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Are Asian Traders Preparing A Major Squeeze Of Silver Shorts?

Tyler Durden's picture


Some distributing news for the precious metal cartel, courtesy of King World News:

A King World News contact out of London has confirmed that, “Massive Asian buying is going to squeeze the shorts in the silver market.  Any reactions in the price of silver will be heavily purchased, and these buyers will take delivery of physical silver.”  The source who wishes to remain anonymous agreed with Eric Sprott that this squeeze could take the price of silver to $50 in a matter of months.

I have recently been discussing a coming commercial signal failure with John Embry, James Turk and Eric Sprott.  As previously mentioned, this is an extremely rare event but when it occurs it is a sight to behold.

Right now, sentiment levels are nowhere near what we see at a top.  Keep in mind that Rick Rule was recently discussing with KWN the possibility of future supply shortages in silver, and we are also not seeing the type of dealer activity that is suggestive of topping behavior.  These factors are all supportive of a significant move higher in the price of silver.

Read full report here.

With spot having been halted just south of $25 earlier today, courtesy of what was likely another major paper shorting assault on the metal, it will be interesting to see what the timing of this supposed retaliation, if the rumor is valid, by longs will be.


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Mon, 11/01/2010 - 10:26 | 690413 CH1
CH1's picture

Sure hope it is true, but I've ceased pinning my hopes on someone riding in to save the day.

Mon, 11/01/2010 - 10:31 | 690431 tmosley
tmosley's picture

Less "saving the day", more "ruining my ability to stockpile more".  I, personally, would love to have another year to stockpile silver, but it looks like that time may be drawing to an end.  

Once we have a close above $25, I've got to take the family out to a swanky dinner.  Once we have a close above $50, I've got to buy a nice travel trailer so we can go on a big vacation together.  This is the deal I made so that I had free reign with the savings to buy what I wanted.  Now that we are bordering on $25 here, the family is getting pretty excited.

Mon, 11/01/2010 - 10:38 | 690444 hedgeless_horseman
hedgeless_horseman's picture

You might be better off taking a page from the Swiss playbook and buying each of your family one of these:

To this day, every male, when he turns 20, is issued a full automatic military rifle and required to keep it at home. Universal service in the Militia Army is required. When a Swiss is no longer required to serve, he may keep his rifle (converted from automatic to semi-automatic) or his pistol (if he served as an officer).

Mon, 11/01/2010 - 10:41 | 690478 tmosley
tmosley's picture

That would be nice if we got FALs for just the cost of going through marksman training.  

But I've certainly got plenty of firepower.  More than we can use at once.  Was thinking about picking up a .50 caliber sniper rifle "just for fun".  Nice for picking off feral hogs from a half mile away.

Mon, 11/01/2010 - 11:44 | 690657 Xedus129
Xedus129's picture

Shotguns > Rifles.  Though I do have a Chinese SKS stored away, and some .308's also..

Mon, 11/01/2010 - 13:26 | 691009 dlmaniac
dlmaniac's picture

Deer season everyone, huh?

I have just loaded some silver bullets into my rifle. Happy JPM/HSBC hunting time.

Mon, 11/01/2010 - 13:28 | 691028 justbuygold
justbuygold's picture

Time to buy more of Central Fund's Silver Bullion Trust.  Best Silver play of them all IMHO.

Mon, 11/01/2010 - 14:01 | 691124 MachoMan
MachoMan's picture

Just curious, can you really shoot melon sized objects with consistency from 1000 yards?  Kudos to you if you can...  but that is a pretty select group of people...  and training on that .50 is going to cost a fortune.

Wed, 11/17/2010 - 16:22 | 735332 cosmictrainwreck
cosmictrainwreck's picture

"pretty swelect group of people" WHO? melon-heads? Shit, there's thousands of 'em.....just go to DC...or NYC...or......

Mon, 11/01/2010 - 12:01 | 690704 Canucklehead
Canucklehead's picture

I had to chuckle when I read your comment.  A .50 caliber sniper rifle is overkill for feral hogs at 900 yards.  Use a blackpowder 45-70 or a 30-30. 

You are so 1899....

Mon, 11/01/2010 - 12:25 | 690794 hedgeless_horseman
hedgeless_horseman's picture

900 yards with a blackpowder 45-70 or a 30-30? Nice to know you can still dream in Canada.

Kill you hogs in the trap with a pistol.  Mrs. horseman made some excellent green chili with one last week as a matter of fact.

Mon, 11/01/2010 - 15:03 | 691314 Canucklehead
Canucklehead's picture

Sometimes when you are shooting across a valley, that is the only shot you have.  Therefore, you practise.

Since you mention traps, you know hogs aren't the easiest animal to sneak up on.

Mon, 11/01/2010 - 21:48 | 692172 hedgeless_horseman
hedgeless_horseman's picture

$270 at Gander Mountain

Easier to bait a hog than most other animals.

Mon, 11/01/2010 - 12:35 | 690832 tmosley
tmosley's picture

I know.  I just needed an excuse to get one.

If we had feral rhinos, I'd probably already have one.  Especially good against the heavily armored variety.

Mon, 11/01/2010 - 13:14 | 690986 dlmaniac
dlmaniac's picture

Every patriotic American should join the squeeze party.

Mon, 11/01/2010 - 11:07 | 690552 DosZap
DosZap's picture

Good advice, however I think the SWISS went PC and stopped this.

Last (rumor) I heard they were no longer allowed to keep these at home.

Antigunfags are breeding all over the world.Never thought I would see the Swiss lose their mind.

There are two kinds of people who want you disarmed, the IGNORANT, and the ones that want to CONTROL you.

Mon, 11/01/2010 - 11:15 | 690576 Shameful
Shameful's picture

I'm all for everyone being disarmed...I just want the cops and military to lead by example.  If they are will to go a year without weapons I think we all could :)

Strange how the controllers minions always get to be armed.  Either all of us should be armed or none of us should be.

Mon, 11/01/2010 - 11:32 | 690618 DosZap
DosZap's picture

LOL, also.

You think the Crips, n Bloods, and MS 13 would go along?.

Long live Che'!

Mon, 11/01/2010 - 11:36 | 690633 hamurobby
hamurobby's picture

"If they outlaw guns, only outlaws will have guns"

That was a sign in my fathers gun shop 40 years ago.

Mon, 11/01/2010 - 11:55 | 690683 hedgeless_horseman
hedgeless_horseman's picture

Gun ownership is one statistic I am certain our government does pay attention to.  Don't think your vote tomorrow will be heard in DC?  Buy a gun, and unlike elections, you are free to cast your ballot more than once.

Mon, 11/01/2010 - 12:16 | 690765 -Michelle-
-Michelle-'s picture

All weapons?  It's going to suck trying to cut things with feathers and cook pancakes on cotton balls...

Mon, 11/01/2010 - 14:17 | 691173 thesapein
thesapein's picture

That means halting production of my doomsday device... darn.

Can I keep just one warhead?

Mon, 11/01/2010 - 11:07 | 690553 swissinv
swissinv's picture

already got one of these, not by choice though;)

Mon, 11/01/2010 - 11:55 | 690680 teaddy bearish
teaddy bearish's picture

yep absolutly but we are given sig 550 not fnfal 

Mon, 11/01/2010 - 10:36 | 690455 unum mountaineer
unum mountaineer's picture

end of year here. very aggressive

Mon, 11/01/2010 - 10:45 | 690496 ATG
ATG's picture

Beware rumours of end times, famines and short running

Mon, 11/01/2010 - 10:48 | 690507 unum mountaineer
unum mountaineer's picture

hhmmm??...clearly you didn't understand what i was referring to or saying. if you did, then, clearly you misunderstood me.

Mon, 11/01/2010 - 20:24 | 691969 ATG
ATG's picture

Crossed signals?

Wall Street professionals know acting on ‘inside tips’ will break a man more quickly than famine, pestilence, crop failure, political readjustments or what may be called normal accidents.

There is something about inside information which seems to paralyse a man’s reasoning powers.

With enough inside information and a million dollars you can go broke
in a year.

With enough hot tips I could bankrupt the Bank of England

Enron: Strong buy

Mon, 11/01/2010 - 11:17 | 690582 DosZap
DosZap's picture

Yes, a tad early, just make sure you have your SPAM, and Vienna sausages............2012 is the BITCH.

States for sale to the Fed?...wonder how that will fly./

Mon, 11/01/2010 - 12:48 | 690895 tmosley
tmosley's picture

I've been picking up a tin of ham every time I go to the grocery store.  They are actually pretty good, and not too terribly bad for you, when eaten in moderation.

Mon, 11/01/2010 - 20:29 | 692012 ATG
Mon, 11/01/2010 - 11:02 | 690535 DosZap
DosZap's picture

well, it went above $25.00 yesterday several times...........LOL

It appears we will not be able to retake the Senate.But, Reid is GONE, and so will be Pelosi.

That is bad for the country, good for the metals.

Mon, 11/01/2010 - 11:10 | 690560 Enus
Enus's picture

With all due respect, could you explain how having Reid and Pelosi out of office is "Bad for the Country"?

Mon, 11/01/2010 - 11:24 | 690598 DosZap
DosZap's picture

Sorry, I should have elaborated, we appear to not have the horsepower to Retake the Senate, (the House is a lock),that is Bad for the country.

Pelosi,will still be there, just not the LEADER.

The good for PM's is the Dems keeping the Senate, if the GOP, etc, took BOTH, it would slam the metals.( at least for a while).

Hope that explains my post better.

Mon, 11/01/2010 - 11:44 | 690654 dkny
dkny's picture

Define "we".

Also, if there is a deadlock in congress, perhaps that will be good as they won't be able to pass any dumbass legislation for a couple of years.

Mon, 11/01/2010 - 11:47 | 690662 Xedus129
Xedus129's picture

The legislature is obsolete.  Executive branch is too powerful and will get past any legislative road blocks anyways, look at what Bush pulled off.  What people need to do is get good people in local and state governments.

Mon, 11/01/2010 - 14:10 | 691150 MachoMan
MachoMan's picture

who have been captured through uncontrolled spending of their own and are completely dependent upon the federal government...

at this point, we need the worst of the worst in local government to ensure no meaningful changes are actually made, budgets balanced, debts reworked, etc.  We need people who are too fucking dumb to stop spending and have little care for the consequence except they know they can't go to their local constituents for the difference...  that would be ideal. 

Mon, 11/01/2010 - 12:18 | 690775 Enus
Enus's picture

Roger that! thank you

Mon, 11/01/2010 - 20:34 | 692021 ATG
ATG's picture

well, it went above $25.00 yesterday several times...........LOL


Depending on the quote service, may have been bad trades to run stops

CNBC shows 52 week high 24.75 on 14 October 2010

Mon, 11/01/2010 - 11:06 | 690550 quasimodo
quasimodo's picture

I will certainly take mine out for a swanky dinner as well.

However if it hits $50 all the other half is going to see is $$$ signs, yes, FRN's that we can spend on other shit. Thankfully she does not even know what the price of metals does from year to year, I just throw some figures at her and she shuts up. The hell with holding onto it in her book.

Mon, 11/01/2010 - 11:12 | 690570 SheepDog-One
SheepDog-One's picture

Yes but unfortunately it will take $50 to buy 1 gallon of gas too. 

Mon, 11/01/2010 - 11:49 | 690669 Xedus129
Xedus129's picture

When gas is 50$ Silver "should" be much much higher, around 140$ using current metrics.

Mon, 11/01/2010 - 11:25 | 690600 HitTheFan
HitTheFan's picture

You can build your stockpile over the next year, around $8 to $10 an ounze.

Just watch the dollar soar, stocks and commodities will plummet, except maybe Gold.

You've fallen for the Fed's feint, hook line & sinker.

Mon, 11/01/2010 - 11:36 | 690630 DosZap
DosZap's picture

We have a PARADIGMN shift happening here......The Fed, nor JPM, can stop the price rises.

The supply is far to miniscule compared to the NEW World market.

It's hard to visualize the dollar soaring, worthless POS.

Makes me sick, every day, we wake up with less savings.

Mon, 11/01/2010 - 11:44 | 690653 SheepDog-One
SheepDog-One's picture

They have a problem, no printer designed can print silver coins.

Mon, 11/01/2010 - 14:27 | 691217 thesapein
thesapein's picture

Yeah, it's hard to believe in Santa Oz after seeing behind the curtain.

Mon, 11/01/2010 - 12:59 | 690938 tmosley
tmosley's picture

If it does, I will gladly buy more at that price, as I have a nice, steady, high paying job (a rarity in this economy, but I have a unique and powerful skill set).

And anyways, how is changing to a different currency "falling for it"?  I don't really care if the Titanic goes under once, comes back up, and then goes under again.  I just want off.  If I can make money pulling people out of the water, then I will happily do that as well.

Mon, 11/01/2010 - 12:11 | 690746 Abiggs
Abiggs's picture


...I feel for your family

Mon, 11/01/2010 - 12:56 | 690904 tmosley
tmosley's picture

Travel trailer.  For vacationing.  And bugging out.

Edit:  I should note that this was the price I had to pay for canceling the family vacation this year.  We were going to go on a cruise, but I just couldn't shell out $3000+ bucks for that when silver was so, so low.  So I put it into silver, and I will be able to use the same amount of money to get a very nice travel trailer with slides.  The prices for such things in dollar terms are declining, and they are outright plummeting in terms of silver.

Mon, 11/01/2010 - 18:59 | 691844 SPONGE
SPONGE's picture

We think alike. I have so many projects and dreams (which require big sums of fiat currency) on hold because I'd rather buy Ag and finance all my projects and dreams in the near future for a fraction of what it would cost today (converting my Ag to dollars or whatever works at the time).

I'm happily in debt up to my eyeballs, cause, why not? Making way more money buying Au and Ag than the interest is costing.

Happy when Ag goes up, but happier when it goes down, cause I know what the future holds.  Ag... the first vital extinct element.

Wed, 11/17/2010 - 15:34 | 735100 Abiggs
Abiggs's picture

You have issues...

Mon, 11/01/2010 - 10:36 | 690456 Doubleguns
Doubleguns's picture

They will not be riding in. They will come hacking and slashing.

Mon, 11/01/2010 - 10:54 | 690521 DamnThe Fed
DamnThe Fed's picture

Sounds like silver is climbing the proverbial "wall of worry".

Mon, 11/01/2010 - 11:50 | 690667 Turd Ferguson
Turd Ferguson's picture


"With spot having been halted just south of $25 earlier today, courtesy of what was likely another major paper shorting assault on the metal." For those of you who still doubt the existence of the Evil Empire and their manipulation of PM prices, I re-submit a comment from last week. See below. Now, if a Kansas dumbass can successfully predict price movements on the NY Comex one week in advance, what other conclusion can you draw? Is Turd some type of soothsayer or mystic or is Turd accurately predicting price and date based off of simple understanding of EE motives?
by Turd Ferguson 
on Mon, 10/25/2010 - 21:40


October is not a big deal. Meaningless compared to December.


At any rate, gold does need to move convincingly through 1350 for us to see more short term upside. I'm quite certain that it will between tomorrow and Thursday and it will then be allowed to move to 1365 by next Monday. Expect Blythe to throw the kitchen sink at it there so that she can paint the tape with a head-and-shoulders top.

From there, its all up to HellyBenny and the size of his QE. 


Mon, 11/01/2010 - 13:37 | 691059 Treason Season
Treason Season's picture

Thanx for the update!

Mon, 11/01/2010 - 13:43 | 691074 dlmaniac
dlmaniac's picture

You ought to have a personal blog for people to follow your calls.

Mon, 11/01/2010 - 13:54 | 691105 Shameful
Shameful's picture

I know I would keep on eye on "The Turd Report"

Mon, 11/01/2010 - 14:37 | 691236 Turd Ferguson
Turd Ferguson's picture

Thank you for the compliment.

I would start a Turd Report blog only if I was conceited and arrogant enough to think that the information I provide was unique. 

Although I think its fun to be considered some sort of gold "expert" around here, I'm truly not. I've just been in the gold and silver market long enough to have learned a few things, albeit some rather expensively. Please understand the point of my post above. My insights are not luck nor are they magical. What I do is not complicated. Just understand three things:

1) Gold is on an inexorable march to 1650 and beyond. Silver to 35.

2) The EE truly exists and they will do anything to slow/halt the advance.

3) The EE will lose and, in losing, they will become increasingly desperate.

Once you accept the above 3 assumptions, predicting time and price becomes quite easy. So easy, even a Turd can do it.

Mon, 11/01/2010 - 15:09 | 691327 tmosley
tmosley's picture

Experience makes an expert, Turd.  If you made a blog, I would certainly read it.  In fact, I kind of wish you would, since your calls have been so accurate lately.  Even if you just wrote a paragraph or two a day talking about the price action, I think it would be well worth it. is a fairly good free service, I believe.

Mon, 11/01/2010 - 17:01 | 691630 Turd Ferguson
Turd Ferguson's picture

OK, I'll think about it. Might be kind of fun and it would allow me to insert some charts, too.

I'll keep you posted.

Mon, 11/01/2010 - 17:17 | 691649 Hulk
Hulk's picture

Turd World Nation ???

Mon, 11/01/2010 - 18:29 | 691798 Turd Ferguson
Turd Ferguson's picture

Turd's Golden Droppings?

I am Turd?

The Thundering Turd?

Mon, 11/01/2010 - 19:34 | 691913 Hulk
Hulk's picture

Turd's Golden Droppings gets my bet, so far. But quite frankly, the possibilities appear endless

Mon, 11/01/2010 - 20:02 | 691974 Absinthe Minded
Absinthe Minded's picture

Turd's Golden Words

Mon, 11/01/2010 - 21:08 | 692085 RockyRacoon
RockyRacoon's picture


Cheeky  BasTurd

Mon, 11/01/2010 - 21:58 | 692192 Turd Ferguson
Turd Ferguson's picture

Thanks, all. I'll take them under advisement.

Btw, expect a "sell the news" type of event of Wednesday. The EE will most assuredly be waiting to hit the Fed "announcement" with an overwhelming amount of offers, hoping to start a massive, long-liquidation waterfall. I wouldn't be surprised to see a quick selloff back to 1330 or so. Then, instead of more selling, our buyer(s) of size will step in and begin bidding gold back up.

I'd still be expecting that, by Friday, we'll finish with an "up" week. The real action will then come next week as we get our first penetration of 1400 and then its off to the races.

I'll say it again. Gold will trade at 1500 by 12/10/10.

Tue, 11/02/2010 - 00:23 | 692448 RockyRacoon
RockyRacoon's picture


That's goose-bump territory!

Mon, 11/01/2010 - 19:54 | 691957 ATG
ATG's picture

Sure hope it is true, but I've ceased pinning my hopes on someone riding in to save the day.


Like QE II

Mon, 11/01/2010 - 10:30 | 690423 potatomafia
potatomafia's picture

Keep in mind that Rick Rule



The Rick Rule?  You mean like this?



Mon, 11/01/2010 - 10:30 | 690427 The Rogue Trader
The Rogue Trader's picture

"I love the smell of Napalm in the morning" and I sure do smell it....

Mon, 11/01/2010 - 10:32 | 690435 CheapKUNGFU
CheapKUNGFU's picture

nuthing 'disturbing' about it Tyler.

All your squeezes are belong to us, make your time.


Mon, 11/01/2010 - 10:34 | 690448 jus_lite_reading
jus_lite_reading's picture

If silver reaches $50, the world scene will have changed beyond recognition- it spells disaster ahead. I see $50 before December.

Mon, 11/01/2010 - 10:44 | 690492 Cognitive Dissonance
Cognitive Dissonance's picture

Silver at $50 would be very nice for the Gold miners. Remember that a by product of Gold mining is often lots of silver.

If selling the mined silver at a much higher price covers more of the overall Gold/silver mining costs, Gold becomes supremely more profitable, even if the price of Gold doesn't follow silver up. 

Mon, 11/01/2010 - 10:47 | 690505 ATG
ATG's picture

Sign of a top when markets sell off on silly too good to be true bullish rumours

Mon, 11/01/2010 - 10:55 | 690522 Cognitive Dissonance
Cognitive Dissonance's picture

Markets? What "markets" are you referring to?

Mon, 11/01/2010 - 19:57 | 691959 ATG
ATG's picture

Uh, silver today?

25.05 high and 24.725 close

When it sounds too good to be true...

Mon, 11/01/2010 - 21:09 | 692091 RockyRacoon
RockyRacoon's picture

Yep.  It'll be the same at $30, $35, $40......

Mon, 11/01/2010 - 13:21 | 691003 tallystick
tallystick's picture

I think you're off on the relative magnitude. The value of silver as a byproduct of gold is low compared to gold. It's not that important of a source either compared to silver as a byproduct of copper mining.

Mon, 11/01/2010 - 16:37 | 691571 Cognitive Dissonance
Cognitive Dissonance's picture

While it varies from mine to mine, my understanding is that most Gold mines pull out 10 to 12 ounces of silver for each ounce of Gold. Am I mistaken?

Tue, 11/02/2010 - 02:00 | 692533 slvrizgold
slvrizgold's picture

Yes, you are mistaken.  It is true that there are 10-12 ozs of silver produced for every 1 oz gold worldwide, BUT most silver is a byproduct of BASE metal mining - think mostly zinc, lead, copper.   And some (small amount) is primary silver mines.   Gold mining has significant silver byproduct but no where near the ratio you use.   Its MORE bullish for silver in fact.

Because silver wins either way - economy declines and base metal prices go stagnant then not much more silver comes online.  If economy turns around, industrial silver demand explodes.   Silver price rises long term in every scenario.

Silver - the ONLY commodity to not - YET - make a new all time high.   Not even a nominal 70s-80s high much less a REAL high.   It will come.

Mon, 11/01/2010 - 10:34 | 690449 Beanie Baby Bubble
Beanie Baby Bubble's picture

Distriburing news indeed.


Mon, 11/01/2010 - 10:36 | 690454 ReallySparky
ReallySparky's picture

Yipee!  This news makes me a very happy girl.  Death to the shorts!  Can't wait for the delivery failure headline and the look on Jamie's face.

Mon, 11/01/2010 - 10:46 | 690497 flacon
flacon's picture

I want to see Blythe Master's face, over at JPM. 

Mon, 11/01/2010 - 11:06 | 690551 Al Gorerhythm
Al Gorerhythm's picture

Have you seen the link where you can participate? Saw it and lost it.

Mon, 11/01/2010 - 11:59 | 690696 flacon
Mon, 11/01/2010 - 10:36 | 690459 hamurobby
hamurobby's picture

I would sure like to know when Mr Sprott will get the aproval for his silver trust, that may be the spark that sets it off to fifty.

Mon, 11/01/2010 - 10:38 | 690468 schoolsout
schoolsout's picture

pslv, no?

Mon, 11/01/2010 - 10:44 | 690493 Ragnarok
Ragnarok's picture


Mon, 11/01/2010 - 11:10 | 690558 Dingleberry Jones
Dingleberry Jones's picture

Thank you, sir!

Mon, 11/01/2010 - 11:12 | 690566 DosZap
DosZap's picture

Yes, so I read.

Mon, 11/01/2010 - 10:41 | 690481 rickardswhite
rickardswhite's picture

Don't worry it'll be approved and start trading the day silver hits $50, just in time for everyone buy a top.

Mon, 11/01/2010 - 11:27 | 690607 DosZap
DosZap's picture

Well, he's opened it up, where did he get the 20 Million ounces?.

Mon, 11/01/2010 - 12:01 | 690707 MeTarzanUjane
MeTarzanUjane's picture

He brought in a silent partner, Mr. JPM.

Mon, 11/01/2010 - 10:42 | 690484 Pladizow
Pladizow's picture

Done - PSLV - Bought last week.

Mon, 11/01/2010 - 12:16 | 690763 Whatta
Whatta's picture

Ditto. Bought Friday at 9.96. Should be shweeeeet.

Mon, 11/01/2010 - 10:58 | 690529 hamurobby
hamurobby's picture

Ahh, thanks guys, thats some need to know info.

Mon, 11/01/2010 - 10:40 | 690474 TheGreatPonzi
TheGreatPonzi's picture

The death of the silver cartel? Finally?

Mon, 11/01/2010 - 10:42 | 690482 Duke of Doubt
Duke of Doubt's picture

The Sprott silver trust in in the US and Canadian markets now.  The US symbol is PSLV (physical silver).

Mon, 11/01/2010 - 11:57 | 690689 MeTarzanUjane
MeTarzanUjane's picture

OH REALLY! HOW can I buy, buy, buy? Where is the link to the sprott shopping cart? What good is an ad with no linkie?

Mon, 11/01/2010 - 10:42 | 690483 Thats Mr Dumass...
Thats Mr Dumass to you's picture

The silver trust is alive I bought some this morning.

Mon, 11/01/2010 - 13:21 | 691005 JLee2027
JLee2027's picture

PSLV - up this morning

Mon, 11/01/2010 - 10:44 | 690486 truont
truont's picture

Are Asian Traders Preparing A Major Squeeze Of Silver Shorts?

Hmmm....I'm lovin' it!

I'll have a Jamie Dimon McGriddle with a side of Blythe Masters Hashbrowns, please...

Mon, 11/01/2010 - 10:42 | 690487 cowdiddly
cowdiddly's picture

And in the meantime Jamie Dimon's balls are starting to look like raisins.

Mon, 11/01/2010 - 10:43 | 690489 Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

Shorts Squeeze ay, looks the the squirrels will have a few extra nuts to play with,

how nice for JPM to officially sponsor the event.

Mon, 11/01/2010 - 10:44 | 690491 ZackAttack
ZackAttack's picture

COMEX will simply do what they did to the Hunt brothers - forbid taking physical delivery. I think King World News is sadly underestimating the extent of nepotism and corruption in these markets.

If the PMs, in BBs estimation, get out of hand, there'll just be another executive order outlawing their ownership and requiring all citizens to convert them to fiat at a fixed exchange rate.

Mon, 11/01/2010 - 10:53 | 690513 truont
truont's picture

"They can't have my gold but they can have my lead..."

Hey, NSA forum crawlers:  Just sayin' !

Mon, 11/01/2010 - 10:56 | 690526 schoolsout
schoolsout's picture

So, the industries that use silver will do what, exactly?

Mon, 11/01/2010 - 11:08 | 690554 Al Gorerhythm
Al Gorerhythm's picture

Pay more to stay operational.

Mon, 11/01/2010 - 11:30 | 690613 DosZap
DosZap's picture

Most of the large users have Hedged WAYYYYYYYYYY out there, at a lot lower number.

Mon, 11/01/2010 - 13:23 | 691012 NotApplicable
NotApplicable's picture

So, in other words, they are the ones being picked clean right now. Instead of being hedged, they've basically loaned the metal to the Crimex to support physical demand today. I wonder how many of them have a clue?

The further out you buy, the more likely it's a lie.

Mon, 11/01/2010 - 11:34 | 690621 ZackAttack
ZackAttack's picture

There are any number of intermediate steps an exchange could take.

In the Hunt Bros case, CFTC raised margin requirements, limited the number of contracts an *investor* (not an industrial user) could hold and the duration he could hold them, then finally suspended trading except for liquidation orders only in order to drive down the price.






Mon, 11/01/2010 - 14:37 | 691248 dhengineer
dhengineer's picture

The buyers are not trying to corner the market, they are trying to bust COMEX/LBMA and the Fed.  They are not mere speculators, nor are they playing with nickels and dimes.  They are sovereign funds (China, Russia), major investors, and probably the Arabs.  All of them hold boatloads of USTreasuries, and I suspect that they have overtly threatened Benny and Timmy with wholesale dumping if they cannot get their metal.  Any  bullshit buy/sell rules, or limits on contracts will be scoffed at.  There is no way that Benny, Obammy, or Timmy or anyone else in the US can stop them.  It may look like a poison pill, but they already have tons of PMs, most of it never reported to the IMF, so their PM positions will soar if the dollar tanks as a result of their dumping.  That's probably why Benny is so Hell-bent on QE2 and buying all available long bonds.  He either has to sacrifice the PMs or the Treasury.  Sucks to be him right now.

Mon, 11/01/2010 - 10:58 | 690531 SWRichmond
SWRichmond's picture

This early in the unfolding currency crisis such an act would cause a panic, not end it, by confirming what have been up until now regarded by the bulk of the investing community as mere suspicions or tinfoil hat rumors. 

Mon, 11/01/2010 - 10:46 | 690502 Pladizow
Pladizow's picture


Cash parked in MERKX (basket of currencies other than the dollar).

1. Sell now and buy silver
2. Wait to see how week unfolds.
3. Dollar cost average into silver

Im having a hard time pulling the trigger with so much going on.

Mon, 11/01/2010 - 11:10 | 690561 hamurobby
hamurobby's picture

If things keep going like they are right now, there will be a pretty large qe coming by the end of the year. My confusion is if the crimex will front run it or not, so I have a small straddle opt trade on slv. Interesting times indeed.

Mon, 11/01/2010 - 14:00 | 691121 tmosley
tmosley's picture

At these prices, 3 makes the most sense.  Don't want to go all in and then suddenly get caught in a big fall, but you don't want to be caught without ANY either.

When I went all in silver, I planned to cost average my way in, with six entry points.  Instead, I went all in after three, as silver had fallen below ten dollars from twenty, my first purchase point.  I bought big again last summer when it fell to ~12.50.  Now, all my monthly savings goes toward silver, or other useful things.

Understand that at the time I was initially considering silver (beyond a few baubles I had picked up as I was first learning about it), there was no make or break news scheduled.  This time could easily be different.

Mon, 11/01/2010 - 14:07 | 691140 Whatta
Whatta's picture

I was a late start into silver and have been playing it a couple of ways.

One way, I did buy PSLV on Friday. So, long PSLV.

The other way is selling  30-45 day OTM Puts on SLV. There is decent volatility so premiums are nice. So, I make a little if silver continues up by rolling forward the short puts, OR, I gain an entry point considerably lower than present if it is ever put to me.

Mon, 11/01/2010 - 21:19 | 692105 RockyRacoon
RockyRacoon's picture

There was just as much agony buying PMs in 2001 thru 2003 as there is now.  It doesn't get any better psychologically.   I was fortunate to have a great mentor who is now dead.  He coached me thru my first purchases in the $6 range and I'll forever be grateful.  He said to hold, and buy -- not necessarily in that order.  At this point I'll have to stay put and guard the stash.  No running away from this much bulk unless I bury it.

Gotta make a run to Home Depot for some schedule 80 pvc and fittings...

Mon, 11/01/2010 - 10:46 | 690503 unwashedmass
unwashedmass's picture

really says something that the Asians are as fed up with the corruption of our bankers as we are.

you go, boys, you one deserves this more than Jamie Dimon.

Mon, 11/01/2010 - 11:29 | 690601 JonNadler
JonNadler's picture

leave Jamie alone, he's been very good to me over the years

Jamie assured me silver can't go to 50, he promised me....but then he also promised it wouldn't see 25.


Mon, 11/01/2010 - 12:37 | 690848 DoChenRollingBearing
DoChenRollingBearing's picture


Need to see you in my office ASAP.

Bring your notes on why you fired Johnny Bravo.

Jamie D

Mon, 11/01/2010 - 13:19 | 691000 JonNadler
JonNadler's picture

DoChen, are you from Peru? What do you think if go there to hide for the next couple of years while gold heads to 10000? I'll take Robot and JW with me so we'd need a big house. Heck with all the kickbacks from HSBC alone, I should be able to live like a king down there.

Jamie likes Venezuela better

Mon, 11/01/2010 - 14:02 | 691128 tmosley
tmosley's picture

I hope you didn't get those kickbacks in dollars, Nadler.

Mon, 11/01/2010 - 15:09 | 691329 JonNadler
JonNadler's picture

T: you think am stupid, I take gold only, I mean it's not like I drink my own kool aid you know

Mon, 11/01/2010 - 15:49 | 691434 DoChenRollingBearing
DoChenRollingBearing's picture

JonNadler, hahaha!  + $1330

My wife was born there, and we go once or twice a year.  

Yeah, you can live just fine down there, please do take Robot and JW!

As Jamie will likely be tossed to the gators soon, I concur with his choice of bunking with Chavez.  And Chavez won't kick him out, esp. with constant bribes...

Mon, 11/01/2010 - 16:13 | 691508 JonNadler
JonNadler's picture

Gracias Senor DoChen

Viva Peru, mi nueva patria!

Mon, 11/01/2010 - 10:50 | 690511 truont
truont's picture

With spot having been halted just south of $25 earlier today, courtesy of what was likely another major paper shorting assault on the metal, it will be interesting to see what the timing of this supposed retaliation, if the rumor is valid, by longs will be.

Well, look at what happened the last time silver went up to about $25 in early October.

Silver got aggressively sold, but bottomed out at around $23.  That was when some serious buying resumed.

Eric King's "deep throat" may well indeed be accurate, even if silver falls 2, 3, or 4 dollars from here.  If silver drops under $20 I'd say there is no "Asian put" under silver, after all.

Mon, 11/01/2010 - 11:02 | 690534 Oh regional Indian
Oh regional Indian's picture

Truont, even sub 20 won't mean much. End game times can mean huge swings to small stimuli.

At this stage of the game, I think we all just need to make our calls, grab our balls (silver and golden ones) and jump. No looking back, no fear, no right or wrong decisions (single day swings will give people heart attacks, cannot be caught up in it).

I took such a step yesterday and it felt good.


Mon, 11/01/2010 - 12:56 | 690930 espirit
espirit's picture

Continue to reafirm that $SILVER is a currency.  You don't see corn, wheat, or pork bellies in any SDR conversion chart.

Mon, 11/01/2010 - 14:15 | 691166 tmosley
tmosley's picture

Watch closely for a fall in paper silver accompanied by a large rise in premium for physical silver both nominally in percentage terms.  If this is the case, then the silver market will have broken, and true price discovery through the silver dealers will begin.

Mon, 11/01/2010 - 21:23 | 692113 RockyRacoon
RockyRacoon's picture

...and believe it or not, eBay is a good vantage point for the dealer view.

Mon, 11/01/2010 - 10:56 | 690525 Kaiser Sousa
Kaiser Sousa's picture

same shit day after day...silver attempts to break a key resitance barrier n asian trading (24.99 on the way to 25.00) and then n London and NY its sold n attempt to beat back the tide...its so obvious and its do doomed to failure.....

Mon, 11/01/2010 - 10:58 | 690528 schoolsout
schoolsout's picture

when physical evaporates, you will see something different than failure

Mon, 11/01/2010 - 12:04 | 690719 MeTarzanUjane
MeTarzanUjane's picture

Agreed, we'll see the miners and smelters releasing inventory.

Mon, 11/01/2010 - 10:58 | 690530 DosZap
DosZap's picture

Well,they ain't sqeeeeezin taday mate.

Pls SQUEEEZE...........

Mon, 11/01/2010 - 11:05 | 690546 Jason T
Jason T's picture

More propaganda to get the middle and upper middle classes to buy silver while Ben decides to do a 180 on the money printing sending silver back to 8?

As much as it makes 100% sence for a big trader to take down this silver BS house.. and so easy frankly, with enough money that is and the Asians certainly have money.


Am not selling but am not loading boat on silver either.  



Mon, 11/01/2010 - 11:16 | 690580 Pladizow
Pladizow's picture

The market is expecting QE2 far more than silver is.

So if silver goes to 8, what do you think the market will do?

Mon, 11/01/2010 - 11:19 | 690588 Shameful
Shameful's picture

Ok, lets say he pulls a 180 and does a Volker.  That kills ALL the banks and forces the USA to default (tax system is based on inflation).  So under those circumstances how good will the full faith and credit of the US be?  If he doesn't print then he blows up the system he is trying to protect.  If he prints he buys the system time, so which do you think is more likely?

Mon, 11/01/2010 - 12:39 | 690855 SWRichmond
SWRichmond's picture


Mon, 11/01/2010 - 13:09 | 690968 Max Hunter
Max Hunter's picture

Zackly!.. Ben doesn't have the same situation in front of him that Volker did. Simple as that..

The only question is; how much time does he buy with the next QE before the massive dumping of USD's take place..

My guess is, it will be a very short lived cure as the players involved today have been anticipating and preparing more than we think.

I heard a lady on the radio say it perfectly one day: "it's like waiting for your dad to come home from work when you know you are gonna get a whoopin".. LMAO

Mon, 11/01/2010 - 13:25 | 691016 JLee2027
JLee2027's picture

If he doesn't print then he blows up the system he is trying to protect.  If he prints he buys the system time, so which do you think is more likely?

Buying time just makes the eventual fall worse and farther off. An honest man would have let the system collapse in 2008. By now, we would be rebuilding.

Mon, 11/01/2010 - 13:36 | 691052 flacon
flacon's picture

An honest man would have let the system collapse in [strikethrough]2008[/strikethrough] 1929. An even bigger man would not have created the system in the first place on December 23rd 1913.

Mon, 11/01/2010 - 21:28 | 692121 RockyRacoon
RockyRacoon's picture

An honest man could not be found in that position -- ever.

Mon, 11/01/2010 - 23:29 | 692373's picture

Great. That puts Diogenes out of work. Which puts more stress on the lantern makers and so on and so forth.

Mon, 11/01/2010 - 11:34 | 690616 THE DORK OF CORK
THE DORK OF CORK's picture

Me too , Ben is liable to do anything here - but he has to continue to buy assets of some kind as he has no other choice - the chief asset of CBs is Gold so he may decide to monetize Gold and kill the Dollar outflow along with all the mercantile states.

Just saying.


Mon, 11/01/2010 - 11:43 | 690652 DosZap
DosZap's picture

Come Weds morning, Bernake may be fighting for his JOB.

NO way we see massive QE,not after Weds.

He will be lucky to get by w/100B a month.

We are fixing to see the BEST government we can have,GRIDLOCK.

Mon, 11/01/2010 - 11:48 | 690666 Shameful
Shameful's picture

Why?  Both the reds and blues love the Fed and seems that Zimbabwe Ben was nominated by Bush and reappointed by Barry.  The politics will love anyone who lets them spend like maniacs on their pet projects.  And it's not like Ben is up for reappointment anytime soon.

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