Tuesday, May 10, 2011

First Fear, Then Anger

The historic decline this week in silver creates strong emotion. Watching great amounts of wealth disappear, quite literally in minutes amid disorderly trading conditions is a genuine fear for any investor. Worse is seeing no obvious legitimate reason to explain the carnage. If that doesn’t scare you, nothing will. Especially if you already harbored unease about how the whole silver market operated.
But fear is an emotion that burns out fairly quickly. A human being can’t stay in an intense state of fear of financial catastrophe without selling out at some point or mentally adjusting to the new level of price. Then the conditions that led to the fear in the first place are replaced by some other emotion. If evidence exists that the sudden financial loss could and should have been prevented, the new emotion becomes one of anger. 

Anger at who or what might have caused the loss and who should have prevented it. I think there is compelling evidence pointing to who and what caused this silver crash as well as who should have prevented it.
The first thing we must recognize is that this was an unusually intense price smash. Silver fell 30% for the week, its biggest price loss in 31 years. The decline was highlighted by record trading volume on the COMEX and in shares of SLV. From any objective measure, the trading was disorderly, indicating little true liquidity despite the record volume. That’s because much of the trading was conducted by high frequency trading (HFT) computer bots whose clear purpose seems to be to cause disruptions to prices. These are the same disruptive traders that caused the flash crash in the stock market last year. I believe it was these traders who started the price decline with the $6 hit in 12 minutes on last Sunday evening. Their primary reason for existence seems to be causing prices to collapse.
More Here..


  1. If silver goes to .25 it still has a better future than the US dollar.

  2. Heck if silver goes to .25 Im buying pre 1965.. its always wortha buck

  3. Commodities go up and they go down. It should be a given, except for the stock traders who don't really care and are looking short term. The same thing happens with oil, as we have seen several times. The price is going to change, but in the long term silver will hold strong.

  4. Poor babies! They thought silver only goes up in price...

  5. Poor morons! They thought federal reserve notes only go up in value.

  6. Silver is already headed back up. It looks like the Banksters filled their pockets, covered their shorts.

    The fundamentals and facts have not changed. Buying silver isn't about loving silver. It is about hating our fake ponzi fiat money system and knowing that it is doomed.

    Silver is not better than having tools, food, water, defense items, shelter, etc.

    It is however a far, far cry better than anything dollar-based though. Silver will go up and down but it won't do what the dollar is destined to do which is go 'poof.' That includes IRAs, mutuals, savings, checking, and the bills stuffed in your mattress.

    It will be fun to watch millionaires turn into thousandaires overnight. What will be unpleasant is watching the average Joe bankrupted and starving while just a handful of silver would have bought a year's groceries even at hyper-inflated costs.

    That is the price to pay for trusting talking heads on the boob tube. For trusting in a corporate controlled, banker owned government packed full of liars.

  7. I consider this article a propaganda piece. It comes across with key words, great amount of wealth disappearing, intense price crash, computers did the crash..

    A casual person reading this who is thinking of investing in silver would think twice.

    However, the article fails to talk about the 4 margin increases, that essentially forced out small traders, and caused the price to go down.

  8. Your all too damn funny !

    Silver is " going up " or " going down"

    Against what genius ?

    All of your values are based on the dollar!

    Too damn funny!

  9. Fear? what fear? I was hoping SLV dropped all the way back to $10 or $13. I bought in back when a 100 oz. door stop was under 500 bucks. Plus my grandad was a avid collector since the great war, Which he passed off to me. I was hoping to get a brick or two for every door in the house. My intent is not to make money I just hate to lose it and I just love metals. Gold, Silv, copper and lead Always have guess I got the bug as a child from gramps. Likely I will never sell, I too will leave to my grandkids and teach them the value of true money.


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