London Silver Update: "Only Entities Short Are Fed-Backed Banks. Nobody In Their Right Mind Would Be Short Here"

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Wed, 11/10/2010 - 12:36 | 716619 SheepDog-One
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Shhh dont tell Harry or RoboT!

Wed, 11/10/2010 - 12:47 | 716664 Popo
Popo's picture

Or any of the THOUSANDS of other shorts.   Seriously.  This piece is complete bullshit.

Long term, silver is headed to the moon, and beyond.  But there are loads of very astute traders who are short here.  I'm heavily in silver (and long) -- but this kind of echo-chamber reporting is just idiotic.  

Wed, 11/10/2010 - 12:58 | 716710 DonutBoy
DonutBoy's picture

Yes - same for me.  I'm long all commodoties, particularly silver, and this sounds like bullshit.

Why does it have to be a report from deepthroat?  (Oooh ooh - look - we have the secret information over here!!!)

If the CFTC wanted to help restore faith in capital markets they'd simply require holders of futures to be indentified.  Then we could see.


Wed, 11/10/2010 - 18:33 | 717956 Instant Karma
Instant Karma's picture

Cool silver market. I bought some silver Maple Leafs just a month ago at $24/coin and now they're selling for $30 (Apmex). I like the .99999 fine gold Maple Leafs, because they're packaged by the mint. I was hoping to add to my collection of 2009s, but Apmex is sold out.

Do you think I should start selling some of my physical gold and silver for a nice profit. The problem is that all I get in return is "dollars" that earn nothing in the bank.


Wed, 11/10/2010 - 20:23 | 718249 Testicular Cancer
Testicular Cancer's picture

You have one too many 9's. The five 9's are special edition gold Maples. Silver maples are only four 9's.

Thu, 11/11/2010 - 07:57 | 718980 Instant Karma
Instant Karma's picture

I know and I said what I meant to say.

Wed, 11/10/2010 - 19:44 | 718170 Kina
Kina's picture

Why does it have to be a report from deepthroat?  (Oooh ooh - look - we have the secret information over here!!!)

Errr...because there is. And it is quite useful to know, you would have thought.

Might be a message to JPM - we has your balls and we gonna crush them slowlly...enjoy. Then we can has cheesburger.


Wed, 11/10/2010 - 12:59 | 716711 RockyRacoon
RockyRacoon's picture

I'm short silver.  It's only a short walk from where I sit to where it sits.  I'm thinking about going long, however.  The farther out in the yard I bury it the longer I'll be.

Wed, 11/10/2010 - 13:11 | 716762 Abigail Adams
Abigail Adams's picture

That is assuming you will continue to have property rights? I just knew you were an optimist, Rocky.

Wed, 11/10/2010 - 13:25 | 716817 GoinFawr
GoinFawr's picture

Heh, careful there RR; bury it too deep and next thing you know a geologist working for a mining company (or even just a 'utilities locator') will stop by with a metal detector, and wham! you will lose all your 'treasure' because no one has mineral rights on their properties these days.

Wed, 11/10/2010 - 13:47 | 716894 cossack55
cossack55's picture

Ah, RR, a man after my own heart.  I would suggest not burying it on your own property though.  Also, if the geocats don't find it the gas boyz may when they come to frack you.

Wed, 11/10/2010 - 14:32 | 716989 RockyRacoon
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I'm in Arkansas so there's a bit o' frakkin going on hereabouts.  Thanks for the heads-up on that.  If I wrap it in foil will that help?  I've got some left over after fashioning a right sporty chapeau.

Wed, 11/10/2010 - 14:54 | 717122 MachoMan
MachoMan's picture

arkansas here too...  The only frakkin I know about is between brother and sister and/or first cousins.

Wed, 11/10/2010 - 15:06 | 717172 RockyRacoon
RockyRacoon's picture

Well, yeah, but there's only so much energy in that transaction.

You must be from the Delta.

Here's the hot area:

Wed, 11/10/2010 - 18:36 | 717981 MachoMan
MachoMan's picture

yeah, i went to school up there and have a few friends in "the biz".  They're also finding some around central arkansas...  I'm over in NEA, the bastard/redheaded stepchild of arkansas.

Wed, 11/10/2010 - 15:32 | 717316 Cone of Uncertainty
Cone of Uncertainty's picture

I grope my silver like a seasoned TSA worker.


Wed, 11/10/2010 - 17:16 | 717672 barkster
barkster's picture


How u bury and prevent corrosion? would appreciate any tips...

Wed, 11/10/2010 - 17:53 | 717828 RockyRacoon
RockyRacoon's picture

PVC pipe as is used in plumbing waste lines.  You can put a clean-out fitting on one or both ends for easy access to the contents and make the tube as long as you need.

Home Depot, bitchez!

Wed, 11/10/2010 - 20:19 | 718238 barkster
barkster's picture


Wed, 11/10/2010 - 20:20 | 718240 Hulk
Hulk's picture

Found your stash RR with my Neutron Scanning , Silver Seeking high orbit Telescope (It was a Heathkit).

Coords are: 34 degrees 32 minutes 3.02 seconds N

 93 degrees 30 minutes 38.7 seconds W

Just in case you loose track of it...


Wed, 11/10/2010 - 13:06 | 716733 Bay of Pigs
Bay of Pigs's picture

Hey Popo, he is talking specifically about the JPM and HSBC shorts that are MASSIVE in percentage terms compared to people like you. You know like 90%+ of the total short position? Astute? Go short then Big Shot. I wouldn't touch that trade. 

Wed, 11/10/2010 - 13:34 | 716828 GoinFawr
GoinFawr's picture

That definitely needed saying.

Some delude themselves into believing that they are sharks simply because they are swimming in the same pool. That is until they nick their finger...

Note: That goes for either side of any trade, so don't go all Mako on yourself.


Wed, 11/10/2010 - 14:34 | 717048 Imminent Crucible
Imminent Crucible's picture

I don't see anyone commenting on what may be the most significant statement in the article:  "spot has been trading in front of futures here in London all day.  We have been in backwardation all day long on the LBMA.”

Got that? You have to pay MORE in the cash market than for the futures contracts.  What that means is silver available for immediate delivery is running out.  Otherwise, normal contango would prevail.

They'll promise you silver a couple of months out, but you have pay a premium if you want it now.  Crimex warehouses are being emptied of silver.

Wed, 11/10/2010 - 17:48 | 717810 SPONGE
SPONGE's picture

While frequently reading of the difficulties others have trying to find physical at their local coin store, I felt very fortunate that my local (midwest) shop has always had ample supply of both Au and Ag.

    Yesterday, my local dealer told me that he is basically out of both. He said people have been driving long distances to buy.

   To all out-of-towners: Stay away from my coin shop or I'll let the air out of your tires.

   (unless you're selling - free wash and wax)    

Wed, 11/10/2010 - 13:16 | 716761 Hearst
Hearst's picture

David Morgan made an interesting comment on Max Keiser's show the other day.  Noting the incredible tiny market of Silver, Morgan said that just a $5 move up in the price of Gold could buy the entire Silver bullion market!  

Watch it here



Wed, 11/10/2010 - 17:18 | 717681 Trenchf00t
Trenchf00t's picture

"Braaaap! Braaaap! You are no longer an American. Please die in the mud. Beep!"

Priceless! Max should do stand-up!

Wed, 11/10/2010 - 13:14 | 716777 quasimodo
quasimodo's picture

Echo chamber? Good gawd, you want echo chamber go watch msnbc or some other parrot talking head.

I would like to know about all these "astute" traders you refer to, they only blokes I know of are smelling the stench from over here and dumped short long ago

Wed, 11/10/2010 - 13:20 | 716798 moregoldplease
moregoldplease's picture

Riots in London right now. Do you think it's coming here? Get prepared.

Wed, 11/10/2010 - 14:07 | 716960 Lucky Guesst
Lucky Guesst's picture

No need to destroy anything that our tax dollars will be used to replace or rebuild. Everyone should just stay home for a week with their families, don't spend a single dollar. It will be heard and nobody will be hurt or incarcerated. Don't give them the reason they are looking for to hurt us.

Wed, 11/10/2010 - 15:32 | 717317 Things that go bump
Things that go bump's picture

If we all stayed home from work that would certainly get their attention.  

Wed, 11/10/2010 - 14:55 | 717124 espirit
espirit's picture

They're probably just burning the $USD to make room for the new batch. DX up, DX down.

Wed, 11/10/2010 - 13:11 | 716760 High Plains Drifter
High Plains Drifter's picture

Glenn Beck said today that George Soros has a one million dollar bounty on his head...Que?  Good cop , bad cop was on display today in all of its glory. He is so sweet when he says some mean old commi is trying to crush him and his attempts at telling the American people the real truth. Excuse me now, while I go barf....

Wed, 11/10/2010 - 13:17 | 716787 -Michelle-
-Michelle-'s picture

I could find nothing regarding this today.  He did refer to a million dollar donation from Soros to Media Matters as a bounty, but that was from October 10, 2010.  And I do believe he was speaking metaphorically.

Wed, 11/10/2010 - 13:29 | 716829 yabyum
yabyum's picture

Beck is a dry drunk witk more than a hit of cocaine paranoia. His PM advice and  metal dealers are truely pathetic.

Wed, 11/10/2010 - 14:14 | 716987 Lucky Guesst
Lucky Guesst's picture

Your attempt is what's pathetic.

Wed, 11/10/2010 - 14:17 | 716991 RockyRacoon
RockyRacoon's picture

I junked you just to keep things fair and balanced.

Wed, 11/10/2010 - 16:23 | 717495 quasimodo
quasimodo's picture

As did I you, since you felt the need to bloviate

Wed, 11/10/2010 - 16:55 | 717596 tmosley
tmosley's picture

As I did you, because recursion is awesome.

Wed, 11/10/2010 - 21:08 | 718351 StychoKiller
StychoKiller's picture

Junks all the way down! :>D

Thu, 11/11/2010 - 03:01 | 718873 Bob Sponge
Bob Sponge's picture

The Asians must be enjoying squeezing the Western banks.  Will Benny bail out the banks?  Probably.

Wed, 11/10/2010 - 12:36 | 716621 johny2
johny2's picture

trouble is that they have almost infinite amount of the dollars they can print to short the market.

what to do, what to do?

Wed, 11/10/2010 - 12:37 | 716623 Ragnarok
Ragnarok's picture

Take physical delivery and empty the vaults, make them eat paper.

Wed, 11/10/2010 - 12:53 | 716689 johny2
johny2's picture

it seems the best thing to do, and spend some time on the beach in a meantime.

Wed, 11/10/2010 - 12:58 | 716708 knukles
knukles's picture

That's what Sprott's doin'.

Wed, 11/10/2010 - 13:36 | 716856 GoinFawr
GoinFawr's picture

Bless his heart (of Gold. And silver.)

Wed, 11/10/2010 - 12:37 | 716625 SheepDog-One
SheepDog-One's picture

Physical holdings beat imaginary dollars all day long.

Wed, 11/10/2010 - 12:43 | 716645 Shameful
Shameful's picture

That is why it's necessary to take physical. They can short silver to $1 an ounce, and gold to $35 an ounce with their infinite money. Problem is when it comes to making deliver to the buyers. So the answer is always take physical possession. When they can no longer make delivery to the physical market the game gets a lot more funny.

Wed, 11/10/2010 - 13:09 | 716757 Max Hunter
Max Hunter's picture


Most on here seem to buy physical to hold for security.. The price fluctuation in NY or London based on people trading paper on margin has no impact on my view of what silver will be valued at soon.

The bartering power of physical silver will someday reach a level that will be talked about for generations.  When it is over, no one will look at a silver coin the same.. ever!

Wed, 11/10/2010 - 13:16 | 716782 detersbb
detersbb's picture

There is no trouble, only a problem with the way you are looking at the current situation.  It needs to be viewed as an opportunity for you to buy more silver at a lower price and in the long run have a better long position that you are in physical custody of.  I see the best way to deal with this as encourging everyone to buy 1 just 1, if they can afford more great if not, 1 is great Silver Eagle from the US Mint every month.  This way you do not have to worry about comming up with the money to buy a contract for 5,000 ounces or partners to split the costs with.  This would also put huge demands for physical and by law the US Mint is required to mint gold/silver bullion, not proofs, but bullion consistent with pubic demand.  This boxes them into a corner and forces their hand.  It would be very difficult to explain away a $50 silver eagle with $28 spot and a previous $2 prieumim.


That is what you do.  Take advantage and let the iditos continue to overextend.  The further the over extension goes the greater the explosion in price will be.  Stop looking at it as someting that must be beaten, and start looking at it as already beaten.  They would not have to cheat is they were not losing, right?

Wed, 11/10/2010 - 13:32 | 716838 johny2
johny2's picture

i know it should be looked as an opportunity, trouble is having the patience to wait till they push the price down. they certainly dont lack the dollars to do that.

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