Why Silver Price Dropped Last Night (3rd Nov 2012)

Yesterday night, silver price crashed down from $32.26 to $30.91 after the release of NFP data.

So, what is NFP and why it has such a big impact. NFP stands for Non Farm Payroll. The total Non Farm Payroll accounts for 80% of the workers who produce the entire gross domestic product in the United States. NFP statistic is reported monthly (on the first Friday of the month). It is used by US government to determine the current state of the economy and predict future levels of economic activity. NFP is also the number Federal Reserve looking at to decide whether to introduce more Quantitative Easing.

The price got supported and closed at $30.91 for the week.

The reason why silver price crashed down is because 192 million oz of paper silver were dumped on the market in only 10 minutes between 8:30pm and 8:40pm (Malaysia time) where most of us was having out Friday night party 😀 In case you do not know how much 192 million oz of silver is, that is equivalent to a 1/4 of annual global silver production.

Now the question is, when they sold the paper silver, where did the money go?

According to the figure provided by Casey Research, every year more and more investors are selling off the paper silver; and more and more investors are buying physical silver for investment. In other words, investors are dumping the useless paper and buy more physical silver that they can hold and touch. As Mike Maloney says “If you don’t hold it, you don’t own it!“.

We are now in a very exciting time for silver. Very often, great fortune is made during time like this. Investment is nothing more than the uninformed investors transferring their wealth to the informed investors. Again and again, many people could not make money through investment because they are always playing the uninformed investors game. They simply do not understand how the game is played and get slaughtered by the informed investors. Every time when they invest (well, they thought they are investing), actually all they did was transferring their wealth to the informed investors’ pocket.

I’m glad that you are visiting this blog talking about silver. By visiting this blog, you are already stands at the informed investors side for a start. If you do not believe, try ask the people around you (your colleagues, your friends, your family members), how many of them have heard of silver investment? I can safely tell you on average 8 out of 10 would say “What? Silver? Who buys silver for investment?“. When you hear that as an answer, please smile, because that is the affirmation you are already on the informed investors side.

However, having awareness alone is not sufficient. You must have the knowledge on how to take advantage of the situation. I wrote the eBook titled: Practical Guide For Investing Silver In Malaysia to teach you how to take advantage of the situation. Not only you can learn silver investment “trade secret”, but you also get to network with a group of serious silver investors in my membership site. You have already got the advantage of stepping ahead as the informed investors, but how do you want to move on from here, it is entirely your choice.

Practical Guide For Investing Silver In Malaysia is the No.1 eBook available in Malaysia for investing silver in Malaysia. After reading the eBook and think you have not learned anything, please email me and I will gladly give you a 100% refund. Click here to find out more.

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