Silver Price Down 7% Right After Asian Opening

At the time of writing, it is midnight GMT (London) / 7 PM EST (New York) / 8 AM in Tokyo. The Asian market opened less than an hour ago. Large parts of Europe have a bank holiday today. So that means very thin trading. What happens? Really seconds after opening of Asian trading silver prices fall down from $22.3 to $20.8 in a matter of minutes. The chart shows the opening of Asian trading at 5PM on the X-axis.

One or another market participant dumped a large amount of silver futures in ultra thin trading which is not capable of absorbing it. Gold opened lower, but not to the same extent as silver. The US dollar is flat. The Yen had a similar spike right after the Asian opening, but to the upside (see below).

silver_price_chart_20_may_2013

Gold was down but not to the same extent as silver. Gold had a 2% loss at its peak and less selling volume.

gold_price_chart_20_may_2013

The violent strengthening of the Yen (which is displayed as the spike down on the following chart) follows comments from the Japanese Economy Minister over the weekend. From Zerohedge, some quotes from the Japanese Minister: “The yen’s excessive strength has been largely “corrected,” and further weakness could be harmful, Japan’s economy minister said Sunday, suggesting the Japanese government may be happy with the currency’s current level.” And also: “If the yen keeps on weakening a lot more, it will have a negative impact on peoples’ lives.”

yen_20_may_2013

Sure, there is no currency war. And money printing comes without consequences. And regulators are there to stimulate fair trading.

Meantime, as we finish this article (20 minutes after we did start), silver is back again at the $21,5 level, gaining back a large part of the sudden crash.

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