Guest Post: Anatomy Of Silver Manipulation - How Low Can It Go?

Tyler Durden's picture

From Avery Goodman, first posted on Seeking Alpha

Anatomy Of Silver Manipulation - How Low Can It Go?

As we warned
our readers on May 1, 2011, when silver had clawed its way back to
about $48 per ounce: “We expect another massive price attack in the next
few days.”

We came to this conclusion based upon a
number of factors, including the impending opening of the Hong Kong
Merchantile Exchange, which will be controlled by many of the same
international players who control NYMEX. Like clockwork, a vicious
attack, perhaps the most ferocious one ever mounted in the history of
precious metals, began on Monday, May 2, 2011. We knew it was coming, but to be honest, we didn’t expect the level of ferocity. Following
our own suggestions, when silver had tanked by about 18%, we entered
into a small speculative long position, using the SIVR silver trust. The price punched right through the minor support level we had chosen, and continued down.

Had
we realized the depth of the silver short seller despair, we would have
played the game a bit differently. We would have waited longer, bought
a lot more later on, and created a much longer term position. As it is,
we have lost nearly nothing, and will do it anyway. Nevertheless, as
irrational as this kind of thinking is, and as much as we warn people
against it, human beings are human beings and we are not happy about
putting on a little bet, no matter how small, that fails to catch the
bottom of a dip.

The level of despair among short sellers, which
is motivating this attack, is growing. Anything could happen at this
point. They could give up entirely, or the attack could become more
ferocious. We don't know. What we do know is that the short sellers'
predicament has just grown worse. They will eventually become even more
desperate than they are now as weeks and months pass by. We will
explain why shortly.

read the rest here

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suckerfishzilla's picture

Metal brokers in Portland Oregon are still honoring the take-down price of Silver.  I just bought in at $39.50/oz.

TruthInSunshine's picture

OT.

 

Gotta' love James Cramer, aka Captain Slow.

 

05-09 15:30: Jim Cramer says the banking business is not good
Ahmeexnal's picture

Silver asteroid approaching earth:

 

http://www.foxnews.com/scitech/2011/05/09/big-asteroids-approach-novembe...

 

An asteroid the size of an aircraft carrier will come closer to Earth this autumn than our own moon does, causing scientists to hold their breath as it zooms by.

 

 

 

Bicycle Repairman's picture

You left out an important detail.

"There's no danger of an impact when the asteroid 2005 YU55 makes its close flyby Nov. 8, coming within 201,700 miles (325,000 kilometers) of Earth, scientists say."

cosmictrainwreck's picture

WOW.... I feel so much better now. Hope those scientists are of the "reputable" variety; or maybe "experts", even. Reminder: it's the one ya didn't see....

hidingfromhelis's picture

Yeah, if they were economists then we'd really have something to worry about!

agNau's picture

Comet Blythe is approaching. Scientist's estimate it will wipe out all the Silver longs.

earnyermoney's picture

Right on the heels of another comet, comet Elenin. That comet is to approach earth within .2 AU on the 25th of September. JPL has soom java based applets that model the trajectory of these near earth objects.

Elenin was heading to it's farthest point away from our sun 200 years before the birth of Christ. Hope it's visible in North Amarica and we have clear skies that day.

Pegasus Muse's picture

Metal brokers in Portland Oregon are still honoring the take-down price of Silver.  I just bought in at $39.50/oz.

Aren't you lucky!  Other major dealers don't seem to be following suit.  If fact at least one is out of stock of some of its more popular items.

http://www.apmex.com/Category/1238/IRA_Approved_Silver_Products.aspx

And on ebay prices have barely budged:

http://www.24hgold.com/english/buy_sell_silver_coins.aspx?co_id=0 

 

traderjoe's picture

If you can afford the minimum's - head on over to Tulving.

* I have no other affiliation then being a customer.

Hacked Economy's picture

This was a really well-written article, one of the special few that commanded my attention for its entirety.

@Pegasus,

With the dip in silver spot, I've been able to get below-melt-value purchases from eBay sellers again on silver coins (SAEs, of course, still command higher prices).  My most recent buy a few days ago was 7% under melt value (and that included shipping).  Gonna make some more buys this week.  The deals are there if you have the patience and time to look for them.  Some sellers are savvy, while others are noobs who simply inherited Grandpa's forgotten attic stash and want to liquidate for FRNs.

HellFish's picture

Do you have any worries about getting counterfeit metal?

OldTrooper's picture

Always a consideration - but the well-established sellers have earned high ratings over years.  They want happy customers as much as local dealers do (at least the US sellers do - never bought from foreigners).  Can pick up some decent deals buying on EBay - and there's always something available.  I've never had a problem.

But I've gotten good prices from local dealers too.  Often better than comparable items on EBay.

Shop Smart - Shop S-Mart.

suckerfishzilla's picture

columbiacoin dot com is the web address.  To buy in person go to 5048-B SE Hawthorne Blvd Portland OR.  They have a huge inventory still unlike many other outlets here in town.  I am not affiliated with them btw just good friends. 

suckerfishzilla's picture

Hey partner I tried to give you the exact address of the company but my comment doesn't get posted.  Just look in the phone directory for Portland Oregon and at 50th and SE Hawthorne is the flagship for Silver here in town.  There I hope that does it. 

achmachat's picture

i think this time i might actually have bought at a real dip!

i got lotsa physical for just above 28 €/ounce! The same shop has them already at 30,76 €/ounce.

I deserve a t-shirt that says: "I BTFD!"

AG BCN's picture

Premiums in Europe are well fu*ked up at the minute. My local dealer has become a greedy bastard. If I order from the US I have to dodge the Spanish customs, the UK is a no go due to the VAT. The German sites are no better than the Swiss now.

Where are you buying?

achmachat's picture

i am not in Germany but always buy my bullion from Germany, where I get the best deals.

this is the one I have ordered from last week:

http://www.geiger-edelmetalle.de/edelmetalle_info.php/info/p4_Wiener-Philharmoniker---Silber-1-oz.html

I used to get my bullion from a different dealer, but had to change to this one because the previous one can't deliver to my country anymore as they have reached their export quota.

Turd Ferguson's picture

I would just like to publicly state that "Avery Goodman" is not a pseudonym for "Turd Ferguson".

woolly mammoth's picture

The positive feedback you received on the WebBotForum interview was deserved. Well done Turd. I'm not an investor having chosen to interact with the system as little as possible, only buy and hold for me, regardless, I'm still looking forward to your new site and your insights.

geekgrrl's picture

It didn't sound like your writing, but I thought it was a very illuminating article all the same. BTW, love your blog, even though I'm not a trader. I think I am beginning to understand some of the elements of TA, so thanks for sharing your considerable insight!

Ray1968's picture

Lying, cheating, stealing Bastards!

Zero Govt's picture

Yep you can expect non-stop BS and PR (snake oil) by CME but it's way too late... the damage has been done, to the Silver price, investors and to any credibilty the CME/Comex held previously ..and if you needed any more evidence the emptying of Silver from the Comex should put the final nail in the coffin  

RockyRacoon's picture

From the article:

If those who have been dismissed as paranoid people end up being right, and there is not enough silver in the stockpile to cover claims, jail cells will be waiting.

I'll admit I got a chuckle outta that one.  Jail time?  That's really rich.

Ain't gonna happen.

Zero Govt's picture

there should be SEC investigations launched already for the vandalising of the Silver market by CME and the market volatility and investor fleecing they caused. But we're talking Chicago gangsters here under gun-them-down instructions from the usual New York Mafia... the crones (regulators) will do absolutely nothing about this insider trading or the mahem 'big organised crime' caused

...CME "helping farmers manage their risk" ...someone ought to warn the famers!

HelluvaEngineer's picture

These article already seems out of date to me. Below 22.50?

Hacked Economy's picture

Possibly, with the big boys manipulating things.  Who woulda seriously thunked two weeks ago that the spot would go from $49 down to $34?  Time will tell...we're in the Twilight Zone now.  Your next stop...end of Q2 in June.

<Twilight Zone music plays for dramatic effect>

Robslob's picture

All my "wire" transfers to APMEX go through JP Morgan Chase...a little concerning?

1 week later I got an offer for a new credit card from JP Morgan Chase....coincidence?

gordengeko's picture

Max it out and buy silver then default on the debt.

gordengeko's picture

Or after you max it out ask them to increase your debt so you can then make their payments.  If they say no, tell them fuck you then default.

Hugh G Rection's picture

I like your style.

 

I've got a couple HSBC and Chase cards, thinking of loading up on the double bottom around $35, threatening bankruptcy and settling for pennies on the dollar.

tmosley's picture

Make a couple of payments first, then pay less than the minimum. Then max it back out and default.

No payments made makes it look like you were running a scam, and makes them more likely to sue you because a judge will see it that way too. If you use it normally for a while, while making payments, then load it up with silver, make a few more payments, then top it off with normal stuff, it should be ok.

A.W.E.S.O.M.-O 4000's picture

That sounds like a pretty shitty thing to do. What did the banks ever do to you?

 

Oh wait, now I remember. Never mind.

cosmictrainwreck's picture

hahahaha....ya almost had there. but I am surprised tmosley would be a conspirator; thought he was such an upstanding citizen

Creed's picture

You guys are nuts, or greedy.

 

If you operate the same way THEY DO then you are no different then them.

tmosley's picture

You can't be a moral man while living in an immoral world unless you resign yourself to being a slave.

Creed's picture

You can't be a moral man while living in an immoral world unless you resign yourself to being a slave.

Complete BULLSHIT.

No matter how you rationalise it it's WRONG to borrow money with the intent to defraud the lender.

It is entirely possible to hold your head high as you go through life.

Hacked Economy's picture

+1, Creed.  We hold ourselves to a higher standard.  Stiffing someone else and/or taking advantage of them just because you don't personally see them face-to-face is wrong.

Isn't that what the "non-producers" that stay on the long-term government welfare rolls do?  You know, the ones who are part of the now-famous 47% of Americans who pay no Federal income tax and stick it to the rest of us "producers"?  I personally know a FEW people who have become a permanent part of the welfare/unemployment system and actually make jokes to me that I'm working hard in the office while the gov't skims from my taxes to pass it along to them so they can sit at home and watch Wheel of Fortune all day long.

Pisses me off.  Grrrrrr..

Seems pretty hypocritical to (justifiably) get angry with those leeches, but then advocate being a leech on someone else above you.

Unless ya'll were just joking about the CC scandal thing.  In that case, HAHAHAHA!

tmosley's picture

Who, exactly, do you think you are "borrowing" from when you spend money on a credit card?

Further, I would direct you to the case study of Ragnar Danneskjold, the pirate from Atlas Shrugged.  Theft from thieves is not theft, but retribution.

mojine's picture

With you all the way on this one T. M.  Credit card debt is "money from nothing" Scenario as described is just reclaiming a small portion of what the banks have stolen and are constantly stealing from us all.

MisterMousePotato's picture

"Borrow money?!?"

I find that most people think of their credit card debt, etc., in the same terms they might if they were talking about borrowing, oh, say, ten thousand bucks from their father in law. Or the It's a Wonderful Life kinda banking we all grew up with.

But we are talking about something else here.

A TRUE lending relationship is when I lend YOU something I HAVE, meaning I lack it until it is repaid.  If you don't repay, I lose.  Where the fuck is the LACK on ANY banker's part after having "lent" $50T of Z1 credit into the FRN zone????  Have they been living as paupers all these years after lending all these FRNs out?  I mean, surely they lent SOMETHING real, right?  And when someone defaults, do these bankers end up LOSING permanently the value lent?

The whole fucking system is an OUTRIGHT fraud.  The money powers belong to the people and must be run as a public utility.  We have granted seigniorage and ultimate power to a bunch of crooks.  Bankers are legalized parasites.  They add NOTHING of value to this societal equation.  EVERY function they perform could be performed by public utilities.

In fact, the reason true fiat currencies haven't worked is because BANKS through speculative attacks, have destroyed every one of them.  The BOE used the Sterling Bill to destroy bimetallism and rape nations.  There is NO reason whatsoever that fictitious money could not be "lent" by the US Treasury, or as Friedman maintained, printed by a fucking computer.

(Disclaimer: I stole the foregoing rant from some outraged ZeroHedger some months back. Wish I was as articulate.)

HellFish's picture

 

I'm gonna go with tmosley on this one.

The bank would rape you in a second wherever it could.  They reap what they sow.

Lets_Eat_Ben's picture

Good point. If one borrows to speculate on a highly manipulated asset with the intent of defaulting, then one has committed the same "sins" against capitalism that has destroyed the system currently in place.

 

They may have the power and the hookers with cocaine that goes with it, but WE have the moral high-ground, so ha ha ha ha ha ha you are going to he-ell

tmosley's picture

You gain purchasing power that would have otherwise remained in the hands of TPTB.

This is war, guys.  All is fair.

topcallingtroll's picture

Make a few payments.

Initially always take their phone calls.

Make a couple more partial payments intermittently.

Get a new phone number.

Make a.final partial payment below the minimum to make you look like a naive fool.

Laugh and keep the rest of it. You are now immune from fraud charges.

What did the banks do to me? Ruined the economy, spent most of the recapitalization funds on bonuses. Corrupted our government. Shall i go on?

DollarMenu's picture

"makes it look like you were running a scam..."

But you ARE trying to run a scam with the structuring you describe,

especially the default part.

Why can't you just buy what you can with what you have in hand, and forget playing their game, lest you become one of them.

Two wrongs never make a right.


BigJim's picture

You're right - you should never, ever rob a thief.