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For First Time Total Comex Silver Drops Below 100 Million Ounces; Physical Deliverable Silver Under 28 Million Oz

Tyler Durden's picture




 

The slow, steady, very predetermined and methodical depletion of Comex silver, which recently entered 6-sigma range for a perfectly random event, or is the preparation for a Hunt Bros squeeze, now that there is 32% less silver (27.9MM vs 41MM on April 19) than there was 2 months ago, is starting to become disturbing to anyone who can identify a flat line pointing northeast at -45 degrees. Contrary to promises from virtually everyone that the ongoing decline in registered silver is something very temporary, the perfectly diagonal chart below begs to differ with this naive and now disproven hypothesis. The culprit for today's decline to a new record low is Brink's warehouse, where there was a 9% draw down in both registered and eligible silver. In the meantime, registered silver has not posted an uptick in over 3 months. Amusingly this is happening even as the price of spot and futures silver continues to trend lower. We wonder at what point will the general public wake up to what is happening (hint: here): 25MM oz? 20MM oz? 10MM oz? 0? When Bloomberg writes an article how physical silver is the equivalent of Japanese off the charts safe purchases? Never?

Daily change from the Comex:

A longer-term chart:

 

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Tue, 06/14/2011 - 21:38 | 1369592 Cheesy Bastard
Cheesy Bastard's picture

Yeah, but there's plenty of printable silver, right?

Tue, 06/14/2011 - 21:47 | 1369614 Slewburger
Slewburger's picture

"Printable = editable"

-The Bernak

Tue, 06/14/2011 - 22:53 | 1369799 Libertarians fo...
Libertarians for Prosperity's picture

 

First of all, the Comex and the bankers mutually masturbate each other on a daily basis, so one can be assured that any threat of default will be quickly resolved with no repercussions. Think about it...  if the entire Wall Street complex can go insolvent and nothing major changes from it, do you actually think a blow-up in one small corner of the commodities market will lead to anything meaningful?

A potential COMEX default won't be the apocalyptic blow-up that all the doomers pray for. Price will temporarily surge, but then it'll fall back to earth.

The LME defaulted on nickel in 2006.  And what happened?  The price shot up, then quickly collapsed by over 50% in months. About 2 years later, nickel price had fallen by over 75%, and the LME is still the exchange it always was. 

If a default were to occur, many cash settlements will be arranged at a price agreeable to the buyers, and interest will be charged daily on the short contracts until those shorts can deliver. Those shorts who still need to deliver will simply buy shares of SLV, take delivery, and pay off their Comex contracts. The SLV is so massive, it is a new depository, of sorts. 

The only time to get concerned is if the price of SLV shoots to the moon, while its inventory get raided. Then I'll change my opinion.

Until then, all this garbage about a default at the Comex is just more doomer, conspiracy rhetoric, much like the "Crash JP Morgue" lunacy that was proven to be TOTAL BULLSHIT.

It's nothing more than a great story to get the doomer goons riled up.  You guys may want to spend some time reading about Buffet, Phibro and the great silver scheme of 1997. Creating the illusion of inadequate supply in the silver market has been replayed many, many times.  

 

Tue, 06/14/2011 - 22:54 | 1369812 CrockettAlmanac.com
CrockettAlmanac.com's picture

You sound a bit riled. What kind of goon are you?

Tue, 06/14/2011 - 23:05 | 1369845 hack3434
hack3434's picture

Writng style is very similar to Kid Dynamite. Perhaps the poster is KD posting from Hawaii angered by the misinformantion about silver. lol...

Tue, 06/14/2011 - 23:23 | 1369867 flacon
flacon's picture

> "pointing northeast at -45 degrees"

 

NORTH WEST!!!! (or SOUTH EAST!!!)

Wed, 06/15/2011 - 09:57 | 1370733 SuperRay
SuperRay's picture

no, it is definitely SE

Tue, 06/14/2011 - 23:01 | 1369829 Bay of Pigs
Bay of Pigs's picture

Nice new handle you got there. What's your old name?

Tue, 06/14/2011 - 23:09 | 1369847 HamyWanger
HamyWanger's picture

He's Red Neck Repugnicant, alias Texas Gunslinger. 

He has a particular grudge against libertarians. 

Wed, 06/15/2011 - 00:04 | 1369940 Selah
Selah's picture

 

Hamy... Don't break character.

BTW, "Texas Gunslinger" can't write that well. He writes like the "News Unit" that got banned from SGS's blog. That's tough to do in that band of idiots!

PS: Nothing bad to say about you SGS, just your followers. Oh, are you still selling commercially after unloading: http://www.zerohedge.com/article/silvergoldsilvercom-runs-out-all-precio...

 

Tue, 06/14/2011 - 23:11 | 1369855 cossack55
cossack55's picture

"...in one small corner of the commodities market will lead to anything meaningful?"

Does Sarajevo 1914 ring any bells?  What a buffoon.

Wed, 06/15/2011 - 00:12 | 1369949 suckerfishzilla
suckerfishzilla's picture

There is an inadequate supply of Silver at the comex to deliver to the traders that have long positions.  That is the plot being played out on the comex.  No gloom and doom just fraud. 

Wed, 06/15/2011 - 01:29 | 1370060 traderjoe
traderjoe's picture

That's some of the best trolling I've seen in awhile. 

Wed, 06/15/2011 - 04:13 | 1370196 IQ 145
IQ 145's picture

 The SLV is a new depository; good observation. Comes under the general heading of keeping up with the times. I just love these experts who have never traded or owned a Comex contract in their lives who are just certain that this time something really important will happen during delivery week. The Comex has been having delivery weeks since most of these blog educated loonies were in junior high school.

Wed, 06/15/2011 - 08:47 | 1370517 tmosley
tmosley's picture

SLV is not a depository, you fucking moron.  It's an ETF.

The fact that you don't know the difference shows YOUR ignorance, not ours.

lol, delivery WEEKS.  Christ, it's like you're fucking five!

Wed, 06/15/2011 - 08:42 | 1370498 Downtoolong
Downtoolong's picture

do you actually think a blow-up in one small corner of the commodities market will lead to anything meaningful?

Only if you are a producer or consumer of physical silver.

By the way, aren't those the people these futures markets supposedly exist to serve?

Wed, 06/15/2011 - 09:55 | 1370705 VegasRage
VegasRage's picture

You haven't thought your way through this. Silver is used in every computer electronic made from CD-ROMS to the circuitry on a motherboard, so it's one of the most important precious metals known to man. Silver is also presently more rare than gold, there are very limited stockpiles above ground now. For 60 years the US government sold its huge stock piles of silver on the market for less than it could be profitably mined for; that ran out in 2007. China's industrialization has increased silver demand by 4 fold in the last decade.

 

Then there is the monetary aspect of silver, both gold and silver are the mortal enemy of fiat currency, their rise casts doubt on the efficacy of an ever increasingly debased dollar. Silver's rise may well shake the world's faith in the dollars soundness, why do you think JPM and HSBC have taken huge short positions on it to keep it down? For the hell of it?

 

Utah just returned both gold and silver as legal tender within the state, 13 other states have similar legislation on the table presently to do the same thing. Then there is the rest of the world, many countries peoples who could not buy silver when the Hunt brothers rushed to silver in the late 70's can now. China only recently has allowed it's people to invest in silver, 1/3rd of the earth now has ability to invest in silver. Their attitude about silver isn't like peoples in the US. Gold and silver are considered favorable in China, both are deeply ingrained in their culture, and China use to have a silver standard until the 1940's. So where do you come up with this bovine you speak of?    

Wed, 06/15/2011 - 10:39 | 1370923 tarsubil
tarsubil's picture

Is it possible that silver's industrial use makes it a poor metal for use as a currency?

Wed, 06/15/2011 - 11:00 | 1371003 VegasRage
VegasRage's picture

It was the first coined money and has been money for 5000 years. Utah's new implementation of gold and silver as legal tender has even worked out a method to let people use a debit card for purchases. I see no reason why we can't use silver; if the country got smart we could revalue both gold and silver, issue serial numbers for every microgram, and let people use their debit cards. The transaction would pass serial numbers and there you have it, real money with intrinsic value built in.

Wed, 06/15/2011 - 11:14 | 1371059 tarsubil
tarsubil's picture

My question is do you want something that is essentially consumed by industry to be used as a currency? I understand it worked great in the previous 5000 years before it started to be put in computers. The great thing about gold is that the pool of gold bullion doesn't change much (no significant consumption) at least as far as I know. Maybe that's wrong. If the pool of silver does change significantly due to industry use/consumption, doesn't that make it less useful as currency? Or is it not consumed at a significant rate by industry considering the pool of silver?

Fri, 06/17/2011 - 09:56 | 1377351 VegasRage
VegasRage's picture

For the long term you may be right, but for now and at least next few years it would be wise to hold at least some the metal in your coffers. Gold however has few industrail uses and wouls still make a good form of sound money folowing the same path I mention above. 

Wed, 06/15/2011 - 11:38 | 1371166 tmosley
tmosley's picture

It just makes it more volatile.  Some people might like that in a currency, some might not.  It certainly doesn't make it less valuable, any more than it does for platinum.

Wed, 06/15/2011 - 11:36 | 1371154 Confucious 222
Confucious 222's picture

"It's one of the most important precious metals known to man. Silver is also presently more rare than gold"

Silver is also simultaneously the best conductor of both heat and electricity, and the best reflector of light, known to man. Wonder what that could mean in the world of electronics or solar energy???

Almost as an afterthought, it can PROTECT you from bacteriological and germicidal harm, do a little due diligence, idjits.

When the "It-only-costs-$5-to-pull-it-out-of- the-ground" crowd sees silver trading at parity to gold; I hope they SHORT THE SHIT out of it en-route to it trading at MULTIPLES to gold.

The best method to preserve and eventually MULTIPLY your wealth: own physical silver NOW.

Or just short it like JPMorgue, and ask for your Fed Reserve backstop dollars like they do.

Wed, 06/15/2011 - 11:37 | 1371175 tmosley
tmosley's picture

Best METALLIC conductor.  Graphene is a better conductor, and of course there are superconductors.  Both are exotic expensive, in, at least for the moment, impractical.

But yes, physical silver is the "next big thing", and I am fairly certain it will trade at parity with gold, and beyond, but keep in mind that that will be a blow off top.

Fri, 06/17/2011 - 18:47 | 1378983 doggings
doggings's picture

First of all, the Comex and the bankers mutually masturbate each other on a daily basis, so one can be assured that any threat of default will be quickly resolved with no repercussions. Think about it.

take your cut and paste shit somewhere else you moron.

Sat, 06/18/2011 - 01:44 | 1379703 Libertarians fo...
Libertarians for Prosperity's picture

LOL

You idiot, that guy did a copy/paste of ME!  Perhaps you should read the entire link that you, yourself, provided....  in the last paragraph, the guy even admitted that he copied it from "elsewhere."

Furthermore, look at the time/date stamp of that post.  It was posted over 24 hours AFTER my post.

If you want to call me out, get your shit together first.

 

 

Tue, 06/14/2011 - 23:52 | 1369920 Oh regional Indian
Oh regional Indian's picture

Perhaps:

"Printable = Edible"

ORI

Wed, 06/15/2011 - 00:22 | 1369943 Slewburger
Slewburger's picture

Thanks

Spellcheck + Slewburger= bad.

Tue, 06/14/2011 - 22:04 | 1369679 bankrupt JPM bu...
bankrupt JPM buy silver's picture

Its okay, Kid Dynamite says they are fine, nothign to worry about.  LOL

www.silvergoldsilver.blogspot.com

Tue, 06/14/2011 - 22:45 | 1369788 jeff montanye
jeff montanye's picture

that line looks like it points northwest (or southeast).

Wed, 06/15/2011 - 05:30 | 1370242 Weisbrot
Weisbrot's picture

 

its the JPM-Comex Going Out of Business Sale.

 

 

Wed, 06/15/2011 - 07:08 | 1370311 Long-John-Silver
Long-John-Silver's picture

Silver has been clearance priced sense that infamous Sunday evening take-down. A few more weeks at these prices and they can sell the (empty) vaults and retire to the Cayman Islands.

Wed, 06/15/2011 - 07:54 | 1370377 beanieville
beanieville's picture

You're still a bunghole for loading up on gold and silver:

http://bettertrading.blogspot.com/2011/06/you-are-still-bunghole-for-loa...

Tue, 06/14/2011 - 21:35 | 1369593 ihedgemyhedges
ihedgemyhedges's picture

"......at what point will the general public wake up............"

ROFLMAO!!!!!!  Maybe when Elvis or Michael Jackson come out with another hit.......

Tue, 06/14/2011 - 22:43 | 1369783 dedicatedhostin...
dedicatedhostingservices's picture

They'll wake up when it's just a little bit too late.  Of course some of the more aware and alert have already been awakening, and a few more will, but the general public are in dreamland.dedicated hosting

Wed, 06/15/2011 - 08:02 | 1370405 sullymandias
sullymandias's picture

"Wake up! Time to die." -Leon

Tue, 06/14/2011 - 21:36 | 1369594 rich_maverick
rich_maverick's picture

The key question will be: "when will I have more physical silver then the CRIMEX"?

Tue, 06/14/2011 - 21:46 | 1369622 Top_Kill
Top_Kill's picture

+ 28 million

Tue, 06/14/2011 - 22:00 | 1369667 SWRichmond
SWRichmond's picture

If you rephrased the question to be "when will I have more physical silver than SLV?" the answer is probably "you already do."

Tue, 06/14/2011 - 22:09 | 1369700 rich_maverick
rich_maverick's picture

I already know I have more silver than SLV.  It just would be funny if the day came when I had more than the CRIMEX.  I personally think that KITCO fiasco was more of an attempt of raiding their physical pools of gold/silver than a tax issue.  It seems to me that the PTB are getting desperate and are attempting at killing off anyone who is not part of their core group before letting the system implode on itself.  I can see the day come when the government will make it illegal to buy physical silver, for our own good of course.  Followed by physical gold...  as you know, this stuff is way to speculative.  But, paper gold aand silver will always be for sale of course.  As that is not speculative...  no... no... 

Tue, 06/14/2011 - 22:22 | 1369731 Mediocritas
Mediocritas's picture

ROFL. Not long now and we all will.

Wed, 06/15/2011 - 06:22 | 1370273 StychoKiller
StychoKiller's picture

Darn it, guess I'm gonna have to break out the shovel and head to the back yard -- ya got $5 to pay me? :>D

Tue, 06/14/2011 - 21:39 | 1369598 Glasgow Gary
Glasgow Gary's picture

Let's see. As of today's CME Report, there are 42,810 open contracts for July's contract.

http://www.cmegroup.com/tools-information/build-a-report.html?report=dai...

That amount of open interest represents 214,050,000 ounces. (42,810*5000). Set against, what, 27,000,000 Comex ounces?

Hey, this could become very entertaining.

GG

Tue, 06/14/2011 - 23:49 | 1369915 AUD
AUD's picture

The question is how many of those deliverable contracts will be delivered. Open interest in the September contract is rising rapidly, as it usually does, suggesting contracts are being rolled over.

Wed, 06/15/2011 - 04:59 | 1370224 shortus cynicus
shortus cynicus's picture

The funny thing is that increased margins, lover price, falling inventory  encourage strongly for taking delivery.

There is no way that this situation may last forever. What can't go must stop.

 

Wed, 06/15/2011 - 07:17 | 1370322 Sean7k
Sean7k's picture

In May, most of the contracts took cash payoffs, so the numbers are not as important as how many actually stand for delivery.

Of more interest to me, is the removal of silver from customer vaults. The withdrawls have been greater than the silver needed to satisfy contracts. Thus, the drawdown in comex inventory.

Between the Chinese taking delivery on SLV and these drawdowns, the Crimex could become an anachonism. Couldn't happen to a nicer group of Demons, opps Dimons.

Tue, 06/14/2011 - 21:44 | 1369608 JR
JR's picture

Treasury whines about cost of Ron Paul’s proposed Fort Knox audit | W.C. Varones | 6/14/2011

CNBC:

The Treasury document says it would cost about $15 million to conduct an audit. The process would take about 30 minutes to verify the gold content of each bar, or 350,000 man hours, to do that would take 400 people working for six months, according to the document.

$15 million??? The Fed is printing $140 million a day. That’s less than nine minutes of Fed printing.  The Federal government spends $3.5 trillion a year.  $15 million is less than a minute and a half of government spending. Obama’s Porkulus was $800 billion.  $15 million is less than 0.002% of Porkulus.

And 400 people working for six months sounds like shovel-ready jobs to me. Wasn’t the Obama Administration for stimulus before they were against it?

http://www.activistpost.com/

Tue, 06/14/2011 - 22:01 | 1369668 Hansel
Hansel's picture

Treasury is full of shit.  First, $15 mil/350,000 hrs = $43 per hour.  I bet people will do it for less.  Second, that 30 minutes per bar sounds like a full assay i.e. drilling each bar.  I bet a good first estimate could be made by weighing the bars and using ultrasound.  Would take maybe 2 minutes per bar.

See Ultrasound Gold Bar Testing - Youtube.

Using an estimate of 5 minutes per bar, it would take 58,000 hrs and $2.5 million.  For a 70,000,000 oz investment worth $107 billion, it would be worth it.

Tue, 06/14/2011 - 22:18 | 1369729 RockyRacoon
RockyRacoon's picture

You omitted the onerous task of filling out all the forms with serial numbers and all that.  You'd have to add maybe 2 more minutes!

Wed, 06/15/2011 - 00:25 | 1369961 Selah
Selah's picture

 

Rocky,

This entire process is done every year:

The Mint is audited annually by the Treasury's Office of the Inspector General.

 

Wed, 06/15/2011 - 01:18 | 1370040 HungrySeagull
HungrySeagull's picture

Or issue a bar to every unemployed american with homework assignment. That will solve it overnight.

Wed, 06/15/2011 - 05:10 | 1370231 Quintus
Quintus's picture

Since when was Fort Knox = The Mint?

Wed, 06/15/2011 - 23:54 | 1373536 RockyRacoon
RockyRacoon's picture

Thanks for saving me the trouble of pointing that out.

Treasury / Mint / Ft Knox  = total disconnect.

Wed, 06/15/2011 - 07:24 | 1370327 Sean7k
Sean7k's picture

One of the benfits of an audit is that you can then display the audit to assure people of your honesty in accounting. If the audit isn't available, it isn't an audit of any value.

Tue, 06/14/2011 - 22:23 | 1369735 JR
JR's picture

+ $12.5 million!  But hey, it’s only FRNs. A week alone in the GAO and I think you would solve America’s financial woes – but then … Congress would just show up for "work" again.

Tue, 06/14/2011 - 22:24 | 1369737 Mediocritas
Mediocritas's picture

I'll bet there'd be a load of curious people around the world who'd be prepared to work on the audit for FREE, just to find the answer to a question that's been on their minds for decades. $15 million my ass.

Wed, 06/15/2011 - 07:12 | 1370316 Long-John-Silver
Long-John-Silver's picture

Sign me up! Just feed and house me and I'll work 12 hours a day counting, testing, and logging Gold.

Tue, 06/14/2011 - 22:19 | 1369722 Arnolds Love Child
Arnolds Love Child's picture

Is he trying to get whacked?

Tue, 06/14/2011 - 22:51 | 1369814 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

FT. KNOX AUDIT:  Picture an enclosed building the size of the superdome.  This Ft. Knox building is pitch black and seemingly empty.  Way off about 150 yards in the NE corner you see what looks like a small lamp on top of a table.  You calmly stroll over with your flashlight brushing away cobwebs and dodging bats as you meander forward.  You finally arrive along with your TSA goon escort who still has his hands in your pants.  You come upon an old scratched up cobweb infested desk and immediately under the glow of the flickering lamp you find the entirety of what's left of the U. S. Gold Reserves, two 10 gram pamp suisse gold bars and one bar is missing its assay card.  The news hits Wall Street and gold falls $80 the next trading day.

 

Tuco Benedicto Pacifico Juan Maria Ramirez

Wed, 06/15/2011 - 01:37 | 1370063 traderjoe
traderjoe's picture

Decent narrative, but if ft knox is empty, I'll bet on a $100 jump in gold instead of an $80 drop. 

Wed, 06/15/2011 - 01:42 | 1370073 Monedas
Monedas's picture

And the DOW soars !

Wed, 06/15/2011 - 01:37 | 1370064 Mec-sick-o
Mec-sick-o's picture

And it will create jobs!

Wed, 06/15/2011 - 07:42 | 1370355 Urban Redneck
Urban Redneck's picture

Shovel-Ready Jobs (figuratively or literally).

Wed, 06/15/2011 - 02:29 | 1370121 hound dog vigilante
hound dog vigilante's picture

"Wasn’t the Obama Administration for stimulus before they were against it?"

 

Brilliant.

Wed, 06/15/2011 - 08:30 | 1370464 Bindar Dundat
Bindar Dundat's picture

Random sampling is all they need to do!   Get a QA person to give them the numbers but I bet that 100% screen $ 15 Million price tag is just a smokescreen to get out of the task of proving they have gold.  Can anyone scream  FRAUD!

Wed, 06/15/2011 - 08:30 | 1370465 Bindar Dundat
Bindar Dundat's picture

Random sampling is all they need to do!   Get a QA person to give them the numbers but I bet that 100% screen $ 15 Million price tag is just a smokescreen to get out of the task of proving they have gold.  Can anyone scream  FRAUD!

Wed, 06/15/2011 - 08:27 | 1370466 Bindar Dundat
Bindar Dundat's picture

Random sampling is all they need to do!   Get a QA person to give them the numbers but I bet that 100% screen $ 15 Million price tag is just a smokescreen to get out of the task of proving they have gold.  Can anyone scream  FRAUD!

Wed, 06/15/2011 - 08:27 | 1370467 Bindar Dundat
Bindar Dundat's picture

Random sampling is all they need to do!   Get a QA person to give them the numbers but I bet that 100% screen $ 15 Million price tag is just a smokescreen to get out of the task of proving they have gold.  Can anyone scream  FRAUD!

Wed, 06/15/2011 - 08:28 | 1370473 Bindar Dundat
Bindar Dundat's picture

Random sampling is all they need to do!   Get a QA person to give them the numbers but I bet that 100% screen $ 15 Million price tag is just a smokescreen to get out of the task of proving they have gold.  Can anyone scream  FRAUD!

Tue, 06/14/2011 - 21:47 | 1369609 HamyWanger
HamyWanger's picture

It only takes $5 to dig silver out of the ground, bitchez

I have contacts in big South America mining companies who have confirmed that there was an enormous oversupply since ~April/May. 

Add to that the dropping paper price which will lead to panick some redneck silverbugs, and the slaughter is far from over. 

Tue, 06/14/2011 - 21:51 | 1369627 alexdg
alexdg's picture

If only we could get Saudi Arabia to sell that on-shore sweet crude for the measly 2 bucks it costs them to pump out of the ground...

Tue, 06/14/2011 - 22:00 | 1369676 darkaeye
darkaeye's picture

So Hamy, how much did they pay you for your offering at the brain donor clinic?

Tue, 06/14/2011 - 22:17 | 1369717 XenoFrog
XenoFrog's picture

Don't steal MathMan's schtick.

Tue, 06/14/2011 - 22:27 | 1369757 Irwin Fletcher
Irwin Fletcher's picture

My my my boyfriend

Hits me so hard

Makes me say

Oh My Lord!

Thank you!

For blessing me

With a mind to whine and a fast PC

It's good...

And maybe too much

But this is a troll UNH!

U can't touch.

U can't touch this

U can't touch this

HamyTime

Tue, 06/14/2011 - 22:46 | 1369804 rokuogun
rokuogun's picture

I have 5$,  where do I start?

Wed, 06/15/2011 - 04:26 | 1370203 Reptil
Reptil's picture

What a pathetic attempt of trolling.

Sure it's 5 bucks to get it out. Then you have to process, refine, cast, distribute. When it's sitting in the vault of the (solvent) bank here, assayed and all, it's at least 20 FRN. Also, most silver is mined as a by product (of copper mostly), so if/when the economy tanks, there's going to be less copper mining. But there still will be a demand for solar, ergo, price goes up.

Wed, 06/15/2011 - 08:07 | 1370407 GetZeeGold
GetZeeGold's picture

 

It's $5 for the company that owns the 50 million in equipment to get it out.

They most certainly will pass the costs on to you.

 

 

Wed, 06/15/2011 - 08:52 | 1370520 tmosley
tmosley's picture

After they sell all of the side products, literally tons of metal.

Wed, 06/15/2011 - 14:31 | 1372021 Lord Koos
Lord Koos's picture

Yo, bitch.  Give it a rest with your $5 bullshit. Gold extraction resembles petroleum in that the low-hanging fruit has already been picked. A decade ago the average cost of extracting an ounce of gold from the ground stood at a little over $200. In 2010 it hit $857, says GFMS (http://www.gfms.co.uk/whoweare_background.htmthough this figure depends in part on the gold price. When gold was $200 an ounce, nuggets that cost $800 to extract stayed buried.

Tue, 06/14/2011 - 21:46 | 1369611 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

I'm so bullish my dick is bulging outa my pants and touching the screen...I actually feel like a bull that needs to go out and impregnate a mare

Tue, 06/14/2011 - 21:48 | 1369616 Cheesy Bastard
Cheesy Bastard's picture

Settle down congressman.

Tue, 06/14/2011 - 21:48 | 1369630 ihedgemyhedges
ihedgemyhedges's picture

A mare would be impregnated by a stallion.  A female COW would be impregnated by a bull.

Dude, you are warped.................................

Tue, 06/14/2011 - 21:54 | 1369644 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

ok farmboy, you're cearly the expert when it comes to animal fucking

My comment wasn't ment literally, I like human women. If you like animals thats your business - each to his own I say

Tue, 06/14/2011 - 21:59 | 1369663 ihedgemyhedges
ihedgemyhedges's picture

Glad you clarified women by saying human...............I usually don't call female animals women.  Obviously, you needed to distinguish.  And I'm sure you "ment" well.

<Ignore>

Wed, 06/15/2011 - 06:02 | 1370260 fredquimby
fredquimby's picture

It's called inter-species erotica if you don't mind....

 

 

 

P;S thats from Clerks2 not me!

Wed, 06/15/2011 - 07:59 | 1370389 Urban Redneck
Urban Redneck's picture

Mules & Ligers.  One is actually extremely important to the business of humping large quantities of guns, drugs, and even humanitarian aid over mountainous terrain where well maintained roads do not exist.   The other will be actually extremely valuable in any post-collapse banker-baiting bread-and-circus enterprise.     

Tue, 06/14/2011 - 21:52 | 1369634 spear-x
spear-x's picture

Stallions impregnate mares. Bulls impregnate cows, dumbass.

Tue, 06/14/2011 - 21:54 | 1369645 HamyWanger
HamyWanger's picture

And the PigMen impregnate doomer goldbugs. 

Wed, 06/15/2011 - 14:23 | 1371977 akak
akak's picture

And Hamy is willingly impregnated by his NIA and CIA paymasters --- through the backdoor.

Tue, 06/14/2011 - 21:52 | 1369652 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

ok, I think there's still room in there for you too, just under the other guys ball sack

Tue, 06/14/2011 - 22:01 | 1369680 thatthingcanfly
thatthingcanfly's picture

R-tard, just admit your rather comical mistake and laugh about it with the rest of us. Jesus.

Tue, 06/14/2011 - 22:38 | 1369781 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Whatever.  Hillary is still avaiable.  Just tie a long 2 X 6 to your back so you don't fall in!

 

Tuco Benedicto Pacifico Juan Maria Ramirez

Wed, 06/15/2011 - 00:29 | 1369966 DoChenRollingBearing
DoChenRollingBearing's picture

Laugh of the evening Tuco!

Wed, 06/15/2011 - 00:42 | 1369992 RafterManFMJ
RafterManFMJ's picture

Hogs get fat; sheep get slaughtered.

Wed, 06/15/2011 - 07:22 | 1370323 Long-John-Silver
Long-John-Silver's picture

How's life in that sexual rehab clinic Rep. Weiner?

Wed, 06/15/2011 - 07:23 | 1370330 Al Gorerhythm
Al Gorerhythm's picture

And eggs come from a carton.

Tue, 06/14/2011 - 21:46 | 1369625 Ricky Roma
Ricky Roma's picture

ba ba ba boooooooya!

Tue, 06/14/2011 - 21:53 | 1369637 ZeroPower
ZeroPower's picture

or is the preparation for a Hunt Bros squeeze, now that there is 32% less silver (27.9MM vs 41MM on April 19) than there was 2 months ago

Amount of deliverable silver has never mattered with respect to px on the COMEX. 

Tue, 06/14/2011 - 21:59 | 1369654 mogul rider
mogul rider's picture

Oh great

Here comes the silver pump again.

We used to just have it laying around as a 100oz door stops now because the pump is now officially on again I'll have to go to home depot and buy one of those door wedges to replace the last100 ounces bricks I sold at 49.10/ounce and bought back at 32.60. Thanks BTW

Only my tradeable silver that is. But still guys can't we just have Armegeddon first before you pump the hell out of it and then go to the grocery store to trade it in?

 

 

 

 

Tue, 06/14/2011 - 22:02 | 1369684 Bay of Pigs
Bay of Pigs's picture

Picked the top and the bottom perfectly did you? No doubt.

You're a very bad liar mogul. 

Tue, 06/14/2011 - 22:28 | 1369749 traderjoe
traderjoe's picture

If it actually touched $32.60, that might have been a paper price trading after-hours. Of course, when the coin shops are closed - and of course he purchased without a premium. 

Wed, 06/15/2011 - 08:32 | 1370468 oddjob
oddjob's picture

I sold it all but I still have some. Nice.

Tue, 06/14/2011 - 22:02 | 1369671 mickeyman
mickeyman's picture

What I find interesting is that just at year-end the silver in the COMEX drops dramatically, only to rebound again early in the new year--like it is being transferred somewhere else for a formal audit, after which it is whooshed back to the COMEX warehouse. I wonder how many different groups "own" that silver?

Tue, 06/14/2011 - 23:48 | 1369918 BankRiot
BankRiot's picture

Harvey Organ thinks that SLV, Comex & London "own" the same 28 Million ounce silver inventory. 

Wed, 06/15/2011 - 08:30 | 1370482 Urban Redneck
Urban Redneck's picture

"London" is rather vague especially given the differences between the LBMA, the City, and the BoE.

There is are several big pots of silver in London.  Comex is the weak hand, whose folding could trigger an exodus, but their hand is most likely much stronger than 28 million ounces if a gun is put to their head.

However, the grand canyon was formed by a persistent drip over a long period of time. 

http://www.zerohedge.com/article/comex-registered-silver-bullion-inventories-fall-sharp-385-two-weeks-%E2%80%93-risk-comex-silver-def#comment-1332353

http://www.zerohedge.com/article/comex-physical-silver-drops-fresh-all-time-low-288-million-ounces-3-drop-overnight-30-drop-s#comment-1346634

Tue, 06/14/2011 - 21:59 | 1369675 nmewn
nmewn's picture

Just smile & wave boys, smile & wave ;-)

Tue, 06/14/2011 - 22:13 | 1369705 Stuck on Zero
Stuck on Zero's picture

The next ruke at the COMEX will be silver metal sales only.  No buy orders. 

Tue, 06/14/2011 - 23:38 | 1369908 Manthong
Manthong's picture

They did that to Hunt.

Tue, 06/14/2011 - 22:18 | 1369718 rsnoble
rsnoble's picture

So wtf, is silver going lower or not?  The only person I know on a personal level that trades it and is a millionaire sold all his weeks ago and said that trade was done for awhile.

Tue, 06/14/2011 - 22:24 | 1369739 web bot
web bot's picture

He did this because silver to him is not an insurance policy, he treated it as an investment.

Don't confuse insurance with investment. I believe he'll reget the day he did this.

Tue, 06/14/2011 - 22:32 | 1369761 tmosley
tmosley's picture

Paper silver is going to zero.

Physical silver, loosed from the bonds of the paper market, will explode, as the COMEX defaults.  50% chance it happens in July.

Wed, 06/15/2011 - 00:41 | 1369985 Libertarians fo...
Libertarians for Prosperity's picture

You've been pumping the "Comex default" story for a year.  A fucking year!

Every few months, you tell everyone it's imminent.  Then it doesn't happen, a few months go by, and you pump it again. 

WTF is wrong with you?  

Wed, 06/15/2011 - 01:39 | 1370067 traderjoe
traderjoe's picture

HuffPo's calling - they want their super-commenter back. 

Wed, 06/15/2011 - 08:10 | 1370421 tmosley
tmosley's picture

Uhh, because they started defaulting last December?  They have defaulted on dozens or hundreds of contracts every delivery month since.  They are delivering paper instead of silver.

Dumbshit.

Wed, 06/15/2011 - 09:59 | 1370730 Libertarians fo...
Libertarians for Prosperity's picture

Oh, so now you're changing your definition of "default."  If the "default" already happened, and has happened every month since December, why do you keep parroting that a default is imminent?  50/50 chance of default by July?  You've just changed your definition of default to excuse the fact that you've been parroting the threat of default for a year or more.   

You truly have NO idea how the Comex works.  The Comex is a pricing mechanism, it's an exchange.  The Comex does not need to deliver the silver.  The sellers, and brokers who represent the sellers do. 

By the way, the reason paper is being delivered is because that's what the buyers fucking want.  The vast majority of contract holders are just paper investors, who are perfectly content flipping the paper for profit.  It's only the doomer goons who want to put their $400 worth of stupid coins under their lettuce patch.  

You seriously need to STFU, and stop spreading your disinformation to everyone. 

Wed, 06/15/2011 - 10:13 | 1370789 tmosley
tmosley's picture

No, it has always been the same.  The default will just become total and public as they RUN OUT of silver in their inventory.

Jesus Christ, how do you survive in the world with your level of complete ignorance?  Yes, the sellers have to deliver the silver, but the trades are INSURED BY THE EXCHANGE.  If the seller can't come up with the silver, the exchange has to make up the difference.  Further, the inventory of the sellers is counted IN THE COMEX VAULTS.  This is exactly what we are talking about.  Sure, there are a lot of paper trades, a given contract might change hands a hundred times prior to expiry, but at the end of the day, it winds up in the hands of someone who wants to take delivery, and it is created by someone who wanted to hedge production (ie they want to deliver real, physical silver).

And more ignorant lies.  If they just wanted paper, they would roll their positions before the end of the front month.  In order to stand for delivery, they have to pony up a bunch of cash.  Why would a paper trader do that?  These guys trade on LEVERAGE.  Why would they divest themselves of leverage just to get more paper, when they could roll it for free?

Get the fuck out of here, RNR.  You have no clue how exchanges work.  You just keep registering new names so you can try, try again to discredit me.  Guess what, idiot?  You can't.  Because I know what the fuck I am talking about.

Wed, 06/15/2011 - 08:35 | 1370486 oddjob
oddjob's picture
Libertarians for Prosperity History
Member for
2 weeks 4 days

One year?

Wed, 06/15/2011 - 08:54 | 1370524 tmosley
tmosley's picture

He's the latest of RNR's sock puppets.

The man is a coward and a liar.  You can't expect anything from scum like him.

Wed, 06/15/2011 - 06:17 | 1370271 fredquimby
fredquimby's picture

Most I know are selling or holding......so I just bought this morning. Call +47.50 by end September and call +55 by end march and +1800 by Xmas.....

Sooooo cheap I just couldna resist.....

P.S When I go long, it is usually a seriously good time to go short ;)

Cheers!

Fred aka The Dumbmoney.

Tue, 06/14/2011 - 22:15 | 1369721 Bluz
Bluz's picture

You have to love this movie. It probably has multiple endings. We all know the real ending ending.

Tue, 06/14/2011 - 22:20 | 1369724 youngman
youngman's picture

The Powers that be....and that is not us boys...are getting their treasures out of dodge as fast as they can...this will speed up as the boys get scared that they might be left out without any of their stolen treasure....they have the computers tanking the price everyday...and the good stuff is leaving the barn....hmmmm..I think we have two months....

Tue, 06/14/2011 - 22:19 | 1369732 bob_dabolina
bob_dabolina's picture

This comex issue is moot. 

It's nothing other than a distraction for the idiots that follow it. 

Tue, 06/14/2011 - 22:29 | 1369765 Gordon Freeman
Gordon Freeman's picture

Word!

Tue, 06/14/2011 - 22:43 | 1369793 Bay of Pigs
Bay of Pigs's picture

So you and Bob think Tyler Durden is an idiot for posting this information? 

You guys don't seem to care for any material changes or relevant details on the silver market do you? 

Tue, 06/14/2011 - 22:34 | 1369766 tmosley
tmosley's picture

Your agenda is clear, boy.

"Supply doesn't matter!"  "Demand doesn't matter!"  "Except when I say it does!"

Funny how things always seem to turn out exactly as I predict.

Wed, 06/15/2011 - 00:40 | 1369989 JW n FL
JW n FL's picture

"T" anyone with a brain knows where this is going.. only the Government and the idiots that are in LOVE! with the Government dont see it coming.

 

Just let it go man, educate who you can and ignore the idiots.. you have a better uses of your time, like helping instead of talking trash.. once again, be the bigger man.

Tue, 06/14/2011 - 22:28 | 1369762 Gordon Freeman
Gordon Freeman's picture

I predict that July will come and go, with nary a ripple--just like all the other times the Comex' imminent demise gets discussed.  How can you guys claim it's all about to blow, based on their "numbers"??  

They can do whatever they want--it's their casino.  Get it through your heads, and quit betting on some hypothetical (and always just out of reach)"physical" windfall.  

The price of silver will rise perfectly well on its own steam, over time.  The Comex shenanigans are just a sideshow--don't get caught up in it.  They can keep their games up there as long as they want.

Tue, 06/14/2011 - 22:35 | 1369769 tmosley
tmosley's picture

What part of "historic low" don't you understand?

Tue, 06/14/2011 - 23:03 | 1369833 vato poco
vato poco's picture

hey, i'm all for hoping sliver goes to the moon too, but freeman DOES have a point about 'casinos' and 'rules'. when the scumbag corporations running the vegas casinos into the ground decided they needed to squeeze out a few more points of ROI, what'd they do? why, they *changed the 100+-year-old payouts on blackjack* is all. single-deck. blackjack paid 1.5 to 1. always has, always did. then the MBA boys decided that no, that wasn't fair enough to them and their banker friends, so they cut the payout to 1.2-to-1. that's a HUGE whack on the long-term run. don't like it? tough shit.

then, just to make sure we all knew who the boss was and who the bitches are, they posted up on their neon signs, "New Payouts! By Popular Demand!"

sure sounds like the crimex to ME. "when the going gets tough, The Tough Change The Rules." they've done it (a lot) before - 5 times in 9 days, IIRC. why wouldn't anyone think they'll do it again as needed?

Wed, 06/15/2011 - 00:08 | 1369941 tmosley
tmosley's picture

And you wonder why Vegas is empty?

When they change the rules, the players go elsewhere.  Same will happen here.  Even if it means opening a new futures exchange.

Thing is, we have another one now for gold.  Wouldn't be much of a stretch for them to start trading silver futures as well.

But yes, the rule changes will drive the paper price to zero.  Until the new exchanges open.  Then all the volume shifts, and the price explodes as true price discovery is had (in the environment of an industrial user panic).

Those users who hedge on the COMEX beware.  You'll be buying from us, and soon.  And at prices that will split your skulls.

Wed, 06/15/2011 - 04:02 | 1370188 IQ 145
IQ 145's picture

 Wrong again and again and again; and still mouthy. Still zipping right along with the sound bite summations that reveal a vast echoing ignorance of the entire subject. A perfect blog participant!

Wed, 06/15/2011 - 06:36 | 1370280 StychoKiller
StychoKiller's picture

I can think of $14Trillion+ reasons why he/she is correct.  Look up exponential functions on wikipedia.

Wed, 06/15/2011 - 08:16 | 1370428 tmosley
tmosley's picture

Talking about yourself?

If you are going to talk about how someone is wrong all the time, it might help to actually, you know, point out where they are actually wrong, rather than waving your hands like a moron.

Wed, 06/15/2011 - 09:53 | 1370709 trav7777
trav7777's picture

glad to see that you've finally honestly confirmed that you are nothing but a fucking speculator

Wed, 06/15/2011 - 10:07 | 1370759 Bay of Pigs
Bay of Pigs's picture

We're all "speculators" you fucking douchebag.

 

Wed, 06/15/2011 - 10:20 | 1370803 tmosley
tmosley's picture

So are you, you dishonest mother fucking silver holder.

Go castrate a gibbon and leave the adults to have rational discussions.

Tue, 06/14/2011 - 22:48 | 1369806 Bullionaire
Bullionaire's picture

Contrast the above chart with the corresponding "eligible" inventory chart:

 

http://www.24hgold.com/english/interactive_chart.aspx?title=COMEX%20WARE...

 

Clearly in mid-April, big money called in their physical silver.  This pissed off TPTB so badly that they retaliated with the "Osama Shakeout of 2011" which crushed the paper price.  Big money is usually right.

 

Silver bitchez.

 

 

Wed, 06/15/2011 - 00:43 | 1369994 JW n FL
JW n FL's picture

people are buying gold and silver becuase they see that the idiots in Washington, the Republicans! are going to blow it all up! they are looking for the end of the world! the debt ceiling is the first domino in their plan to end the world! LOL!!

Wed, 06/15/2011 - 07:06 | 1370304 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

Totally agree. The powers that be still have several aces up their sleaves, and will hit the price several more times along the way. But as Jim Rogers has been saying, the path with least resistance will be upwards - which is good. We want a steady orderly rise.

Unlike my pecker...

Tue, 06/14/2011 - 22:42 | 1369792 RobotTrader
RobotTrader's picture

All that matters is the spot price posted on the COMEX, Kitco, or any other financial site.

And that price is pushed by paper contracts only, based on whether or not it is "Risk ON" or Risk OFF".

So forget about the physical metal.

In today's "Hedge Fund Hysteria" world, bit-flipping paper contracts is really the only thing that moves price.

The only way that will change is if a huge foreign central bank shows up one day with a floating barge and wants to buy all the physical silver that is available.

But I doubt that is going to happen any time soon.  Central banks are still busy wolfing down Uncle Gorilla notes and bills paying less than 2%...

LOL...

Tue, 06/14/2011 - 22:50 | 1369805 Bay of Pigs
Bay of Pigs's picture

"So forget about the physical metal."

You've really lost it...

Wed, 06/15/2011 - 00:33 | 1369978 Selah
Selah's picture

 

No, Robo hasn't lost it; he just doesn't break character.

He presents an accurately cynical view-point of the world.

However, I like him better when he juxtaposes his irony with pictures of hot babes...

 

Wed, 06/15/2011 - 01:43 | 1370075 traderjoe
traderjoe's picture

He hasn't posted a hot babe in awhile. My theory is that he's simply a troll - and knows that was the only part of his posts that people looked forward to. Therefore, he's taken the only joy out of his posts so that he can increase the pain of reading his drivel. 

Wed, 06/15/2011 - 05:47 | 1370255 MisterMousePotato
MisterMousePotato's picture

In fact, he has not posted hot babes in a very, very long time. Even though I visit this site for other reasons (seriously), I am, I confess, disappointed every time he posts. I think he is doing it to spite me or something.

I take the weather personally, too.

Wed, 06/15/2011 - 08:07 | 1370408 speedy
speedy's picture

Robo was the inspiration for my avatar!

I must admit I only read his posts for the hot babes.

Wed, 06/15/2011 - 09:24 | 1370617 gwar5
gwar5's picture

Awesome avatar!

 

Tue, 06/14/2011 - 23:58 | 1369932 quartshort
quartshort's picture

InbredRobot! I thought you'd never (not) open your pie hole... I understand what you are getting at with your comments. You are just blatently pointing out the obvious. The rule makers are in charge. Until they are not. Your two minute look in the future (and markets as well) seems to be your downfall. Yes paper silver currently drives price and I use it to my advantage to purchase. So far I have done well. It can drop to $20 and I will laugh all the way to the coin shop. If you have not noticed there is very little to be done by way of charts or by expecting the rules to stay put. What I am saying is we are experiencing psyhcological price point at this stage. I sat on the sidelines while the price popped up and back down. When it was floundering in the mid thirtys I realized the mindset and mental block I had set for myself (for me anyway) was four shiny coins for a benny vs. three. This was a big hurdle. So I looked at it another way. What is the average price per oz I would feel comfortable holding? For me it was $25. So I gave myself a little wiggle room. Now if the price falls below that I will buy every fucking oz within reach. There is my game plan. So suck it. I'll take my stash & you take yours- trial by fire...

Wed, 06/15/2011 - 00:35 | 1369977 quartshort
quartshort's picture

Ok I am an idiot. After reading my post I did not mention buying a large chunk @ 33.4 + $1.10 over spot. Thus getting me off the fence. Damn these "smart" phones I am replying to myself!!

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