Tuesday, April 2, 2013

PM Knockdown 2 to 3% across the board.

Usually, there has been a PM "rotation" going on, between Au, Ag, Pl, Pa (Gold, Silver, Platinum, Palladium).  

Today "they" did a heavy takedown on all PMs.     A scary enough takedown.   Even I felt a little gut fear of ruh roh....I am too heavy in PM's and its going into Pretcher Deflationary silver under $7!   Well "the fear" wasn't that bad. 

But that is the sign of an effective takedown, they drew quite a bit of volume on popping stops, but not CRAZY volume, and they did indeed knock me out of GG, and SVM which kept falling even after my stop was hit.

So I pulled up the supplier link from this blog....and premiums on junk silver are around 10% to 15% which is amazingly high.   Whereas 10 ounce bars and Rounds are about $1 over spot, or 3% to 4% premium, which is alot more reasonable. 

Seeing that I have more junk silver than I can carry, I think I have enough and won't pay a huge premium.  

But this is my target for a silver takedown, and here we are.    If silver doesn't hold, the breakdown could be severe, and I would probably hedge with short futures, rather than try to sell physical.  

Here is the charts that matter.  

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