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And So It Continues: Another 92 Thousand Ounces In Physical Silver Withdrawn From Comex Despite Historic Paper Collapse

Tyler Durden's picture





 

At this rate, tomorrow, for the first time, we will see a 32 handle in Comex registered silver ounces, where apparently despite the massive drubbing in paper silver, demand for physical inexplicably persists.Speculators to be blamed for this in 5...4...3...

Longer-term:

 

 


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Thu, 05/05/2011 - 19:04 | Link to Comment SunBlaster
SunBlaster's picture

holding steady below $35

Thu, 05/05/2011 - 19:25 | Link to Comment JW n FL
JW n FL's picture

The Paper Market is where? $35.. because the Tangible Market, the Land of Real Items, Changing Hands for Real Money.. is $42 - $60 depending on which dealer you would like to quote.. APMEX? MONEX?

 

So you show me real silver for $35 an oz and I will by however many million of dollars you can supply.

Thu, 05/05/2011 - 19:44 | Link to Comment LRC Fan
LRC Fan's picture

You're wildly off base...APMEX has tons of 100oz bars for around $36/oz.  $42 is silly for anything except Maples/Eagles.  Generic rounds or bars or junk silver is selling way below $42/oz and they have plenty in stock. 

Thu, 05/05/2011 - 19:57 | Link to Comment JW n FL
JW n FL's picture

I buy Monster Boxes and as of recently some of the different offerings.. but I buy bulk U.S. coins.

 

So I am sure you can buy junk silver and melt it down while watching fucking nascar in the garage, but that dont mean I fucking gonna do it... and as for the cheap prices for the rounds that JimBob poured on Gator Nationals Weekend! Yeah! I will pass..

 

So, the real deal.. U.S. Coins.. or even Maples or Libertados' (sorry wet backs for the spelling).. all from Mints are 16% as of yesterday and today disconnect (backwardation is far to polite for anything over fucking 10% - 15%) of 20%+..

$7.99 for whats on the shelf at APMEX.. over per coin / oz! on a $32 dollar oz?

32 divided by 8 ='s 4 so a 25% disconnect today for U.S. Coins in bulk.

Sure the sky is falling and then they pay $5.49 (ish) over... per coin... to buy them..

I will buy all the way down and even up some, you buy paper? or on the way up! good luck with that!

Thu, 05/05/2011 - 20:25 | Link to Comment Kitler
Kitler's picture

Good plan.

90% silver content in small known weight denominations great for trading or hoarding with little premium. When the SHTF a dime will buy you a pack of Marlboros without the 'making change' problems encountered with 1 oz bullion.

Thu, 05/05/2011 - 20:38 | Link to Comment Robot Traders Mom
Robot Traders Mom's picture

Why would I barter with silver when I can barter with aspirin, hotel shampoo, a pack of matches, and other shit that is basically free that people will need.

I hold silver and gold for wealth. I want to buy land and larger purchase items. I don't want to use silver to buy a pack of marlbs (I don't smoke but I have stockpiled those too).

 

Thu, 05/05/2011 - 23:09 | Link to Comment johnnynaps
johnnynaps's picture

If that shit hits the fan, silver will be worthless! I'll grow the funkiest of the funk and it will trade like MSFT in the 90's! Not much I will need to trade for though, so.........F##k my neighbors! I will literally laugh when the real shit-storm occurs. Call it, great planning!

Thu, 05/05/2011 - 23:35 | Link to Comment serotonindumptruck
serotonindumptruck's picture

+420

I'm long on the kind bud.

Thu, 05/05/2011 - 23:54 | Link to Comment dehdhed
dehdhed's picture

weed will get me through the days without money better than money will get me through the days without weed

Thu, 05/05/2011 - 23:41 | Link to Comment shazbotz
shazbotz's picture

dito

Thu, 05/05/2011 - 23:54 | Link to Comment RockyRacoon
RockyRacoon's picture

Why would I barter with silver when I can barter with aspirin, hotel shampoo, a pack of matches, and other shit that is basically free that people will need.

As ugly as you are, you'd better have something tangible in reserve.  You ain't sellin' nothin' on the street corner.

Fri, 05/06/2011 - 01:09 | Link to Comment carbonmutant
carbonmutant's picture

Rocky...lol

Thu, 05/05/2011 - 20:55 | Link to Comment traderjoe
traderjoe's picture

FYI, I bought a box of maples today at Tulving for $37/ounce or so. 

Thu, 05/05/2011 - 23:17 | Link to Comment Hat Trick
Hat Trick's picture

1) You're clearly racist, but hopefully at least proud of your ignorance! (And prior to your slur, you mention "Nascar-watching JimBob". Hopefully he's got a seat on the couch for you too! Do you understand the word "irony"?)

2) I own all types of PM, but anyone who talks down 90% circulated is also of questionable intelligence IMO, at least when it comes to "owning silver"....

Fri, 05/06/2011 - 02:02 | Link to Comment Lord Koos
Lord Koos's picture

Guys like you crack me up.  You endlessly dis the government but when it comes to silver, you will only accept rounds minted by the USA government?  A fool and his money...

Fri, 05/06/2011 - 03:48 | Link to Comment jaffi
jaffi's picture

Actually, bullion from government mints are called coins, those by private dealers are called rounds.  Government coins tend to have a better reputability as compared to privately minted rounds in trade.  Why this is, I do not know.

Fri, 05/06/2011 - 04:46 | Link to Comment MolotovCockhead
MolotovCockhead's picture

You're confused, does not mean a coin that is minted in USA is a US goverment coin. Far from it!. goverment comes and goes but USA remains. Loyalty to USA does not equate loyalty to the government, trusting US coins does not mean trusting US government. By the way, the US goverment is working for the private coporation in case you don't know.

Fri, 05/06/2011 - 07:48 | Link to Comment Tater Salad
Tater Salad's picture

http://www.coin-rare.com/silver-bullion-100.aspx

 

JW, you may want to look above, you're getting robbed.

Thu, 05/05/2011 - 22:01 | Link to Comment Captain Benny
Captain Benny's picture

Funny thing, the best bar I see is selling for $37.47 this evening.  You see, spot disconnected from physical a few months ago.  While they move almost in parallel now, that won't last long.  Silver remains in backwardation beyond belief and the physical market is dry as a desert stone.

Piss on that you ignorant turd.  The market is dead and this "long squeeze" is about to backfire beyond belief.  Here is what is going on: The CFTC has decided their game is over, but they've got to show that they're "competant regulators" so they are using the near vertical silver move as an excuse to raise margin.  Then using that as an excuse to say "volatility is high, we better raise margins [more]".  Eventually, when they feel that they've 'run out the longs' , they are going to finally institute a "nake position limit" rule.  Its coming, but it isn't today.  They've got to milk the market first.

People are claiming that the "technicals are damaged for months and we 'might not recover' till years end.  Sorry guys, the silver market is about to rebound faster than any of you realized.  COMEX is almost empty and the spot market was so heavily manipulated this month that that the major market players that are not fed backed decided to say "fuck you" to the fed.  The market is about to go cold-turkey on leverage at all levels.   Next week the S&P 500 will drop like a rock.  The fed's market play is over.

Don't get me wrong, volume will be high... and it will be biased in the upside thanks to HFTs.  But selling of _real_ material will overwhelm next week.

And like I've said before: The fed made their rounds this week.  They sent people to each and every major financial news agency out there in order to sway the article writing in their favor.  I have witnessed first hand these Federal Reserve puppets entering and exiting the companies where they went.

The game is coming to a quick close.  Go long physical materials while you can, the market is about to have the rules changed for new entrants.

I promise you this. -- Benny, closer than Wall Street is to the Fed.

Thu, 05/05/2011 - 23:26 | Link to Comment johnnynaps
johnnynaps's picture

I don't know man, the manipulation has been seen. One bad decision, and one can be crushed in days. There is a possibility that it takes Silver 2 years to get back to $50, psychologically speaking. If Silver rebounds within the month, I will be a believer. Until then, a realistic, pessimistic view will be cast into my brain that the manipulation is "that effective"! One man controls your destiny.

Thu, 05/05/2011 - 23:59 | Link to Comment holdbuysell
holdbuysell's picture

Then watch the dollar.

Fri, 05/06/2011 - 04:58 | Link to Comment MolotovCockhead
MolotovCockhead's picture

They try to scare off people like you. Haven't you notice that they are so desperate, they even tried the Bin Laden trick?  Be carefull of false flag operation in days to comes, those scums will do anything to sway public perception for their own benefit. Desperate time call for desperate measure and the Bin Laden stunt was definitely desperate.

Fri, 05/06/2011 - 06:53 | Link to Comment BigJim
BigJim's picture

I'm long physical silver & gold, but I had a horrible thought this morning as I viewed my devastated paper portfolio:

What if the Morgue just floods the market (ie, comex) with millions upon millions of ounces of paper silver, and is on both sides of the trade, and drives the price down to (say) $20 an ounce? OK, buyers will demand physical, which the Morgue won't be able to provide, so they'll stump up cash instead, and a 25% premium, but what do they care if they've driven the price down 60%, and sold at an average of 30% higher?

Is this feasible?

PS - If your rebuttal includes some kind of reference to the CTFC, please provide some evidence they'd be more willing to do anything more now than they have over the last decade.

Fri, 05/06/2011 - 06:54 | Link to Comment Titus
Titus's picture

Can anyone comment on the best value available right now for silver coins? Maples, bars, junk? I'm buying in $1k increments.

Fri, 05/06/2011 - 08:08 | Link to Comment Manthong
Manthong's picture

From what I understand, Tulving probably offers as good a deal on bulk whatever but you need to be thinking of 500 oz. minimums. You can shave a few bucks here and there for smaller amounts but premiums change from dealer to dealer.

For small quantities and long time hedge, a few cents is not worth not sweating if you are happy with the service (buy, sell,, availability, phone support, responsiveness, web site etc).

I like Apmex and Kitco.

The best I've found for 100 oz bars one or two at a time is a local dealer. At $1.00/oz over spot he is 10 cents over the best price I've seen on the net for that small quantity, but he is local and a cash deal. Until Wal-Mart takes Ag, I want to keep him in business.

Thu, 05/05/2011 - 19:48 | Link to Comment Hearst
Hearst's picture

Undoubtedly behind the massive vault door containing the remaining said 33 million ounces of Silver will give way to neatly stacked piles of SLV wrapped in tin foil with a big red bow on top.

Thu, 05/05/2011 - 20:20 | Link to Comment Urban Redneck
Urban Redneck's picture

$34.33 (low today)

33,055,948 ozs ("registered inventory")

$1,134,810,694 Crimex takeover cost

 

Another 3.5% drop in the paper silver price from today's low and the capitalization required to execute the hostile takeover of the century falls to an even 1 billion...  

Thu, 05/05/2011 - 21:09 | Link to Comment fuu
fuu's picture

CME's market cap is only 19 billion and change. 19 bil for NYMEX, COMEX, CME, CBOT, and hell why not toss in DJI.

http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CME&selected=CME

http://en.wikipedia.org/wiki/CME_Group

 

We just need a World Buy Out fund to take the whole thing over and make it as transparent as we want. if everyone on the planet except the parasitic banksters/politicians kicks in $5 we are there.

Hell the servers have to be worth a few billion in scrap alone.

Fri, 05/06/2011 - 06:46 | Link to Comment Pumpkin
Pumpkin's picture

China has that much change in the old couch out by the curb.

Thu, 05/05/2011 - 20:43 | Link to Comment serotonindumptruck
serotonindumptruck's picture

"...neatly stacked piles of SLV wrapped in tin foil with a big red bow on top."

Is that sorta like putting a cherry on a fresh, steaming pile of dog shit and calling it a sundae?

Thu, 05/05/2011 - 19:52 | Link to Comment FeralSerf
FeralSerf's picture

Get out your checkbook.  Tulving has 90% coins for $34.55 per oz of silver and he pays the shipping and insurance. He has over 75 bags (that's 53,625 oz) in stock ready to ship to you.  The copper and nickel is a freebie.  Eagles are $38.24 each incl. shipping.

Somehow this current reduction in comex supply of about $3 million doesn't seem that significant.

Thu, 05/05/2011 - 20:36 | Link to Comment quasimodo
quasimodo's picture

Tulving suks azz.......hannes tells me he is way to busy and don't email again as to why my order is 6 weeks late. bullshit

Thu, 05/05/2011 - 20:57 | Link to Comment traderjoe
traderjoe's picture

I've bought there several times with no problems...FWIW

Thu, 05/05/2011 - 20:48 | Link to Comment goldfish1
goldfish1's picture

when's delivery?

Thu, 05/05/2011 - 20:56 | Link to Comment FeralSerf
FeralSerf's picture

Ask him. Should be less than a week if you live in the U.S. and next day if LA.

Thu, 05/05/2011 - 20:59 | Link to Comment FeralSerf
FeralSerf's picture

.

Thu, 05/05/2011 - 23:16 | Link to Comment JimS
JimS's picture

I bought 10oz @ $37.50 per (including the +$2 over spot) at 12:30 CDT this afternoon. My local dealer had numerous bars available.

Fri, 05/06/2011 - 07:12 | Link to Comment GetZeeGold
GetZeeGold's picture

 

holding steady below $35

 

That's 3 trillion dollars.......shot straight to hell.

 

 

 

Thu, 05/05/2011 - 19:03 | Link to Comment FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Physical silver is being removed to stop it being stolen when this s**t shower collapses. Not hard to understand, perfectly logical.

Wonder how silver will be priced worldwide when coin stores stop using CRIMEX prices as they are fraudulent, any ideas?

Thu, 05/05/2011 - 19:25 | Link to Comment Missing_Link
Missing_Link's picture

Removed by whom?

Stolen by whom?

Thu, 05/05/2011 - 19:28 | Link to Comment cossack55
cossack55's picture

three letters

Thu, 05/05/2011 - 22:54 | Link to Comment mynhair
mynhair's picture

EPA?

DoE?

Fri, 05/06/2011 - 07:50 | Link to Comment mick_richfield
mick_richfield's picture

OPE?

POE?

Thu, 05/05/2011 - 19:30 | Link to Comment FastBoat
FastBoat's picture

It's disconnected before and my local shop just used local supply and demand...  Of course that was pre internet days, but I kinda like the whole supply and demand thing in theory.

Thu, 05/05/2011 - 19:45 | Link to Comment tmosley
tmosley's picture

Volume would simply move to one of the other exchanges, likely Hong Kong.

Thu, 05/05/2011 - 20:48 | Link to Comment EscapeKey
EscapeKey's picture

No, it'd be Shanghai/Mumbai. Yet another reason why the frauds can't let the Comex default, imagine the loss of prestige if China were to take over physical commodities.

Buy fucking physical.

Thu, 05/05/2011 - 21:07 | Link to Comment Hephasteus
Hephasteus's picture

Fucking mexico and africa produce the shit. MAKE them run it.

Thu, 05/05/2011 - 21:26 | Link to Comment chindit13
chindit13's picture

Shanghai and Mumbai?  You will look back on the worst shananigans of COMEX as being "the good old days".

Thu, 05/05/2011 - 21:32 | Link to Comment Rick64
Rick64's picture

Lol

Thu, 05/05/2011 - 21:37 | Link to Comment Bananamerican
Bananamerican's picture

+ chutney

Fri, 05/06/2011 - 09:35 | Link to Comment MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

LOL

Fri, 05/06/2011 - 00:19 | Link to Comment Manthong
Manthong's picture

Interesting. I never would have thought that I might be OK with the concept of letting the Chicoms run my markets.

Somebody tell me how it would be any worse than the crooks we have now.

Fri, 05/06/2011 - 02:07 | Link to Comment Lord Koos
Lord Koos's picture

Trust me, it would be worse.

Thu, 05/05/2011 - 20:13 | Link to Comment unwashedmass
unwashedmass's picture

you know, that's a really good question...how will the price be set after the Comex collapse? hmmmmm......

sure is interesting.

Fri, 05/06/2011 - 04:54 | Link to Comment Don Quixotic
Don Quixotic's picture

In the absence of a viable benchmark, prices will once again be set by the first, best (and my personal favorite) market mechanism...

Haggling

Fri, 05/06/2011 - 07:51 | Link to Comment mick_richfield
mick_richfield's picture

Ebay.

Thu, 05/05/2011 - 19:03 | Link to Comment slow_roast
slow_roast's picture

First buying of physical in a while.  I never thought I'd thank anyone for crushing silver like "they" did but THANK YOU...I was mostly in cash already and, while we might see the $20s, this is all a gift.  Buying gold here as well.

Thu, 05/05/2011 - 19:15 | Link to Comment slow_roast
slow_roast's picture

At $18 physical silver would vanish in these market conditions.  You are an idiot. 

Thu, 05/05/2011 - 19:27 | Link to Comment JW n FL
JW n FL's picture

they dont buy anything, they dont own anything and they could not trade paper at comex if they wanted too.. so you are wasting your time.

BTFD and be happy the monkey wrench is in the soup!

Thu, 05/05/2011 - 20:22 | Link to Comment Creed
Creed's picture

I think I might want to wait for a few green days, see if it's bottoming

 

asian buying is coming on tonight, let's see if it can be squashed like it has been the last week

 

as far as buying when it's dirt cheap...they WILL sell it to you but with a 3 month wait because they have to make it; like Scottsdale silver right now on a 2-3 week wait because they are behind minting it; but that's been the case all of 2011 so far

Thu, 05/05/2011 - 23:46 | Link to Comment perchprism
perchprism's picture

 

I had the pleasure of bestowing Gold 3600's 50th junk, so his post has disappeared.

Fri, 05/06/2011 - 00:18 | Link to Comment DeadFred
DeadFred's picture

Thank you!

Thu, 05/05/2011 - 19:24 | Link to Comment Hugh G Rection
Hugh G Rection's picture

of course Troll'd 36000 is an idiot.

 

He forgets to log out when attempting to congratulate himself from one of his many sock accounts.

 

I'm buying my ass off tomorrow, don't see it breaking through $34 support.  If it does... o well, I'll buy more next week.

Thu, 05/05/2011 - 23:25 | Link to Comment WizDumb
WizDumb's picture

yes!!!

Thu, 05/05/2011 - 19:45 | Link to Comment DocLogo
DocLogo's picture

Johnny Bravo, is that you?

Thu, 05/05/2011 - 19:06 | Link to Comment tallen
tallen's picture

I give it a week till they up margins again and a year till they ban new buyers from entering the silver market.

 

Loaded up the truck @34.80-35

Thu, 05/05/2011 - 19:51 | Link to Comment Money 4 Nothing
Money 4 Nothing's picture

They are raising margins again tommorow and Monday from what I heard on the Bloomberg channel, but these are the same guys who said "there is no value in PM's" so go figure.

 

The Bad Guy.

Thu, 05/05/2011 - 21:21 | Link to Comment EscapeKey
EscapeKey's picture

If they raise margins yet again tomorrow, I will put another £5k into physical. Die, motherfuckers.

Thu, 05/05/2011 - 21:17 | Link to Comment TeMpTeK
Thu, 05/05/2011 - 22:29 | Link to Comment palmereldritch
palmereldritch's picture

Those margin requirements remind me of this

http://www.virtualsciencefair.org/2009/dong9a2/buoy.htm

 

Thu, 05/05/2011 - 22:04 | Link to Comment Pale Green Pants
Pale Green Pants's picture

"Loaded up the truck @34.80-35"

 

Did you move to bever-lee ?

Fri, 05/06/2011 - 04:23 | Link to Comment nohweh
nohweh's picture

swimmin' pools..... movie stars!!!

Thu, 05/05/2011 - 19:03 | Link to Comment PaperBear
PaperBear's picture

The fire is consuming the COMEX - WOOHOO

Thu, 05/05/2011 - 19:07 | Link to Comment Hulk
Hulk's picture

and I am going to take delivery on another 92,000 ounces of silver tomorrow, Bitchez!

Thu, 05/05/2011 - 20:29 | Link to Comment tmosley
tmosley's picture

Hory shreet.

That's a lot of oz.  I wanna party with this guy.

Fri, 05/06/2011 - 00:48 | Link to Comment macktheknife
macktheknife's picture

I have been all in since 2004 - this little smackdown is troubling-but, like a good poker game, you have to play the cards as they lay. China and Russia and Vietnam and India and Taiwan- all are going for the metals. These American Gayfags are gonna be hipchecked out of the way. Don't fold to their bluff. They got nothing. when the smoke clears from this battle, this soldier is gonna be partying in Cambodia, until the year Zero.

Thu, 05/05/2011 - 20:34 | Link to Comment Hephasteus
Hephasteus's picture

Damn hulk. You starting a country?

Thu, 05/05/2011 - 21:05 | Link to Comment Hulk
Hulk's picture

As an anonymous poster on the internet, the possibilities are infinite!

Thu, 05/05/2011 - 21:36 | Link to Comment Hephasteus
Hephasteus's picture

LOL. Don't make me get my photoshop out and cause a bullshit holocaust up in here. Cause I will!!

Thu, 05/05/2011 - 21:55 | Link to Comment Hulk
Hulk's picture

LOL, paint me a Birmingham Hep!

Thu, 05/05/2011 - 21:00 | Link to Comment Bringin It
Bringin It's picture

Nice Hulk.  I wish I could join you, but I'm all in ... since November '08.

Thu, 05/05/2011 - 21:09 | Link to Comment Hulk
Hulk's picture

Been all in since 07, much closer to 0 than 92,000, but I simply couldn't control myself earlier!

Thu, 05/05/2011 - 21:16 | Link to Comment UGrev
UGrev's picture

He's got over 9000!!!

Fri, 05/06/2011 - 07:34 | Link to Comment btard4life
btard4life's picture

brofist.jpg

Thu, 05/05/2011 - 19:04 | Link to Comment scratch_and_sniff
scratch_and_sniff's picture

Surely there were people taking delivery by default en masse today??? Does it actually mean the silver "left the building" ? 

Thu, 05/05/2011 - 21:35 | Link to Comment mrgneiss
mrgneiss's picture

2010 May COMEX silver deliveries: ~ 24 million ounces

2011 May COMEX silver deliveries: ~ 4 million ounces

The big players have a clue and are not using the COMEX to get their silver.

Thu, 05/05/2011 - 23:37 | Link to Comment Burnbright
Burnbright's picture

holy shit, where can i get that info?

 

Thu, 05/05/2011 - 20:10 | Link to Comment Hugh G Rection
Hugh G Rection's picture

FOAD TROLL!!!!!!!!!!!!!!

______________________________________________________________________________________________________________

 

by Gold 36000
on Wed, 05/04/2011 - 19:35
#1241140

 

Yes this time it is different as opposed to all the other times that everyone thought the anti silver luminati, one world government, black helicopter crowd at the comex was about to blow themselves up and world peace would reign henceforth.


by Gold 36000
on Wed, 05/04/2011 - 19:38
#1241143

Gold 36000 for president.  We don't agree on everything, but we do have some common ground.

_______________________________________________________________________________________________________ You don't fool anyone!  Time to resign as ZH troll and return to former glory of Blythe Master's anal gland cleaner.

Thu, 05/05/2011 - 21:17 | Link to Comment UGrev
UGrev's picture

Thank you. I'm glad I'm not the only one who spotted that.

Thu, 05/05/2011 - 21:44 | Link to Comment Hephasteus
Hephasteus's picture

It's kind of funny. I've never been on /b/ or anonomous but people here have learned the same things that they have learned. You know the troll mask meme. It started on /b/ It was called trolling out a cop or spy. It's funny how we do the same things here. If /b/ is computers then it's kind of a new group for finance. /ag-au/. Trolling out JP Morgan. Chiron in aquarius is deep wounding of not fitting in like being an outsider. A failure to ingratiate yourself into the crowd.

I get the feeling that government is going to spend the entire aquarius age with a kick me sign on it's back.

Fri, 05/06/2011 - 08:02 | Link to Comment mick_richfield
mick_richfield's picture

Ten percent into the Age of Aquarius, "government" will be reduced to a story in children's books, like princesses with pointy hats and ogres and ... trolls.

Thu, 05/05/2011 - 19:08 | Link to Comment Henry Chinaski
Henry Chinaski's picture

BTFD, physical.

Feliz Cinco de Mayo.

¡Salud!

Thu, 05/05/2011 - 19:05 | Link to Comment willien1derland
willien1derland's picture

Folks Need some help here - It appears that there is a pattern - GS Connect S&P GSCI Enh Commodity TR ETN- Symbol GSC -

 

• There have only been 5 days where commodities collapsed significantly more than today; 3 days  in 2008 and 2 days in 2009
o 19 March 2008 - Right before Bear Stearns collapsed -->Commodities down 6.68%
o 29 September 2008 – 14 days after the collapse of Lehman Brothers & 19 days after Fannie Mae & Freddie Mac were nationalized - down 9.27%
o 20 November 2008 – down 6.75%
o 7 January 2009  - JP Morgan receives additional Federal assistance to rebalance commodity funds - down 6.99%
o 17 February 2009 - a month before QE1 was enacted – Commodity prices return to 2002 levels – down 6.68%

o 5 May 2011 - down 8.19%

It appears that with each major market event this ETF dumps - is this simply over-leveraged market mechanics OR something structural? - Any assistance would be helpful - thanks in advance

Thu, 05/05/2011 - 19:22 | Link to Comment Kitler
Kitler's picture

X2 for me.

Interesting backgrounder. Thanks.

 

Thu, 05/05/2011 - 19:34 | Link to Comment nope-1004
nope-1004's picture

My bet is on the higher debt ceiling and ground work for QE3.

 

Thu, 05/05/2011 - 19:48 | Link to Comment Kitler
Kitler's picture

With physical silver sales very strong, this is likely an engineered event by the 'usual suspects'.

Caveat Dumper.

Thu, 05/05/2011 - 19:31 | Link to Comment gordengeko
gordengeko's picture

http://www.zerohedge.com/article/fmx-connect-morning-gold-fix-silver-warehouse-shenanigans-or-real-deal

Dated 4-28-11 9:09am

"We are headed for a blow-off top with a quick reversal, or a sustained rally for another year or 2. You should be equally miserable if either of those happens. So sell some.. go buy farm land in Argentina with your profits."


Thu, 05/05/2011 - 19:40 | Link to Comment Missiondweller
Missiondweller's picture

Excellent post. It seems something is afoot.

After 2008 I started watching the 13 week T-bill yield options (^IRX on Yahoo Finance). It was zero during the crisis and has averaged .15 since. Its now at .01 which seems to reflect a lot of nervousness out there.

Fri, 05/06/2011 - 01:31 | Link to Comment Keri at Bankste...
Keri at Bankster Report's picture

...and that "return" is effectively negative, isn't it?  The 6-month is at 0.03%, which I would argue is also effectively negative.  However, if USD turns around, then the effective rate increases.  Could that be part of the equation?  When USD was at the recent lows (73/under), the 13-week wasn't much better (0.06% or so), though.

Things are very bizarre.  There are no guideposts anymore.  Any given event appears as likely as any other: silver was just as likely to run up 30% as it has been to lose 30%; the dollar is at multi-year lows and yet T-bills are (effectively) negative; the Saudis constrict supply, and oil goes down; if the freakin' market rallies tomorrow on a 100,000 jobs report number, I'm going to go to the zoo and invest in flying pigs.

Thu, 05/05/2011 - 19:56 | Link to Comment Hephasteus
Hephasteus's picture

The only thing I can think of is a show.

They rip silver and oil and gold down a bit. Move the retirement funds and underfunded crap into the etf space. Then let it spring right back to where it was. Try to move them out of oil but keep them in the slv and gold etfs. Hope they can get their grubby hands on libya oil. Running out of time though. I think they have to crater the dow and they want funds inside the gold and silver etfs as accounting deep storage. The numbers add up though it's all hot air. Let the corporations hang out and destroy pensions and force them to renegotiate.

Thu, 05/05/2011 - 20:17 | Link to Comment Kitler
Kitler's picture

PsyOps.

Continual Ag price rises upwards in a straight line don't inspire confidence in FRN's.

Deer in the headlights thing.

Thu, 05/05/2011 - 21:04 | Link to Comment Bringin It
Bringin It's picture

Thanks for that.  Useful.

Thu, 05/05/2011 - 19:08 | Link to Comment Badabing
Badabing's picture

What exactly sets the price of PM’s?

Coin in hand? The market driven by greed, fear, or long term patience?

Are we undergoing the mother of all shakeouts or a normal consolidation?

All I know is the so called bubble didn’t pop and what we are witnessing is a reaction of greed. We all know the buzz, the big players want the price to pop or come options expiry they’ll take delivery or settle in cash plus a nice undisclosed premium. But on the other side of the fence TPTB are playing a game of chess and believe me they play like an old monk in a monastery and use an almost unheard move like castle the king. In this case its margin hikes until the desired result not seen since the Hunt brothers is achieved. So now we have three prices for the shiny stuff, spot, street, and this new price settlement in cash plus 25% or more. We are witnessing a three way disconnection! So I ask again, what exactly sets the price of PM’s  Buy the fucken dips, buy physical, hold long bitches!

Thu, 05/05/2011 - 19:33 | Link to Comment cossack55
cossack55's picture

Its the lazy, fat-assed, non-due-diligence-mother-fuckers who buy paper PMs because they are too fucking fat and lazy to do 10 minutes homework. AG to a dollar and I'll buy it all.If you ain't holdin', you ain't ownin'.

Thu, 05/05/2011 - 20:03 | Link to Comment mayhem_korner
mayhem_korner's picture

I set the price for the oz I own.

Thu, 05/05/2011 - 20:59 | Link to Comment serotonindumptruck
serotonindumptruck's picture

"...like an old monk in a monastery and use an almost unheard move like castle the king."

I definitely wanna play chess with you. I think I could checkmate you in about 6-8 moves.

"Castling your king" should be your fourth or fifth move.

Fri, 05/06/2011 - 18:27 | Link to Comment Badabing
Badabing's picture

5 pieces must be out of the back row to castle the king, only the knights can jump the row of pawns. Pawns must make way for the queen and two bishops.  

"Castling your king" should be your fourth or fifth move.

Not.    Read the prospectus before you buy paper.

Fri, 05/06/2011 - 18:49 | Link to Comment mayhem_korner
mayhem_korner's picture

5 pieces must be out of the back row to castle the king...

Um...you might go back to checkers.  You can castle on the 4th move.

1. Pawn E4

2. Bishop E2

3. Knight F3

4. Short Castle King G1 + Rook F1

 

- in my sopwith camel

Fri, 05/06/2011 - 18:52 | Link to Comment mayhem_korner
mayhem_korner's picture

P.S.  I'm a 2124.  Self?

Fri, 05/06/2011 - 04:42 | Link to Comment schizo321437
schizo321437's picture

non puissant

 

check

Thu, 05/05/2011 - 19:09 | Link to Comment Cleanclog
Cleanclog's picture

And TPTB explain why this is okay, how?

Thu, 05/05/2011 - 19:16 | Link to Comment Badabing
Badabing's picture

The only thing that’s OK is the shiny    

Thu, 05/05/2011 - 19:11 | Link to Comment swissaustrian
swissaustrian's picture

~ 0,278% less registered silver today - WOW!

But backwardation is still there.

Thu, 05/05/2011 - 19:15 | Link to Comment Sophist Economicus
Sophist Economicus's picture

Hey, that chart resembles Robo's stock portfolio!

Thu, 05/05/2011 - 19:14 | Link to Comment IdioTsincracY
IdioTsincracY's picture

This will all be decided soon ...

if the Fed changes direction, then the correction will continue ...

otherwise the sky is the limit.

Thu, 05/05/2011 - 19:18 | Link to Comment razorthin
razorthin's picture

Can't change policy and support the Russell at the same time.  So, you have your answer.

Thu, 05/05/2011 - 19:24 | Link to Comment IdioTsincracY
IdioTsincracY's picture

Somehow I think QE is done and rate hikes are coming ....

we'll see!

Thu, 05/05/2011 - 19:39 | Link to Comment razorthin
razorthin's picture

Oh sure.  I am sure they will willingly usher in the next equity massacre.  Not.  If that happens, someone gets hanged.  For real.

Thu, 05/05/2011 - 22:11 | Link to Comment jeff montanye
jeff montanye's picture

and per hussman's analysis, if they raise short term interest rates by 25 or 50 basis points, the fed must drain liquidity about equal to qe2 or have 40% higher prices in six to eight months.

Thu, 05/05/2011 - 19:21 | Link to Comment slow_roast
slow_roast's picture

The Fed can't change direction without destroying the entire economic system.  If the stopped QE2 tomorrow it would basically be like impaling the Titanic on an iceberg.  It's just not going to happen...buy something real and hope it becomes money.  :)

Fri, 05/06/2011 - 00:37 | Link to Comment Non Passaran
Non Passaran's picture

+1.

Thu, 05/05/2011 - 19:17 | Link to Comment Burnbright
Burnbright's picture

So Comex is collapsing? Am I reading this wrong? Makes sense the price would be plummeting when silver is disappearing. 

Thu, 05/05/2011 - 19:18 | Link to Comment Thunder Dome
Thunder Dome's picture

92,000 ounces?  I've got more silver in my ipad.

Thu, 05/05/2011 - 19:38 | Link to Comment cossack55
cossack55's picture

Maybe they are building more cruise missiles to help the poor rebels (with a central bank) in Libya.

Thu, 05/05/2011 - 19:23 | Link to Comment rockraider3
rockraider3's picture

Physical price vs Paper price.  What's it going to take for the Miners, who have a legitimate need for fair pricing on the Comex, to wake up and refuse to deliver on their contracts due to price manipulation.  That's the only way to end this game of fraud and manipulation.  The Government via JP Morgan can play games the paper pricing in perpetuity... The end game will only come when the Miners say enough is enough.

Thu, 05/05/2011 - 19:27 | Link to Comment Badabing
Badabing's picture

Friend TPTB are the Miners

Thu, 05/05/2011 - 19:39 | Link to Comment sun tzu
sun tzu's picture

There are other markets besides COMEX. It's not the only game in town. 

Thu, 05/05/2011 - 21:20 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

Who owns the miners?  Are they part of the cabal?  Can the miners be paid off?

Thu, 05/05/2011 - 19:24 | Link to Comment digalert
digalert's picture

Comrades relax, remember just last week it was APMEX soliciting to buy your silver above spot?

Thu, 05/05/2011 - 19:43 | Link to Comment Missiondweller
Thu, 05/05/2011 - 19:33 | Link to Comment Poor Grogman
Poor Grogman's picture

Paper assets moving down Exeters pyramid.

Physical dissapearing.

Welcome to reality..

Thu, 05/05/2011 - 19:37 | Link to Comment Blorf
Blorf's picture

3.8 Million ounces of silver was arbed out of SLV today and used to carpet bomb silver bugs.  20 Million out yesterday.  SLV has 330 million ounces of silver left.  Who gives a shit about 92k ounces?  Good luck pushing up the prices with silver eagles when they are dropping 1000s of 1000 oz bars on the market every day.

Like it or not, SLV was your much-maligned silent partner in cornering the market on the way up -- they had squirreled away half of the world's annual production at one point thanks to the popularity and arbitrage mechanism.  Rest assured they are your worst nightmare on the way down. They will keep nuking you with silver if people keep bailing on SLV.

You get the continuous feedback loop on the way up, and the reverse on the way down.

Keep buying monster boxes though, they are "on sale", and will be useful for mad max/zombie invasion scenarios.

Thu, 05/05/2011 - 19:47 | Link to Comment Rynak
Rynak's picture

Translation: WE FUCK YOU! Shut up, sit down, and do what you are told! What? We don't need no stupid propaganda anymore - we have leverage!

Rynak's response: "You mean wife... err, i mean silverbeater! Now see what you made me do again? At this price, this stuff is a steal!"

Thu, 05/05/2011 - 19:49 | Link to Comment Citxmech
Citxmech's picture

This is working out great for me.  I'm still in the money - and now I'm in the process of re-evaluating my normal purchase allotment - and scooping up all the dry powder I can find so I can BUY THE SHIT OUT OF THIS FUCKING DIP.  And if it goes lower - I'll keep buying as long as there's fiat to be had. 

PMs are not for the meek or the short-term.  This is long-term game that, if you are patient, will reward you handsomely.

Thu, 05/05/2011 - 19:50 | Link to Comment Central Bankster
Central Bankster's picture

lmfao, what makes you think 3.8M oz left at all?  Where are they delivering this mythical silver to anyway?  Why isn't it showing up at the COMEX?

Thu, 05/05/2011 - 20:36 | Link to Comment tmosley
tmosley's picture

Exactly.  Math Man was at a loss as to why his "flood" of the silver market only produced 16 COMEX deliverable bars on the face of the planet.

Prior to 2008, you could get these at most bullion shops, and both APMEX and Tulving always had ample supply.  APMEX has 6, Tulving has ten (as of yesterday--I called), and local dealers--none that I can find.

Thu, 05/05/2011 - 22:44 | Link to Comment Iam_Silverman
Iam_Silverman's picture

"Where are they delivering this mythical silver to anyway?"

J.P. Morgans new and fully-approved vault?

Fri, 05/06/2011 - 00:53 | Link to Comment Blorf
Blorf's picture

Are you kidding me?  All silver magically flows through the COMEX?  Better tune into Harvey Organ for the today's update about THE BIG RAID, which is what happens whenever the price drops.  You will be totally outraged and encouraged to buy more silver no matter what the price.

How are you going to afford canned bacon when silver plummets to $20/oz?

Fri, 05/06/2011 - 03:00 | Link to Comment Lord Koos
Lord Koos's picture

Canned bacon is highly overrated.

Thu, 05/05/2011 - 20:00 | Link to Comment sun tzu
sun tzu's picture

Silver prices skyrocketed up too fast and will do the same on the way down. From 18 to nearly 50 in 8 months was too good to be true. It blew away all other precious metal like gold, palladium, and platinum. The USD will eventually be trash, but not that quickly. Nobody wants the dollar to collapse overnight. Not the US, Europe, or Asia. TPTB need to maintain control of the masses and show who's the boss. They will eventually allow liquidity into the market again, but many will be too shellshocked to participate in the next run-up. Others on margin will be wiped out. Bankers win again.

Thu, 05/05/2011 - 21:39 | Link to Comment EscapeKey
EscapeKey's picture

Perhaps you should "contribute" to reddit economics. I think it's more of a natural fit.

Thu, 05/05/2011 - 22:12 | Link to Comment honestann
honestann's picture

Not true.  This was an ARTIFICIAL smashdown by the predators-that-be.  They changed the margin requirements 5 times in 4 days (or was it 9 days?).  That is utterly intentional smash of the market.  Simultaneously SLV is selling huge quantities of physical (illegally, it appears) to further this effort.

There was nothing "natural" about this event.  Nothing.

That doesn't mean drops like this cannot happen naturally.  They can.  But not this time.

Fri, 05/06/2011 - 03:06 | Link to Comment Lord Koos
Lord Koos's picture

I'm long on physical PMs, but any fool could look at the chart on silver for the last 12 months and see that it was a bit of a bubble, I quit buying silver at $40 & I"m sure glad I did.

Fri, 05/06/2011 - 08:35 | Link to Comment lesterbegood
lesterbegood's picture

Good! Let the SLVs dump physical on the market. I'll trade fiat for PMs any day of the week! BTFD!!!

Thu, 05/05/2011 - 21:33 | Link to Comment honestann
honestann's picture

If [almost] everyone bails on paper silver and reinvests their take in physical, their SLV scam will be stopped in its tracks.  That's what we should do.  That's what I'm doing (except I have no SLV).

Thu, 05/05/2011 - 19:44 | Link to Comment 55 men
55 men's picture

Anybody else's ass soar this week? 

Thu, 05/05/2011 - 21:57 | Link to Comment I Got Worms
I Got Worms's picture

Nope, my ass is firmly planted on the ground. But it is a bit sore. :-/

Fri, 05/06/2011 - 00:16 | Link to Comment RockyRacoon
RockyRacoon's picture

There is probably some medication for that worm infestation.

Thu, 05/05/2011 - 19:47 | Link to Comment johny2
johny2's picture

The Silver I have still has same price tag as it did last week. These shenanigans in the Ponzi markets were to be expected.

Thu, 05/05/2011 - 19:55 | Link to Comment notadouche
notadouche's picture

I've always used Kitco to buy coins.  They no longer have any to sell to the US consumer.  Other options reliable?  Please advise.

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