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Frelodr
30th October 2008, 10:41
Is the dropping of silver right now because dollar is UP?

Kelly
30th October 2008, 10:46
As far as I am concerned, it is. From the beginning of the big silver take down at the end of March, it looks to me like the Hedge funds have their buy/sells and stop losses pegged to the dollar. You can watch it happen. The dollar goes down; silver goes up and vice versa.

The hedges have to be working off of some sort of automated program; it's far more sophisticated than a single investor merely placing his stop loss orders.

research24
30th October 2008, 18:26
The hedges have to be working off of some sort of automated program; it's far more sophisticated than a single investor merely placing his stop loss orders.

Of course they all insist there is no such thing as program trading, Hahahaha.

SkinnerVic
30th October 2008, 18:37
I just looked at the DXY daily and I'm seeing a weak inverted hammer with support around 84. It's not looking good for next week, I will say that. The Fund managers are going to try their best to keep the window dressing on till EOD tomorrow. After that, watch yourself.

Tribal Warrior
30th October 2008, 20:31
Of course they all insist there is no such thing as program trading, Hahahaha.

Oh it's wild, from opening bell, tell closing bell, some I know of, sit in a dark room, no light but the computer screen. Yeah their programs are so high-tech, I don't call Hedge funds investors, I call them crooks and gamblers.

We may have seen a bottom in Comex Gold/Silver prices, but I wouldn't go so far to say we've hit bottom on the comex prices. I think next week there'll be a lot of selling and the USD rising again.

Now, one thing I didn't notice today, Mining Stocks were up pretty big, while gold/silver prices were down.

Frelodr
30th October 2008, 20:51
So tell me how this works. Is there so much selling of silver, is that what brings the price down? Because all I read is that there is so much buying happening. If it is selling, aren't they losing a lot of money? I don't get it, can someone please tell me what they (think) are the reasons for the ups and downs now.

Tribal Warrior
30th October 2008, 20:58
The 'selling' they are talking about is being done on paper. Not actual physical gold/silver. Many people are taking delivery on their Comex contracts, as long as the Comex price stays so low, people will continue to drain the Comex warehouses of its' silver. Many are saying a default by December if prices don't shoot up soon.

Physical demand is through the roof globally for Gold/Silver.

Frelodr
30th October 2008, 21:06
I'm sorry, just a little more. Selling just on Paper --> Isn't any selling losing. Calling on Comex --> what exactly does that mean. I'm learning, and from what I'm seeing, I think I'm learning at a very volitial time, and that hopefully things will get easier to understand in the future.

Tribal Warrior
30th October 2008, 21:21
A call is like setting your buying price. Say silver starts up again next week and hits $10oz, I can buy a call of $5000 when silver reaches $10oz, then automatically buys at that price, also within a certain timeframe.

You can buy 'puts' which is the opposite, if you believe the prices are going down, you set the selling price and timeframe, if the price falls well below your put price, then you've made or held on to some gains. If the prices increase then you'll lose the difference.

Tribal Warrior
30th October 2008, 21:24
I'm sorry, just a little more. Selling just on Paper --> Isn't any selling losing. Calling on Comex --> what exactly does that mean. I'm learning, and from what I'm seeing, I think I'm learning at a very volitial time, and that hopefully things will get easier to understand in the future.

Actually right now, selling of physical silver would be anywhere from $15-$24oz. All according to type of coin/bullion. This is where the disconnect is, Comex price is $9.30 and the buying/selling of physical is 50% or so higher.

Frelodr
30th October 2008, 21:39
Thank you, I'm catching on. But I've always only bought physical and taken delivery. Thats probably best for me right now. But I think a person watching and listening on this site, is probably better than any class. Thank you again,
Later Lodr