King World News Confirms Goldman Sachs Has been Long Gold For Years, States $25.50 Is Silver Margin Call Threshold

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Thu, 11/04/2010 - 10:15 | 699327 Madcow
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If Goldman has been adding liquidity to the short side - and driving down price - and then accumulating physical - isn't that just blatant criminal activity ?

Thu, 11/04/2010 - 10:18 | 699337 HelluvaEngineer
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You say that as if it matters.

Thu, 11/04/2010 - 10:28 | 699377 NoBull1994
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SLV trading at a 2.2% discount to NAV.  I am long and getting longer...

No Bull

Thu, 11/04/2010 - 10:37 | 699422 HelluvaEngineer
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I just bought a decent chunk of PSLV.  This is extremely bearish for the rest of you.

Thu, 11/04/2010 - 12:27 | 699871 JohnG
JohnG's picture

Same here, but a rather massive buy for me, 25K shares on the IPO.


Thu, 11/04/2010 - 13:09 | 699988 DoChenRollingBearing
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No sweat guys re buying at a "high price".  I would guess that some 85% of my gold, silver and platinum were bought at or near the "highest price ever", then the prices continued going up.  Been that way for a long time for me.

I strongly prefer the physical real PMs in my own possession.  Has its own risks, yes.  But, I would rather have ounces in the hand vs. ounces in someone else's vault in Canada.

Fri, 11/05/2010 - 09:00 | 702266 justbuygold
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I believe the better play is Central Fund's   " SILVER BULLION TRUST" .  Lower MER and Admin Fee and also better managed.

Thu, 11/04/2010 - 10:37 | 699425's picture

I am long and getting longer


If that continues for more than four hours you should consult a physician.

Thu, 11/04/2010 - 10:40 | 699434 John Bigboote
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HaHa. Good one!

Thu, 11/04/2010 - 10:47 | 699459 NoBull1994
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thought you all would like that comment....

Thu, 11/04/2010 - 11:30 | 699654 Common_Cents22
Common_Cents22's picture

Priapism proprietary trader?

Thu, 11/04/2010 - 11:24 | 699623 JLee2027
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SLV is for suckers.

No Bull either.

Thu, 11/04/2010 - 11:49 | 699738 boricuadigm-shift
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Yesterday I bought SLV at $24.11 with one hand waiting to see the market.  Today I bought with two hands. 

HAve you guys noticed less available physical of both Silver/Gold in Apmex?

Put an extra order of gold/physical today.  I can't wait for it to go lower, if it ever does.

Buy with both hands!

Thu, 11/04/2010 - 11:55 | 699754 Dr. Richard Head
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I have.  There is not available inventory for many 10 oz and kilo coins.  Don't know about bars though. 

Thu, 11/04/2010 - 12:09 | 699805 DosZap
DosZap's picture

100 oz bars is all that's 764+ .

Plenty of 10 oz IF you want to pay the premiums.

Thu, 11/04/2010 - 15:02 | 700439 knukles
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If you're looking at inventory/good delivery as an indicator of future price movements and believe them to be falling, why in the world would one not own unencumbered allocated such as PSLV or PHYS? 
Just sayin', if real underlying delivery can't be made and all's changing hands is more non-deliverable paper.....

Thu, 11/04/2010 - 16:35 | 700871 Hard1
Hard1's picture

Not sure at what time you saw the 2% discount to NAV on SLV, but at close I calculate NAV at 8,545,376,257.58, based on 325,941,690 ounces and 26.2175 spot price.

the 8.5..bln divided by 333,300,000 shares outstanding yields a NAV of 25.64, which is very similar to current market price of the ETF (25.63)

Thu, 11/04/2010 - 10:24 | 699352 DaveyJones
DaveyJones's picture

quite the shock, all of this 


"blatant" Most commonly used for 'obvious', but also just an adjective used as a sentence enhancer - urban d    :/

Thu, 11/04/2010 - 10:26 | 699369 BlackChicken
BlackChicken's picture

isn't that just blatant criminal activity ?

No.  It is only a criminal event if one of us were to act like this.  If you are one of the cherished elite, this is just normal business.  Besides, the CFTC and other regulators are always on the lookout for suspicious activity, and if ANY of this were improper they would be all over it by now.

<Sarc> - off

Thu, 11/04/2010 - 10:29 | 699381 dark pools of soros
dark pools of soros's picture

sounds like God's work to me...

Thu, 11/04/2010 - 10:34 | 699406 Superdrol
Superdrol's picture

rofl.  That's awesome.

Thu, 11/04/2010 - 10:58 | 699503 DaveyJones
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you of course are referring to Dhumavati, the hindu god and smoky form of Shakti. The eternal widow with the black crow that symbolizes dark forces and black magic... 

Thu, 11/04/2010 - 10:47 | 699458 High Plains Drifter
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It must be nice to be one of the ultimate insiders.

Thu, 11/04/2010 - 14:35 | 700227 Dr. Acula
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>If Goldman has been adding liquidity to the short side - and driving down price - and then accumulating physical - isn't that just blatant criminal activity ?

Did they damage person or property? Did they defraud someone? Whom exactly do you think they victimized?

Note that damaging the subjective value (or objective exchange value) of someone's property is not the same as damaging the property itself. You may own property, but you cannot own other people' subjective appraisals of it. I cannot sue Ford for the drop in value of my buggy whip manufacturing business. By the same token, one cannot make home improvements and then sue his neighbors for the increase in their property values he caused.

I don't see how it is criminal to voluntarily enter into mutually agreed-upon trades. It is possible that Goldman Sachs is trading unwisely - but then the market would punish them with financial losses. If they trade wisely and speed the market toward equillibrium, then they will be rewarded with financial gains.


Thu, 11/04/2010 - 15:28 | 700565 LowProfile
LowProfile's picture

Wait a minute...

Did you just compare a loss in buggy whip sales to manipulating the metals market?


Thu, 11/04/2010 - 10:15 | 699328 tamboo
tamboo's picture

rare earths bitchez

Thu, 11/04/2010 - 13:15 | 700011 DoChenRollingBearing
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tamboo, rare earths may be a bit of a bubble now.  I have been trying to get a handle on the uses, producers and processors / refiners of rare earth metals.  I recently read that by about 2013 or so that there will be more non-Chinese production that will fill the demand.

I am always interested to hear ZH commentary from knowledgeable people re the rare earths.  But, many of the miners (MCP, LYSCF, AVARF, GWMGF) have had a big run.  Are any of them making money?

Thu, 11/04/2010 - 14:19 | 700254 stopthenewworldorder
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Hola. Am having a pop at a new IPO called Frontier Rare Earths - suggest you look it up.  It is indeed a market with little or no proper fundamentals and rare earths are in typical Orwellian fashion not rare in the slightest.  Having said all that it appears to be a strategic market for the time being and plays into trade wars etc which is wonderfully pertinent.  As such i think Rare Earths have legs for the time being but its more a trade than a hold.

Thu, 11/04/2010 - 10:15 | 699329 MGA_1
MGA_1's picture

And perhaps onwards to $50/ounce...

Thu, 11/04/2010 - 10:16 | 699331 CashCowEquity
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Hiyo "Silver" Away !!!

Thu, 11/04/2010 - 10:19 | 699339 MGA_1
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Don't worry, we have it all under control !

- The FED

Thu, 11/04/2010 - 10:19 | 699342 johnnymustardseed
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My excitement for the upside is tempered with the knowledge that those without will do bad things to aquire what they can not afford

Thu, 11/04/2010 - 10:32 | 699394 cossack55
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See the story of the guy who had 7000 ASEs stolen from his house in Wisconsin.  Roughly 500 lbs of silver.

Thu, 11/04/2010 - 10:52 | 699482 chinaguy
chinaguy's picture

You a fool to store that amount of physical in your home & not have some way to protect it.


Thu, 11/04/2010 - 11:07 | 699534 cossack55
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Of course. "A fool and his silver are soon parted"

Thu, 11/04/2010 - 10:21 | 699347 chinaguy
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We just blew through $25.50 - Lets taste this pudding.

Thu, 11/04/2010 - 10:33 | 699399 dark pools of soros
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it should fly...  just did my refi so i get a taste of skipping a payment during the switchover..  hmm  what to do with that cash?? 

I already have coins and 1oz bars...  might go for the 10oz'ers

Thu, 11/04/2010 - 10:21 | 699348 wafflehead
wafflehead's picture

sell the news bitchez

Thu, 11/04/2010 - 10:23 | 699354 dehdhed
dehdhed's picture

bear trap yesterday ... squeeze ya later dudes

Thu, 11/04/2010 - 12:13 | 699822 WALLST8MY8BALL
WALLST8MY8BALL's picture

love those dancing bears!

Thu, 11/04/2010 - 10:25 | 699355 goldmiddelfinger
goldmiddelfinger's picture

Someone at Goldman Sachs uses the word "their" when the word properly is "there"?

"..if their is a race .."

Thu, 11/04/2010 - 10:28 | 699375 hedgeless_horseman
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King World News Confirms Goldman Sachs Has been Long Gold For Years

I missed the confims part of the article.  Where is that again?

Thu, 11/04/2010 - 10:30 | 699383 goldmiddelfinger
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"King World News source out of London confirms .."

He'll be back Monday

Thu, 11/04/2010 - 10:32 | 699397 goldmiddelfinger
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"they (local traders who have been invited short) will just capitulate"


Who "invited" them to get short? That wasn't nice.

Thu, 11/04/2010 - 10:35 | 699415 goldmiddelfinger
goldmiddelfinger's picture

"they.. will just capitulate."

Guess it the "just" part that squarely defines the action to come.

Thu, 11/04/2010 - 10:44 | 699449 hedgeless_horseman
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Tyler is just feeding the headline-reading algos.

Thu, 11/04/2010 - 11:32 | 699668 Common_Cents22
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Re-read the article,  You missed this line:

"Blue Horseshoe loves Anacott Silver."

Thu, 11/04/2010 - 10:24 | 699358 Kaiser Sousa
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"and so ended the reign of the manufacturers and purveyors of worhless paper fraudulently presented to humankind as money" 

The End...

"fuck a banker"

Thu, 11/04/2010 - 10:25 | 699363 FISD
FISD's picture

Whether the train leaves today, the next or sometime after that, this family is all onboard and our luggage is on our laps. We're as ready as we can be.

Thu, 11/04/2010 - 10:29 | 699374 H. Perowne
H. Perowne's picture

Oooh, the vampire squid found something shiny! But it can't eat it . . . everyone says so. Then why does it want to keep it?

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