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Guest Post: Short Squeeze! Here Comes 50-dollar Silver

Tyler Durden's picture





 

Smart Money Europe – http://www.smartmoney.eu

Short squeeze! Here comes 50-dollar-Silver

Silver is blasting through all barriers, topping $36.5 this morning! The white bullion market is tight, and the short squeeze in the futures market is exerting a constant upward pressure on the price. If current trends persist, the all-time high of $49.45/ounce will be reached in the near future.

Silver is performing exceptionally, outstripping a vast array of commodities and stocks. Even unrest in the Middle East has not stopped the price increasing, whereas during similar circumstances in the past, silver would have taken some serious blows.

As far as silver is concerned, we are living in exceptional times. Supply shortages have existed since the Fifties, but this deficit was traditionally eliminated with the (once strategic) reserves of central banks and other financial institutions, who wanted to get rid of their silver due to its lack of monetary use. Consequently, bank supplies have fallen rapidly. Today, the shortage on the silver market is mainly supplemented by recycling used silver, aka ‘scrap’.

Nick Laird of ShareLynx, who supplied the chart below, gave the following explanation in a recent MoneyWeek interview: “Since 1950, the demand for silver increased up to 925,000 tonnes, while the production only amounted to 570,000 tonnes. This equals a silver production deficit of 16 years!”

Continuous increases in demand for silver means producers can barely keep track with demand, particularly now from the investment community. Recently, Eric Sprott of Sprott Asset Management reported exceptional delays on deliveries of physical ingots, and national mints are pointing at shortages, in part owing to the gigantic increase in demand for coins. The US Mint recorded selling 4.6 million Silver Eagles in January 2011 – a one-month record – while the website King World News recently reported shortages at the Royal Canadian Mint, producers of the popular Maple Leaf.

Futures markets are becoming increasingly important in the commodity pricing and silver is no exception; indeed, trends in silver futures are largely responsible for the price rise over the past few months. This is due to the gigantic short positions retained by some major (American) banks. The four largest traders are short an impressive 104 days of global silver production on the COMEX. The eight largest traders are short for almost 140 days of silver production. Herewith, silver is the highest in advance sold metal within the entire commodities complex.

The largest short position is held by JP Morgan. JPM’s short position was vastly increased by its acquisition of the bankrupt Bear Stearns in 2008, which prior to bankruptcy held an impressive commodity-trading desk.

Because of the negative press surrounding several banks trading on their own accounts, JP Morgan decided to shut down its proprietary trading department at the end of August 2010. JPM’s “prop desk” was one of the largest active short players on the silver futures market. It is no accident that the price has risen dramatically since then.

In technical terms this is called a short squeeze, whereby the upward price spiral – caused by the settlement (or resale) of short contracts – ensures that more and more shorts have to cover: the snowball effect. Nobody can tell when a short squeeze will end. It is a phenomenon that usually originates from a small inducement and could end as suddenly as it began. They can last just a couple of days, or a couple of months or even years!

Given the still gigantic short positions on the silver futures market, this short squeeze could persist for some time. Increasing price volatility as the squeeze continues is likely. But the all-time high of just under $50 per ounce could, if the current pace of appreciation persists, be broken this year. Astute investors  make sure they get some of this action!

 


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Mon, 03/07/2011 - 17:14 | Link to Comment nope-1004
nope-1004's picture

$50..... That's all?

Once the SLV is exposed as the Fed and Treasury fiat mechanism it is, then all bets are off how high this pig will fly.

Mon, 03/07/2011 - 17:19 | Link to Comment SilverRhino
SilverRhino's picture

When silver trades near parity for gold?   That's the top. Till then I'm holding, gifting some (excellent teaching aid for your children, nieces and nephews) and collecting :-)

Relatives start getting it (PM's) when you tell them that your niece's birthday gift from last year is worth double what it was when you gave it to her.    Then to rub salt in the wound you ask them about value retention of her chinese plastic crap toys from last year. 

Mon, 03/07/2011 - 17:54 | Link to Comment Backspin
Backspin's picture

Excellent comment, and I hear you.  I've had the hardest time trying to get family members to understand.  They think I'm crazy.  I, on the other hand, well, I think they're crazy for not buying any.  I'm the oddball, though.

And these days, I'm okay with that.

Mon, 03/07/2011 - 18:15 | Link to Comment Quixotic_Not
Quixotic_Not's picture

My family used to think I was a bit crazy too...

Back in 1999 when I told them the dot.com bubble would blow...

Back in 2003 when I told them that the Housing Bubble would be the biggest bubble in the history of mankind, and I took all my liquid assets and bought Ag...

Back in Aug. 2005 when I told them to sell their houses and buy PMs with the profits...

Back in Aug. 2007 when I told them that the ENTIRE U$ banking system was insolvent and that we would have SEVERE disruptions...

Now they're afraid to talk to me.

Except the formerly progressive hopium kid that just graduated from UCLA with a degree in Economics/Mathematics - He's finally sobered up and asking me what I think will happen next, but with ALL the normal rules of business suspended, I can't make any definitive calls that don't involve Hyper-inflationary Depression and World War.

People should have listened to us...

Mon, 03/07/2011 - 18:28 | Link to Comment duo
duo's picture

I told my accountant in the fall of 2006 that:

GM was going to go bankrupt.

Housing prices would drop in half and take the banking system down with it.

Gold would double (it was $600 then)

My accountant looked at the phone, ready to have me comitted.  3 years later we talked and he remembered the conversation.  What I didn't forsee was GM being propped up, or TARP/QEx.

Mon, 03/07/2011 - 19:01 | Link to Comment Quixotic_Not
Quixotic_Not's picture

Yeah, lots of sheepsters missed the Ag boat for sure...

Look at the poor ticker forum morons that followed Karl "I'm a lefty" Dickinger and his "Short the market, PMs are for dummies" mantra -- They not only got bent over by the Banksters + .GOV, they got bent over by a narcissistic jerk too!

ROFL

Mon, 03/07/2011 - 19:40 | Link to Comment Broken_Trades
Broken_Trades's picture

Funny how you predicted every single major financial mess for the last 10 years.  I really wish you would have told someone.

But youre 100% so you can tell us whats going to happen next right?

Oh wait, the rules have changed now... Darnit.

Mon, 03/07/2011 - 19:54 | Link to Comment Quixotic_Not
Quixotic_Not's picture

If I was insecure, I could go back to some websites I frequented back into the 90s, search my posts, and provide dated evidence to prove my claims...

But I am VERY secure in my person, finances and effects and don't give a crap what some anon on the interwebs might think.

Wanna see evidence that some of "US" saw this shit coming WAY back in 1992? (Yes, I was active in Perot's 92' campaign)

http://www.youtube.com/watch?v=Rkgx1C_S6ls

P.S.  It might be worth noting that I've had a front row seat to the multi-generational bankster looting that started in full effect in the mid 90s - Didn't take a genious to figure out this stuff anyways, just someone that wasn't stuck in the herd...

Mon, 03/07/2011 - 21:16 | Link to Comment FEDbuster
FEDbuster's picture

WW3 is a valid prediction.  In some ways, it may be the only option for the West (got to keep the "juice" flowing from the Mideast).  The FED's pumping and enabling can only last so long before the rest of the world gets tired of the Bernak's counterfeiting.

Mon, 03/07/2011 - 23:22 | Link to Comment Broken_Trades
Broken_Trades's picture

@ Quix

If I was insecure, I could go back to some websites I frequented back into the 90s, search my posts, and provide dated evidence to prove my claims...

But I am VERY secure in my person, finances and effects and don't give a crap what some anon on the interwebs might think.

If you were so secure you wouldn't need to give us a chronology of all your prescient stock market calls in the last decade to a bunch of anons on the interwebs now would you?

No one doubts your smarty-pantness, or that you invested 6 figures into silver.  It's just hard for some of us to sift through the crap on here without reading massive paragraphs about how awesome you think you are.

Let us know when things get back to normal, we still want to know whats going to happen.

 

Thx.

Mon, 03/07/2011 - 20:09 | Link to Comment Michael
Michael's picture

Ron Paul's predictions have been 100% accurate as well and I voted for Ross Perot too.

Clinton signed NAFTA, repealed Glass-Steagall, and changed the formula for calculating unemployment skewing the percentage down to cover up what he did, and they love him for it. I don't get it.

Mon, 03/07/2011 - 20:34 | Link to Comment Temporalist
Temporalist's picture

Perot, Nader, Paul any of them would have been better than what's been "elected" (I say provided).  For each one of those candidates people said "don't waste your vote" I replied "I'm not, you are."

Mon, 03/07/2011 - 20:58 | Link to Comment Michael
Michael's picture

I wrote Ron Paul in last time and I will write Ron in again if I don't get a liberty candidate to vote for like Ron or Rand. I don't throw my vote away. If all else fails I vote against the incumbent establishment candidate all the time. It's best to take out the establishment candidates in the primary where your vote is worth ten times what it is in the general election.

Mon, 03/07/2011 - 22:22 | Link to Comment AssFire
AssFire's picture

I too supported Paul and send funds to him. I will always hate Sean Hannity for his treatment of Paul.

Dr. Paul delivered children free of charge to many locals I have come to know at my beach house in his district. Ron refused government funds and delivered his services free of charge.

He is a man of principle.

Mon, 03/07/2011 - 22:28 | Link to Comment akak
akak's picture

Yes, the entire FOX News (sic) cabal really showed their fascist, neocon colors in their repeated and abominable attacks upon, and alternately their pointed censoring of, Ron Paul, his message, and his millions of supporters during his 2007-2008 presidential primary campaign.  Such gross and obscene political bias, frequenting crossing the line into libel and hysteria, just went to prove how scared the warmongering two-party establishment is of any meaningful challenger to the fearmongering propaganda propping up their tottering oligarchic control of the USA.

Tue, 03/08/2011 - 00:46 | Link to Comment Yits and the Yimrum
Yits and the Yimrum's picture

voting in a matrix system is like pissing in the wind; going to soil your yourself

i refuse to vote for my own slavery

Ron Paul is thrown in the mix, so the pirates can quage percentages who are about tl depart the reservation

as they well know, it is never at a level that reaches anything close to critical mass; if it did you would have martial law the next day

the Tea party is a good example of a waste of the Sheeps passions

they are going to balance the budget; remember that Pete Peterson was chairman of the group that would restore America's fiscal order.  That was like putting Madoff in charge of the Salvation Army, too funny for mere words

these cons just direct peoples correct passions for doing the right thing into dead end, statist pipe dreams

Mon, 03/07/2011 - 21:13 | Link to Comment Ahmeexnal
Ahmeexnal's picture

So you would vote for David Duke?

Mon, 03/07/2011 - 20:52 | Link to Comment DosZap
DosZap's picture

 I don't get it.

I do,"Stupid is,as Stupid does."

Mon, 03/07/2011 - 21:11 | Link to Comment Ahmeexnal
Ahmeexnal's picture

Toffler wrote about GM going broke in "PowerShift".

That book was published in 1990.

Mon, 03/07/2011 - 20:46 | Link to Comment lincolnsteffens
lincolnsteffens's picture

My son two years ago argued that gold and silver are not money. A friend of his had told him that gold and silver as money was an archaic idea that no longer had any validity.

Last year I offered to put an extra $500 worth of silver into his hands as a yearly gift instead of giving him cash. He decided to take the silver. I ordered the silver in the form of 1 oz. US mint bullion coins. By the time the coins arrived they had gone up 5%. Now as another year goes by and it is worth about 50% more he has not parted with any of it.

Tue, 03/08/2011 - 02:13 | Link to Comment SilverRhino
SilverRhino's picture

It would seem our sons have something in common.   :-)

I am doing everything I can to keep him from repeating my mistakes.

Mon, 03/07/2011 - 21:16 | Link to Comment Diogenes
Diogenes's picture

Well what will happen next? You have my attention.

Mon, 03/07/2011 - 21:15 | Link to Comment WaldenPondzi
WaldenPondzi's picture

What else are 30 million debt-ridden college graduates without jobs and with a lot of time on their hands to riot going to do all day? World War indeed.

Mon, 03/07/2011 - 18:19 | Link to Comment lynnybee
lynnybee's picture

My family, too.   My oldest daughter today just told me, " Mom, you're always wrong."    My adult son, on the other hand, put some silver in his hand & has now taken an interest.    

PAPER MONEY IS FOR SPENDING ON WORTHLESS SHIT.        SILVER IS FOR SAVING.

Mon, 03/07/2011 - 20:54 | Link to Comment dark pools of soros
dark pools of soros's picture

right now I just show the change in heating oil bill vs silver..  everyone says heating oil went up but vs silver i tell them it went down for me..  i think the gears in their heads locked up thinking like that

what's in their wallet?

Mon, 03/07/2011 - 18:14 | Link to Comment mark mchugh
mark mchugh's picture

I always offer to exchange it for paper money if they'd rather have that, but so far, they've all opted to keep the shiny.  Smart kids.

When silver goes triple digit, they'll have to find someone else to cash them out.

Mon, 03/07/2011 - 20:58 | Link to Comment DosZap
DosZap's picture

Even children know the difference for tangible objects, and paper.

Mon, 03/07/2011 - 18:17 | Link to Comment lynnybee
lynnybee's picture

what a great comment !   what a great uncle & gifter !

Mon, 03/07/2011 - 17:43 | Link to Comment Eternal Student
Eternal Student's picture

Agreed, but this article is like yesterday's news. Here's the most recent interesting story:

http://news.silverseek.com/SilverSeek/1299509764.php

In summary, Ted Butler's analysis of the most recent Bank Participation Report shows that JPM is the only Bank left actively shorting, and that they recently increased their short contracts by 6000, after having previously reduced their net short position by 11,000 contracts in the preceding 3 months.

Now that's interesting news.

h/t to The Silver Turd.

Mon, 03/07/2011 - 18:20 | Link to Comment Victorio
Victorio's picture

A pathetic act of desperation...

These guys are totally fucked and this whole thing is gonna blow.

Mon, 03/07/2011 - 18:44 | Link to Comment NotApplicable
NotApplicable's picture

Sure it's gonna blow. 'These guys' though, they will walk away with fat pockets for doing the Treasury's bidding. The upcoming JPM bailout (nationalization) will make GM look like a rounding error.

Mon, 03/07/2011 - 19:10 | Link to Comment Victorio
Victorio's picture

You think with all the gross market manipulation they are now engaging in that a nationalization will really fly?  If that happens all bets are off. Seriously.

Mon, 03/07/2011 - 20:10 | Link to Comment SRV - ES339
SRV - ES339's picture

While I have a sizable silver investment and the daily Comex games really piss me off, what really gets me going is the affect on the miners (my major investments). Today's a great example as Ag & Au were smokin' overnight, the miners shot out of the gate, but slowly sold off through the day to finish negative (even though spot was marginally higher than Fridays close), as the Comex games began.

Capital punishment (which I'm against in principle) would be too good for these clowns!

Mon, 03/07/2011 - 21:01 | Link to Comment DosZap
DosZap's picture

Well this is not '08, and the sheeples are a lot smarter, the strong hands, and us will not RUN to redeem.

Mon, 03/07/2011 - 23:09 | Link to Comment GoinFawr
GoinFawr's picture

I don't know about the sheeples being any 'smarter', but they are beginning to get the idea; which is definitely something.

 265 mil (or conceivably many, many more) with access to ~36 fiat bux is quite a force to be reckoned with, should they all make the same investment decision more or less simultaneously.

I mean: why keep it in a bank? Can you remember the last year a savings account's interest outpaced the cost of living (see: I didn't say 'inflation')? I'd wager that for most of us it never has.

Mon, 03/07/2011 - 18:38 | Link to Comment BallsDeepGold
BallsDeepGold's picture

 

   Pulling out all stops to lower the price. That is the last step before default. Think about it - its like running up your credit cards before declaring bankruptcy. Except when the morgue defaults its the paper longs who get bent over.

 

   Remember, the morgue's con has two parts. They sell the paper to depress the spot price. This allows them to build up a physical position at a below market price (making money all the way down too). Then when no more physical can found (backwardation?) - they default on delivery. This sticks the paper Longs with the tab for the physical long position the morgue accumulated while also sending the spot price skyward.

  Then, once the price for physical takes off - the morgue will sell off their physical hoard at obscene levels - making money on both sides of the trade. Genius really.

  

 

 

Mon, 03/07/2011 - 18:56 | Link to Comment nope-1004
nope-1004's picture

 

making money on both sides of the trade. Genius really. 

 

Yes, white collar crime is admirable behavior and only for those much too smart to be labeled as "average" like you and I.

</sarc>

 

Mon, 03/07/2011 - 19:19 | Link to Comment BigJim
BigJim's picture

I'm confused. How can the same entity default on silver delivery, if they've built up a silver hoard?

Mon, 03/07/2011 - 19:54 | Link to Comment BallsDeepGold
BallsDeepGold's picture

 

  They intended to default from day one. Reason you can't see it probably because you have scruples where they have none. The entire con of selling paper silver was designed to make money as the price falls (which they did) AND to build a physical position at below market prices.

 

  They could deliver - if they had too. But, better for them to default on the paper. Their physical position never existed to cover their paper short. The physical position is for distribution to the masses at much higher prices AFTER they default on the paper portion of their position.

 

 You need to separate the "paper" position from the "physical" position. They are two completely different entities. One was created to fund the other. One makes money as price goes down, the other on the way up. This is the part of the con the Ted Butlers of the world are missing. All he sees is the paper short. The con is much deeper than just selling all the way down.  

Mon, 03/07/2011 - 23:00 | Link to Comment rosiescenario
rosiescenario's picture

"JPMorgan’s motivation for suddenly and greatly increasing its silver short position is less clear and more troubling. My own guess is that the JPMorgan silver trader thought he had no choice but to sell many more contracts short in order to control the price and protect their existing short position. That’s because there was no one else left to sell. If JPMorgan didn’t sell, no one else would have (at prevailing prices). That’s the problem and it goes to the heart of the crime. The raptors didn’t want to sell, nor did the 5 thru 8 large traders. Ditto for basically all the other silver traders. That left JPMorgan as the sole silver seller, as the COT and Bank Participation Reports clearly document. Please think about this."

...painted themselves into a corner and now trying to paint their way out....good luck.

Mon, 03/07/2011 - 17:42 | Link to Comment Paul Krugman
Paul Krugman's picture

Somebody quick, stick some silver in my pooper

Mon, 03/07/2011 - 19:21 | Link to Comment f16hoser
f16hoser's picture

Kick the tires and light the fires

 

Light this candle

Mon, 03/07/2011 - 19:31 | Link to Comment strannick
strannick's picture

Fly little silvery pig, fly!

Mon, 03/07/2011 - 21:11 | Link to Comment akak
akak's picture

"Pig", you say, Strannick?

On the contrary, silver is a sleek, beautiful dove soaring over the dew-kissed meadow as the sunrise bathes it in its warming embrace.

Paper silver, on the other hand, is a wad of shit-smeared toilet tissue floating in a cesspool.

Mon, 03/07/2011 - 21:46 | Link to Comment strannick
strannick's picture

Silver is my prized pet little piggy I let sleep in the bed so he doesnt catch a chill. Or keep tucked away deep in the woods, where only my GPS can find him.

Mon, 03/07/2011 - 19:39 | Link to Comment jackpagan
jackpagan's picture

Long since $12.88...its just warming up. All the people I told back then and laughed at me are now asking the about the best way to invest. Looking forward to the day a cab driver tells me he's just invested in silver.

Mon, 03/07/2011 - 21:48 | Link to Comment strannick
strannick's picture

Even if he does, it'll only be a 1/10th of an ounce coin

Mon, 03/07/2011 - 22:03 | Link to Comment DavidPierre
DavidPierre's picture

I'm going to play Mr. ButtInSki here and bring this to everyone's attention.

................................................................................................

"Traditionally, gold has been a store of value when citizens do not trust their government politically or economically."

But... But... can you even TRUST Gold?

"Late last week I was dropping off some gold items to a local jeweller and one of the ladies there showed me a fax they had received from the Jeweller's Vigilance Commission.

The fax outlined a fraud that had taken place in which 95 gold bars were obtained with a bank draft which was counterfeit. This took place in Montreal on February 14. The amount of the draft was just shy of two million dollars. Many of the bars were 10oz Perth Mint Bars. The fax also included Toronto police contact information.

Incredible! A theft of almost two million dollars worth of gold and not one mention in the mainstream media or even in the gold community.

An internet search yielded some Australian news items due to the bars having been manufactured by the Perth Mint in Australia. Only in recent days have some local/mainstream media outlets released this story.

Why has this story been kept under wraps for over two weeks?

Who was the vendor and what bank did the draft originate from?

Was there a breach in protocol by the vendor in dealing with a draft of that size?

Is the vendor insured for this type of loss?

I have some thoughts on this matter and it should be a major concern to everyone in the gold community who has (or think they have) custodial gold.

There is only one vendor (whom I will not name) in Montreal that has the wherewithal to sell that volume of gold across the counter.

They also offer pool accounts as well as allocated storage and have a program affiliated with the Royal Canadian Mint.

 Could it be that releasing their name could possibly start a run on pool or allocated storage accounts in North America?

If there was a breach of protocol in dealing with a draft of that size, would that further serve to undermine confidence in such programs with other vendors?

There is one inescapable conclusion that I have arrived at because of this issue and the attendant opacity.

It is foolish to consider ANY allocated, custodial or pool account secure.

If you do not have your gold in your possession, you will one day be among many other unsecured creditors dealing in a paper or some form of legal nightmare.

If you cannot take responsibility for your own specie, your only alternative is a fund proxy such as Central Fund of Canada or Central Gold Trust. There are a few others out there but be wary of any offering settlement in specie.

Buy a proxy that is just that and nothing more.

The rubber is about to meet the road as far as deliverable specie goes.

Even well intentioned custodial vendors could face issues as the revenue they earn from storage fees is insufficient to cover their costs as investors exit with metal in hand."

www.lemetropolecafe.com

I've known this bullion dealer for years and he is a straight up, no nonsence gold-bug in Alberta.

Mon, 03/07/2011 - 22:49 | Link to Comment goldfish1
goldfish1's picture

Paging Math Mike.

Tue, 03/08/2011 - 00:14 | Link to Comment Bay of Pigs
Bay of Pigs's picture

I'll say it then. Jon Nadler and KITCO.

Never have bought anything from these people. Love the site, but can't stand some of the people that work there.

Mon, 03/07/2011 - 17:12 | Link to Comment Mongo
Mongo's picture

Hi Ho Silver!

Mon, 03/07/2011 - 17:29 | Link to Comment unwashedmass
unwashedmass's picture

Ted Butler says that JPM is the last silver short there at the Comex.

awwwwwwwwwwwwwwwwwww

Mon, 03/07/2011 - 17:13 | Link to Comment PSEUDOLOGOI
PSEUDOLOGOI's picture

Silver Bitchez!!!

Mon, 03/07/2011 - 17:20 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Crash the Fed by crashing its house bank JPM...

Buy silver!!!!!!

Mon, 03/07/2011 - 17:12 | Link to Comment Ancona
Ancona's picture

Silver absolutely has a lot of potential, but the short side controls the action [for now] as they can conjure more imaginary silver than can possibly ever be mined. As long as this is allowed, silver will never find it's true equilibrium.

Mon, 03/07/2011 - 17:16 | Link to Comment SilverIsKing
SilverIsKing's picture

What about delivery failure?

Mon, 03/07/2011 - 17:19 | Link to Comment Dr. Porkchop
Dr. Porkchop's picture

They also have the ability to change or be exempt from the rules, something the little vigilantes don't have. It's going to be a long battle. Less Normandy, more battle of the bulge...hopefully not Galipoli.

Mon, 03/07/2011 - 18:17 | Link to Comment ItsEvolutionBaby
ItsEvolutionBaby's picture

My Aussie ass puckered a little when you said 'Galipoli'.

Mon, 03/07/2011 - 19:13 | Link to Comment rich_wicks
rich_wicks's picture

They also have the ability to change or be exempt from the rules,

What are they going to do?  Say that physical delivery isn't allowed any more at the COMEX?

Of what use would the COMEX have if the rules were changed thusly?  There are plenty of other commodities exchanges, and a commodities exchange that doesn't allow delivery isn't a commodities exchange at all.

Mon, 03/07/2011 - 17:22 | Link to Comment InconvenientCou...
InconvenientCounterParty's picture

"...they can conjure more imaginary silver than can possibly ever be mined."

 

right around 104 days of production is "conjured" according to the article. It's real and finite.

 

 

Mon, 03/07/2011 - 17:47 | Link to Comment aleph0
aleph0's picture

I would agree with that. Who knows whether or not JPM has undisclosed long positions offshore to counterbalance it's shorts ?
Also, the never ending story of the "Comex Default" is just what it is .. settlements in lieu of physical can be made in fiat cash AFAIK .. and have been recently IIRC.
Remember the Hunts? .. where JPM was on the other side of the trade ?
The amount of "fiat cash" that JPM would have to pay on their short position is IMO not a problem , considering the few $billions needed. After all, what's a Billion$s these days for the FED Cartel members !
JMHO FWIW

Mon, 03/07/2011 - 17:14 | Link to Comment Horatio Beanblower
Horatio Beanblower's picture

Right, who wants to be Charlie Sheen's new intern?

 


Do you have #TigerBlood? Are you all about #Winning? Can you #PlanBetter than anyone else? If so, we want you on #TeamSheen as our social media #TigerBloodIntern!

This unique internship opportunity will allow a hard-working, self-motivated, creative, resourceful and social media savvy individual to work closely with Charlie Sheen in leveraging his social network. The internship will focus on executing a social media strategy that will build on the success Charlie Sheen has attained in setting the Guinness World Record for the fastest time to reach one million followers on Twitter. The #TigerBloodIntern is expected to be proactive, monitor the day-to-day activities on the major social media platforms, prepare for exciting online projects and increase Charlie’s base of followers.

You will learn how to promote and develop the social media network of Hollywood’s most trending celebrity.

 

http://cs.internships.com/charlie-sheen-internship/?adly_id=1373351728

Mon, 03/07/2011 - 17:44 | Link to Comment cosmictrainwreck
cosmictrainwreck's picture

WTF?? well, shit, I guess everybody's got to make a livin'....I guess

Mon, 03/07/2011 - 17:48 | Link to Comment Horatio Beanblower
Horatio Beanblower's picture

At least someone apart from the government is hiring.  What a crazy world we live in.

Mon, 03/07/2011 - 20:40 | Link to Comment Charlie Bravo
Charlie Bravo's picture

Charlie Sheen got shit-canned.....troll...

Charlie Bravo

Mon, 03/07/2011 - 21:08 | Link to Comment DosZap
DosZap's picture

Way past time..................the man is insane.

Mon, 03/07/2011 - 17:14 | Link to Comment Sofa King
Sofa King's picture

Great Article. Of course it's in great demand.  People want to feel wealthy and what better way than to take a treasure bath.

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

 

This shit serves no other purpose, with the exception of plating bus bar connections and breaker contacts. 

Mon, 03/07/2011 - 17:28 | Link to Comment naughtius maximus
Mon, 03/07/2011 - 17:41 | Link to Comment Sofa King
Sofa King's picture

Junk it all you want.  Truth hurts sometimes.

Mon, 03/07/2011 - 18:29 | Link to Comment akak
akak's picture

Truth hurts sometimes.

Stupid hurts even more.  Trust us.

 

PS: You wouldn't happen to be the "SofaKing" of "Sofa king we Todd it" fame?

Mon, 03/07/2011 - 18:54 | Link to Comment EscapeKey
EscapeKey's picture

We junk you because you forgot to add the exclamation marks to your post, not because thousands of years of history conclusively prove you don't know what you're talking about.

Here's a line you can cut and paste in future posts:

!!!!eleventyone!!11!!

Mon, 03/07/2011 - 18:44 | Link to Comment RockyRacoon
RockyRacoon's picture

This shit serves no other purpose, with the exception of plating bus bar connections and breaker contacts.

Good lord, man.  Must you show your ignorance so blatantly?

Mon, 03/07/2011 - 19:29 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

He can't help it. After all.......he's ignorant.

Point of order, there's nothing wrong with being ignorant. It simply means you are not aware. But the desire to remain unaware or the desire to reject awareness is a deliberate walk to the other side of the track to visit stupid.

PMs are not the only solution. But they are mostly certainly one of the solutions to the fiat currency debasement.

Mon, 03/07/2011 - 19:54 | Link to Comment New_Meat
New_Meat's picture

CD:

"PMs are not the only solution."

U betcha'

I'm thinking (and doing) that the better solution (nay best/no optimization in the furball) is that education on how to live in all respects is the correct direction (not a "solution").

Because the PM meme has assumptions about "getting across the valley" as well as fricken' actually holding on to one's property (including, but [as my lawyer friends say 'but not limited to'] the homestead.

Seems to me that the general solution is to distribute as much information on how to live locally/self sustained during a 'reset'.

Then the PM "solution" might be in effect.

- Ned

{OT, but, have you personally been on the wall/in a 'no outside rescue is possible' scenario?  Just askin'--kinda' combat check thing.}

 

Mon, 03/07/2011 - 21:20 | Link to Comment DaddyO
DaddyO's picture

 

Ignorance is correctable, stupidity is terminal!

DaddyO

Mon, 03/07/2011 - 19:58 | Link to Comment tmosley
tmosley's picture

Thieves don't put much value in trade, as such, they see no reason or value for gold.

Tue, 03/08/2011 - 03:33 | Link to Comment Beau Tox
Beau Tox's picture

'Don't waste your keystrokes on the ignorant', to paraphrase Jesus, as in 'pearls before swine'.

Mon, 03/07/2011 - 17:14 | Link to Comment ZeroPower
ZeroPower's picture

Because of the negative press surrounding several banks trading on their own accounts, JP Morgan decided to shut down its proprietary trading department at the end of August 2010. 

This is wrong. Volcker rule made them 'disassociate' the desk from IBD and merge it into another division.

It is being run as part of the AM group currently.

Mon, 03/07/2011 - 17:15 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Better get Math Man in here to calm everyone down.

Remember, you can dig it up for $5...

Mon, 03/07/2011 - 17:25 | Link to Comment luk427
luk427's picture

And ramming it up his ass=priceless.

Mon, 03/07/2011 - 17:25 | Link to Comment InconvenientCou...
InconvenientCounterParty's picture

was that 5-spot factoring in fuel cost from 2008, or triple that? just askin'

Mon, 03/07/2011 - 17:30 | Link to Comment EscapeKey
EscapeKey's picture

And industrial demand is 50% of production (*).

(*) 2009 data only.

Mon, 03/07/2011 - 17:32 | Link to Comment IQ 145
IQ 145's picture

 If I catch you digging anything up on my property, it's gonna cost you your life; not $5. 

Mon, 03/07/2011 - 19:01 | Link to Comment Quinvarius
Quinvarius's picture

So I can let my dog shit in your yard when I walk him and not worry about it?

Mon, 03/07/2011 - 17:56 | Link to Comment Confused
Confused's picture

Has anyone seen him around? I would love to hear him explain whats going on. 

Mon, 03/07/2011 - 17:57 | Link to Comment eddiebe
eddiebe's picture

Remember, you can dig it up for $5...

So what? Have you ever heard of demand/supply?

Mon, 03/07/2011 - 17:15 | Link to Comment Dagny Taggart
Dagny Taggart's picture

More of a pummel than a squeeze?

Mon, 03/07/2011 - 17:15 | Link to Comment irishlink
irishlink's picture
CNBC guests are starting to go rogue! A guest has actually suggested that the Fed are running a PONNZI scheme. And their OIL correspondent actually suggested that silver would hit $ 50 an ounce. Bring in the Paramedics. Something is seriously wrong in this scenario.
Mon, 03/07/2011 - 17:26 | Link to Comment Captain Kink
Captain Kink's picture

David Tice is a perma-bear who is clearly hanging out on ZH...  the fact that he and many others are jumping on the band-wagon makes me wonder.

Mon, 03/07/2011 - 17:16 | Link to Comment TWORIVER
TWORIVER's picture

Or Silver will correct heavy along with all other commodities. That support at 31 looks like a place to BTFD if you like.

Mon, 03/07/2011 - 17:37 | Link to Comment SilverRhino
SilverRhino's picture

And the Chinese will scarf up all available Ag as it dips.   They are BingTFD.

Mon, 03/07/2011 - 19:02 | Link to Comment oddjob
oddjob's picture

Holy Shit!...you actually have the nerve to give advice on PM's again....Fuck You!

Mon, 03/07/2011 - 17:17 | Link to Comment LostWages
LostWages's picture

Time for an update from the little silver bears?

The sheep want to know just how fucked the Blythe, the Comex, and the Bernank are.

Mon, 03/07/2011 - 17:17 | Link to Comment buzzsaw99
buzzsaw99's picture

Colloidal. Silver. Bitchez.

Mon, 03/07/2011 - 17:19 | Link to Comment clymer
clymer's picture

buzz you might try a little colloidal for that skin condition

Mon, 03/07/2011 - 17:28 | Link to Comment buzzsaw99
buzzsaw99's picture

I did, with plenty of uv light. Join me. ;)

Mon, 03/07/2011 - 17:37 | Link to Comment New_Meat
New_Meat's picture

did u pay the "tanning tax?"

Mon, 03/07/2011 - 18:35 | Link to Comment buzzsaw99
buzzsaw99's picture

I have a personal mutant uv bath at home. Pay zero taxes bitchez!

Mon, 03/07/2011 - 18:38 | Link to Comment New_Meat
New_Meat's picture

therez 1,800 IRS agents coming for your ass. <eeeew, the very thought>

Mon, 03/07/2011 - 18:50 | Link to Comment buzzsaw99
buzzsaw99's picture

they've been after me for years. i am deep, deep, undercover.

Mon, 03/07/2011 - 20:07 | Link to Comment New_Meat
New_Meat's picture

then good on'ya Buzz

Mon, 03/07/2011 - 17:39 | Link to Comment Pladizow
Mon, 03/07/2011 - 17:17 | Link to Comment clymer
clymer's picture

"But the all-time high of just under $50 per ounce could, if the current pace of appreciation persists, be broken this year."??

Try next quarter

Mon, 03/07/2011 - 17:29 | Link to Comment The Disappointed
The Disappointed's picture

If the POS doesn't get smacked (and smacked hard at that), we could have 50.00 by the end of the month.

Mon, 03/07/2011 - 17:31 | Link to Comment unwashedmass
unwashedmass's picture

i was gonna say...try next week. this game is ending

Mon, 03/07/2011 - 17:18 | Link to Comment AG BCN
AG BCN's picture

Today Ted Butler stated that the short positions just increased dramatically.

Mon, 03/07/2011 - 17:46 | Link to Comment JPMorgan
JPMorgan's picture

Hmmm yer I just read about this. :-S

http://news.silverseek.com/SilverSeek/1299509764.php

Mon, 03/07/2011 - 18:00 | Link to Comment Sudden Debt
Sudden Debt's picture

That article talke about how shorters where able to keep silver from 40 to 50$.

But they can't stop demand which is spiking.

It will just make the squeeze a lot bigger. Supply/demand.

 

And unlike stocks : I've got ALL the time in the world with this :)

Even if it takes years.

Mon, 03/07/2011 - 17:48 | Link to Comment NidStyles
NidStyles's picture

Dramatically is putting it lightly. It got crushed all the way back to $35.89 range as of this posting.

Mon, 03/07/2011 - 17:18 | Link to Comment spartan117
spartan117's picture

What ever became of the "cadillac converter" guys?  They were funny.

Mon, 03/07/2011 - 17:20 | Link to Comment plata pura
plata pura's picture

$2.0577411022 is the total melt value for the 1942-1945 silver nickel on March 07, 2011.

Mon, 03/07/2011 - 17:27 | Link to Comment redpill
redpill's picture

If it was actually worth 5 cents in 1945, I think that would mean an annual rate of inflation of nearly 6% in every year since.  Of course, most of that has actually occurred in the last few years.

 

 

Mon, 03/07/2011 - 18:37 | Link to Comment mark mchugh
mark mchugh's picture

Remember, inflation isn't the only thing that drives prices.  Supply vs. demand has a little to say too.

Mon, 03/07/2011 - 17:28 | Link to Comment cosmictrainwreck
cosmictrainwreck's picture

kool...in other developments, couple Big Dawgs did a 150,000 sh trade of AGQ at 16:05 @ $210.30 = $31.545 million in one shot

Mon, 03/07/2011 - 17:54 | Link to Comment cosmictrainwreck
cosmictrainwreck's picture

40 minutes later the buyer is down $300,000 (excluding fees) ha! and that's only 0.95%. shit - where can I get a job like that?

well, I reckon it's same as me, measuring % up & down & margins, etc. but just add a BUNCH of zeroes.... lol

Mon, 03/07/2011 - 19:33 | Link to Comment ElvisDog
ElvisDog's picture

Hold on, were nickels ever made of silver? I thought they were larger than a dime because they were made of nickel. I thought only dimes and up were made from silver.

Mon, 03/07/2011 - 19:59 | Link to Comment Don Birnam
Don Birnam's picture

During the years 1942 and 1945, nickel ( a strategic metal ) was removed from the composition of the coin, and replaced with silver. Silver content: 35%.

Mon, 03/07/2011 - 17:20 | Link to Comment geminiRX
geminiRX's picture

So which is it??

Copper/gold ratio by Credit Suisse says everything not nailed down gets sold off (pertaining to silver too).........or this report saying silver is going to $50.

Two perspectives are nice, but leaves me confused. I still have visions of Sept 2008 when PM's got decimated just like everything else.

Mon, 03/07/2011 - 17:44 | Link to Comment IQ 145
IQ 145's picture

 Credit Suisse hasn't been right about anything for 15 years. It's not possible to predict the future; in general, this is not 2008. In 2008 Chinese citizens were not lined up four deep at the buying counters to buy gold and silver. It's clear that "some" change has occurred in peoples opinion about flights to quality; the split in the river of funds has grown in favor of the metals and away from the dollar/bonds. To some degree. Silver will continue on to higher evaluations over the next couple of years, at least. When it reaches $50 is not particularly significant.

Mon, 03/07/2011 - 19:22 | Link to Comment SilverBaron
SilverBaron's picture

But if it does happen, be like the smart Chinamen and BTFD!

Tue, 03/08/2011 - 00:10 | Link to Comment Raphio
Raphio's picture

Buy The Fed Dollar?

Tue, 03/08/2011 - 00:17 | Link to Comment Raphio
Mon, 03/07/2011 - 17:57 | Link to Comment Lets_Eat_Ben
Lets_Eat_Ben's picture

Silver will continue to grow rapidly for the forseeable future. {(assuming that I can see 6 months to a year into the future)(assuming that the current velocity of price discovery holds relatively stable)} The inflationary pressures moving the silver market are as reckless and powerful as they have ever been. Even with the supposed manipulative power of Blythe and the boys at the Morgue, the white metal is making gains at a voracious click as the Ag/Au ratio continues to fall. I believe the mantra, BTFD, will continue to hold true until the next major shift occurs in regards to monetary policy not only here in the states, but in the global system as well. The deflationary sell-off that seems likely to follow the current inflationary move still seems to be over the horizon.

Conclusion: BTFD

Mon, 03/07/2011 - 18:01 | Link to Comment IQ 145
IQ 145's picture

 Correct.

Mon, 03/07/2011 - 20:00 | Link to Comment Long-John-Silver
Long-John-Silver's picture

Everyone fled to US Dollars in 2008. They will not do that again. Gold and Silver will be the safety call when the second dip hits.

Mon, 03/07/2011 - 17:23 | Link to Comment Hondo
Hondo's picture

Is JPM marking it liability to market or is it fudging????

Mon, 03/07/2011 - 17:29 | Link to Comment InconvenientCou...
InconvenientCounterParty's picture

sounds like the Bear Stearns accounting is the mother of all accounting black holes.

Mon, 03/07/2011 - 17:26 | Link to Comment AGoldhamster
AGoldhamster's picture

I won't be long Crude or PMs over coming 3 days or maybe even longer ... http://marketcyclesresearch.blogspot.com/2011/03/i-wont-be-long-crude-or-pms-coming-3.html

Mon, 03/07/2011 - 17:38 | Link to Comment tmosley
tmosley's picture

I hope it doesn't blow up in your face.

What do you do when you wake up and silver is $65, and gas is $10?

Mon, 03/07/2011 - 17:45 | Link to Comment AGoldhamster
AGoldhamster's picture

good luck with your longs - you were warned.

Mon, 03/07/2011 - 17:58 | Link to Comment Bay of Pigs
Bay of Pigs's picture

For short term traders, that's a fair call. Who's knows for sure.

However, the dips have been getting shallower and shorter in duration. Used to take weeks/months to recover. Now it's days and minutes. JPM's stranglehold on the price of silver is over. The best they can do now is retreat and fight at higher levels.

Stand in front of the Silver Train all you want. I'll take a pass. 

Mon, 03/07/2011 - 18:36 | Link to Comment spartan117
spartan117's picture

Oh no!  An anonymous poster on the internet told me to sell all my PMs because they are going to correct.  How many freaking times has this happened in the last 10 years? 

Mon, 03/07/2011 - 21:44 | Link to Comment cosmictrainwreck
cosmictrainwreck's picture

you mean how many times did they correct? lots

Mon, 03/07/2011 - 17:49 | Link to Comment Sudden Debt
Sudden Debt's picture

Then he'll be able to buy more gas with his silver then you with your paper ;)

 

THAT'S WHY THEY CALL IT WEALTH PROTECTION!

 

And when you can buy more luxery then others = rich

Mon, 03/07/2011 - 20:43 | Link to Comment XPolemic
XPolemic's picture

Boy I do sure hope you are right. I will pop down to my bullion dealer and suck up as much of the selling fools silver as I can afford.

Please, please, give me a dip to buy.

 

Mon, 03/07/2011 - 17:25 | Link to Comment DispenzPez
DispenzPez's picture

BTFSD

Mon, 03/07/2011 - 17:29 | Link to Comment reader2010
reader2010's picture

irrational exuberance? or rationally irrational exuberance? let's call for $500 silver. will it end in tears?

Mon, 03/07/2011 - 17:46 | Link to Comment AGoldhamster
AGoldhamster's picture

at least within next few days there will be tears yes ...

Mon, 03/07/2011 - 19:22 | Link to Comment dumpster
dumpster's picture

the only tears will be those in paper.  

 

the nickle flippers

the guys that can only call gold and silver with TA but suck with the broads

any one who got into silver at 4,00 just laughs at the preponderance of guys that are maybe right some of the time .. were late to the party

wish they were up almost 9 times with silver

Richard Russell maybe has just a touch more market savvy then five of you guys tied together with a ball of twine ,

He just says hold your position

 

and as yet with all their trading are still just barely ticking in profits.

my advice go council those who give a swhit,

 

their all  over just salivating for wisdom

Mon, 03/07/2011 - 19:55 | Link to Comment reader2010
reader2010's picture

Richard Russell said everyone needed to sell all their stocks last July because he believed by last December the stock market would collapse. What a great call.

Mon, 03/07/2011 - 20:01 | Link to Comment akak
akak's picture

When priced in silver, the stock market has collapsed --- and continues to.

Tue, 03/08/2011 - 01:28 | Link to Comment reader2010
reader2010's picture

forget about silver. cotton has done far better since last july. 

Mon, 03/07/2011 - 20:15 | Link to Comment dumpster
dumpster's picture

bumstead reader

go pull up a silver dow chart

he has been telling the mass of idiots like you to buy gold and silver for ten years

so you hone in on a call in july,, that a week later he reversed,

to you its ego ,, to him he just calls um like he seems um

for 60 years ,, he may have changed your diaper

 

Mon, 03/07/2011 - 17:29 | Link to Comment Biff Malibu
Biff Malibu's picture

Hey guys, I'll be honest with you.  I'm not rich.  I'm a blue collar worker in the midwest.  My wife stays home to care for our 4 children.  We live very modestly and conservatively.  For the last 10 years we've been able to get by with my income.  This past year, and specifically about the last 3 months we've been falling farther and farther behind.  My grocery bill went from about $900/month to about $1300 last month alone.  Gas is starting to hurt us as well, we no longer flippantly hop in the car to go for a drive for something, we plan it out to make multiple stops.  I just want to put this out there, so the people that ARE making these decisions, that are MAKING MY DOLLARS WORTH LESS AND LESS are HURTING AMERICANS, and KILLING those in other countries.  I hope they can live with all that blood on their conscience.  I'm a simple man, and to my knowledge have never done anything to create hardships on other people or kill them.  I just don't know how those that are responsible for these decisions don't know that they are HURTING us.  The bible says I can't pray for anything bad to happen to others.  It also says that God puts people in authority over us.  I can only imagine that God is tired of the United States corruption and is ultimately punishing all of us.  I can only hope that JUDGEMENT is coming for those who are knowingly defrauding the american people.  CEO's, democrat and republican congressman, Fed chairman, employees working for Goldman Sachs, JP Morgan, Bank of America, Citi, yes, if you are an EMPLOYEE for any of these banks people's blood is on your hands too, don't think it's not.  Defense contractors, those building weapons that are killing people overseas, you might just be sitting in front of a computer doing designs, but YOU are KILLING people as well and the BLOOD is on YOUR HANDS as well. 

 

Mon, 03/07/2011 - 17:31 | Link to Comment InconvenientCou...
InconvenientCounterParty's picture

Instead of praying with eyes closed, try looking in the mirror.

I did it...

Broke the effin mirror, but I did it.

Mon, 03/07/2011 - 19:13 | Link to Comment NotApplicable
NotApplicable's picture

I wonder if he realizes that all of that blood comes from the lever at the voting booth?

The only ethical vote is NOTA.

Mon, 03/07/2011 - 17:33 | Link to Comment EscapeKey
EscapeKey's picture

I hope they can live with all that blood on their conscience.

Sorry about having to break it to you, but I'm pretty sure they don't give a shit.

Do NOT follow this link or you will be banned from the site!