Tuesday, January 3, 2012

Lines on Charts: Silver

Silver futures are trading at $28.875 up $1.005.
I happen to know something about this market and because of that very rarely post on it.*
From Nifty Charts (that's Nifty as in the Indian equity index):


If China's economy implodes you can kiss that $26 support goodbye and look for a $16 handle.
*From our July 2007 post "EU Emission Caps, Kyoto and Three Ancient Civilizations":
...As a side note, in December 1979, as silver was making its historic run, an old Jewish trader told me he was lightening up on Ag.
When I asked why he said "I hear the Indian ladies are taking their bracelets off and they've been trading it longer than I have".
Comment at MarketBeat:
The exchanges fired a popgun at the specs. When the powers that be (read: commercials) want to go nuclear they use two words: . Liquidation Only

  • There aren’t many commodities with the equivalent of the “Silver Users Association” whose raison d’├ętat is to keep silver prices down. The SUA was very unhappy with the introduction of Barclays silver ETF. On a related note, I have a friend who was in the room when a (very) large commodity trader said “Those Hunt boys don’t know what deep pockets are”. Within a week both the CBOT and the COMEX went liquidation only. A lot of opacity in that market. A creative type could probably get a pastiche out of Robert W. Service’s Creamation of Sam McGhee:
    “There are strange things done in the midnight sun
    By the men who moil for gold;
    The Arctic trails have their secret tales
    That would make your blood run cold…” . I keep getting tripped up by “LaSalle St.”