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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IQ 145's picture

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

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.

Translational Lift's picture

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

SilverRhino's picture

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

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..

Bastiat's picture

Interesting but impossible to evaluate. What desk?

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.  

IQ 145's picture

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

arizona11912's picture

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

tmosley's picture

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

arizona11912's picture

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

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.

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).

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.

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...

akak's picture

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

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.

RobotTrader's picture

Brutal downtrend....

Perhaps management should be removed....

LOL....

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 

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. 

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.

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

 

 

 

 

 

 

SheepDog-One's picture

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

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.

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..

mark mchugh's picture

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

 

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)

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!

mark mchugh's picture

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

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.

johngaltfla's picture

SILVER MORGANTINI:

2 shots of your favorite vodka

1 shot of JPM Silver Desk blood

chill, shake, and garnish

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

writingsonthewall's picture

All together now..... Silver bitchez!

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?

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.

--- - .. ... .... . .-. - --..'s picture

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

 

I remember innocence.

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

 

 

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.

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.

trav7777's picture

KMP and ARLP charts look better

oddjob's picture

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

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.