Silver’s Paper Driven Sell Off To Be Confronted By Continued Significant Physical Demand

Tyler Durden's picture

From GoldCore

Silver’s Paper Driven Sell Off to Be Confronted by Continued Significant Physical Demand

Gold stabilised in Asian and early European trading prior to a 1%
fall, while silver’s sharp price fall continues and silver is now down
20% in USD terms in 5 days. The huge and unprecedented increase in
margin in the paper silver market has forced some weak hands out of the
silver market and allowed the concentrated shorts on Wall Street to
press their advantage to the downside.

Gold to Silver Ratio – 1971 to Today Gold (orange), Silver (yellow) and Gold/ Silver Ratio (white)
Click on the image to view full size

Both gold and silver’s sell off are healthy and are due to them
becoming overbought in the short term (particularly silver) and this is
once again a paper profit taking and technical driven, speculative sell
off as seen in the surge in frenzied dealing and large spike in
trading volumes in silver futures in New York.

Gold’s resilience is further confirmation of massive buying of gold
by creditor nation central banks which should reassure bullion owners
and offer support to silver.

Silver in Nominal USD Terms – 1971 to May 2011 (Weekly)

Some nervous physical silver buyers and more speculative physical buyers
have sold today and this week but those buying for diversification and
financial insurance are strong hands and have not sold. Indeed,
physical buying and buying the dip has continued yesterday and today.

A correction, possibly sharp, was expected after the 28% rise in
prices in April alone and the sharp rise seen so far in 2011. Support
may be seen at $35/oz but experience shows that paper driven sell offs
in the futures markets in New York can surprise to the downside.

COMEX Silver Inventories – 1 Year (Daily)

Cross Currency Rates

Inflation risk (and the possibility of stagflation and hyperinflation)
today mean that cash can become trash very fast and thus international
equities, international government bonds (high credit; very short
duration) and gold remain prudent asset allocations.

The cash component of a portfolio should probably include some local
currency and a combination of creditor nation fiat currencies and of
course silver and gold.

Savers need to protect themselves from local currency risk and
diversifying savings through ownership of bullion continues to be


Gold is trading at $1,501.40/oz, €1,012.54/oz and £910.27/oz.


Silver is trading at $37.72/oz, €25.45/oz and £22.87/oz.

Platinum Group Metals

Platinum is trading at $1,796/oz, palladium at $720/oz and rhodium at $2,250/oz.

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quasimodo's picture

Wow, that was an intellectually stimulating statement. Curious, how long did it take you to think of that one? are one of those that changes his post 5 times

TheGreatPonzi's picture

I caught "What does it all mean" doing what trolls usually do: posting a meaningless and quick comment to be the first to answer to the article ("Let's be honest."), thus having great visibility and exposure, and then editing quick with the final comment. 

He is another silver troll, like MethMan, William the bastard, JohnyBravo, long juan silver, Gold 36000...

tmosley's picture

Only you, because you don't know what you are talking about.

Sponsored posts come from "Zerohedge", not Tyler Durden.


tmosley's picture

God, it's like you were born yesterday.

Click on any other article not written by Tyler.  It will say "From (where it came from)".

Fucking idiot.

Christ, we get an update from Goldcore EVERY MORNING.  

You never pay attention, and that's why you never know what is going on.

Sudden Debt's picture

Yes indeed. You want to know what my agenda is today?

Dinner at 5, do homework with the kids till 8, put them in bed, quality time with the misses till midnight.

I also added something to your agenda: Go to FAR FAR AWAY!


Creed's picture

EVERYBODY here has an agenda!


you clearly do, enjoy your stay


some of us are just here to enjoy the show

High Plains Drifter's picture


shouldn't you be down in new york at the wtc today?  obama is going to talk and they are celebrating the death of that evil wascally bin laden that we all know helped to attack the united states on 911. yeppers turd, even though you think there can be conspiracies in the metals market, we all know that there are no conspiracies in world affairs.... si?

tmosley's picture

Why so butthurt?

You don't have to agree with absolutely everything everyone says, and neither does he.

High Plains Drifter's picture

hey look tmos,

go argue with someone else.  what is your problem? do you live to argue and argue to live or something. relax. i am merely busting the turd's balls. is that ok with you pally?

tmosley's picture

"Butthurt" means overly emotional.  If you weren't actually emotional, then no big deal.

You just really sounded like you were letting your disagreement with him on one issue cloud your judgement on another totally separate one.

Abitdodgie's picture

We all know we are buying silver to preserve wealth and for financial security for when the dollar goes ( it will) so everyone on ZH we need to do a a little wishful thinking if we all will silver down to $1.00 then just think how much you could buy . so then when it shoots back up which it will , well enough said . One other thing will people please just ignore the trolls , you are only encouraging them .

JW n FL's picture





If Gold and SILVER are so GREAT!!! How come there is so much MORE PAPER MONEY than gold or SILVER!! if Gold and SILVER were BETTER than PAPER PEOPLE WOULD MAKE MORE OF IT!!! CAUSE THEY WANT IT!!!


Tree's are finite! Ink Toner is Finite! (ask Turd!) silver is a $4 maybe $3 dollar by product of other metals! and I can EAT Paper not metal and if I needed to eat paper look how much is around!




Base money has tripled in 3 years.

2. M1 has continued to increase to its highest level in history.

3. Same goes for M2


gordengeko's picture

We are just busting your balls turd.  We know where your heart is given that article you posted a week or two ago about standing up and telling the truth about the elite oligarchs that control the monetary system.  You know I've seen a lot of articles lately, including one in the paper, that really disturbed me especially given this little gathering at the wtc.  All these people celebrating the killing of osama, cheering just as we were shown and told muslims were cheering the deaths of our people in the towers.  To me I find that very disturbing.  Whether he was real, or if he's dead or if he had anything to do with the wtc to me is irrelevant.  There are much bigger issues we as human beings face in the coming years that we need to focus on rather than celebrate the propaganda death of some phantom boogieman they tell us did it.


My point is it reminds me of this story in the bible, I'm not some bible thumper but I have studied a lot of it.  The story of barabbas and Jesus.

"So the people urged on by their rulers shouted for Barabbas, even though they knew their hero was a morally flawed champion. And Jesus, who had no flaw, they delivered over to Pilate to be crucified."

It's a parable meaning people when faced with the truth would rather turn a blind eye, then to reflect on what could possibly change their outlook on everything.

agrotera's picture

You are a poet GG and i am glad to see your words again!  God bless!

Problem Is's picture

Hilarious link Turd...
But you need to upgrade to Skittles, Provigil and amphetamines...

Meth will make a sweating and raving Cramer the Clown out of you

Temporis's picture

Just keep on spewing that bullshit What-does-it-all-mean...

Seems like you have an endless supply of the stuff.

ManOfBliss's picture

Are you brand fucking new to capitalism?

It's a system based on SELF-INTEREST you fucking idiot.

Rynak's picture

I'd rather read a "sponsored article" marked as such, than the advice of a "sponsored troll" unmarked as such..... though, one could argue that he is "marked" as such.... one junk at a time.

Creed's picture

are you a fat lady?


if not, this may not be over yet

doggings's picture

he certainly sings like one? - "the desperation of the losers" song if im not mistaken.

Temporis's picture

YOU are desperate to be #1 troll on these boards. I love how your sorry ass just happened to show up and start trolling just as silver started dropping.

I give Mathman and Dangertime credit because they at least were attempting to call the downturn before it happened. Your such a fucking cowered because you waiting until after the fact... bitch

GoinFawr's picture

I wouldn't give them too much credit.

DT was trolling silver in the area of 40 fiatscos/oz on the way up, so he missed an almost 25% rise; he has been 'correct' for around a 6% correction.

MethMom was calling his 'top' at thirty 4/oz, so he hasn't been right to date.

Neither of them mentioned that there would be four (count 'em FOUR) margin increases in almost as many business days, so their calls can hardly be called 'prescient'.

eisley79's picture

LOL @ giving dangertime credit...he has no investsments, and didnt call anything right.  he is just a trolling troll trying to hide his past posts.


by Dangertime
on Mon, 04/25/2011 - 10:35

Forgiven, the peak is in for this run.  We will see $50 again but not likely for another year.  You still have time to sell and restock with even more this summer.
by Dangertime
on Fri, 04/29/2011 - 08:20

Silver will break $50 next week and march possibly even to $60.

Sudden Debt's picture

Do you realize this isn't a Yahoo idiot board? When do YOU realise you're place isn't here?

50 junks before you get erased he? I'm number 10.


Sudden Debt's picture

No, there are plenty of people here who also don't believe in the silver bull but they argue with facts and do it in a polite way.

You just act like a idiot from Yahoo.

That's why I'm pretty sure your investment is no larger than 500$, which for you is enough to bother the rest with your nonsence.

Just grow up kid and buy a Ipad with your profits.


What does it all mean's picture

Funny, because I had a 200k swing the other day.

tmosley's picture

You told me you were on the sidelines, and always have been.  In fact, you were bragging about it, like a guy bragging about not spending any money on gas because he doesn't have a job.

What does it all mean's picture

Dude, not in silver, CL, ES, JPY/USD...

Not in silver!

tmosley's picture

No loss.  Only gain.  As in, next week I am going to "gain" some more oz for my collection--25% more than I would have gained without this happening.

In addition, this is the first of many birth pangs of the new world monetary order.  Those few, those brave, happy few who hold on to their physical silver will be the oligarchs of the new system.

At least 50% of those holding here will be shaken out.  Hell, maybe 90 or 99%.  Silver will be universally despised, while at the same time being unavailable.  I will still be buying.  If by some miracle everything turns around and becomes super happy, and silver drops back to $5, I will buy 7.5 times more than I am buying now.  If the COMEX is found to be perfectly solvent, I will start buying from them.  Because the shortage is coming, and lower prices will ony exacerbate the situation.

NidStyles's picture

Some people are incapable of thinking in the long term dude. I'm right there with you. I plan for decades, not days.

Creed's picture

 but if I point out how biased silver bugs are, I am a troll, idiot and incite anger.


you're not pointing out how biased silver owners are, you're pointing out how biased YOU are

Citxmech's picture

Your complaint is that bugs are biased?  You've got to explain that one.

The bugs I know spend more time trying to figure out wtf is going on so they can protect their wealth.  Selling the dip isn't one of those ways.  I'm buying physical today - and will keep buying, because its a form of SAVING.  Transferring the fruit of labor into tangible money rather than paper fiat which is MORE volatile [to the downside] - it's just that the devaluation is hidden from those with an unhealthy dose of normalcy bias.

Temporis's picture

No you say... "Troll Bitchez..."



buzzard's picture

I'm 49. Couldn't quite do it.

homersimpson's picture

I miss when scrubs like you only used one account to post their worthless Monday Morning QB posts....

I miss when there was only one Robotrader to clog up the ZH message boards..

I miss the days when there weren't so many JPM/Fed folks on this board endlessly touting their flawed ideas or unaccountable wrong predictions.

tmosley's picture

I think most of us would rather you exposed yourself to oncoming traffic.

What does it all mean's picture

If you only hold physical, and don't care about paper prices... Then why are you so angry?  

trav7777's picture

it's because yet another of his bold predictions blew up in his face

tmosley's picture

Butthurt faggot is butthurt.

I predicted this would happen when we moved to the next phase of the COMEX collapse way back in February.


Fri, 02/04/2011 - 08:35 | tmosley (Total Score:1)

The paper price is fake.  The sooner it breaks down toward zero (among infinite volatility), the sooner the current system ends due to metal default, and "gold bugs" take over the financial system as physical premiums head toward infinite.“catast...

All this shit means is that the COMEX is about to collapse.  But your blind hatred doesn't allow you to see that.  You just see my name and automatically think everything said is "wrong".  You have even created a false persona for me in your head in the form of a Cheers character.

You are intellectually weak.  This is why you can't face the truth that YOU have been wrong on so very many predictions, so you project on to me.  Cry some more, you big baby.

Math Man's picture

Tmo, quit changing your tune.  You've made so many contradictory posts that you can claim to have predicted just about anything at this point.  

If you really knew this was going to happen, why didn't you buy puts?  You'd be buying more physical with the profits.   Instead you called everyone  names and told us how stupid we were.

Face it.  You are a fucking liar.  All you did was go long physical... and call anyone who didn't a fucktard.   You didn't put your money where your mouth was and short the paper market that you now claim is going to zero.  Like you accused all the shorts of not doing...  which, by the way we did, and we made a fucking killing...

If you're so sure the paper price is going to Zero, then there is still time to hedge up before the second leg of the collapse occurs...  if you're so confident that the 'paper' price is going to zero, why aren't you shorting it?

Fuck you pig.

tmosley's picture

Uhh, the cut and pastes don't lie, son.

If you recall, I told you that hedged puts on SLV were actually a good play, but you refuse to see the difference between physical silver and SLV, so it was lost on you.

Everything I have said has been 100% consistent.  Buy PHYSICAL FUCKING SILVER and DON'T LET IT GO FOR ANY AMOUNT OF DOLLARS.

And I don't play with paper, because when the COMEX goes ALL the paper written against it will be WORTHLESS, both PUTS and CALLS, because they won't have any silver to cover those contracts.

And I'm not shorting it because there will be infinite volatility on the way down, and as mentioned above, when the COMEX defaults, all of their contracts (including my "hedges") become WORTHLESS.

But you are too stupid to see that.

Math Man's picture

Tmo -

Your misunderstanding of the markets is comical.

COMEX is not going bankrupt...  sorry to break it to you.

And there are no shortages of physical silver.  With the exception of silver eagles (and even that is dubious), which represent less than 3% of the silver market (30mm minted/year vs total supply of 1,056mm ounces).  You've been had.  Wake up.



tmosley's picture

I have a new avatar for you:

Christ, if you are serious, your ass was born yesterday.  The premiums are up on ALL FORMS of physical silver.

jackpagan's picture

Meth Man, it's your misunderstanding of the term superbull is what's comical.  Been reading you since silver was $20, you've been nothing but wrong about everything.

Math Man's picture

Check you facts.  I didn't show up until $30 silver.

Bay of Pigs's picture

Since you don't know any "facts" when it comes to silver, what is there to check?

And btw, who were you before Math Man? All you useless trolls have multiple identities.  

Watch physical silver disappear now and try and learn something.

BigJim's picture

You get to crow 'when' silver hits < $25 an ounce, as I recall.

Until then, you've been losing money...