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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…..zero.  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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Mon, 04/11/2011 - 12:22 | 1158033 Roy Bush
Roy Bush's picture

Bizarro World

Mon, 04/11/2011 - 12:30 | 1158068 Thomas
Thomas's picture

Death by Bongo

Mon, 04/11/2011 - 12:41 | 1158096 hedgeless_horseman
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.

 

Mon, 04/11/2011 - 12:54 | 1158146 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Told everyone so.

by Mr Lennon Hendrix
on Mon, 12/13/2010 - 20:21
#803055

 

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
#290329

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!

 

Mon, 04/11/2011 - 13:22 | 1158261 mark mchugh
mark mchugh's picture

LH,

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

Well done.

Mon, 04/11/2011 - 13:25 | 1158269 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Thank you Mark.

Mon, 04/11/2011 - 19:41 | 1159648 Bicycle Repairman
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.

Mon, 04/11/2011 - 14:04 | 1158389 Bastiat
Bastiat's picture

Thomas:

"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!

Mon, 04/11/2011 - 14:30 | 1158464 jus_lite_reading
jus_lite_reading's picture

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

http://www.youtube.com/watch?v=rPILhiTJv7E

CHINA GDP IS A SCAM!

Mon, 04/11/2011 - 14:51 | 1158512 SheepDog-One
SheepDog-One's picture

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

Mon, 04/11/2011 - 16:54 | 1159062 Zero Govt
Zero Govt's picture

Everything Govt touches turns to Crap

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

Mon, 04/11/2011 - 12:47 | 1158119 Weisbrot
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.

Mon, 04/11/2011 - 13:35 | 1158295 Banjo
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.

Mon, 04/11/2011 - 13:34 | 1158300 billhilly
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 !!!   

Mon, 04/11/2011 - 13:57 | 1158367 cossack55
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

Mon, 04/11/2011 - 13:48 | 1158336 supernickel
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.

Mon, 04/11/2011 - 14:06 | 1158393 overmedicatedun...
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.

Mon, 04/11/2011 - 14:22 | 1158432 Temporalist
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.

Mon, 04/11/2011 - 15:47 | 1158761 supernickel
supernickel's picture

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

Mon, 04/11/2011 - 13:52 | 1158349 Hugh G Rection
Hugh G Rection's picture

time to roll some profits into iodine longs

Mon, 04/11/2011 - 12:23 | 1158037 slow_roast
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. 

Mon, 04/11/2011 - 12:31 | 1158070 apberusdisvet
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.

Mon, 04/11/2011 - 12:39 | 1158088 slow_roast
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.

Mon, 04/11/2011 - 12:57 | 1158162 doggings
doggings's picture

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

Mon, 04/11/2011 - 13:39 | 1158303 gordengeko
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.

Mon, 04/11/2011 - 12:44 | 1158105 silvertrain
silvertrain's picture

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

Mon, 04/11/2011 - 15:39 | 1158718 TheGoodDoctor
TheGoodDoctor's picture

Amen. Here's one for you. :)

http://www.youtube.com/watch?v=bVP9TOxnMVk

Mon, 04/11/2011 - 12:34 | 1158073 Confuchius
Confuchius's picture

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

Mon, 04/11/2011 - 12:35 | 1158081 Jean Valjean
Jean Valjean's picture

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

Mon, 04/11/2011 - 13:16 | 1158236 mogul rider
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

Mon, 04/11/2011 - 14:02 | 1158371 augie
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.

Mon, 04/11/2011 - 14:24 | 1158455 Temporalist
Temporalist's picture

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

Tell that to the Japanese fishing industry.

Mon, 04/11/2011 - 12:36 | 1158082 Ray1968
Ray1968's picture

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

Mon, 04/11/2011 - 12:42 | 1158099 slow_roast
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.

Mon, 04/11/2011 - 14:08 | 1158398 Scoobywan
Scoobywan's picture

"Nothing has fundamentally changed with Silver"

 

Exactly, so why the big run-up?

Mon, 04/11/2011 - 14:23 | 1158437 tmosley
tmosley's picture

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

Mon, 04/11/2011 - 15:39 | 1158699 ZapBranigan
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. 

 

Mon, 04/11/2011 - 14:28 | 1158457 Temporalist
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?

Mon, 04/11/2011 - 13:25 | 1158264 Dangertime
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.

Mon, 04/11/2011 - 13:34 | 1158294 Manthong
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?

Mon, 04/11/2011 - 13:45 | 1158333 Manthong
Manthong's picture

So where do you think the next buy is?

Mon, 04/11/2011 - 14:52 | 1158525 Larry Darrell
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.

Mon, 04/11/2011 - 15:06 | 1158564 Manthong
Manthong's picture

Would you go with 2X?

Mon, 04/11/2011 - 15:19 | 1158630 Larry Darrell
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.

Mon, 04/11/2011 - 19:52 | 1159668 Manthong
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.

Mon, 04/11/2011 - 15:10 | 1158579 Tail Dogging The Wag
Tail Dogging The Wag's picture

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

Mon, 04/11/2011 - 12:21 | 1158039 apberusdisvet
apberusdisvet's picture

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

Mon, 04/11/2011 - 13:42 | 1158314 lincolnsteffens
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. ;<)

Mon, 04/11/2011 - 15:16 | 1158627 Armchair Bear
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.

Mon, 04/11/2011 - 15:31 | 1158684 zeek
zeek's picture

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

Mon, 04/11/2011 - 17:30 | 1159175 Triggernometry
Triggernometry's picture

+.357 sig

Mon, 04/11/2011 - 15:42 | 1158733 TheGoodDoctor
TheGoodDoctor's picture

What size 1000 oz.?

Mon, 04/11/2011 - 12:24 | 1158041 chumbawamba
chumbawamba's picture

I wonder how much silver is in these safes?

http://www.huffingtonpost.com/2011/04/10/japan-lost-money-safes-cash_n_8...

Sorry for the HuffPo link.

I am Chumbawamba.

Mon, 04/11/2011 - 12:51 | 1158139 SilverRhino
SilverRhino's picture

+1 for sharing.   Interesting piece of attempted memetic programming.  

Note the "money" [forgive the pun] quote that they want your subconcious fixated on:

But he still has money in the bank.

That's not the case for many of his longtime friends and acquaintances, said Kimura, a former bank employee.

"I spent my career trying to convince them to deposit their money in a bank," he said, staring out at his flattened city. "They always thought it was safer to keep it at home."

Mon, 04/11/2011 - 13:26 | 1158278 Manthong
Manthong's picture

Interesting. If there was a lot of metal inside, they may well have just sunk. Those look mostly like fire safes - for documents and paper. Good idea for the typical frame house over there.

Mon, 04/11/2011 - 13:42 | 1158323 Eternal Student
Eternal Student's picture

Well, I just don't get these "money in the bank is safe" people. Let me see if I understand things correctly.

What they are saying that they are taking their money, valuables, important papers, etc., and giving it straight to a group of people who have been responsible for the greatest theft in the history of humanity. And furthermore, these same depositors are stuck with the bill from that theft.

So they basically really like doing business with the best of the professional thieves?

If I'm going to have my money stolen, I think I'd prefer the odds on having to deal with a relative amateur, and not the best of the professionals.

And here's a modern story of the scam which apparently was carried out during the Great Depression by California Banks. FDR was a polite piker during the confiscation of gold:

http://www.rapidtrends.com/safe-deposit-boxes-maybe-not-so-safe/

Truth to tell, I haven't yet found a definitive reference to the California Banks' confiscations during the Great Depression; just unattributed retellings of the story. If any one has a good reference, I'd be grateful for it. Thanks.

Mon, 04/11/2011 - 17:47 | 1159221 Hephasteus
Hephasteus's picture

The banking industry has been a daily tsunami on japan since frikkin 1987.

Mon, 04/11/2011 - 20:02 | 1159700 Manthong
Manthong's picture

Currency in the bank went out of style there before it did here. Here it makes paying the rent and plastic convenient, over there, to an old person, it's an inconvenience. I don't think they have anywhere near the burglary concerns that we have here, especially in the rural areas.

Mon, 04/11/2011 - 13:43 | 1158324 trav7777
trav7777's picture

supposin the owner had a few kilos of gold and he's been washed out with the safe...the article says that shit is YOURS

Mon, 04/11/2011 - 12:25 | 1158045 SheepDog-One
SheepDog-One's picture

Ah yes, Dimon the mastermind had it all planned from the start. Short silver/sell paper silver from $20 to $40, then start buying hand over fist at $40. BRILLIANT!

Mon, 04/11/2011 - 14:24 | 1158453 IQ 145
IQ 145's picture

 With regard to their trading acumen; "look who's cryin now"; a teenage heart throb record from the sixties.

Mon, 04/11/2011 - 12:23 | 1158047 Xibalba
Xibalba's picture

gotta get those America the Beautiful set's done before Ron Paul asks why the USMint can't keep up with demand....even though there are no supply/demand disruptions.....according to Blythe

Mon, 04/11/2011 - 12:24 | 1158048 The Axe
The Axe's picture

Janet Yellen   talking up Q3.....baby.......more money....No inflation!!! Central Bankers not causing inflation......stupid bitch...lol

Mon, 04/11/2011 - 13:50 | 1158344 HoofHearted
HoofHearted's picture

There's so much head faking going on, I'm losing track of what is the fake and what is the real move. I still say that the Bernank says "let the market tank" without all the QE(x)...and he does so for about a month. Then he becoms Jack Nicholson in A Few Good Men telling us how much we need him and his QEing. I'm waiting for the crash to BTFD with a little dry powder. There is a lot of silver and gold ounces somewhere, and I might hold some of them...I might not. Do you hear that FDR? I probably don't have anything worth confiscating. Trust me on this one.

Mon, 04/11/2011 - 12:26 | 1158050 HedgeFun
HedgeFun's picture

Slow Roast your post is rather interesting - I too was in at $26 and sold at $41, holding my gold position and adding on dips.

Mon, 04/11/2011 - 12:50 | 1158126 slow_roast
slow_roast's picture

The risk/reward in gold feels more suitable to this environment in which the USD could fall off a cliff or power higher on short covering.  If gold falls we can watch $1,450...if silver falls we watch $38-$38.50 I guess...if that falls silver could be at $34 in a matter of minutes it seems.

 

I'm no expert and I'm hugely bullish on gold and silver, but there is almost certain to be some drubbing as QE2 ends(at least as a headline) and everything collapses.  If it doesn't I'm still buying physical metals on a weekly basis, but if it does there will a great unwinding of leverage that could see prices falling all summer.

 

I might miss another 10-20% run in silver and a smaller one in gold through the summer and I might lose 5-10% in my cash position(basket of currencies) but getting caught in a downdraft in my options positions could see me lose 50-100% in a few days.  

 

Vacation bitchez!

Mon, 04/11/2011 - 12:25 | 1158054 brian downunder
brian downunder's picture

Well Max Keiser should be happy to know it won't take much to break JPM

Mon, 04/11/2011 - 12:28 | 1158061 SheepDog-One
SheepDog-One's picture

I think Max said $45 is the point where Dimons head explodes 'Scanners' style? We'll see.

Mon, 04/11/2011 - 13:27 | 1158194 doggings
doggings's picture

I just heard $47 on his latest interview, he said that JPM had used their own stock cash to "invest" in their own unique way in Silver and that at that point the Hedge Funds would all be piling in, shorting (and naked shorting) JPM

link to interview http://maxkeiser.com/2011/04/11/from-yesterdays-tam-with-max-stacy/

"live by the naked short, die by the naked short.."  .. I live in hope that the cosmos has a sense of humour, "one a long enough timeline.."  .. it definitely does. 

 

Mon, 04/11/2011 - 15:13 | 1158594 gmrpeabody
gmrpeabody's picture

+++

Tue, 04/12/2011 - 18:41 | 1163253 They Live
They Live's picture

Does anyone know more about this?  Specifically, what will technically cause JPMorgan to crash?

Mon, 04/11/2011 - 12:29 | 1158056 Trifecta Man
Trifecta Man's picture

We don't need no stinkin' CFTC.

Mon, 04/11/2011 - 13:49 | 1158346 lincolnsteffens
lincolnsteffens's picture

Quite obvious because they are asleep at the wheel. Since they have done nothing for decades why waste taxpayer's / trader's money. Same as other parts of Govt. that either don't prosecute the big crooks or don't even know how it gets done. Then there is the other useless parts of Govt. that wastes a lot of paper for nothing or worse killing the incentive to rise above the cog making worker.

Mon, 04/11/2011 - 15:12 | 1158584 Buckaroo Banzai
Buckaroo Banzai's picture

dupe

Mon, 04/11/2011 - 15:13 | 1158597 Buckaroo Banzai
Buckaroo Banzai's picture

The CFTC and the SEC and all the regulatory organizations play an important role on Wall Street. They create the illusion that the marketplace is a fair and safe place to invest. Otherwise, the average dope would invest in other things besides publicly traded companies, like their own businesses, or their own communities, or their own education.

You know, stupid stuff like that.

Mon, 04/11/2011 - 12:28 | 1158059 Obummer
Obummer's picture

Ladies and gentlemen, fellow Americans, good people of the world.  Much talk has been made about the increasing value of silver on today's markets.  And while I would love to tell you that this is another sign that our free market is strong and vital, I cannot.  In reality, this "silver menace" is a clear threat to our standards of democracy, human values, and the American way.  For behind this rise in silver are the very terrorists we have been fighting against for so long.  And now these terrorist organizations have infiltrated the very heart of America, and are in our living rooms and our bedrooms even as I speak.  Rest assured that I will do everything in my power as President of this great nation to repel this threat to our ways, and that in the coming months we shall take decisive action against this new menace to our financial stability and Constitutional law.  Thank you, good night, and God bless America.

Mon, 04/11/2011 - 12:32 | 1158067 slaughterer
slaughterer's picture

Who printed that on the teleprompter for Obummer to read?

Mon, 04/11/2011 - 12:32 | 1158072 SheepDog-One
SheepDog-One's picture

Jamie Diamond.

Mon, 04/11/2011 - 12:40 | 1158091 Long-John-Silver
Long-John-Silver's picture

Translation: We're sending in the Gestapo for your PM's, 401(k), and IRA accounts so we can "save" Social Security. Your retirement at 140 years of age will be secure.

Mon, 04/11/2011 - 13:20 | 1158242 malikai
malikai's picture

Translation: Your euthenasia has been scheduled for the evening of your 67th birthday. God Bless America.

Mon, 04/11/2011 - 13:29 | 1158288 Long-John-Silver
Long-John-Silver's picture

* Invests in Soylent Green

Mon, 04/11/2011 - 14:29 | 1158458 IQ 145
IQ 145's picture

 Stop that! Right now!. You're making me nervous. Jeezuz, don't give 'em any ideas, okay?

Mon, 04/11/2011 - 12:31 | 1158064 slaughterer
slaughterer's picture

Why does it appear that JPM customers are so dumb?  We need to ask that question, with the emphasis on "appear."

Mon, 04/11/2011 - 15:59 | 1158800 ZapBranigan
ZapBranigan's picture

 

Either 'too busy' or 'too naive'. 

'Too Busy':  The guy working 14-hour days trying to make partner at his law firm doesn't have time to manage his portfolio, so he turns that chore over to his friend of a friend at JPM. 

'Too Naive':  Some people, from birth-to-death, actually wander through life completely asleep, never questioning anything and having full-faith in any company that advertises on CNBC.

 

Mon, 04/11/2011 - 12:37 | 1158079 Bastiat
Bastiat's picture

Silver contract volume at 93% of gold volume today as it refuses to yield $41.  Unbelievable.  A bid with attitude.

Mon, 04/11/2011 - 12:39 | 1158089 Bastiat
Bastiat's picture

They may have got it on that try.

Mon, 04/11/2011 - 12:47 | 1158121 Bastiat
Bastiat's picture

Silver vol now 97% of gold.  40.75

 

Mon, 04/11/2011 - 12:41 | 1158086 Careless Whisper
Careless Whisper's picture

Here's the business model;

1. go to the bank for a loan.

2. bank agrees to loan but requires top quality collateral worth much more than the loan.

3. bank knows you're going to default sooner or later, but whatever, it still let's its own clients invest in the borrower.

4. default occurs and bank takes collateral.

5. bank makes $1.9 Billion profit.

6. bank claims to be the victim of a deadbeat and says it doesn't have any obligations to its own clients.

http://www.nytimes.com/2011/04/11/business/economy/11bank.html

 

Mon, 04/11/2011 - 15:28 | 1158668 chunga
chunga's picture

Oldie but goodie...How Main Street Destoyed Wall Street

I guess now would be a good time to shoot the greedy homeowners.

It’s crystal clear. From the very beginning the homeowners have gamed the system. They started by tricking the property appraiser (lender’s agent) into submitting an outcome-based appraisal.

Then, millions of homeowners shrewdly conned the “lenders” into dismissing all agency and fiduciary responsibility in the underwriting process….going so far as to force the “lenders” into forging documents.

Then, the greedy homeowners forced the “lenders” to securitize the loan in such a fashion as to bifurcate the mortgage from the note.

On top of that, the homeowners secretly cooked up the concept of “Credit Default Swaps” and forced the “lenders” to insure the collateral at the full (outcome based) value 30X over.

Having successfully pulled the wool over everyone’s eyes – these irresponsible homeowners showered themselves with well deserved bonuses.

Realizing they were too big to fail, these irresponsible, reckless homeowners lined the pockets of legislators and received enormous sums of taxpayer bailouts.

The result of these cunning maneuvers by the fraudulent homeowner scheme has them sitting fat and happy in the cat birds seat. Yup, that’s how they did it. And they’re getting away with it.

Savings drained – check, 401ks all gone – check. Kicked out of their homes – check. “Lenders” made whole many times over via Credit Default Swaps – check. Homeowners foreclosed and “lender” buys back property for pennies on the dollar – check.

Follow the money and you’ll find the culprit. It’s about time we hold these homeowners accountable.

Good call. The websites below are sponsored by a well-healed, politically connected, PR machine of greedy volunteers… and contain detailed information on how the collusion on Main Street has ripped off Wall Street.

Don’t look though… it’s just spam.

http://www.4closurefraud.org

http://www.foreclosurehamlet.org

Mon, 04/11/2011 - 12:42 | 1158094 digalert
digalert's picture

JPM reports on Wednesday...wanna bet what report looks like?

Mon, 04/11/2011 - 15:03 | 1158553 Hansel
Hansel's picture

No.  The U.S. abandoned reasonable accounting years ago.  Who knows what flavor bullshit JPM the welfare queen will be selling on Wednesday?

Mon, 04/11/2011 - 15:43 | 1158727 True.North
True.North's picture

Look for real earnings to dissapoint, but they'll be inflated with the release of more loan loss reserves.

Mon, 04/11/2011 - 16:29 | 1158962 plata pura
plata pura's picture

j.p morgan groupo has of late been increasing their commons and middling accounts; even the gentry class have been moving checking and savings accounts from other banks.

Mon, 04/11/2011 - 12:42 | 1158095 RobotTrader
RobotTrader's picture

Gold stocks once again getting the beat down as the SPX sells off.

No follow through.

SA, BVN, SVM all down about 4%

Mon, 04/11/2011 - 13:47 | 1158337 darkaeye
darkaeye's picture

Buying opportunity!!  Maybe the last one until July.

Mon, 04/11/2011 - 12:43 | 1158098 RobotTrader
RobotTrader's picture

At least JPM isn't getting brutalized like many of the golds today.

Mon, 04/11/2011 - 12:54 | 1158149 Tyler Durden
Tyler Durden's picture

Brutality

Fatality:

Mon, 04/11/2011 - 13:18 | 1158250 malikai
malikai's picture

lol

Mon, 04/11/2011 - 13:40 | 1158308 SheepDog-One
SheepDog-One's picture

And Robo's corner throws in the towel.

Mon, 04/11/2011 - 14:17 | 1158418 BlakeFelix
BlakeFelix's picture

Flawless Victory.

Mon, 04/11/2011 - 14:32 | 1158465 IQ 145
IQ 145's picture

 The forty five degree up channel on a weekly chart is perfect; it's a sustainable normal bull market.

Mon, 04/11/2011 - 17:58 | 1159282 akak
akak's picture

Go take a look at a chart of the federal government's exponentially growing budget deficits, and total debt, and then get back to us on just what is "sustainable" and what is obviously not.

Mon, 04/11/2011 - 12:55 | 1158154 Minyan Vince
Minyan Vince's picture

buy the morge

Mon, 04/11/2011 - 13:06 | 1158207 doggings
Mon, 04/11/2011 - 12:58 | 1158171 Translational Lift
Translational Lift's picture

Robo is Hanoi Jane for JPM.........

Mon, 04/11/2011 - 14:24 | 1158447 dexter_morgan
dexter_morgan's picture

++

Mon, 04/11/2011 - 12:44 | 1158109 SilverRhino
SilverRhino's picture

Oh look ... a BTFD opportunity (raid in progress).   Looks like 40.75 ...

Mon, 04/11/2011 - 13:01 | 1158187 Long-John-Silver
Long-John-Silver's picture

Feeding frenzy!

Mon, 04/11/2011 - 12:49 | 1158129 silvertrain
silvertrain's picture

The word just now reached the top desk that the gig is up..This recent runnup was another attempt to shake out the weaker hands..The big move will blow peoples minds, think rodium..

Mon, 04/11/2011 - 13:00 | 1158180 Bastiat
Bastiat's picture

Interesting but impossible to evaluate. What desk?

Mon, 04/11/2011 - 12:52 | 1158131 OutLookingIn
OutLookingIn's picture

JPM and friends are back with Blythe doing the 'dirty' again this morning!

Those who have "bailed" on their silver? Tsk, Tsk Tsk.

As someone said already  "Can't stand the heat? Get outta the kitchen!"

If you think the price action in silver has been impressive so far - you ain't seen nothin yet! The fun has just begun! The daily/hourly price fluctuations coming will make your head spin! Fasten your belts - this roller coaster ride is not for the faint of heart. For those with the stomach for it - you're a winner and the 'brass ring' will be yours.  

Mon, 04/11/2011 - 14:37 | 1158474 IQ 145
IQ 145's picture

 But I don't want a brass ring; I really, really wanted to win the teddy bear.

Mon, 04/11/2011 - 12:50 | 1158135 arizona11912
arizona11912's picture

How many million ounces of silver exist? 800,000,000? Can someone answer the question?

Mon, 04/11/2011 - 12:52 | 1158147 tmosley
tmosley's picture

Qualify the question.  "Above ground", "in government stockpiles", "on the Earth", "in the universe", etc.

Mon, 04/11/2011 - 12:57 | 1158165 arizona11912
arizona11912's picture

The question refers to "Above ground". Silver that has been extracted from the Earth. Thanks.

Mon, 04/11/2011 - 13:13 | 1158225 tmosley
tmosley's picture

~46 billion ounces currently

http://www.gold-eagle.com/editorials_05/zurbuchen011506.html   

The next question you should ask yourself is: how much of that silver is in landfills or other irretrievable locations? More than 99% of it.

Mon, 04/11/2011 - 13:24 | 1158267 arizona11912
arizona11912's picture

+1

Mon, 04/11/2011 - 13:46 | 1158334 mick_richfield
mick_richfield's picture

I believe that the total amount of investable silver on the planet is on the order of a billion ounces.

I expect that is bullion only, and does not include 'junk' 90% US silver coins  (like my avatar).

Mon, 04/11/2011 - 14:41 | 1158483 IQ 145
IQ 145's picture

 That's a great avatar. I'd just like to state one more time, in case someone hasn't read it already; that these 90% Silver coins are still available. It's amazing to me, but its true; you can still buy bags of them. Google knows where.

Mon, 04/11/2011 - 16:53 | 1159054 RockyRacoon
RockyRacoon's picture

You have just proven what we suspected all along:  Your IQ 145 is a falsehood.

http://shop.ebay.com/?_from=R40&_trksid=p3984.m570.l1311&_nkw=junk+silve...

Mon, 04/11/2011 - 18:01 | 1159293 akak
akak's picture

His reported IQ is actually the result of inflation ---- in 1990, he was only a 78.

Mon, 04/11/2011 - 16:21 | 1158935 plata pura
plata pura's picture

5/8 of a years production at full capacity; the problem is that this spheres crust is yielding less and less. Peak precious has come and gone void of the squander story of the ages. You be from the copper state; how many new holes in the ground can you count in just Cochise, Pima county? Many there be! The fresh water/ silver ratio is coming along with the super bug/ silver ratio.

Mon, 04/11/2011 - 13:00 | 1158167 RobotTrader
RobotTrader's picture

Brutal downtrend....

Perhaps management should be removed....

LOL....

Mon, 04/11/2011 - 13:04 | 1158201 Bastiat
Bastiat's picture

The short has been covering, last I looked -- about 700K covered in recent reporting periods.  Still short 5m shares or so--that's about how many shares short were added as TRE climbed to 7.50 in the 4th quarter.  Especially fun was the part where Schwab was offering to pay premiums a couple months back to any non-margin shareholder who would lend TRE shares. Enjoy it shorty.  tick-tick-tick 

Mon, 04/11/2011 - 13:34 | 1158237 Bay of Pigs
Bay of Pigs's picture

I don't own TRE but I have no idea at all why you are such a prick to someone like Sinclair who has helped tens of thousands of people preserve their wealth holding physical gold. You have some issues dude. 

Mon, 04/11/2011 - 13:54 | 1158356 Bastiat
Bastiat's picture

Yeah, he loves to jab Sinclair -- but what's with the "general jim" reference uses from time to time?  It really gives me the feeling Robo is an operative.  And then all that psyops t&a -- right out of Bernay's book.

Mon, 04/11/2011 - 13:06 | 1158205 ivars
ivars's picture

It seems silver is crashing right now, so 41,98 USD was perhaps its highest point (during coming year): if FED/US government is bailing out JPM by buying (closing)  its shorts, its the endgame for this cornering.

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&start=100#p31692

42 was lowest crash value i expected. But it could be the one.

The graph here draws generic behaviour of silver into and after this crash, but the value 45 just lies within the 42-50 range I expected.

http://saposjoint.net/Forum/download/file.php?id=2673

 

 

 

 

 

 

Mon, 04/11/2011 - 14:08 | 1158394 SheepDog-One
SheepDog-One's picture

'It seems silver is crashing right now'....at $40.80? Take a hike retard, seriously.

Mon, 04/11/2011 - 16:13 | 1158895 TheGoodDoctor
TheGoodDoctor's picture

"Never go full retard."

Mon, 04/11/2011 - 14:46 | 1158498 IQ 145
IQ 145's picture

 The weekly chart that Tyler Durden posted here today is a chart of a normal healthy bull market; it'll be at least three weeks before anyone can make any rational statements about the possibility of a top forming in this market. You're just hypnotized by the sound of your own voice; there's no way to draw this conclusion.

Mon, 04/11/2011 - 13:12 | 1158228 ZeroPower
ZeroPower's picture

Silver higher for 2011, but a nice short opportunity today probably for the whole coming week as it is OpEx for the SLV et al. vehicles..

Mon, 04/11/2011 - 13:32 | 1158293 mark mchugh
mark mchugh's picture

Indeed, there's much money to be won/lost depending on where SLV finishes this week.

 

Mon, 04/11/2011 - 13:16 | 1158235 ivars
ivars's picture

It seems silver is crashing right now, so 41,98 USD was perhaps its highest point (during coming year): if FED/US government is bailing out JPM by buying (closing)  its shorts, its the endgame for this cornering.

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&start=100#p31692

42 was lowest crash value i expected. But it could be the one. Timing is as predicted, early April.

The graph here draws generic behaviour of silver into and after this crash, but the value 45 just lies within the 42-50 range I expected.

http://saposjoint.net/Forum/download/file.php?id=2673

There is  still time to sell if one is long as margins will increase dramatically ( low point 20-28 usd)

Mon, 04/11/2011 - 13:18 | 1158243 Badabing
Badabing's picture

 

“How bad would it suck if we learned that this clueless market participant was in fact the US government?”

 

I read the book “TO BIG TO FAIL” wanted to compare it to the movie.

Well the movie never came out. The book was a croc of shit, with a bansters  point of view.

Mostly how they do gods work, and admit they make government policy in a matter of fact way.

And when Wells Fargo swooped in and bought Wacovia that was explained as planed. I recall a big stink being made and an attempt at a law suet.

When we see the Government threatening to closedown and then Timmy G. suggesting we sell some assets like gold in fort Knox at $42.22 an oz. My point is it does suck.  Except that “clueless market participant” has nothing to do with the government. It’s the FED!

Mon, 04/11/2011 - 14:49 | 1158514 mark mchugh
mark mchugh's picture

Fair enough, but honestly I don't know where the government ends and the Fed starts anymore.

Mon, 04/11/2011 - 13:18 | 1158244 SelfishMan
SelfishMan's picture

92 and 95 contracts a month is roughly $20 million a month (priced at $40 per ounce). Its not drastic, but its a start.

Mon, 04/11/2011 - 13:19 | 1158247 johngaltfla
johngaltfla's picture

SILVER MORGANTINI:

2 shots of your favorite vodka

1 shot of JPM Silver Desk blood

chill, shake, and garnish

Mon, 04/11/2011 - 13:20 | 1158251 mogul rider
mogul rider's picture

whatever happened to that rare earth - flat earth play that was pumped around here? Kindof miss the scamium, robium, sleazium story

Mon, 04/11/2011 - 13:23 | 1158265 writingsonthewall
writingsonthewall's picture

All together now..... Silver bitchez!

Mon, 04/11/2011 - 13:27 | 1158277 kentfinance
kentfinance's picture

looks like around 85k contracts have traded in the SI May11 contract

open interest is only 67k coming in to the day

this looks odd - anybody else see that?

Mon, 04/11/2011 - 13:39 | 1158305 Bastiat
Bastiat's picture

Yeah silver contract traded about 98% of the volume of the gold contract.  Looks to me like it was a VERY expensive takedown--and so far a shallow one.  If they can't get some good follow through and just force a few days of consolidation, off we go again.

The demand and bid for physical will win out again -- not in a months but in days, imho.

Mon, 04/11/2011 - 14:20 | 1158428 dexter_morgan
dexter_morgan's picture

BTFD's !!!

Mon, 04/11/2011 - 13:28 | 1158285 --- - .. ... .....
--- - .. ... .... . .-. - --..'s picture

"How bad would it suck if we learned that this clueless market participant was in fact the US government?"

 

I remember innocence.

Mon, 04/11/2011 - 14:51 | 1158521 mark mchugh
mark mchugh's picture

Best laugh today!

Mon, 04/11/2011 - 13:35 | 1158296 ak_khanna
ak_khanna's picture

 

 

The market operators ie banksters are driving the USD index down and pumping up everything else. This process will continue till there are no long positions left in the USD index and no short positions in any of the commodities, stock or currencies other than the USD.

The operators are then likely to take the long position on the dollar and short position on everything else. They would then use their money power to move the markets in the direction which would get them the maximum profit while screwing all other traders / hedge funds / investors.

 

The stock, commodity and currency exchanges have been reduced to gambling dens whereby the more powerful traders with deep pockets move the markets to maximize their own profits at the expense of the remaining not so powerful players. The big boys have enormous money power to move the markets in the direction which results in maximum profits for themselves. They effectively use the media to lure the other players in the market to a position where they would incur maximum loss.

The markets will fall only when the banksters have eliminated all the short positions and only they themselves have positioned themselves to profit when the market falls

OR

When an unexpected world event catches the banksters with their pants down and the softwares they use to rig the markets go berserk beyond their control.
http://www.marketoracle.co.uk/Article24581.html

 

 

Mon, 04/11/2011 - 14:59 | 1158535 mark mchugh
mark mchugh's picture

Good points, they ran that play in 2008...

Just remember, silver has been the most practicle answer at every turn.  I don't expect that to change.

Mon, 04/11/2011 - 13:35 | 1158301 RobotTrader
RobotTrader's picture

I'm glad my portfolio is concentrated in dividend-paying widow and orphan stocks.

Nice not to get jacked around with these resource stocks that go up and down like yo-yo's on meth...

Maybe if Goldcorp or NEM were to pay a yield of 3.5%, they would not be so volatile.

Mon, 04/11/2011 - 13:50 | 1158343 trav7777
trav7777's picture

KMP and ARLP charts look better

Mon, 04/11/2011 - 14:49 | 1158506 oddjob
oddjob's picture

 MMP.un pays over 10%...too much for granny?

Mon, 04/11/2011 - 13:42 | 1158317 gametracker
gametracker's picture

A fact that maybe .005% of the population knows is that a Constitutional dollar is 371.25 grains of .999 silver. They've fooled everyone by printing "dollar" on a Federal Reserve Debt Note. And they wonder why silver keeps going up. Amazing times. 

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