After 10 straight weeks of gains for silver investors and making 3-month highs yesterday, someone decided to dump $2 billion worth of silver contracts into the futures market.
It’s often referred to as “paper” silver due to the fact that there isn’t enough silver in the world to even support a week or two of trading.
From our friends at ZeroHedge.com, “Over 23,000 silver futures contracts suddenly puked into the market as soon as Europe closed…”
Mining shares have obviously come under extreme volatility; First Mining Finance was down 8.33% on Monday and then up 19.32% on Tuesday.
There is obvious manipulation today in the silver market. I use these days specifically to accumulate physical metal, but today, I also added to my position in First Mining Finance, First Majestic Silver, and Silver One Resources.
The fact is the best times to buy are ugly days like today. It doesn’t feel good, but in order to make sizable gains, these are like flash sales, especially when you see the shares and metals down for nefarious reasons.
Share Disclosure: We are long and own shares of Silver One, First Majestic, and First Mining Finance.