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London Silver Update: "Only Entities Short Are Fed-Backed Banks. Nobody In Their Right Mind Would Be Short Here"
The last time Eric King's London source spoke up, and determined the $25.50 threshold as that past which a massive squeeze was coming, he/she was spot on. This time we learn that Asian demand for physical silver continues to be relenteless, the squeeze on the shorts will not end, and that nobody but the Fed-backed banks continues to short the metal (and if exchanges are enforcing margin changes how about changing those position limits, eh CFTC?). In other words, rumors of silver's death appear to be largely exaggerated.
From King World News:
The contact out of London has updated King World News on the Asian buyers which have been squeezing the shorts in the silver market. The London source stated, “There is an insatiable appetite for physical silver here and the shorts know that, the shorts know they are checkmated. The Asian buyers are layering in bids to take advantage of bear raids in the paper market which have been used to shake out the weak hands.”
Asian buyers were able to pick up silver at a discount at the lows of yesterday. They are continuing to buy today and tomorrow. People have to remember that spot trades 24 hours a day, so as the shorts raid the market, physical buyers already have orders in to buy tonnage of silver at a time on that weakness.
As I said to you the other day, the locals which were short with the banks were overrun when the price of silver stabilized just above $25.50 for a few hours. The local traders were margined out and silver moved over $1 higher later that same day.In other words, the only entities that are left short here are the Fed backed banks. Nobody in their right mind would be short here.
Spot has been trading in front of futures here in London all day. We have been in backwardation all day long on the LBMA.”
So the Asian buyers are enjoying this weakness in the silver market?
“Of course they are. $30 is just going to be a small pause along the way to much higher prices.”
Read the full KWN report here.
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Oh Regional Indian; are you talking about AG, Au or both?
I am waiting for the Lao Bai Shin (Lit. 'Old Hundred Names' the J6P) in the PRC to get interested in bullion; which we have out the ass at street level in the USA as most schmucks on the streets are selling, not buying. Sad but true.
Ag Saxxon. And here, PM's (often worn on self) have long been stores of wealth, so most people are in acquisition mode.
I've also read of anecdotal Ag delivery issues in the US, no?
ORI
http://aadivaahan.wordpress.com
Gold equity index up 1.8% today - substitution effect of margin raise in the PM futures markets.
Spot has been trading in front of futures here in London all day. We have been in backwardation all day long on the LBMA.”
Spot, the dog, is wagging the paper tail: price discovery, based on phyisical supply and demand, and driven by the worldwide blizzard of fiat-confetti, is getting traction.
the price gyrations yerterday were impressive. up down up.
Backwardation bitchez!!!
Hide your silver somewhere and forget about it for two years. It should be at least $100 by then; especially since it appears that no one, anywhere, has a frickin' clue about what's going on and can do absolutely nothing about it if they did.
Is anyone else here struck by the absurdity of lots of anonymous people with spare time to post positively re PMs, junking the other side of the trade, claiming no one anywhere has a frickin' clue about what's going on?
Really?
Big4 still shorting silver, copper and gold
Margin calls, repos and theft beaches
QED
It has occured to me a possible WHY as to the question of "Why would the US Fed be interested in suppressing the price of silver?".
It is obvious that Larry Summers as Treasury under Clinton 1996 second term drove gold into the ground as a means of reducing interest rates (a white paper or two he authored in the late 1980's exploring the relationship between gold price and interest rates).
This allowed Clinton to rework the US deficit (outstanding bonds) into shorter maturities (2-10 yr) and helped reduce the deficit to about zero (along with LOTS of smoke and mirrors accounting) by reducing interest rate payments.
It also precipitated the explosion in Stocks and Real Estate prices, leading to the Tech BoomBust and mini-R/E bust in Bush's first term.
Enter THE WAR on TERROR.
Whay supress silver? Because of gold. If gold flew too early then the "machinations of the illuminati" (IE - attempt to keep the system as corrupt and profitable as possible, via various schemes, etc) would be undercut by a more rapid fall in the dollar, and increase in interest rates.
They could control the gold market well enough by the silver market is joined to gold at the hip, and if the silver market started to drag gold higher too quickly...game over long before they wanted it to be over.
Hence, US backing to control silver, which may have triggered a run in gold sooner.
But we are pretty much done with all that now.
It doesn't matter ,someone is buying ALL of the physical . The seriously stupid part of this is the west is literally giving its assets/Real money away to Asia to save face . What easier way for Asia to take over as king shit ? not a shot fired and all the wealth ends up there for less than $30 an ounce .
This is complex in how the end will evolve.
If the the TBTF banks short the market down, they don't necessarily have to deliver PM in the end. I think I learned yesterday that the exchange can rule that physical delivery isn't necessary, which means that the TBTF banks would have to deliver fiat dollars (printed for them by the Fed) instead? At that point, wouldn't the exchange cease to exist as it would become obvious that there is fraudulent collusion of the Fed + the TBTF banks against the US taxpayer.
I need help here, please.
At some point, PMs may fall enough that it is easier to settle in species than fiat
Never underestimate the power of those making the rules of the games other people play
When commodity futures exchange can't deliver a commodity reliably it has lost its legitimacy and credibility as a pricing mechanism. Price discovery will take place elsewhere. This may not be an "at-once" change, there are incremental steps -- like the long delays in delivery that have been reported.
Precious metal prices may not bottom until ZH commenters stop junking bears
Hunh, Does that mean that the opposite will be true?
IE. PM's will not top until the bears stop posting junk?
Something to consider -- I usally buy physical PMs at a NYC trader/dealer. Normally empty. Place today filled with people. Overhearing conversations like "should I buy coins or bars" or "I have $1,000 and I need to protect my money". Finally, one guy at the window was reminding the staff "I was just here yesterdaty, don't you remember me"?
Is the shoeshine boy arising? I'm smelling fear in the public
Fourth post you've visited since joining Mr.Quinn.
WHICH NYC trader/dealer are you talking about in your anecdote?
Fear? Isn't that the state that you`re perpetually kept in, anyway? Would you say your alert is 'amber' or 'orange' ?
"Is the shoeshine boy arising?" Damn, I sure hope so; that poor sod could sure use a break.
IE I'm smelling something in your comment all right, and it may well have some fear in it, but it seems blended with something you might see excreted from the back of a horse.
Regards
@Goin
The shoeshine boy was a reference to JP Morgan's famous timing saying
No! Really? Thanks.
/sarky
Seriously though: I was referring to the same.
deleted
Silver is down $1.60 as I type yet miners are up 4-7%(CDE, SVM, SLW). Any thoughts as to the divergence? Yes, I know there's manipulation, but doesn't it seem odd, why not send the miners down too?
Maybe has to do with the price of oil being almost $90.00 a barrel
Yup. Mining takes Energy, no?
yeah I misread that . I need a break. Miners should be down if oil keeps climbing and silver doesnt