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.

Data and Statistics for these countries : Singapore | South Africa | All
Gold and Silver Prices for these countries : Singapore | South Africa | All
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth.
WebsiteSubscribe to his services
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
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 1:11 PM GMT
Rating :  1  0
Top articles
Latest Comments
The Rediscovery of Men
07 Decaccording-1
and now bernie has a brand new house. i smelled that the fix was in when he said he was running against filthy hillery. then at the perfect moment...
The Rediscovery of Men
07 Decaccording
i suspect that georgie S and his goons will crash the coin and try to starve our guts and spirits with fears we havnt felt perhaps ever. it will be...
The Deepening Deep State
07 Decaccording
james this is a nice piece of writing. good to see you moving to the Right. its probably safer there for awhile at least.
Jack Kemp's Gold Standard Act Of...
05 Decsam_site
We were on a disastrous 40% Gold Standard from 1914 thru 1944 and this half-assed 40% standard enabled the globalists to create two world wars...
Dollar Reappraisal : Gold Vanish...
04 Decsam_site
Enjoyed the gold history lesson of 1965. Palyi's quote "where the Welfare State is on the march, the Police State is not far behind" is prophetic....
Indian ‘Gold Ban’ a Portent of M...
03 Decsam_site-1
You believe like Brandon Smith, that Trump was allowed to win or is a secret globalist puppet that will be "fingered as the scapegoat for this...
Lawrie Williams: Major gold pric...
02 Decian15171
Hmm. the first signs of the long talked about disconnect between paper and physical?
Trump Makes The US Stock Market ...
02 DecThe Recusant
I'm forever blowing bubbles, Pretty bubbles in the air, They fly so high, Nearly reach the sky, Then like my dreams They fade a...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS