Certainly and despite a lot of opinion calling for a rebound, it could be a long day in hell before investors feel they can afford to trade silver again.
Gold and silver will continue to trade as per the model until markets give us a different message.
The biggest fuel of global trade was American silver, the first truly global currency.
But as of late the gold and silver markets have opted to trade on a daily basis more like their raw commodity counterparts and be more of a risk asset.
Both gold and silver markets extended early losses to trade sharply lower in late-morning dealings Thursday, in the immediate aftermath of a reported stronger-than-expected reading from the Chicago Purchasing Managers Index in January (55.6 versus 50.0 in December).
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The same applies to ETFs that trade or hold gold, silver or platinum.
Any dips are probably meant to be bought as the price forecasts for both gold and silver are well ahead of where both currently trade.
The CME Group hiked margin requirements four times in two weeks in silver, mandating that people who wanted to trade it needed to post a greater amount of collateral than before.
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Clearly, this was due to the wipe-out of speculators on margin who were not buying silver as a monetary reserve, but as a risky trade.
FORBES: Silver Down 30%, Gold Off 11% As Panic Hits Precious Metals
The choice furniture is arranged among paintings, girandole mirrors, lamps, porcelain and silver that would once have been prized by the carriage trade knocking on Phyfe's showroom door.
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Bob Haberkorn, senior market strategist at MFGlobal, said although gold prices slid in the late U.S. afternoon trade, ultimately it will be bullish for gold and silver as investors will continue to seek those metals as safe havens.
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Gold, which we trade with the SPDR Gold Trust (GLD), and silver (even more so) reversed hard Tuesday and punished those chasing a parabolic move.
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For instance, banks can still trade derivatives on interest rates, foreign exchanges, gold, and silver, which have been very profitable for them.
Demand for semiconductor wafers, a proxy for high-tech appetite for silver, is expected to rise 6%, according to SEMI, a trade group.
These would be shipped not to Europe but mostly to Japan--blocked by Beijing from direct trade with China--where they would be exchanged for the silver that was worth as much as gold to the Chinese.
The idea was that these exchanges would be able to trade products that are less susceptible to manipulation (as trading commodities like silver and oil are) between institutions that are seeking to hedge risks.
But the silver that the colonists brought back increased the monetisation and commercialisation of the Eurasian economy and led to an increase in trade.
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