Great Article on Silver Fundamentals
May 2, 2012
I thought this was a great piece regarding the fundamentals for silver moving forward. The author also discusses the intentions of these bear raids that at times have seemed to come out of nowhere. Most notably, on 2/29/12. The most recent raid was the most blatant in my personal opinion even though it didn’t have nearly the impact in terms of price destruction as was seen in May 2011 and September 2011. I believe that the reason was because silver wasn’t nearly as overbought and sentiment wasn’t nearly as bullish on 2/29/12 as it was in May and September 2011.
“In order to kill market sentiment, one raid is not enough… several over a period of time are necessary. The last large raid took place on Feb 29th, 2012, when a year’s supply of silver production (paper contracts) was dumped on the market in a single day. The beauty of this tactic is that the manipulators don’t need to do the majority of selling. Once a large amount of contracts are dumped on the market, the algorithms take over and do most of the damage – just like knocking down the first domino and watching the rest follow.”