ISVLF - Impact Silver

9 posts / 0 new
Last post
#1 Thu, Aug 6, 2020 - 3:28pm
Silverbull8888
Offline
Joined: Aug 4, 2020
6
0

ISVLF - Impact Silver

Help... Should I sell now?

The last two days have been great for the spot price of silver. Impact Silver which has up to now been great at exceeding a 1 to 1 ratio tracking the spot price, has gone flat to negative the last two days as the spot price has exploded 6+% daily.... I don't understand why there is such great resistance when the spot price is doing what it's doing?? Any thoughts?

Fri, Aug 7, 2020 - 8:10am
Steve S
Offline
-
Southfield, MI
Joined: Jun 19, 2014
121
933

Impact Silver

Impact Silver is in Mexico. They were closed for much of second quarter. They had to raise money at the worst possible time. The stock will probably drop after earnings. I'm waiting to buy more. It will perform much better than silver after that. Third quarter earnings will be spectacular!

Fri, Aug 7, 2020 - 9:48am
Silverbull8888
Offline
Joined: Aug 4, 2020
6
0

ISVLF

Steve,

Thanks for the thoughts... I have watched this stock since I bought it around a $1.00 way back when... it just slayed me the last two days for it to not go up... are you telling me the $7.0M Canadian raising of money is what wrecked the stock the last two days? Hmmm... that's concerning. Ultimately, I remain cautiously optimistic...

Fri, Aug 7, 2020 - 1:40pm
LongOfTooth
Offline
Joined: Aug 21, 2016
4
4

Does price action indicate banks are back in the shorting game?

I'm new w.r.t. posting comments so I'm not sure where this question should be posted.

Fri, Aug 7, 2020 - 1:59pm Silverbull8888
Steve S
Offline
-
Southfield, MI
Joined: Jun 19, 2014
121
933

I believe third quarter

I believe third quarter earnings for Impact will be spectacular. An easy triple with silver at these prices!

Fri, Aug 7, 2020 - 5:13pm LongOfTooth
Titus Andronicus
Offline
Joined: Jun 14, 2011
1210
4577

Price action is insanely bullish!

LongOfTooth,

Silver has gone up almost $10 in 3 weeks. That is basically 50%! It is almost vertical!

A pull back of a couple bucks is certainly in order. I'm surprised it didn't pull back more. This is very similar to 2010, when there was almost no dip to buy. But we did get one after silver reached $29!!! I remember the night very well! The sellers disappeared from the Comex for a few hours sending the price way up before it came crashing down.

Go back and look at the price action of Q3 2010 - Q1 2011. It will give you an idea of what to expect up to $50.

It is certain that well financed traders come in after a big move up to smash it down, hit the stops, and "steal" from the over-leveraged or inexperienced before buying back -- but those are short term tactical moves. That can happen in any market, but since silver is an especially thin market, relatively easy to do. Since the silver market is so small, it is easy for manipulators to tweak the price up or down in the shorter term, but it cannot be done over the long term.

Mon, Aug 17, 2020 - 12:24pm Titus Andronicus
Silverbull8888
Offline
Joined: Aug 4, 2020
6
0

Reply to : Price action is insanely bullish!

Long of Tooth,

Question... In response to your comment, "(silver) cannot be (manipulated) over the long term", has not the price of silver been artificially suppressed since the Crime of 1873? I believe it's a cash cow for the banksters to keep skimming off $100's of millions of dollars per year off small investors. How does gold hit all time highs and yet silver is way behind?

Mon, Aug 17, 2020 - 12:47pm Steve S
Silverbull8888
Offline
Joined: Aug 4, 2020
6
0

ISVLF

Steve,

Why do you think the market is not pricing this triple into the price right now?

Mon, Aug 17, 2020 - 4:28pm Silverbull8888
Titus Andronicus
Offline
Joined: Jun 14, 2011
1210
4577

Answers to your questions

Hi Silverbull8888,

I know it is not popular on this site to say that silver is not manipulated long term or that futures are used to create paper money to keep the prices artificially low.

As far as I know, here are the points that seem to be misunderstood on this site:

1) Silver-to-gold ratio: Silver and gold are not magically set to a particular ratio any more than gold-to-wheat or silver-to-aluminum. They are all commodities and float against each other. Only in a non-free market would the gold and silver ratio be fixed at a particular number. People seem to like that 16-to-1 ratio for some reason -- it is completely arbitrary.

2) "Only gold and silver is money". This is false. There are so many examples of other types of money in the history of the world, that you really have to ignore countless exceptions before you hold this to be true. The truth is that money is based on CONFIDENCE. Historical examples include gold, silver, real estate, paper, coins, gourds, etc.

3) The Comex futures contracts are based on physical delivery. So the physical and paper markets are strongly linked. You or anyone else can take delivery of physical silver or gold from the Comex. So right now, you don't have to pay a physical premium to get 1000 oz Comex bars, just some transfer fees. Unfortunately, people don't like to trade physical 1000 oz bars. I've never owned one. Recently, there have been large transfers of physical gold between exchanges based on the arbitrage opportunities between physical and paper. These types of guaranteed profit keep the two closely linked.

4) It is simply not possible for silver to be held artificially low for over 100 years, even when it has always been possible to buy/sell/produce it. You need to adhere to some really long tales to believe that a freely available and tradeable commodity could be held artificially low just by big money buying and selling it in some special way. A much more plausible explanation is that people cannot confront being wrong with regards their understanding vs market reality. Another more plausible explanation is people talking their book (e.g. mining company owners never ever saying it is a good time to sell.)

5) Well funded traders DO make big money off of silver by pushing the price up and down. But this is short term. Tweaking the price up, then smashing it down; or smasing it down to hit the stops and buying it back up at lower prices. These DEFINITELY DO happen. If you are a physical holder, this basically does not affect you. Over-leveraged traders are the losers here.

6) "paper gold will go to $0". This is mostly false. But the scary things you need to watch out for are: 1) Brokers going broke. e.g. Global Futures! Stay with the big, conservative brokers. (e.g. Interactive Brokers, etc.) 2) If the commodity deliver mechanism DID fail, it would mean the end of the economy as we know it. It means that industry in general could not really do business. In a situation like that, all markets would fail, not just "paper gold/silver". Most people would be out of work. This is a catastrophic economic collapse. This is roughly equivalent to Russia during the German invasion, or Germany in April 1945.

Sorry if I offended anyone. I don't mean to. I like having the blog to discuss such things. We can certainly all agree that gold and silver are going higher!!!

randomness