ALERT Silver Plunges As Yen Stop Surge Triggers Margin Liquidation

Live:


snapshot:



Is this HKMex closing down in Hong Kong?
Or, something else???


http://www.zerohedge.com/news/2013-05-19/silver-plunges-yen-stop-surge-triggers-margin-liquidation

Not a moment after someone was slammed with a massive margin call following the hit of
102 USDJPY stops as we noted moments ago, was that same someone(s) forced to dump a
whole lot of silver in thin, no volume trading taking out the entire bid stack on what can only
be described as "get me the hell out and pay me anything" liquidation, sending the precious
metal to just over $20, before yet another round of buying programs kicked in, and sent it
right back up, allowing those quick enough to capitalize on some foolish macro trader's
blowing up to pocket a huge profit before Japan has even woken up.

Now if we could just by the physical at this discounted price! Otherwise it's peeing into the face of a brisk wind.

if we could just by the physical at this discounted price

if only...

Although it is not as desirable as having it in your hands, buying Eric Sprott's physical silver fund will allow you to take advantage of these low prices. And if you can purchase a certain amount (I think somewhere north of $100K worth) you can take delivery. Sprott prides himself in providing an audited fund that contains only actual silver, no derivatives of silver.

Historically his fund has carried a premium to NAV (net asset value). At present that premium is less that 1%. It does carry an approximate 0.65% annual management fee, but that is quite low compared to many mutual funds. And if, when the price of silver rise and the physical becomes more available, you can sell your PSLV and use the proceeds to purchase the real deal.

Another advantage of owning some PSLV is that it is more quickly and easily sold than physical which requires you to find a buyer or sell to a dealer. Current dealer premium give you a haircut of 6-10% for your in/out fee, which would not be the case with PSLV. Of course PSLV sales would be reportable to the IRS and carries a significant capital gains tax. Of course you must legally pay this for private physical transactions as well, but they are not currently reported.

Just some options for consideration.

^^^^ dude, if it's not in your hands, you don't own it... ^^^^

Silver already down to $21.69, at -3% early this morning!

mbabulldog said:

^^^^ dude, if it's not in your hands, you don't own it... ^^^^

Click to expand...

Gotta agree! They can manipulate paper but they can't manipulate physical to the same extent.

They should just come out and say "market manipulations in the precious metals paper holdings continue while demand for physical continues to rise..."

All this huffing and puffing is meaningless. Anybody on the street knows that physical demand is high, mark-ups for said physical remain high and there
is no end in sight for demand. Just goes to show how big of a disconnect there is between the ticker watchers and the actual commodity itself. I can't help
but think that the .gov et. al. must be snapping up physical as fast as they can get their hands on it while talking out of the other side of their face
about it's value.