire and stand for. Be very careful about using or identifying with that tag it represents a toxic outlook on life in my opinion.

There are many, many ignorant idiot goldbugs and they are a problem for any serious gold investor.

Mr Z · 10 November 2010

Re: SILVER

Trembling Hand said:
Shorts and longs put up the SAME margin. Why don't you experts know the most basic functions of the market you dudes profess to know the inside story on????

Yes exactly....

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