Gold Drops; Silver Falls Off a Cliff
By, DARYL MONTGOMERY
Sep 23, 2011

Silver prices collapsed on Friday, dropping by more than 17% at one point. Gold was also down by more than $100 an ounce at its low. A short-term rally should be expected soon, but there is now a certain amount of technical damage that needs to be worked off in the charts. Prices can still go lower.

The silver market had a major crash on Friday -- there is simply no other way to put it. Spot prices were down as much as 17.1% or $6.18 an ounce. Gold was damaged as well, but not nearly as much. At its worst, it was down 6.3% or $108.60 an ounce. Both gold and silver traded below previous lows set earlier this year.

The drop in silver was truly spectacular. It was down by double digit amounts on Thursday and then by an even greater amount today. The main silver ETF, SLV, has two huge gaps on its chart. The spot price low of $29.76 reached an area of major support. There is chart support, moving average support and a Fibonacci retracement at that level. A tradable bounce should take place soon and the gap in the chart from today is likely to be covered in that move. Those with a longer-term investing horizon might want to wait before buying. The next level to keep an eye on is around $26 where there is chart support and another Fibonacci retracement.
The silver selloff is much more advanced than is the one for gold. Silver peaked in April and had its first big selloff in May. It made a double bottom in May and July and didn't trade below those levels until today. Gold on the other hand made a double top in mid-August and early September. It confirmed that double top today by trading below its August low. Spot gold fell to $1628.60 an ounce at its worst point, breaking its support in the lower 1700s by quite a bit.

The precious metals charts are showing technical damage, with silver in much worse shape than gold. Gold broke its 50-day simple moving average yesterday for the first time since June. Today, silver pierced its 325-day simple moving average -- an important support level for any commodity. The DMI technical indicator gave a sell signal for SLV on the daily charts today and was about to do so for the major gold ETF, GLD. In the short term, both are very oversold however.

The huge price drops in silver and gold can only be explained by substantial hedge fund selling that smacks of credit crisis panic. Both of these markets have risen on highly leveraged buying. Once a few overextended funds are forced to sell because of the financial turmoil in Europe, things can go downhill pretty fast. Stops get taken out and this causes more selling, which in turn takes out more stops and leads to more selling. After this, a rally will follow and there should be a test of the low. If it holds, then a sustainable rally can take place. We are not nearly at the point yet.

source: http://www.etfguide.com/research/662/23/Go...ls-Off-a-Cliff/

Hi.
Got Sunshine 1 oz x 200 pcs.
RM123 /oz for 20 oz
RM122 /oz for 50 oz and above.
email me wkchan1991@gmail.com

COD sunday nite alamanda.
Those who cannot make it sorry lah.
1st come 1st served/

hi any taker want to take 2011 panda x10pcs? (from SGKSY 30pcs)

PM me about the price asap if you interested before 11am.

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Added on September 24, 2011, 11:23 amAnyone has keii-kun contact number? he has given to me but typed less one number .. omg

This post has been edited by basSist: Sep 24 2011, 11:23 AM

wow ... this is the moment the investors are looking for ....

I just check most of the local suppliers and also overseas suppliers price ... and it's an interesting finding.

- some cannot sustain and took out the product from their selling list straightaway
- some drop the price but not significant
- some just put out of stock for most product
- some doing garage sales desperately to pull back some capital

I think all the sellers are making big losses now ... really felt bad for them.

Now would be a good time to start buying bit by bit since we're not sure whether it'll plunge more or have a short rally next week ...

i will start my shopping on monday onwards slowly .... Good luck guys!

Hey chun yen,

reading those articles just makes me feel that nobody knows what's happening. The feds are proposing what that loser benarke (spelt right?) is telling them to propose, which makes even more people panic. If these guys are pulling out funds from precious metals and liquidate them into USD, that explain why the greenback goes up and the precious metal all rolling downhill.

But if they are liquidating the WINNING metal (in this case silver) and covering looses for other margin call (gold or other commodity) then it seemed silver is still the right PM to invest, not as in now, but as it stablized.

It's time to buy a little today (if you can find someone selling ,I think goldchan is making his offer, good chance to buy) then wait for monday to see how it move, then if it drop alot, buy a little more, later in the week. If it jumped up on monday (maybe because the American realised they can buy cheap now, they pump back the funds into silver) then at least you would have bought at LOW price.

my 2 oz worth

chef

Good luck guys!

Buy short term bond and reinvest in long term.
Fed tactics ╮(╯_╰)╭

http://www.kitco.com/charts/historicalsilver.html
Check silver price at 2008.
Confirm you will cry if you were buying at USD18 and watch the market price to drop to half of it.
It's just the matter of time.
Just get hold with it, never fear. This is the spirit of an investor. (Must know what are you doing la...)
Silver should be a long term investment.

The next support for silver at USD26 is not a dream if the market to fall that hard.
If you notice, KLSE also kena hit hard yesterday, just like year 2008.

I doubt Monday will be a good.
It's gonna roll down the hill.
Especially after Hong Kong market is closing

Guys, load up your bullets.
It's time to fire.

Chef, wanna let go your Maple 2011 and Koala 2011?
I just realize I haven't get 2011 maple. =P

This post has been edited by chunyen2020: Sep 24 2011, 05:17 PM

Any ideas that silver price goin', south or north next week? I just bought some recently... SAD story...

Market fluctuates a lot recently.
Hard to predict.
But I see next week is still a sliding down trend.

How can i found any Good trader here?

Hey guys!!

Anyone interested to get the kook 2011 coin (not the 2012, still out of stocks) in a joint purchase? PM me and I need qty because there's a minimum purchase.

Hey arrsoo, cruzzie, techno and all. Want to join purchase? Current price for 100 coin is about RM 135 each. I don't expect you to order so many lah, slightly less have to pay a little more like RM 1 or 2 per pcs?

chef

If I didn't get enough order, I will not place the order. Let me know before the spot price jump. Payment will be in advance and collection 1 to 2 weeks time.

hi
has been following this thread for quite sometime.
learned a lot, thanks.

my opinion is, silver investment is for long term. the price will fluctuate from time to time. whenever it goes down, try to buy some to average your investment.

chef, check ur pm

anyone here invest copper bullion???

Good insight on the 2008 price!

copper coin only costs 1.5 USD, but those sellers sell at RM25. In my opinion, not worth to buy from malaysia seller. If you want, you can order from US.

Hi guys,

Thanks for the PM, usually I will sell 1 or 2 pcs to whoever wants to start silver investment, but the problem is, I'm trying to bulk buy now and I need those who is willing to buy say 20 to 50 pcs one shot. And I only want a few people to participate so I don't have to go around meeting and delivery too much. So whoever wants a few pcs only, can buy from those who had purchased this round.

So far we are more than half way there, just need 1 or 2 big time buyer to join in the order and I'll lock the price by monday, hopefully the price don't drop or jump too much. PM me o.k? hope to get this going as soon as possible, kook 2011 is no longer available in the market so it's value is certainly not too affected by spot price too much.

Chef

PS The price RM 135 is no fixed, it could be lower depending on the landed final price, which I will rebate back for sure.

UPDATE!

Please note the orders are fulfilled!! No more orders, sorry. But feel free to PM me so I can keep you guys in the loop when I find lobang like this. o.k?




This post has been edited by chef: Sep 25 2011, 11:31 PM

just had a quick deal with SGKSY at JB. smooth and effective.

recommended hehe.. next time got more time then we can have a tea together. i am still new in silver, need to learn from sifus here.

want to sell 35 pcs dragon at ONCE at 346 per pc. COD in JB tomorrow, anyone interested ?

Looking for 200-300oz of sunshine or buffalo or Scottsdale or a mixture of the three at good offer...anyone selling?

woah~ 1oz?