{"id":10758920612,"date":"2011-09-28T01:20:47","date_gmt":"2011-09-28T05:20:47","guid":{"rendered":"http:\/\/blog.lonestarbullion.com\/post\/10758920612"},"modified":"2018-03-15T04:58:39","modified_gmt":"2018-03-15T04:58:39","slug":"why-did-the-silver-correction-occur","status":"publish","type":"post","link":"http:\/\/lonestarbullion.com\/blog\/2011\/09\/why-did-the-silver-correction-occur\/","title":{"rendered":"WHY Did the Silver Correction Occur?"},"content":{"rendered":"

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>This is the question everyone is asking.\u00a0 <\/span>Silver started out at the beginning of the week in the low $40\u2019s and gold at nearly $1800.\u00a0 <\/span>From there silver fell to $36 on Thursday, to $31.03 on Friday, and then to $26 in the early hours of Monday morning.\u00a0 <\/span>Gold followed a similar path ending its fall at $1531 before coming back up to $1600 even.\u00a0 <\/span>So what caused it?<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>On Thursday, after a 9% fall in silver and a several percent fall in gold there seemed to be no clear reason for the fall.\u00a0 <\/span>One factor that partially contributed was the massive fall in the stock market on Wednesday and Thursday.\u00a0 <\/span>Investors needed to liquidate both gold and silver in order to cover margin calls and other losses they had incurred.\u00a0 <\/span>However, this reason alone was not sufficient for nearly a 10% fall in silver.\u00a0 <\/span>On Friday silver fell a whopping 15%, which is the largest single loss I have seen in a single day and gold fell over 5%.\u00a0 <\/span>At the end of the day, the reason for the fall became apparent.\u00a0 <\/span>The Chicago Mercantile Exchange(CME) had raised the margin requirements on gold, silver, copper, and platinum by nearly 20%.\u00a0 <\/span>There is a good degree of speculation and chatter, that seems to suggest that the raising of the margin requirements was leaked before the announcement, which started the massive sell of.\u00a0 <\/span>Several large institutions in Europe and the US began to dump their entire holdings before the announcement was even made.\u00a0 <\/span>It is important to note that there is no proof of these allegations, but there is a good degree of circumstantial evidence.\u00a0 <\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>When the market opened on Sunday afternoon the market once again began to fall from its $31.03 close to a low of $26 in the early hours of Monday morning.\u00a0 <\/span>The Shanghai Gold Exchange hiking margin requirements by 20% largely caused the fall.\u00a0\u00a0 <\/span>Once the US markets opened up silver began to climb again and now currently sits at $30 an ounce.\u00a0 <\/span>Both the Chicago Mercantile Exchange and the Shanghai Gold Exchange have stated that if volatility continues additional intervention may occur.\u00a0 <\/span>Watching these two exchanges will be key over the next couple of days.\u00a0 <\/span>This also is presenting an incredible buying opportunity.<\/p>\n

Josh Renfro<\/p>\n

President & Founder<\/p>\n

Lone Star Bullion LLC<\/p>\n

originally published at www.livesilverprices.net<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 This is the question everyone is asking.\u00a0 Silver started out at the beginning of the week in the low $40\u2019s and gold at nearly $1800.\u00a0 From there silver fell to $36 on Thursday, to $31.03 on Friday, and then … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[113,105,117,111],"tags":[30,31,28,29,217,6,4,56],"class_list":["post-10758920612","post","type-post","status-publish","format-standard","hentry","category-economic-news","category-invest-in-silver","category-investing-questions-and-answers","category-investing-reports","tag-gold-and-silver-bullion-in-houston","tag-gold-and-silver-bullion-in-san-antonio","tag-gold-and-silver-in-houston","tag-gold-and-silver-in-san-antonio","tag-invest-in-silver","tag-lone-star-bullion","tag-silver","tag-silver-correction"],"_links":{"self":[{"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/posts\/10758920612","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/comments?post=10758920612"}],"version-history":[{"count":7,"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/posts\/10758920612\/revisions"}],"predecessor-version":[{"id":13838257761,"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/posts\/10758920612\/revisions\/13838257761"}],"wp:attachment":[{"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/media?parent=10758920612"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/categories?post=10758920612"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/tags?post=10758920612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}