Hiya mate ? I chatted to ma abt this last night and thought I?d scribe some words for you as you probably understand a little better... I know you guys are worried abt markets, super etc so I don?t mean to distress or harp on but cool heads are an asset.
I believe silver will be a very solid buy by tomorrow morning IMHO ? current $28 (down abt 30-40% in 7 days) and I expect more downside tonight ? next support ~$21 which is around the GFC lows. Gold is also being hammered but not to the same extent.
The reasons for the massive fall (keep in mind silver has been as high as $50 relatively recently) are blatant price manipulation. The CME group / Comex, completely out of the blue, hiked margins on Friday, which means that folks that had borrowed money to take positions (?leveraged?) are now having to sell to meet margin calls. Also, the short term ?bernanke twist? has the effect of increasing short term interest rates in the US, which is why money is flooding to the US for a ?safe return? ? extremely ironic!
I personally suspect that this ?bernanke twist? is a false flag strategy to basically scare the republicans that have been so stubborn in the US to accede to democrat desire to start QE3, rather than ?getting the blame? for the current market turmoil. I believe that once they?ve forced the republican?s hand, they?ll call off the twist (which, by the way hasn?t even started yet, all this action is purely ?in anticipation?) and issue QE3 instead, which will be GREAT for precious metals, bad for the USD.
Personally I think there is a sinister imperative here - I believe this is the ?smart money? using the current state of fear to load up. Join the smart money, Dad.
It?s a bit like ground hog day for me ? if you remember I sold all my shares and bought precious metals about a year before the GFC, and rode my investment through the GFC. During that time, the price of gold and silver fell substantially in USD terms, but stayed rock solid stable (and even rose) in AUD terms as the AUD fell cocommitantly. Naturally, when the currency turmoil of the GFC ended and QE began, I started to book some significant profits.
If you have a few dollars to invest and want to see some decent gains, consider this. FYI. Note you can also buy it in paper form on the ASX if interested? code is SILVER.
Alternatively I'd be happy to buy some physical for you using my PMDS account with the perth mint.
