Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

Silver Surges 6.8% From Lows After Slammed 10% Lower In 4 Minutes

IMG Auteur
Published : May 20th, 2013
693 words - Reading time : 1 - 2 minutes
( 0 vote, 0/5 ) , 2 commentaries
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
2
comment
Our Newsletter...

Today’s AM fix was USD 1,353.75, EUR 1,051.95 and GBP 890.86 per ounce.  
Friday’s AM fix was USD 1,376.75, EUR 1,069.15 and GBP 903.62 per ounce. 

Gold fell $22.20 on Friday to $1,364.90/oz and silver closed at $23.632.

Silver fell victim to heavy, concentrated selling overnight in thin, illiquid Asian trading. Silver was slammed by 10% and fell from $22.36/oz to $20.30/oz in just four minutes - from 23:05 GMT to 23:09 GMT. 


XAG/USD Spot Exchange Rate – 1 Day (Tick)

Silver has recovered 7% of the price plummet and is now down 2.7% today at $21.60 an ounce. 

Silver’s weakness may have contributed to gold falling 1% to $1,354/oz.

It is likely that the very aggressive selling in illiquid Asian markets overnight was by a large hedge fund or bank or a combination of hedge funds and banks with deep pockets. Reuters quoted an analyst at a Japanese bank who said that silver’s price falls were due to one “unidentified investor”.


XAG/USD Spot Exchange Rate – 3 Day (3 Minute)

Heavy concentrated selling likely led to stop loss orders being triggered at technical supports – particularly at the $22/oz level.  

There is some confusion regarding pricing as different pricing feeds are showing different lows in spot silver. CNBC reports that at one point silver hit a low of $20.30, down 8.8% from the start of trade on Monday while Bloomberg report that silver for immediate delivery fell as much as 8.6% to $20.3395 an ounce.

The losses come after silver had fallen sharply last week. Silver futures for July delivery retreated 1.4% to $22.352 an ounce on the Comex Friday, extending the week’s decline to 5.5%, the biggest in a month. 


Cross Currency Table – (Bloomberg)

Hedge-fund managers and other large speculators decreased their net-long position in New York silver futures last week, according to the U.S. Commodity Futures Trading Commission (CFTC) data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 10,794 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions fell by 2,857 contracts, or 21 percent, from a week earlier.

The gold-silver ratio is at its highest level since September 2010 with an ounce of gold currently buying 63 ounces of silver. That is twice as much as in April 2011, when silver was trading considerably higher.


Silver in USD, 5 Year – (Bloomberg)

This is silver’s lowest price since September 2010 which will lead to continuing and possibly increased demand for physical silver.

While speculators such as hedge funds have reduced long positions and increased their short positions, store of wealth physical demand remains robust internationally.

Premiums for coins and bars remain elevated and there continue to be delays in securing physical silver coins and bars in volume. These lower prices could exacerbate these supply issues as higher prices will be needed to increase supply.


Gold/Silver Ration Index, 1983-Present – (Bloomberg)

Contrarian silver buyers are rubbing their hands with glee and will continue to accumulate physical silver coins and bars in expectations of silver surpassing the nominal record high of $50/oz in the coming months.

Further weakness may be seen today and this week but the long term outlook remains positive due to robust industrial, investment and most importantly store of value demand.

Nothing has changed regarding the very bullish fundamentals in the silver bullion market and we continue to expect silver to surpass its inflation adjusted high of $130/oz in the coming years.

NEWS
Silver Plunges to Lowest Since 2010 as Gold Drops for Eighth Day - Bloomberg

Gold Bear Bets Reach Record - Bloomberg

South Africa's NUM seeks 15-60% wage rises from gold producers – Reuters

Singapore’s Changi Airport Seeks Growth With Gold - Bloomberg

COMMENTARY
What’s Next For The Silver Price? - MoneyWeek

It’s Official: Gold Is Now The Most Hated Asset Class – Acting Man

Adding Insult To Injury, South African Gold Mining Union Demands Up To 60% Wage Hikes – Zero Hedge

Washington Signals Dollar Deep Concerns – Institute for Political Economy

For breaking news and commentary on financial markets and gold, follow us on Twitter.

Companies Mentionned : African Aura Mining | Bullion | Robust |
Data and Statistics for these countries : South Africa | All
Gold and Silver Prices for these countries : South Africa | All
<< Previous article
Rate :Average :0 (0 vote)
>> Next article
Latest topics on forum :
Latest comment posted for this article
YUP,YUP,YUP, Buy low, sell High!!! Get as much as you can when Silver is this Low. You will not be sorry in a year or two. Plus you get to fight the Beast, The Evil FED. Read more
sparrow - 5/21/2013 at 2:11 PM GMT
Rating :  1  0
Top articles
Latest Comments
Greece's Debt: Guess Who Pays in...
28 Janbelville19071
I have read better analysis from Adrian: Greece is in an extremely strong position and the EC has to give in. If Greece leaves and defaults on its ...
Koos Jansen: India's silver expo...
26 JanDoom
Heh, the title doesn't match the subject. I would have been shocked if India was really exporting silver, much less exporting a record.
Education is Too Important Not t...
26 Jansam_site1
Right on Ron. Americans don't understand that we have been fed a distorted version of history taught in our schools. The constant attempts by cri...
Job Site of the Future: Unmanned...
26 Janrhaacke
All this fear of automation taking over jobs is completely unfounded. It will never be possible for machines to make everyone unemployed. If everyo...
Jim Rickards: Gold price manipul...
26 Janstustev1
Jim, If the intent of the manipulation is to get more gold into China and it is imperative to accomplish this forthwith then why do not the wor...
Dollar Denial Ain't Just a River
24 Janovertheedge
"It all comes back to preparing for the worst, and letting the best take care of itself. Easy to say - hard to implement. " "Therefore, we...
Housing Affordability: How Does ...
23 JanThautikus4
Mish, As a Canadian follower of your excellent commentary I will answer in regard to the Canadian Real Estate bubble which crested in 2013-2014 and...
Francs, Bonds, Barrels, and Bail...
23 Janesandy
Are there any differences between US banks and savings-and-loans with regard to Glass-Steagall?
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Comments closed
  All Favorites Best Rated  
YUP,YUP,YUP, Buy low, sell High!!! Get as much as you can when Silver is this Low. You will not be sorry in a year or two. Plus you get to fight the Beast, The Evil FED.
Rate :   1  0Rating :   1
EmailPermalink
... and now its higher than it was before the takedown. Gold is back up too.

Go figure. Support this strong is unexpected and a little weird to be honest.

Rate :   1  0Rating :   1
EmailPermalink
Subscribe to 24hGold’s daily market briefing
  • Prices and data of precious metals in 119 currencies and world mining companies
  • Daily analysis of the economy, markets and more
  • Free, daily and indispensable
Stay informed, subscribe now !
* Your email will never be shared.