ALL are out
EVERY SINGLE ONE is Wiped Clean, hardly any inventory
Perplexing situation. Demand through the roof and Price drops dramatically.
Anyone care to Address this intelligently?
Makes you wonder whether the silver market operates at all like wheat, soybeans, etc. All it would take to find out would be for the longs to be taking delivery. So why aren't they? What am I missing here? The entire silver market is not that large.
A lot of dealers were caught short last week if you bought Eagles at $19.00 you won't be selling them at $17.00 hence no supply plus US Mint screwed up a major shipment of 08 Eagles supplies will return with spot over $20.00
Seeking Alpha Story:
"Looks Like There's a Silver Shortage
Worried by the steep correction in silver? Don't worry, just reduce your leverage.
Silver has always corrected by roughly a third after its sharp ascents in the past 5 years. This is due to the extreme tightness of this market where a billion of whatever fiat currency still can do a lot of damage. At one point the short sellers will be run over by the very real freight train of exploding physical demand that has led to what looks like a worldwide shortage in bullion." ...
Check Bullion Directs site, American Silver Eagles out of stock til Middle of April.
I think this big correction has caused a run on some silver items, or, some dealers just will not sell at this discounted Siver price.
I will try to explain it for you.
Hedge funds made big bets on commodities at the same time the dollar was being shorted heavily. This cause a rush to commodities as both a safe haven and a way to make money at the same time. That's why every silver retailer is out of inventory.
Now the fed through the banks is tightening margin requirements for these same hedge funds, so they are forced to sell some of their equities to fit back into the margin parameter.
It looks to me that the hedge funds are now exiting the commodities and placing bets on new sectors, home builders, reits, financials. They are going for what's laying on the bottom and selling what was topped out.
My guess is that these silver and gold retailers will be come buyers soon and be overstocked with inventory if this lasts another week. When the sector becomes beaten down enough they will be back and the pattern will repeat itself again.
I wouldn't be supprised to see a financial led rally continue into next week to draw more money in before the bear is back.
Wow really? So Hedge Funds sent folks around to EVERY retail outlet in the country that sells Silver and cleared them out heh?
You really reckon that Hedge funds go out and buy physical silver in the forms of bars, eagles and other coins. I doubt it. I expect hedge funds use paper.
LOOOL. Your kidding right? This means noting in the Short term. SLW is in a major correction with support at $14.25; at least you better hope or it will trade down to $12 before reaching new highs down the road. Solar Stock have revenues growing like weeds but the correction in Solar has taken the stocks down 50% or more. It noting personal , just the way the market works. The Gold & Silver rush is over Short term however it will return.
At first this correction in silver seemed excessive but when you think about it was only about a 20% correction. Gold was a little more than 10%. When Silver was under
15$ it had the same kind of corrections. The uptrends in the PM's are still intact!