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Silver 12 Cents Away From Post Hunt Brothers Closing High

Tyler Durden's picture




 

Now that we know that JPM had a statistically impossible 97% win track record in 2010, we can't help but drool in jealousy. However, we wouldn't be doing our journalistic duty if we didn't inquire just how much did JPM brush under the rug on their underwater gold and silver short exposure, and whether or not Blythe Masters' bank is even accounting under GAAP for the now documented price suppression scheme? After all, Blythe is the master brain behind such no margin "bearish exposure" products as CDS - it would be only logical that she discovered some way to make her massive paper silver short carried on the books at a minute fraction of gross notional exposure. Furthermore, it is no wonder that today Gary Gensler demanded a pound of flesh for his kickbacks to the banker lobby which allowed JPM to be grandfathered in with their huge short positions (claiming the CFTC would need to fire hundreds of worthless staffers if the corrupt agency's 2011 budget wasn't lifted, despite O'Malia's protest). We ask all this because despite all the unprecedented manipulation: the close banging, the paper shorts, the AM-PM session divergence, silver is now at $30.80, and is just 12 cents away from its post-Hunt Brothers record close, which was printed on New Year's Day at $30.92.

 

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Tue, 02/15/2011 - 16:09 | 964591 Judge Judy Scheinlok
Judge Judy Scheinlok's picture

I LOVE SILVER!! AND I'M NOT TALKING ABOUT THE PAPER SILVER. TIME TO BUY SOME MORE, THE GAME IS JUST BEGINNING.

Tue, 02/15/2011 - 16:13 | 964606 Ragnarok
Ragnarok's picture

I love the ability to type in both Upper and Lower case.

Tue, 02/15/2011 - 16:17 | 964627 quasimodo
quasimodo's picture

PLUS one :-)

Methinks the judge needs some lady meds

Tue, 02/15/2011 - 16:23 | 964662 Judge Judy Scheinlok
Judge Judy Scheinlok's picture

METHINKS YOU NEED TO REWRITE YOUR PARSING ALGORYTHMS TO INCLUDE PEOPLE WHO YELL ALL DAY LONG !?!

Wed, 02/16/2011 - 11:58 | 966759 h3m1ngw4y
h3m1ngw4y's picture

nobody likes screamers. such bad manners

Tue, 02/15/2011 - 18:58 | 965185 Cathartes Aura
Cathartes Aura's picture

'tis the interwebs, which is populated with G.I.R.L.s - guys in real life - lots of new trolls signed up in the last two weeks, heavy on the one-liners. . . feed 'em & weep.

Tue, 02/15/2011 - 16:32 | 964715 Confuchius
Confuchius's picture

Rag

We gotta remember who we're dealing with here...

To find lower case requires an IQ out of the single digits!

Tue, 02/15/2011 - 16:56 | 964826 dearth vader
dearth vader's picture

A case for casual treatment?

Wed, 02/16/2011 - 03:54 | 966023 Fíréan
Fíréan's picture

Ignore the pithy remarks, many here are more concerned with the presentation of the message than the content and hence, as in life, never get it .

Small caps large caps, who cares, please continue posting interesting content and comment. I'm reading.

Wed, 02/16/2011 - 05:55 | 966092 Lets_Eat_Ben
Lets_Eat_Ben's picture

Is it just me, or does anyone else find that wicked, old harpy Blythe Masters as fuckable as she is culpable???

Fri, 02/18/2011 - 00:19 | 973095 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

I know it's not just you.

It's also me.

But I have an Agent Scully fetish, and I think Blythe looks like Scully, sometimes.

So let's have a third opinion!

Tue, 02/15/2011 - 16:09 | 964593 philgramm
philgramm's picture

BTFD

Tue, 02/15/2011 - 17:46 | 965005 metastar
metastar's picture

Caps justified here!

Tue, 02/15/2011 - 17:55 | 965030 bankrupt JPM bu...
bankrupt JPM buy silver's picture

I ate a maple today for shits and gigs...seriously

 

www.silvergoldsilver.blogspot.com

Tue, 02/15/2011 - 18:48 | 965166 Cash_is_Trash
Cash_is_Trash's picture

Arriba arriba arriba la plata PUTAS!

I pray for Mexico to re-introduce silver coinage, silver standard mis amigos gringos.

Tue, 02/15/2011 - 20:35 | 965397 GoinFawr
GoinFawr's picture

"It's comin' back around again..."

http://www.youtube.com/watch?v=nwrfJXV_7XM

Tue, 02/15/2011 - 16:11 | 964596 flaunt
flaunt's picture

Silver Open Interest just ballooned from 142,520 yesterday to 147,465 today.

The all important March 2011 silver contract, which should be rolling over to future months,
actually GAINED from 61,237 to 61,720 contracts today.

http://jessescrossroadscafe.blogspot.com/2011/02/just-when-i-thought-i-w...

Tue, 02/15/2011 - 16:12 | 964600 EscapeKey
EscapeKey's picture

This is getting interesting...

Tue, 02/15/2011 - 19:32 | 965249 william the bastard
william the bastard's picture

Was there a split somewhere along the way?

During the Hunt brothers' accumulation of the precious metal, prices of silver futures contracts and silver bullion during 1979 and 1980 rose from $11 an ounce in September 1979 to $50 an ounce in January 1980.

2 Hunts Fined And Banned From TradesBy KURT EICHENWALD
Published: December 21, 1989

http://www.nytimes.com/1989/12/21/business/2-hunts-fined-and-banned-from-trades.html

 

Tue, 02/15/2011 - 20:10 | 965305 Bay of Pigs
Bay of Pigs's picture

Very old news. Means exactly nothing today. 

Tue, 02/15/2011 - 21:32 | 965523 Bringin It
Bringin It's picture

Means nada today.

Tue, 02/15/2011 - 16:17 | 964628 Judge Judy Scheinlok
Judge Judy Scheinlok's picture

As an aside, there may be a hedge fund 'raid' on the Yen coming. Or perhaps word of official action has leaked. I am not sure what a 'watershed event' implies here.
"In an important development, The Gartman Letter – which not only has an excellent nose for major currency trends but which is also very well informed – declared a “Watershed” event for the yen, and increased its yen short positions, including adding another yen/gold “unit”. "

Tue, 02/15/2011 - 16:22 | 964659 I Am The Unknow...
I Am The Unknown Comic's picture

THANK YOU SO MUCH FOR NOT TYPING IN ALL CAPS THIS TIME BECAUSE IT REALLY IS UNPLEASING TO THE EYE.  I'M GLAD YOU ARE A PART OF ZH FIGHT CLUB AND SEE THAT YOU WILL NO LONGER NEED TO SHOUT YOUR COMMENTS IN ALL CAPS BECAUSE YOU ARE SMART ENOUGH TO GET YOUR POINT ACROSS IN NORMAL PUNCTUATION!!!!!!  WELCOME AND PLEASE KEEP BRINGING IT ON!!!!

Tue, 02/15/2011 - 16:26 | 964674 Judge Judy Scheinlok
Judge Judy Scheinlok's picture

OH THANK YOU FOR SUCH WARM WELCOME. THE ABOVE POST WAS ACTUALLY A QUOTE FROM JESSIE, BUT THANK YOU JUST THE SAME AS THERE ARE FEW GENTELMEN HERE ON THIS WEBSITE.

 

JUDGE JUDY HAS RULED IN YOUR FAVOR!!!!

Tue, 02/15/2011 - 16:28 | 964686 I Am The Unknow...
I Am The Unknown Comic's picture

Oy veh!

Tue, 02/15/2011 - 16:41 | 964766 outamyeffinway
outamyeffinway's picture

Dude, didn't you see the quotes? Dead give away. You've been had!!

Tue, 02/15/2011 - 16:46 | 964784 AN0NYM0US
AN0NYM0US's picture

are you related to Stocks Goin' GREENnnnnnn?

Tue, 02/15/2011 - 16:51 | 964806 Judge Judy Scheinlok
Judge Judy Scheinlok's picture

NOT RELATED TO ANYONE TRI-CLOPSE. NOW BACK TO YOUR CAVE!

Tue, 02/15/2011 - 17:56 | 965038 Things that go bump
Things that go bump's picture

I think I love you.

Tue, 02/15/2011 - 17:59 | 965048 topcallingtroll
topcallingtroll's picture

I think she is a tranny.

Tue, 02/15/2011 - 19:44 | 965282 william the bastard
william the bastard's picture

Tranny Granny

Tue, 02/15/2011 - 16:30 | 964706 beastie
beastie's picture

For those who want to know a little more about the supposed Hedge fund raid on the comex do a search on the yahoo boards for Wynter_Benton, Turds blog comment section

and

http://screwtapefiles.blogspot.com/

for a summary

Tue, 02/15/2011 - 16:47 | 964791 oddjob
oddjob's picture

GARTMAN?...get real.Ignore anything he says,its no more than white noise no matter the message.

Tue, 02/15/2011 - 16:58 | 964833 Hearst
Hearst's picture

The Silver market is tighter than a bull's ass in fly season..

Tue, 02/15/2011 - 17:42 | 964991 Instant Karma
Instant Karma's picture

I'm guessing that's tight, having had no direct contact with bulls in or out of fly season.

Tue, 02/15/2011 - 16:11 | 964597 Sophist Economicus
Sophist Economicus's picture

I think I can, I think I can....

Tue, 02/15/2011 - 16:17 | 964630 Hephasteus
Hephasteus's picture

Let silver tell you the story about the little engine that could.

http://www.youtube.com/watch?v=W2n5BSslNgA

Wed, 02/16/2011 - 01:12 | 965916 Blank Reg
Blank Reg's picture

Thanx. Now I'll have nightmares all night.

Tue, 02/15/2011 - 16:11 | 964599 SilverIsKing
SilverIsKing's picture

TWO NICKELS & TWO PENNIES BITCHEZ!

Tue, 02/15/2011 - 16:14 | 964607 homersimpson
homersimpson's picture

"Silver is the root of all evil.."

Framed quote hanging on Blythe's wall..

Tue, 02/15/2011 - 17:03 | 964847 Windemup
Windemup's picture

No. It's "THE LOVE OF" silver is the root of all evil.

Tue, 02/15/2011 - 17:14 | 964899 Pool Shark
Pool Shark's picture

No. It's "THE LACK OF" silver is the root of all evil.

Wed, 02/16/2011 - 04:54 | 966059 StychoKiller
StychoKiller's picture

I understand that APMEX sold at least 50 10Toz Silver bars yesterday -- or so a little bird told me.

Tue, 02/15/2011 - 16:13 | 964608 trav7777
trav7777's picture

'grats to anyone who BTFDd and went balls deep in FM SLW calls

Tue, 02/15/2011 - 16:47 | 964788 SWRichmond
SWRichmond's picture

What a great stock.  I bought some but didn't load up; I should've loaded up.  I DID load up on HL.

Tue, 02/15/2011 - 17:07 | 964865 Turd Ferguson
Turd Ferguson's picture

Admittedly shameless self-promotion but I "produced" this two weeks ago. The predictions contained have turned out pretty well.

http://www.youtube.com/watch?v=RBGqtOKmWHo

Tue, 02/15/2011 - 17:50 | 965017 Hephasteus
Hephasteus's picture

You're a witch!!!

Tue, 02/15/2011 - 19:01 | 965168 GoinFawr
GoinFawr's picture

Sir B: ...Well?

Peasants:Well we did do the nose...

SirB: The nose?

Peasants: ...and the hat; but she's a witch! Burn 'er!

http://www.youtube.com/watch?v=zrzMhU_4m-g

Tue, 02/15/2011 - 18:52 | 965173 tellsometruth
tellsometruth's picture

nice turd... pretty close to 31 today...

Tue, 02/15/2011 - 16:16 | 964610 Kaiser Sousa
Kaiser Sousa's picture

yeah, real nice how the bankers beat it down off the highs executing the same manipulative patterns as always n London, pre- NY and afternoon sessions...so obvious and ultimately so futile...

all together now "FUCK ALL BANKERS"...

 

....................,/¯../

.................../..../

............./´¯/'...'/´¯¯`¸

........../'/.../..../....../¨¯\

........('(...´...´.... ¯~/'...')

.........\.................'...../

...........\.............. _.·´

............\..............(

..............\.............\

...............\..............\

................\..............\

.................\...............\

 

 

 

Tue, 02/15/2011 - 16:18 | 964631 f16hoser
f16hoser's picture

Especially the "Cougar" looking one's.....

Tue, 02/15/2011 - 16:15 | 964613 GoldSilverDoc
GoldSilverDoc's picture

Where are all the idiot commentors here on ZeroHedge who were telling us, a few months back, how "you can't eat silver and gold" (and, ergo, they are stupid things to own)?

They must be hungry.

Tue, 02/15/2011 - 16:27 | 964679 I Am The Unknow...
I Am The Unknown Comic's picture

Look under the bridge...that's where the trolls have gathered.  Expect them to come out after 4 pm close with their hindsight quips and tired remarks.  They will emerge together in a pack for a short propaganda raid on ZH.  Look at the time stamps on their posts for proof. 

Tue, 02/15/2011 - 17:50 | 965019 topcallingtroll
topcallingtroll's picture

This troll capitulated and bought silver around 29... or i should say rebought cuz i started at 6.50 and.sold an average around 25, but if my recent history is any indication, then silver will now start dropping like a stone. Dont say i never warned you. Get out of silver now if you have any.sense because the market has started hating me this last month

Tue, 02/15/2011 - 17:57 | 965027 topcallingtroll
topcallingtroll's picture

Besides....I got back into the stock market when cramer called the bottom. I am doing ok even if i.sold silver early.

Tue, 02/15/2011 - 16:15 | 964614 I only kill chi...
I only kill chickens and wheat's picture

I'm leery of everthing now, but just picked up another 100oz in 10oz

bars. Thinking the money might have been better spent on a water

storage tank, and more bags o Wheat.

Tue, 02/15/2011 - 17:45 | 965002 topcallingtroll
topcallingtroll's picture

Still havent found the caps unlock?

Tue, 02/15/2011 - 23:47 | 965810 dumpster
dumpster's picture

 those who opine about to cap or not to CAP proves that knats are looking for large sludge hammers to make them seem immune from a large dose of diaper rash..

and not much to do .. as the last lint has been plucked out of their navel..

Tue, 02/15/2011 - 17:54 | 965035 The Rogue Economist
The Rogue Economist's picture

Wow! That 500oz bar is some SERIOUS silver porn, enough to give Maxwell and his dinky little hammer a complex.

Tue, 02/15/2011 - 23:10 | 965739 e_goldstein
e_goldstein's picture

bah ha ha. you think kitco actually has silver?

you're a funny lady judge judy.

Tue, 02/15/2011 - 16:15 | 964616 SilverRhino
SilverRhino's picture

Silver rocks.   It's the perfect metal. 

Argentum caniculae!! (obligatory post)

 

 

Tue, 02/15/2011 - 16:15 | 964619 Bagbalm
Bagbalm's picture

I like silver too - but not enough to stop thinking. Please consider we need to factor in inflation when we look at the price.

Tue, 02/15/2011 - 18:55 | 965174 GoinFawr
GoinFawr's picture

Good idea....<mumbles some calculations> Well whaddaya know...Holy periodic table batman, this stuff is still cheap!

Tue, 02/15/2011 - 20:40 | 965406 hamurobby
hamurobby's picture

Still laughing!

The historic ratio of silver to gold would put silver at around $75 an ounce.

Tue, 02/15/2011 - 16:17 | 964620 HamyWanger
HamyWanger's picture

The last stages of bubbles always look the same...

The violence of the collapse to come in PMs will surprise everyone.

In the meantime, fortunes are made on socks.

Tue, 02/15/2011 - 16:23 | 964665 Hugh G Rection
Hugh G Rection's picture

When silver hits $100 this year will you please eat your own shit?

Tue, 02/15/2011 - 16:28 | 964689 homersimpson
homersimpson's picture

Don't take this HamyWanger seriously - note that he's not Harry.. or he's just doubly dumb as Harry.

Tue, 02/15/2011 - 17:04 | 964852 Desenstematic
Desenstematic's picture

In the future, there will be research articles about the evolution of trolls - also about the psychology of avatar selection ...very interesting

Tue, 02/15/2011 - 17:43 | 964997 topcallingtroll
topcallingtroll's picture

Yes...my research puts hamy in the category of satirical trolls.

Tue, 02/15/2011 - 16:29 | 964697 silver_serf
silver_serf's picture

In the meantime, fortunes are made on socks. 

 

Agreed.  Only if you BTFD in cotton

Tue, 02/15/2011 - 16:31 | 964713 spartan117
spartan117's picture

Hamy, I think you have killed Harry.  He no longer posts - I haven't seen him in days.

Tue, 02/15/2011 - 17:48 | 965011 akak
akak's picture

Count your blessings then, and thank God for small favors!

Tue, 02/15/2011 - 16:32 | 964722 EscapeKey
EscapeKey's picture

Socks? As in cotton?

Tue, 02/15/2011 - 16:34 | 964731 BorisTheBlade
BorisTheBlade's picture

Dying to know, what kind of socks?

Tue, 02/15/2011 - 17:53 | 965018 Joe Sixpack
Joe Sixpack's picture

Why, silver socks, of course!

http://www.amazon.com/CircAid-Medical-Products-Silver-Liners/dp/B0032UKLS6

""The whole reason silver nanoparticles are used is because silver kills bacteria that cause foot odour," says Troy..."

http://www.newscientist.com/article/dn13602-smelly-sock-treatment-leaks-silver-nanoparticles.html 

 

 

 www.gold-silver.us/forum

 

Tue, 02/15/2011 - 18:04 | 965060 InconvenientCou...
InconvenientCounterParty's picture

don't forget the silver threaded underwear.

www.lessemf.com

Tue, 02/15/2011 - 19:38 | 965270 TheGoodDoctor
TheGoodDoctor's picture

Will it kill the natural gas emissions?

Wed, 02/16/2011 - 01:55 | 965950 RockyRacoon
RockyRacoon's picture

Sorry, no.  But those pesky skid marks will wash right out.

Tue, 02/15/2011 - 16:52 | 964815 tellsometruth
tellsometruth's picture

if we silver bugs can spot bubbles and rising asset prices why would you not suspect we couldnt/wouldn't buy the same small cap wonders in moderation like you?

Tue, 02/15/2011 - 17:03 | 964841 Captain Kink
Captain Kink's picture

socks?  you mean SOXX, the semiconductors, right?

Many use silver, i think.

Tue, 02/15/2011 - 17:10 | 964879 gratefultraveller
gratefultraveller's picture

well, in german condoms used to be referred to as "close combat socks", so in an inflationary scenario it might prove useful to have a few in stock for bartering.

 

not sure though this is what Hamy was referring to ;-)

Tue, 02/15/2011 - 17:30 | 964949 MsCreant
MsCreant's picture

Condoms in an inflationary scenario. Hmm... No.  I must behave.  I must.  I must. I give into these impulses way too much. No.

Just one comment then. Aren't condoms intrinsically designed for inflationary scenarios?

Tue, 02/15/2011 - 17:41 | 964987 MachoMan
MachoMan's picture

Only if ben is kind enough to not try and pass on his raging case of herpes.

Tue, 02/15/2011 - 17:42 | 964995 gratefultraveller
gratefultraveller's picture

Like in this vid?

http://www.youtube.com/watch?feature=player_detailpage&v=0tghUh4ubbg

On a side note, I do appreciate your acute observations and intricate sense of humour.

Tue, 02/15/2011 - 17:46 | 965007 viahj
viahj's picture

inflation followed quickly by deflation

Tue, 02/15/2011 - 20:06 | 965327 Boosher
Boosher's picture

you mean people will actually start saving $ cause things will be cheaper tomorrow than today? that thought sounds awful scary to ole Benji and the band. Would not be possible for them to combat deflation.  Bring on 3% deflation and 750s in sps, 2015 maybe?

 

Tue, 02/15/2011 - 18:04 | 965056 The Rogue Economist
The Rogue Economist's picture

Not really, like all market timing, the inflation is aready at its peak. Condoms are actually a hedge against asset splitting during an explosively deflationary event.

Tue, 02/15/2011 - 18:57 | 965183 MsCreant
MsCreant's picture

Who junked this? This was a superb reply.

Tue, 02/15/2011 - 20:38 | 965403 The Rogue Economist
The Rogue Economist's picture

Hmmmm...I seem to have become the resident condom troll by "accident".

Tue, 02/15/2011 - 21:00 | 965473 Hulk
Hulk's picture

That was most excellent!

Tue, 02/15/2011 - 18:20 | 965096 fuu
fuu's picture

How do we turn the post coital nap into finance talk?

Wed, 02/16/2011 - 04:58 | 966062 StychoKiller
StychoKiller's picture

Are we talkin' cotton socks here?

Tue, 02/15/2011 - 16:16 | 964621 Amish Hacker
Amish Hacker's picture

As SLV approaches 30.44, get ready for some both-handed price strangling. It won't work for long.

Tue, 02/15/2011 - 16:16 | 964622 f16hoser
f16hoser's picture

I think I'm in luv with Blythe Masters. She keeps price low for long-time. I buy more she squirms more...... She'll be walking on her elbows in about 6 months.

Tue, 02/15/2011 - 16:37 | 964743 silver_serf
silver_serf's picture

 

 

I F*$&'ed Blythe

(bought physical silver)

It was good. ---->Smokes cigarette

Tue, 02/15/2011 - 19:08 | 965195 GoinFawr
GoinFawr's picture

Here is a song you might enjoy. Just replace 'Liberty Mutual' with "Japey More Gun" and it will have a nice ring to it. (Language Warning)

http://www.thesixtyone.com/s/MMd7WhFDstJ/

Regards

 

Tue, 02/15/2011 - 16:18 | 964632 Cdad
Cdad's picture

Some classic J. Dimon comments out again today, including that he does not believe the national debt is a problem in 2011...rather it is a long term problem.  Right.  Usually, when bomb has been lit [and in this case for a good ten years, let us say], criminal syndicate Wall Street bankers usually wait for that last half inch of the fuse before exiting the room.  But of course, he means for the sheeple to remain calm...you know, since none of them have come back in yet to buy his crap.

It is a climate of corruption, deceit, double dealing, and lies.  A fire hose is required...starting with J. Dimon's office. 

Tue, 02/15/2011 - 16:20 | 964633 MarketTruth
MarketTruth's picture


>>>-----------<<<


>>>------------------<<<

>>>---------------------------<<<

DO YOU HATE JP MORGAN?

If so, BUY physical SILVER and take delivery.


>>>>---------------------------<<<

>>>------------------<<<

>>>-----------<<<

Tue, 02/15/2011 - 16:27 | 964685 jus_lite_reading
jus_lite_reading's picture

Done Done and DONE. They are going down...

}}}---------------------->  BullsEYE

Tue, 02/15/2011 - 20:19 | 965359 Math Man
Math Man's picture

Market Truth:

If JP Morgan is so short silver, please explain how they had a trading profit EVERY SINGLE DAY for the 2nd half of 2010, while silver went from $18 to $30.

The JP Morgan short is the biggest lie/rumor on the internet.

http://noir.bloomberg.com/apps/news?pid=20601087&sid=aoKU_kEeL59w&pos=5

Not to mention they closed their prop commodities business in August to comply with the Volker rule. 

All the speculative demand that is pushing the price up right now will eventually become supply.

It only costs $5 to dig it up out of the ground.  Have fun paying 6x cost.  This shit will be back at $18 before you know what hit you.

Tue, 02/15/2011 - 21:44 | 965546 Captain Benny
Captain Benny's picture

You really want an answer?  Its pretty damn simple: Banks do not practice mark to market.  Is that clear enough for you or do you need a definition of what M2M is?

Tue, 02/15/2011 - 23:29 | 965775 yellowbr
yellowbr's picture

lol that's so full of shit. Just look at the delivery report for silver and tell us that JPM is not trading through their prop desk anymore.

Tue, 03/08/2011 - 16:58 | 1030743 RogueFit
RogueFit's picture

I honestly think you are right.  I have a theory about the frequency of product commercials on CNBC that tend to predict the tops of markets.  Currently, almost every rotation is about buying gold/silver...Although I am long, I am buying puts and looking to exit my position.  I think there is a wealth transfer going on here and your rationale has helped me see the light in group think.

 

Bravo...and thanks in advance.

Tue, 02/15/2011 - 16:19 | 964638 Hugh G Rection
Hugh G Rection's picture

The only GAAP Blythe is concerned with is between her thighs. 

 

 

Tue, 02/15/2011 - 16:29 | 964695 homersimpson
homersimpson's picture

LOL. Not a nice visual..

Tue, 02/15/2011 - 16:21 | 964642 43 Steelie
43 Steelie's picture

Can someone (coherently) explain to me exactly why JPM would continue to maintain their massive short on silver? All tin-foil theories aside, what's the true upside here for Blythe? Is it so they can hedge their lack of physical inventories for the SLV etf? 

Disclaimer: This is an honest question. I am very long silver but am curious as people have asked me this and I can't logically put it into words.

Tue, 02/15/2011 - 16:33 | 964721 luk427
luk427's picture

I don,t think it matters how big you are when the masses turn and go against you (buying physical silver) your fucked.The leverage that was in their favour( naked shorts) will make it that much worse. My opinion.

Tue, 02/15/2011 - 16:36 | 964735 FeralSerf
FeralSerf's picture

If you can come up with a credible, WORKABLE plan to cover a short this large, I'll bet Blythe would like to know about it.

I'd like to see her do it.  It'd be an easy way to get to $100/oz.

Tue, 02/15/2011 - 16:39 | 964754 EscapeKey
EscapeKey's picture

1. Set up hedge fund, fully funded by JPM, but legally its own entity.

2. Shift short position from JPM to hedge fund, using as much leverage as possible.

3. Let hedge fund go bankrupt.

Blatantly illegal, but since when has the banking cartel had to play by the laws you and I do?

Tue, 02/15/2011 - 16:49 | 964803 SWRichmond
SWRichmond's picture

Now that's what I call a bad bank.

Tue, 02/15/2011 - 17:24 | 964934 DCon
DCon's picture

They can surely find a way to profit from selling

CDS for the hedge fund

 

 

 

 

Tue, 02/15/2011 - 17:44 | 964998 topshelfstuff
topshelfstuff's picture

and add on to that the 80%-90% Long Copper that JPM is ''allowed''

Tue, 02/15/2011 - 19:57 | 965306 The Fonz
The Fonz's picture

The method will be to change the rules, legally or otherwise to protect JPM. You can probably make some shocking rule changes that are less destructive to the market than the destruction of JPM our govts chosen tool in the currency wars. When I think about this JPM short issue I have many questions I cannot sort out the answer to.

Why did China buy into JPM? Would they buy JPM if they knew it was doomed?

What would they get to compensate their loss if so?

Does JPM get the backing for the silver swaps from the Chinese?

Will JPM switch sides, simply moving its wealth to the east?

IS JPM about to walk away from this silver problem smelling like roses?

This china purchase makes me worry that is the case.

Tue, 02/15/2011 - 16:45 | 964785 Confuchius
Confuchius's picture

@43steelie;

 

The "morgue" (JPMorgue) fronts for timmah at treshury.

Their paper shorts on Ag are just a book entry to them.

timmah wants (his mommy?) Ag paper prices kept down so as not to frighten the paper holding sheeple. Might scare them into buying Silver metal!

Just buy all the metal you can get with your worthless paper!

Tue, 02/15/2011 - 16:56 | 964827 jus_lite_reading
jus_lite_reading's picture

Two words- Purchasing Power...

Tue, 02/15/2011 - 17:09 | 964873 MsCreant
MsCreant's picture

Hi 43,

All the theories I can come up with have a bit-o-tin in them.

 

  • Why are all their trades so successful? Could it be they are doing the bidding of the Fed who, in turn, scratches their back with insider information? An equal partnership. The Fed does not want silver or gold to declare itself to be a new currency. JPM wants this Ponzi up and running every bit as long as the Fed does, it is to their benefit to help Ben hide the truth that there is no truth.
  • Or maybe they do it for some nice FRNs in a computer somewhere? Offshore even?
  • They are shorting it because they are gathering the physical stuff themselves and want it cheap. Wouldn't it be something if they had the inventory, they just don't want to give it to the owners? Cook up all this crap and "default" when, in fact, it IS in a vault somewhere.
  • JPM does not exist anymore as a solvent entity. JPM is already bankrupt. The Fed is using them as a Zombie corporation to hide all it is doing to help give the appearance that an economy exists. This silver stuff is just the tip of the iceberg.  
  • Another version of this, JPM is being blackmailed by the Fed and others, we let you function and not tell on your bankrupt ass and close you, in exchange, you do us "favors."
  • JPM is a unit in a new class of warfare--corporate, cyber, financial, warfare. It's not the Army, it's not the Navy, or even the Marines. Not the Calvary. Something we don't have a formal label for yet, but something most developed economies have decided is necessary to have or you will be raped, pissed on, rolled over, and left for dead. We have been at war for a long time now, and winning. The financial crisis is a manufactured state of affairs that is an actual "war strategy." 
  • If you were to buy my war idea, we let commodities get sky high, squeeze the shit out of all the poor, let them die, then go ahead and let the price of gold and silver shoot the moon. All holders of PMs get all the commodities.

Just some thoughts. I can make up more.

 

Tue, 02/15/2011 - 23:07 | 965724 Ludwig Van
Ludwig Van's picture

 

Post of the day, MsC. Thank you!

 

Tue, 02/15/2011 - 17:27 | 964941 BallsDeepGold
BallsDeepGold's picture

The whole purpose of selling paper silver short is to depress the price such that a physical position can be accumulated at a discount to the true market price. Then, when the timing is right, and there is no more physical available to be accumulated (now that silver is in backwardation - this threshhold has been crossed) there will be a default. This will send the $ price of silver skyward & the public will clamoring to get in. After the clamoring has reached a fever pitch - the morgue will begin to distribute their physical hoard to the masses at prices that are orders of magnitude higher than where it trades today. Genius really.

Tue, 02/15/2011 - 18:39 | 965149 Gunther
Gunther's picture

There are connections in the market.

Silver is a small market and suppressing it keeps gold low(er). The lower gold price reduces the alternative to the USD and lowers interest rates.

The losses in Silver are small compared to possible losses in JPM's interest derivate position.

Tue, 02/15/2011 - 20:26 | 965367 Math Man
Math Man's picture

The answer is that they DON'T HAVE a massive short position in silver.

They closed their commodities prop business this summer to comply with the Volker rule.

It was all over the FT and the WSJ.

They also earned a trading profit EVERY SINGLE DAY in the second half of 2010, while silver went up more than 50%. 

http://noir.bloomberg.com/apps/news?pid=20601087&sid=aoKU_kEeL59w&pos=5

The short rumor is a huge lie.  It's just not true.  Silver was trading below $20 a few months ago, and it will soon be back there.

 

Tue, 02/15/2011 - 21:07 | 965484 GoinFawr
GoinFawr's picture

Go all in long ZSL then.

Tue, 02/15/2011 - 21:30 | 965518 Captain Benny
Captain Benny's picture

Are you an idiot or just completely ignorant?  Why don't you start doing your own research and call the Bitch Blythe directly at 212 834-5677.... Ask about the status of their prop desk!  They're still heavily naked shorting silver and they're expecting a larger govt handout to cover their ass.

You know the scariest thing about it all?  Blythe is pretty damn ugly compared to most New York women.... I can't imagine her naked and short.

Tue, 02/15/2011 - 22:06 | 965548 Math Man
Math Man's picture

I'm just speaking the truth. 

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=apLLc.r4OCF4

No commodities prop.  No naked shorts.  Trading profits EVERY SINGLE DAY in the second half of 2010.

http://noir.bloomberg.com/apps/news?pid=20601087&sid=aoKU_kEeL59w&pos=5

JPM short position is a LIE.  IT IS NOT TRUE.

 

Wed, 02/16/2011 - 00:07 | 965839 yellowbr
yellowbr's picture

dude, just follow the COMEX delivery reports and then tell us that JPM is not trading through their prop desk anymore. You'll be amazed what "closing" seems to mean to them.

Wed, 02/16/2011 - 00:15 | 965851 Captain Benny
Captain Benny's picture

Look, I don't know why you think what you've read is the truth.  I have first hand knowledge that they continue to do proprietary trading.  Go to NYC, ride the the 6-line and listen closely to the right conversations and you'll learn a hell of a lot that isn't supposed to be said outside their offices.

Wed, 02/16/2011 - 12:38 | 966886 GoinFawr
GoinFawr's picture

 You're breaking rule #1

Wed, 02/16/2011 - 05:05 | 966065 StychoKiller
StychoKiller's picture

Better question:  Who benefits (or orders them to) from JPM's shorts on Ag?

Tue, 02/15/2011 - 16:21 | 964651 Roy Bush
Roy Bush's picture

Screw Gartman...CNBS stooge

Tue, 02/15/2011 - 16:21 | 964652 AG BCN
AG BCN's picture

 

The Hunt Brothers have just gone into backwardation. 

 

Tue, 02/15/2011 - 16:27 | 964682 Ancona
Ancona's picture

Buy physical silver and buy a lot of it. It only takes a tiny bit of research to find out that 99 percent of the "silver" out there is paper that has been conjured out of thin air. If and when all those paper holders decide to take delivery of physical silver, the market will explode and the ponzi will crumble.

Tue, 02/15/2011 - 16:28 | 964688 Duffminster
Duffminster's picture

There has been a little inflation since the Hunt Brothers high point.  And above ground available inventories silver bullion have also dropped massively since that time.  Other things have changed as well. 

The seldom reported facts on silver are what make it such a steal at these prices in my opinion:

Disclosure: I'm all in on Silver:

I agree with the conclusion of your article.  On the other hand, I think silver is far more precious and rare than Gold these days.  Here are some of the reasons I believe this is so:

1. Above ground Available Silver bullion inventories have declined from about10 billion ounces in 1940 to around 1 billion today.

2. There is now approximately 3.8 billion ounces of above ground gold available.

3. Silver is not only a monetary precious metal but a highly useful and irreplaceable industrial metal used in high technology, medical and other manufacturing applications.

4. Very little of the silver used in industry is recycled.

5. The historic ratio between silver and gold is about 16.

6. The current ratio between silver and gold prices is about 48.

7. Physical demand for physical silver and silver coins is at all time highs and accelerating.

8. New applications of of silver (almost all non-recylable) such as HeiQ Materials, which "manufactures high-performance textile effects for the most demanding functionalities," in the area of anti microbial and other anti-germ technology using silver compounds are expanding even as silver mining production is just beginning to pull up from a very long down trend and the degree of increase is marginal compared to the increase in investor demand and price increases.  

So, silver is actually substantially more rare than gold and yet the price ratios do not reflect the physical reality yet. This means that the long term price suppression of silver via the extreme concentrations of short positions by one or two of the largest Bullion banks has created a sling shot of potential upward price energy. If the CTFC investigation into silver price suppression or any of the current law suites, class action or otherwise, fully reveals the degree and level of ongoing suppression, silver may quickly revert to its historical ratios, and given its increasing rarity and industrial and technological usefulness, climb well beyond its less rare cousin, gold.

 

Duffminster

Tue, 02/15/2011 - 18:00 | 965051 akak
akak's picture

I am in fundamental agreement with almost everything you say, and with your sentiments as well, but I do not think that it makes sense to state that "silver is rarer than gold" as long as approximately nine times as much silver as gold is produced via mining in any given year.  Focusing on only stockpiles is overlooking the larger silver picture, IMHO.  That stills only very slightly takes away from your overall message, however.  Cheers!

Tue, 02/15/2011 - 19:47 | 965290 TheGoodDoctor
TheGoodDoctor's picture

I think what he is saying, is that the above ground silver will be used in industry and not recoverable therefore making the amount of gold above ground higher. At some point he will be correct. Silver may surpass gold in price.

Tue, 02/15/2011 - 16:28 | 964692 frippy
frippy's picture

This won't win me any friends here but I would nail Blythe.

Total coug (fire down below) and probably hells bells between the sheets.

Tue, 02/15/2011 - 16:34 | 964728 AG BCN
AG BCN's picture

I would. 

Tue, 02/15/2011 - 16:40 | 964756 mick
mick's picture

Me too, but she'd have to pay my gigolo fee in physical.

Tue, 02/15/2011 - 16:44 | 964782 chubbar
chubbar's picture

I'd put the wood to that as well.

Tue, 02/15/2011 - 16:58 | 964830 Judge Judy Scheinlok
Judge Judy Scheinlok's picture

GOOD GREIF! WHAT IS THIS THE LAND OF THE DESPIRATE DUDES?

 

I'VE SEEN MORE ATTRACTIVE SHOE SOLES THAN THAT WOMAN FACE.

Tue, 02/15/2011 - 17:09 | 964874 mick
mick's picture

I'd do you too honey.  Feel better now?

Tue, 02/15/2011 - 17:24 | 964931 MsCreant
MsCreant's picture

Does Wilma go both ways? Judge Judy gettin' da primitive booty.

Tue, 02/15/2011 - 18:28 | 965119 mick
mick's picture

I'd yabba dabba doo you too honey sweets!

Tue, 02/15/2011 - 19:26 | 965239 MsCreant
MsCreant's picture

You could screw us all and still not screw as many as Ben has. Ben does not care who he Yabba dabba does.

More Fred, NO FED! 

Tue, 02/15/2011 - 18:02 | 965049 Joe Sixpack
Joe Sixpack's picture

"I'VE SEEN MORE ATTRACTIVE SHOE SOLES THAN THAT WOMAN FACE."

Had these in mind?

http://www.footdefense.com/magicofsilver.htm

 

"WHAT IS SILVER?

Silver is a chemical element on the periodic table that has the symbol Ag (from the traditional abbreviation from the Latin, Argentum). It is a soft, white lustrous transition metal; silver has the highest electrical and thermal conductivity of any metal." Blythe Masters hates silver (I added that- J6P)

 

 "Speed: Sole Defense® footwear eliminates 99.9% of bacteria on the material in less than one hour of exposure. Effectiveness: Silver kills bacteria and fungi faster as the temperature in your footwear rises due to activity.. Safe and Natural: X-Static® is made with pure silver, a naturally occurring element. There are no chemicals or fear of toxicity to the consumer. Permanent: The silver in Sole Defense® footwear becomes a physical part of the fiber. The performance of the product will not diminish over time."

Wed, 02/16/2011 - 12:51 | 966956 Fearless Rick
Fearless Rick's picture

I'd let Blythe blow me while I'm guzzling Goldschlager.

Now, Wilma Flintstone and Betty Rubble, that's a three-day three-way.

Tue, 02/15/2011 - 18:33 | 965134 gaoptimize
gaoptimize's picture

I agree that physical appearance wise, she is a "total coug", but I wouldn't do her because I enjoy sex mostly vicariously through the pleasure of my dear partners, and I just couldn't make myself enjoy her pleasure, if you know what I mean.

Tue, 02/15/2011 - 16:29 | 964693 misterc
misterc's picture

I'm really getting tired of the silver hype. Backwardation, so what? High demand, so mining will go up with time, too, then prices will go down again. It might take years, but it will happen.

Unfortunately, Americans have unsatiable appetite for conspiracy theories, JPMorgue, X-Files, whatever.

As Harry stated, bubbles always end in hysteria. 

Tue, 02/15/2011 - 16:33 | 964725 spartan117
spartan117's picture

Yes, that's when Ben stops the presses.

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