Silver Crashes 11% In Seconds: It’s Probably Nothing

Look, here’s the thing: you say “tomato“, I say “tomahto.”

Just like you say “glitch that caused silver to flash crash” and I say “consequence of batshit crazy market microstructure.”

Whatever the case, this just happened:

silver

You recall that it was just a couple of weeks ago when gold inexplicably nosedived in a move that was promptly attributed to a “fat finger”, “muppet” trade.

gold

This time, the market snapped back, which is likely to dispel the notion that this was more than a temporary fuck up, but whatever the case, it doesn’t say much for the stability of modern markets.

As David Govett, head of precious metals trading at Marex Spectron Group in London told Bloomberg after the gold incident, “these moves are going to become more widespread with the way things are going and the more they happen, the worse they will become as people back away from holding positions.”

Fun stuff.

As for the market’s go-to on these matters, Nanex is headed home…

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2 thoughts on “Silver Crashes 11% In Seconds: It’s Probably Nothing

  1. Big money is scaring smaller money out of silver and gold positions. When they can predatorily take out large price changes (to the downside, or the upside), they will execute. They spend a few million in their attempt to establish a lower-low, or a higher-high. In our current circumstances, it is clear…some very big money wants gold and silver. They want it so bad, they think they can drive the price down and force physical deliveries at lower prices. This is a sign of desperation. Furthermore, they have interest rates going UP, and this traditionally has been a safe-haven for abandoning precious metals. What they don’t understand is the public knows the jig is up. Fiat money, as we know it, is going to be dead in the water, soon. Escalating interest rates will only INCREASE the price of precious metals. Bless you all. Spread the word, as I don’t have time to post this all over the place.

    Robert Kelly
    Author
    The Federal Reserve Trilogy

    • An escalating interest rate environment will typically drive precious metals prices upward when the rates are 5-6% and beyond. Rates are still a bargain, and will be for a while. Not a good inflation hedge right now, in my view. I believe there’s more pain ahead for the shiny metals.

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