Silver boing boing

6:32 pm (Hawaii) Overseas trading in Spot Silver and Gold began 6 1/2 hours ago. I've been busy with the usual weekend things, having fun and excitement. The Spot Silver chart looks like it was almost as entertaining after price went from 33.50 to 36.50 in a straight line in the final 3 hours of London trading. (Correction: I misread the chart. The trade from 33.50 to 36.50 was on Friday. Today, Sydney and Hong Kong have pushed Spot Silver from 35.50 to 36.50, then lower.) 

I'm 100% cash so it doesn't affect my roll, but still a freaking trip to see. Mixed feelings for my physical. I'd like to get more and more, but only at good prices. It's just as well. Even if Spot Silver dropped incredibly low, I don't have an infinite amount of fiat. But I feel great about having at least one excellent coin dealer to turn to for my next silver and gold purchases.

Note below the story by Zero Hedge about Hong Kong disrupting the Comex fixing of Spot Gold prices by opening an exchange that will be tradable for 16 hours per day. Probably a Hong Kong silver exchange is not far off. Things are getting a lot more interesting real fast, maybe as soon as Monday morning. Watching Spot Gold was already an interest of mine. Now it gets obsessive.

Zero Hedge: Hong Kong to end Comex monopoly (May 8 2011)
Commodity Online: 1-kilo gold futures to being trading in Hong Kong on May 18 (Apr 28 2011)

Here's an interesting, if faintly similar vibe in this piece from a reader of King Turd's blog. Why not an independent exchange for precious metals? This reader's letter has a lot of chutzpah, nerve, gall ... and is brilliantly uplifting, if only a modest venture. Who knows, right?

Turd Ferguson: First Majestic is doing its own price discovery (May 8 2011)

Here's another piece from ZH regarding crude oil and Iraq's intent to fuck with US gas prices. All aboard the USS UCO?

ZH: Iraq slashes projected crude output by half over next 4 years (May 8 2011)

And more from ZH on daffy Quadaffi and explosions in Libya.

ZH: Quadaffi destroys last fuel tanks (May 7 2011)

Update 7:34 pm (Hawaii) In wake of my "regorganization" of thinking and execution, I revisit my thesis on Spot Silver price action

1. Spot Silver bounces (dead cat?) after the fall from 49 to 34. Spot Silver declined to 33+, then lifted to 35 on Friday.

2. Spot Silver sells off again to 33, perhaps as low as 30 next week. We'll see. With the activity in Hong Kong and Sydney, price is hovering at 36. Additional news about a coming HK gold exchange may give PMs a boost. So will the news of Libya and Iraq. 

3. Following the selloff, Spot Silver rises again as the effect of Comex/JP Morgan margin requirement hikes (five total) wears off. 

From there, I just don't know. That's a good thing. I'm not going to predict direction. I just have an educated guess about the next move or two. If price stabilizes or drops, it's another opportunity to buy physical. If it rises, I'll play my favorites: EXK, AGQ, SLV, SLW or maybe AG. In gold, it would be GLD, DGP or XG. 

If things in the Middle East/N. Africa settle down and the dollar climbs again, I'll consider ZSL. Like AGQ, ZSL is to be handled for brief periods only (1-10 minutes) in these turbulent times.

Update 10:51 pm (Hawaii) Spot Silver climbing. Now 36.59 after a dip to 35.60 or so.

Just checked Scottsdale Silver for the first time since Friday. The 10-oz stacker was around $395 or $397 last week. Then it was raised to $403 or so. Now it's at $409. Booooo . . . and the Academy hand-poured 10-oz bar is up from $403 to $410. Boo!

Oh well. Monday might be strictly about trading silver (stocks) than stacking. Or not.