Guest Post: Guess Who’s Buying Silver Now

Tyler Durden's picture

Submitted by Mark McHugh from Across The Street

Guess Who’s Buying Silver NOW?

OK, so the JPM vault that contains a whopping 30,844 ounces of silver
(about two hours worth, given the torrid pace at which JPM delivers)
was just approved by the COMEX in March.  JPM’s probably got lots of
silver stashed all over the place, right?  Maybe, maybe not.  One thing
is for sure, JPMs customer(s) are some of  the worst investors the world
has ever seen.  After selling almost 5 million ounces in the first
three months of 2011, they’re buying now.  That’s right, in March alone
they delivered 374 contracts (@ 5000 ounces each) and bought…  So
far in April, they’ve bought 92 contracts and sold, you guessed it….the
goose egg.  And yes, they are indeed buying at new highs (See here and here).  How bad would it suck if we learned that this clueless market participant was in fact the US government?

If you’d like to track the hilarity yourself, here’s links for the daily, MTD and YTD action on the COMEX.  Daily updates on COMEX silver stocks can be found here (xls format).

Apparently there are still quite a few out there who believe this is
all part of some Jamie Dimon mindfreak.  Good luck with that.

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hedgeless_horseman's picture

Maybe it is Leo?  I know that past performance isn't indicative of future, etc., but it does fit his model.


Mr Lennon Hendrix's picture

Told everyone so.

by Mr Lennon Hendrix
on Mon, 12/13/2010 - 20:21


The FIAT shellgame is over, folks.

Let the hataz hate, and watch the monie pile up.

Buy silver.

by Mr Lennon Hendrix
on Wed, 04/07/2010 - 14:12

So Max Keiser is killing it and he cleared some shit up for me.  We have until $20.92 to buy silver (this is its nominal high), because that is when JPM should be done unloading their shorts (more specifically the shorts they inherited from Bear Sterns).  Once that happens, the whole market should capitulate, and then silver to the MOON (we have our own Argonaut, GET THE FUCK IN THE BOAT PEOPLE!) followed by gold and oil.  By my calculations we will reach $20.92 at mid summer, then the market should capuitulate for 2-6 weeks, depending on how bad peak oil is right now, and then KABOOM!  Anyway, my two sense...I could be wrong. MB anyone?

Also, a low of $8.88 during the "crisis".  They are saying something.  They are saying 'We will run this town for infinaty'.  I cry ISIS!  Then I go to war with these damn JPM "M"arket "M"anipulators.  Join me!  BUY SILVER!


mark mchugh's picture


I think you will have many more opportunities to say "told you so"

Well done.

Bicycle Repairman's picture

I agree.  TPTB are looking to get on the long side of PM.  There will be some headfakes, but the long term trend is clear.  Buy and hold.

Bastiat's picture


"Death by Bongo"

/chuckle -- I first heard about the death or death by Bongo dilemma from a couple i-bankers in the mid-80s.  I always thought it was stupid--but in recent years, I see the wisdom!  It's the choice that the Bernank faces every day.  Needless to say he and Bongo are very close!

jus_lite_reading's picture

Tyler!!! YOU MUST WRITE an article about this!!


SheepDog-One's picture

As China recently said, its a currency world war. Of course Chinas GDP is a scam, just like ours! 

Zero Govt's picture

Everything Govt touches turns to Crap

...i'd heard of Chinas ghost cities but never seen 'em. Good link thanks

Weisbrot's picture

not really, how long until they steal it back from those that take delivery? Im sticking with the the fiat silver, its the easiest way to get the next generation fiat currency when they print it.

Banjo's picture

Weisbrot: Fiat silver :(

I would suggest at least a portion of silver to be held as physical. At least a few hundred ounces say 200-300 oz.

billhilly's picture

A clusterfu*k is more like it.  Shit is SO complicated...JPM short this, long that, derivitive this, manipulate that, blah blah blah...I'm getting dizzy, and sick.  Its no wonder things are so screwed up...too complicated.

Thank goodness for the ability to buy simple physical and hold it in your hands.  Yes maybe it too is open to the flaws of the system but in the end I believe it will store value.

Keeping things simple, now that's something to believe in !!!   

cossack55's picture

Right. If kept simple there might be such a thing as price discovery or even rule of law. HaHaHa. Welcome to Bananaville. Avoid the radiated ones. Ooops, there all readiated. HaHaHa

supernickel's picture

Who's buying silver now? No one in their right mind. Ha, ha ....

Only when Cramer says that silver is a dud, then you can safely buy back.

overmedicatedundersexed's picture

FWIW, just got back from my local small town coin/jewelry dealer:\

Do you have gold coins for sale: NO

do you silver coins for sale: NO

generic gold or silver: NO

would you buy my 90% silver and some gold maple leafs??" how many you got I will take them all...."

he then told me he is buying all he can for  very big buyers in DC /Baltimore and Canada.

HE just got back from Canada after delivering 500 1 oz gold coins to his buyer there at a premium.

Temporalist's picture

Went to a coin shop too and they had 2 ASEs, both painted, and the dealer said people soaked up all of his inventory up because of rising prices.

supernickel's picture

They all buy at the top because Cramer told them so.

Hugh G Rection's picture

time to roll some profits into iodine longs

slow_roast's picture

SELL signal.  I just bailed on my position.  Gold looks like a nice sail in a beautiful harbor while silver is about to become a cross-Atlantic voyage in a raging squall.  No thanks, I like to preserve my capital thanks.  That last ride from $26 to $41 was good stuff though. 

apberusdisvet's picture

@slow roast:

Can't argue if you are a trader; I on the other hand am a holder for several reasons.  The first is that silver is a scarce resource, not unlike REEs, and could disappear from the planet within 50 years based alone on industrial use.  Now factor in investment demand and the virtue of silver as a cheaper currency than gold, and you have an eventual true price discovery far in excess of current value.  I can wait and so can my children and grandchildren; my stash is really for them.

slow_roast's picture

@ap, I'm a large buyer of physical, I was only commenting on paper trades.  I've been buying physical for qiute some time, but only to the tune of about 3-5% of my paper trades.  I had large positions in SLV CALLS for April, July, and Jan 2012 which I've mostly closed now and am going to plow, on a weekly buying plan, into physical until I think a pullback in silver has occurred.  Once it has I'll probably go back into the paper trade very very long but it just looks like it "could" reverse on a dime now.  I doubt it will but risk/reward for me looks much better buying gold paper and physical silver for the time being.


I completely agree with your thoughts but since i was using options timing was more important than getting the direction rigth because we both know that it's up in the long term.

doggings's picture

glad you clarified that one, I can take you seriously again now ;)

gordengeko's picture

I agree on the paper only to the extent that the market could be correcting soon.  Speculation drove up crude in the front month as was stated last week here on ZH, so looking at the evidence presented a minor correction would provide an awesome buying op in the high 30's!  I still don't see <37ish and JPM is still fucked.  I'm no expert btw and been known to change my mind very quickly when it comes to this ponzi paper scheme.

silvertrain's picture

Dissapear in 50 years? Thats very, VERY optimistic..There will not be any Silver by 2020..

Confuchius's picture

If you can't stand the heat, stay out of the kitchen.

Jean Valjean's picture

What is your favorite asset used to "preserve your capital"?

mogul rider's picture

gold mines


city slickers by the rounds we buy the rock, same shit, we just prefer to keep grubby stinking little maggots out of our stash

augie's picture

You guys are all backasswords. Like my grandpappy said, "Hold what people actually value,  sardines and Glue."

There will ALWAYS be a market for the soy bean of the sea, and something needs to hold this house of cards together. It sure as shit ain't faith.

The best part is, you CAN eat Sardines, and if you sniff enough glue, you won't care about the radiation levels.

Its All good, take another wiff.

Temporalist's picture

"There will ALWAYS be a market for the soy bean of the sea."

Tell that to the Japanese fishing industry.

Ray1968's picture

Nothing has fundamentally changed with Silver. Sell if you wish.

slow_roast's picture

Paper silver is dangerous in the short term; that was my point.  I'm a buyer of physical at this level and every other level that gets me out of FRNs.

Scoobywan's picture

"Nothing has fundamentally changed with Silver"


Exactly, so why the big run-up?

tmosley's picture

You can only hold a beach ball underwater for so long.

ZapBranigan's picture


Good analogy mosley...I'm sure Dimon had Blythe hold a 48-hour strategy session over the weekend and we're now seeing them execute their consensus decision, but it won't last long.

I'm sure there will be many more 48-hour weekend silver strategy meetings in JPM's near future.  Go long Chinese Food and PizzaHut/Dominos/PapaJohns. 


Temporalist's picture

Nothing has fundamentally changed with the 10 year secular bull market in silver.


There does that make it easier for you to understand?

Dangertime's picture

I agree.  Time to close any silver trading positions.  This is getting too crazy.


Should be able to buy back in again sometime late summer.

Manthong's picture

Do you really think the paper is all that hazardous at these levels? Since the FED has for all practical purposes indemnified the banks agains any loss, what's the chance that the scam - er, I mean system will go south before the trillion dollar bill is released? Why not just ride their fiat all the way to the top, cashing out portions to buy physical along the way?

Manthong's picture

So where do you think the next buy is?

Larry Darrell's picture

Looks like the buy is at 2:45 to 3:00 EST.

That spike down looks eerily familiar.

I guess we will hear this evening that there is yet another margin hike in silver.

Buy this dip.  The margin hike sell offs in silver have half lives that we wish the radioactive particles spewing from Japan had.

Larry Darrell's picture

I would never give trading advice.  The larger players are always changing the rules.

I have zero invested in any "market" vehicle.

Manthong's picture

I got a little buy in right near the bottom at about 3:10 - just a couple hundred SLV to hold until it looks like a nice time to hop off and wait for another ride. The 2X in and out before the close would have worked.

I always liked rollercoasters as a kid.

My important stuff is long and hard.

Tail Dogging The Wag's picture

Your SELL signals are BUY signals for me. Thank you!

apberusdisvet's picture

The FED will come to the rescue by printing 1 billion oz of silver; problem solved.

lincolnsteffens's picture

The fed won't do it but they probably have a silver plated tungsten scheme cooking down at the treasury. That way when the silver gets rubbed off around the edges it wont be noticeable like gold plated tungsten. Go long tungsten. When they run though the tungsten available they'll substitute nickle. Go long nickle. ;<)

Armchair Bear's picture

tungsten has the same specific gravity as gold


molybdenum has the same (close to) specific gravity as silver.


So go long molybdenum


Bix Weir says there's a good argument that the CRIMEX is holding silver plated moly bars too.

zeek's picture

I kinda like my 175gr, moly coated lead...  :)