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

Tyler Durden's picture




 

Some new perspectives on gold, and its very special relationship with Goldman Sachs, courtesy of a London-based King World News source. And some were wondering where Paulson got the long gold trade idea from.

King World News source out of London has confirmed that Goldman Sachs has been long gold for years.  The source stated, “Goldman Sachs has been getting long the metals for years.  Goldman Sachs has essentially been acting as their own central bank, buying on dips for years to hedge their currency positions which are being eroded through coordinated global money printing or currency debasement which they knew would take place.  They are long the metals as a hedge and as I said have been for many years.”

The London source also discussed the silver shorts:

“If silver holds for a few hours above $25.50, they (local traders who have been invited short) will just capitulate. You could see a $1 move in an hour if their is a race for the exits.  Above $25.50, the locals that are short will literally get margin calls and will have to exit their shorts and it could become disorderly on the upside.

The jaws are closing on these shorts.  The silver market is underpinned by everyone who is waiting in the wings to accumulate, that is why you saw the extraordinary buying yesterday off of the lows which continues in today’s trading.” (more here)

Silver is almost there.

Today's POMO, which will send stocks up above 2%, will likely push silver over.

Full King World News note here.

 

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Thu, 11/04/2010 - 10:15 | 699327 Madcow
Madcow's picture

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
HelluvaEngineer's picture

You say that as if it matters.

Thu, 11/04/2010 - 10:28 | 699377 NoBull1994
NoBull1994's picture

SLV trading at a 2.2% discount to NAV.  I am long and getting longer...  http://us.ishares.com/product_info/fund/overview/SLV.htm

No Bull

Thu, 11/04/2010 - 10:37 | 699422 HelluvaEngineer
HelluvaEngineer's picture

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
DoChenRollingBearing's picture

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
justbuygold's picture

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 CrockettAlmanac.com
CrockettAlmanac.com'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
John Bigboote's picture

HaHa. Good one!

Thu, 11/04/2010 - 10:47 | 699459 NoBull1994
NoBull1994's picture

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
JLee2027's picture

SLV is for suckers.

No Bull either.

Thu, 11/04/2010 - 11:49 | 699738 boricuadigm-shift
boricuadigm-shift's picture

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
Dr. Richard Head's picture

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 left.............one 764+ .

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

Thu, 11/04/2010 - 15:02 | 700439 knukles
knukles's picture

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.....
Duh.

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
DaveyJones's picture

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
High Plains Drifter's picture

It must be nice to be one of the ultimate insiders.

Thu, 11/04/2010 - 14:35 | 700227 Dr. Acula
Dr. Acula's picture

>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?

Seriously.

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

rare earths bitchez

Thu, 11/04/2010 - 13:15 | 700011 DoChenRollingBearing
DoChenRollingBearing's picture

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
stopthenewworldorder's picture

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
CashCowEquity's picture

Hiyo "Silver" Away !!!

Thu, 11/04/2010 - 10:19 | 699339 MGA_1
MGA_1's picture

Don't worry, we have it all under control !

- The FED

Thu, 11/04/2010 - 10:19 | 699342 johnnymustardseed
johnnymustardseed's picture

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
cossack55's picture

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
cossack55's picture

Of course. "A fool and his silver are soon parted"

Thu, 11/04/2010 - 10:21 | 699347 chinaguy
chinaguy's picture

We just blew through $25.50 - Lets taste this pudding.

Thu, 11/04/2010 - 10:33 | 699399 dark pools of soros
dark pools of soros's picture

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
hedgeless_horseman's picture

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
goldmiddelfinger's picture

"King World News source out of London confirms .."

He'll be back Monday

Thu, 11/04/2010 - 10:32 | 699397 goldmiddelfinger
goldmiddelfinger's picture

"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
hedgeless_horseman's picture

Tyler is just feeding the headline-reading algos.

Thu, 11/04/2010 - 11:32 | 699668 Common_Cents22
Common_Cents22's picture

Re-read the article,  You missed this line:

"Blue Horseshoe loves Anacott Silver."

Thu, 11/04/2010 - 10:24 | 699358 Kaiser Sousa
Kaiser Sousa's picture

"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?

Thu, 11/04/2010 - 15:04 | 700458 knukles
knukles's picture

Anal retention syndrome.

Thu, 11/04/2010 - 10:31 | 699389 MountainMan
MountainMan's picture

Load the boat ladies...Silver moon shot imminent.

Thu, 11/04/2010 - 10:48 | 699465 High Plains Drifter
High Plains Drifter's picture

Has JPM taken their foot off of the brake, vis a vis, the rico lawsuit?

Thu, 11/04/2010 - 10:52 | 699481 MountainMan
MountainMan's picture

At the very least, now that they are under investigation, naked shorting might not be an available option. Shorts must be shitting thier undees.

Thu, 11/04/2010 - 10:32 | 699398 UnRealized Reality
UnRealized Reality's picture

This may be correct observing the price action at 25.50 right now.

Thu, 11/04/2010 - 10:36 | 699416 dark pools of soros
dark pools of soros's picture

everyone else seeing a 10% premium on physical??

Thu, 11/04/2010 - 11:27 | 699484 dehdhed
dehdhed's picture

with handling and shipping it's almost 20% for me but probably because i don't buy enough each time

Thu, 11/04/2010 - 13:18 | 700023 DoChenRollingBearing
DoChenRollingBearing's picture

I recently (a month or so ago) paid a premium of about 15% buying rolls of Silver Eagles at the local coin shop.

Thu, 11/04/2010 - 10:36 | 699418 apberusdisvet
apberusdisvet's picture

Silver to $28 by Xmas; SLV to "0" shortly thereafter.

Thu, 11/04/2010 - 12:37 | 699904 hamurobby
hamurobby's picture

I like slv as a tool to leverage up in out of the money short term options. Say I take a .20 cent option ($27 nov 18th call option price right now). The price of silver is squeezed to $30 and it pays off each option $3. Then I take that money and buy physical silver at $30 an ounce, I have effectively paid approximately $2 an ounce plus premium and trade cost. Now that is a way cool pry bar, but like all tools, it can be painful if it slips!

Thu, 11/04/2010 - 10:37 | 699423 RobD
RobD's picture

Put in an order for 7 silver eagles on Tuesday at $24 and some change. Got them for Christmas presents for the young ones of the family. It will be so cool to hand them out saying they have already made 50%.

Thu, 11/04/2010 - 10:40 | 699433 Turd Ferguson
Turd Ferguson's picture

I find this very, very interesting. Particularly when you consider that silver is headed through25.50 on its own merit. Sounds like 27 will follow in short order.

Thu, 11/04/2010 - 10:49 | 699469 unum mountaineer
unum mountaineer's picture

grrrr..i've taken recent interest in industrial too..the in-laws can probably find some use in water purifier systems they are tinkering with. junk silver for shits and giggles..it dun matter

Thu, 11/04/2010 - 10:51 | 699476 unum mountaineer
unum mountaineer's picture

that sale was awesome over halloween too ;-)

Thu, 11/04/2010 - 12:25 | 699862 DosZap
DosZap's picture

Turk said on the 28th, that it would be $30.00 in 18 Trading Days.I think he may be right.

Wonder if the Ching Dow Asian Mkts did the SQUEEZE.

Haven't heard anymore about it.

If they wanted to, they could take this bitch to the moon, with not a LOT of money, if they snag physical.

 

Thu, 11/04/2010 - 12:35 | 699899 oddjob
oddjob's picture

And Robo was dissing PAAS 2 days ago,fuck that must hurt.

Thu, 11/04/2010 - 10:45 | 699454 Clint Liquor
Clint Liquor's picture

Makes perfect sense for Goldman to be long Gold.

We never said they were stupid, we said they were dishonest.

Sorry, 'dishonest' is not politically correct. Goldman is 'ethically challenged'.

Thu, 11/04/2010 - 10:56 | 699493 Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

The RICO thing is just lovely, especially when the snowball is starting to get momentum and hitting the part of the slope that has a really nice decline.

I ordered some silver coins and a few gold bars 4 days ago, on top of a healthy serving of options...

I am most certainly having a "SHWING" moment.  Viagra ain't got nothin on this!

Thu, 11/04/2010 - 11:11 | 699553 Dr. Richard Head
Dr. Richard Head's picture

The kilo coins are fun to juggle.  10 ozers and 1 ozers are fun too, but I love to flip the kilos around.  Good fun. 

Now if I could just find my treasure map to all of my hidden locations.  Damnit. 

Thu, 11/04/2010 - 10:57 | 699499 JuicyTheAnimal
JuicyTheAnimal's picture

If that's true that would explain them calling for 4T of QE

Thu, 11/04/2010 - 10:59 | 699512 fiftybagger
fiftybagger's picture

Will silver lock limit up?  What is the limit?

Thu, 11/04/2010 - 11:44 | 699712 geminiRX
geminiRX's picture

Umm where's robo? Perhaps he can post a useful chart this time around

Thu, 11/04/2010 - 10:59 | 699513 MountainMan
MountainMan's picture

Fuck me. This is exciting.

Thu, 11/04/2010 - 11:08 | 699535 RockyRacoon
RockyRacoon's picture

You are easily excited aren't you?  I'll pass on the invitation, however.

Thu, 11/04/2010 - 13:27 | 700057 DoChenRollingBearing
DoChenRollingBearing's picture

I'll pass on the invitation as well.  Still it is pretty exciting to see today's run in the metals.

Thu, 11/04/2010 - 14:53 | 700395 kiwidor
kiwidor's picture

at your age, you should be taking anything that comes your way.

Thu, 11/04/2010 - 18:46 | 701303 RockyRacoon
RockyRacoon's picture

I did give it a thought, however, I figured a mountain man was probably unbathed for some lengthy period of time resulting in some odoriferous condition.

Get my drift?

Thu, 11/04/2010 - 19:36 | 701418 StychoKiller
StychoKiller's picture

Yo, I'm a Mount'n man and I love Mount'n women! :>D

Thu, 11/04/2010 - 11:01 | 699518 goldmiddelfinger
goldmiddelfinger's picture

Every man-jack from here to the sea of Azov is long gold. The whole article is nonsense in attributing some nefarious conspiracy to Goldman as relayed by "a source out of London". Oooooo. There will be no short "trap" of any Chicago locals that lasts 10 minutes or 10 cents.

Thu, 11/04/2010 - 11:11 | 699548 DonutBoy
DonutBoy's picture

The story does sound like bull****.  On the other hand, silver is going ballistic.

Thu, 11/04/2010 - 11:09 | 699538 dickbar
dickbar's picture

it makes soooo much sense now why the CFTC thing has suddenly been allowed to go ahead and why manipulation is now out in the open.... GS is about to get rid of HSBC and JPM... Lehman and Bear Sterns already gone... skills from the GS massive

Thu, 11/04/2010 - 11:17 | 699581 Buckaroo Banzai
Buckaroo Banzai's picture

Goldman is playing chess, the rest of 'em are playing checkers. "There can be only one."

Thu, 11/04/2010 - 11:13 | 699569 moofph
moofph's picture

...as if they were never long? accumulation has been and ever shall be ongoing...the only difference is what is printed on paper (pun intended) and what is printed on the screen. my question is, "where is the stagecoach?"

Thu, 11/04/2010 - 11:14 | 699574 gwar5
gwar5's picture

Silver is poor man's gold only if you didn't buy enough

Thu, 11/04/2010 - 11:20 | 699599 Thunder Dome
Thunder Dome's picture

Sell Silver Buy BAC.  That's my 'smart money' play for today.

Thu, 11/04/2010 - 12:21 | 699848 Temporalist
Temporalist's picture

LOL

Thu, 11/04/2010 - 15:07 | 700469 knukles
knukles's picture

Or newly issued GM tax leins. 

Thu, 11/04/2010 - 11:27 | 699644 iota
iota's picture

25.5 didn't seem an issue, 25.7 does.

Thu, 11/04/2010 - 11:29 | 699649 A_MacLaren
A_MacLaren's picture

Anyone else see a halt in /GC and /SI ?

My TOS data feed stopped, then the contracts gapped up, have since filled the gaps.

Thu, 11/04/2010 - 11:34 | 699683 redrob25
redrob25's picture

Silver is at 25.51 right now.

Thu, 11/04/2010 - 11:36 | 699694 Silversinner
Silversinner's picture

I have a little Jewish blood in my veins and have a

big fetish for gold and silver from childhood on.

Goldman buying gold should be no surprise it

is all in the name.Big banks are short on paper but not

their owners,they are loaded up on gold probaly

hidden in secret places all over the wold.Where

did all that gold from English treasury go to??

And not only England but Holland as well and

a lot of other nations in Europe got robbed from

their gold,it is all planned this way of course.

Wich will be no surprise to much of the ZH readers.

Let me be clear about one thing;I fckng hate what

these croocks are doing to Amerika and the wold.

Honest work and honest money is what we need.

Thu, 11/04/2010 - 12:04 | 699783 apberusdisvet
apberusdisvet's picture

Rumor has it that British and Fort Knox gold went to th

Thu, 11/04/2010 - 11:37 | 699695 MrMorden
MrMorden's picture

I can't believe this conversation has not made the news:  http://facequotes.com/1556/

:)

Thu, 11/04/2010 - 11:59 | 699767 NotApplicable
NotApplicable's picture

So, let me guess... They've been taking their free Benny Bucks, shaking the tree hard with them at the Crimex, thus picking up paper gold on the cheap, then use them to create a basket of GLD shares, then later redeem the basket for physical.

Amirite?

 

Thu, 11/04/2010 - 12:36 | 699901 covered
covered's picture

+1 on "the crimex."

Thu, 11/04/2010 - 12:06 | 699789 Que Sara Sara
Que Sara Sara's picture

This is my first comment on ZH,

I have this question, can some one help me out here, I am no way related to finance or markets, but I am a IT Consultant and a big fan of ZH, never bought a share in my life, but recently purchased some gold after reading ZH posts.

Lets say if the so called elites own everything includin gold, what if we are buying gold, doesn't this also eventually benfit them (like spending money to buy gold) Isn't this what they wanted spend, does it matter where you spend?

Thu, 11/04/2010 - 12:17 | 699840 Temporalist
Temporalist's picture

You will be your own soverign entity.  They will have to redistribute the stolen wealth.  They, the bankster, fraudster, scammer, ponzi schemers are going to have to give up their loot in order to keep themselves out of jail and to repay their debts.

Thu, 11/04/2010 - 12:11 | 699816 Bokkenrijder
Bokkenrijder's picture

Silver is still > $25,5 and yet no magic $1 jump...

 

Hmmmm, porky pies me thinks...

Thu, 11/04/2010 - 13:03 | 699977 Pegasus Muse
Pegasus Muse's picture

Come again.  $25.87/oz and still going up.

Thu, 11/04/2010 - 13:16 | 700015 JohnG
Thu, 11/04/2010 - 12:15 | 699835 Temporalist
Temporalist's picture

I knew I should have pulled the trigged on that purchase!  Damn you Bernanke!

Thu, 11/04/2010 - 12:24 | 699859 Superdrol
Superdrol's picture

Closed out my silver short about $5.00 ago....................

 

The printing presses know no bounds...........

Thu, 11/04/2010 - 12:31 | 699883 CIABS
Thu, 11/04/2010 - 13:02 | 699976 mogul rider
mogul rider's picture

Gee I'm on the same side of the trade as the fucking Squid.

 

I'm not sure that is a good thing

Thu, 11/04/2010 - 15:13 | 700493 Temporalist
Temporalist's picture

They are "market makers" they cover both sides of every bet...like a good bookie would.

Thu, 11/04/2010 - 13:05 | 699980 Turd Ferguson
Turd Ferguson's picture

I'd say that Eric King's info is looking pretty solid right now.

Thu, 11/04/2010 - 13:18 | 700021 WineGuy
WineGuy's picture

I like the mining stock companies here. Way undervalue if you ask me. 

Thu, 11/04/2010 - 13:49 | 700153 Turd Ferguson
Turd Ferguson's picture

Just wait until the investment world discovers that GLD and SLV are shams. The HUI will double in short order.

Thu, 11/04/2010 - 13:25 | 700047 Dimeboy
Dimeboy's picture

$26.05

Damn - he's my hero!

-- insert happy dance here --

Thu, 11/04/2010 - 13:36 | 700091 Dimeboy
Dimeboy's picture

wait  -  that's in USD right?

Double my FRN's just doesn't ring as nice.

darn - gotta get to the currency exchange...

ah - never mind, the race to debase...

know what? I'm all in physical now, might as well just keep it and use it as MONEY!

Thu, 11/04/2010 - 14:50 | 700374 kiwidor
kiwidor's picture

I've stopped buying.  Why? The pendulum swung in the "HOLD" direction.

when silver was about 18 bucks, the nzd was about .69 USD .  now silver is 25.50, and climbing, yes, but the nzd is now about .80 USD   so it's gone up about 8 usd, but only gone up 4 nzd.    Pick a currency.  any currency.  now compare it to the USD.  Despite being bombarded with stories like "kiwi rallies against USD", "Strong AUD makes further gains" the fact is, the USD is being re-adjusted to its true derivative-diluted value. 

Silver will get to $600, but 1 nzd will be worth 22 USD, 1 AUD will be worth 24 USD.

And silver will still cost me at least 32nzd a round once the premium for the pretty patterns and the conveniently-low legal-tender-facility is added on.

this is not to say that buying silver isn't a good idea...it sure is if you have USD right now. But its value relative to everything else isn't changing much.

What else does the pendulum reveal?  it will suffice to say that if you aren't shorting the living fuck out of the usd, you're missing the opportunity of a lifetime.

--------rides off to the liquor store on his magic carpet which contains manifold local symmetries.---

p.s. don't bitch about my ball-park figures.  i'm a sniff the wind type of guy, not a meteorologist.  and i'm still right more often than they are.

Thu, 11/04/2010 - 14:58 | 700418 tony bonn
tony bonn's picture

buy silver and demand delivery....do it early and do it often....jim willie reports that asians are out for blood on silver and are demanding delivery....the arrogant sociopaths on wall street need to be destroyed....money belongs to the people not to a cabal of greedy bankster terrorist vampires.....

open the mint to silver and gold....

Thu, 11/04/2010 - 16:37 | 700867 Hard1
Hard1's picture

Long term Gold/Silver Ratio of 15 or existing supply ratio of 17 yields 81-92 price range for silver ounce....problem is the bithcez are so bulky!!

Thu, 11/04/2010 - 20:32 | 701493 honestann
honestann's picture

No kidding!  For someone like me who insists on holding 90% of my savings in physical metal, and only 10% in mining stocks and fiat trash, silver is "just too big, bulky, heavy".

Of course, I also know that in 2~5 years I'll be massively sorry when silver costs $1400 per ounce while gold only costs $25,000 per ounce).

My problem is, I'm leaving the USSA for good in 5~6 months, and transporting 1000 pounds of silver scares and intimidates me greatly.  15 pounds of gold fits in a small case.  I plan to ship via insured FedX, albeit in several smaller boxes.

Thu, 11/04/2010 - 18:16 | 701234 Buck Johnson
Buck Johnson's picture

What goldman is doing and others have known about for generations is that gold and precious metals and resources are good to have.  They are putting liquidity into the shorts in order to bring down the prices and then buy it on the downside.  I'm not to shocked, for you to have such a large international banking company, you would have to know how to play the game.  They don't believe in printing anymore than Ron Paul, but they use it to make money and when they see that the game is coming to an end they use it again to buy up the depressed resources.

Thu, 11/04/2010 - 23:16 | 701811 bobboberson
bobboberson's picture

You really called it boys!

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Fri, 02/25/2011 - 08:28 | 996478 george22
george22's picture

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,
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