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Shocking -- Silver Has Another Flash Crash

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(Kitco News) - Thursday night at 7:10 p.m. EDT, silver had another flash crash, dropping $1.70 in minutes on huge volume of 8,500 contracts. Many are sweating the big sell-off as a crisis. To that, I say if you’re bullish, the flash crash was a good thing and may have actually helped silver get the kick in the butt it needed.

When markets make these types of moves -- flash crash, panic sell or short squeeze -- those are typically signs that the markets will reverse. Thursday night’s flash crash looked like “a tap on the shoulder” -- a term used when a firm or individuals are forced to liquidate because they can’t cover the margin requirements. Looks like a buying opportunity to me.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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