Quote:
Originally Posted by yotano211
(Post 1264724)
I put $20k into a silver 2x leveraged ETF, AGQ, after that guy was killed by ICE on Saturday during market close. I sold it all mid-day for an increase of 16%. I made $3600 yesterday.
I don't like silver, its too volatile for me.
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silver is worse than just being volatile,if you believe in what some experts are saying=
Silver is trading at a higher price in Shangai than COMEX,
Why?
Because many COMEX traders eg the banks have always shorted silver but this time is different,to lessen the pain,it raises the margin requirement,forcing those who cant meet margin to liquidate,thus loweRing the price of silver at COMEX.
But this is just a quick fix,now you see silver keeps rising.
You see silver at $117 as we speak.
But what happens outside COMEX is different story-
at first the retail coin shops merrily buy all the silverware customers brought in,sterling 925,800,then they ran out of money.
They want to sell to the wholesalers who would ask the refinery to turn them into 9999 bars.
The refinery before they buy all the silver junk-cups,sauces,plates ,trinklets,they need to hedge in the future market ,then they find out what is known as backwardation-the future price is less than the spot price,
If they pay the wholesalers $78,they can only get $76 at Comex after all the work?
But now this backwardation problem has been resolved,but the wholesalers have reached their credit limit,their bankers are not going to raise the limit,so their hands are tied.
The refineries have become lazy,they will only refine silver 9999,so they can easily turn them into 9999 bars!
How many of us have silver teapot,coffee pots made of 9999 silver?
How many of us are willing to take our pure silver coins to be melt down ,and disregard the numismatic value !
