Silver Approaches $38

Tyler Durden's picture

While the DXY continues to languish in the depths of Ben Bernanke's sado-maso dungeon, money allocated to new reserve currencies: gold and silver continues unabated. Earlier, gold was on the verge of breaking out to fresh all time highs, while silver at last check just hit a fresh 31 year high, pennies away from $38. And just $10 dollars from its all time Hunt Brothers nominal highs.

And while it is more than obvious to all what is precipitating this flight to a self-imposed gold (and silver) standard, here is Reuters attempted take on explaining things:

Gold and silver prices rose on Thursday as jitters over the euro zone sovereign debt crisis, violence in the Middle East and worries over radiation leaks in Japan conspired to blunt risk appetite.

Gold prices climbed back towards record highs above $1,440 an ounce and silver touched a fresh 31-year high at $37.72 as investors turned to precious metals as a haven from risk.

"Given the geopolitical environment, concerns about Portugal and other peripheral countries, euro zone debt concerns and the still extremely low interest rate environment, it is not surprising the trend is your friend," said Commerzbank analyst Eugen Weinberg.

Concern over the indebtedness of some smaller euro zone members returned to the spotlight on Thursday after Portuguese prime minister Jose Socrates resigned, a move set to dominate a summit of EU leaders starting Thursday.

Among other commodities, U.S. oil prices extended gains on Thursday, rising back above $106 a barrel as concerns over ongoing violence in the Middle East and North Africa outweighed worries over the financial health of the euro zone.

Gold tends to benefit from higher oil prices, both because it is sometimes seen as a hedge against oil-led inflation, and because it is often traded as part of a commodity basket dominated by crude oil.

Western warplanes hit Libya for a fifth night on Thursday, but so far have failed to stop Muammar Gaddafi's tanks shelling rebel-held towns or dislodge his armour from a strategic junction in the east.

Other clashes have been reported in Yemen and Syria in recent days.

"Risk appetite remains hobbled by geopolitical tensions," Credit Agricole analyst Robin Bhar said in a weekly note. "The Libyan crisis has, if anything, intensified over the last week with the advent of Western bombing."

Elsewhere, concerns persisted in Tokyo over radiation leaking from a nuclear plant crippled in the earthquake and tsunami that hit northeast Japan earlier this month.

As usual, any "strength" in stocks will be merely a reflection of the ongoing decimation in the dollar, with the real value of the stock market unchanging, and only superficial cable propaganda channels extolling the virtues of nominal price changes.

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BrianOFlanagan's picture

where's the JPM bankruptcy filing?  I thought $36 was supposed to bring them down.

Ray1968's picture

Unlimited access to the Fed window can carry you a long way.

Careless Whisper's picture

@ BrianO

dewd, do you have any idea. jp morgan has 2 trillion in assets. they have about 176 billion in stockholder equity (according to their gaap certified financials). there are rumors that they are short about 1 billion ounces of silver. if that's even true then silver needs to go to a few hundred an ounce before they loose any sleep and ask for a bailout.

BrianOFlanagan's picture

@ Careless Whisper

Exactly!  JPM/Blythe aren't losing any sleep on the rise in silver (they may in fact be net long, but that's another story).  Silver could go to $50 and JPM will still likely be reporting perfect trading records.  

But the silver bugs need a boogeyman, for some reason.

tmosley's picture

Please don't buy any silver.

Neither of you.

You don't deserve it.  I would hate to see people like you get rewarded.

long juan silver's picture

Anyone bearish scares the hell out of you dont it? hehehe

tmosley's picture

lol, whatever you say, Willy the Coward who had to change his name due to his cowardice.

I Am The Unknown Comic's picture

I am so glad that bastard changed his name.  I used to just cringe when I saw his drive-by trolling posts.  I hope he gets fired from his trolling job.

EscapeKey's picture

I seriously doubt he's paid to do that. If I were to sponsor shills, I would want someone who could argue intellectually. WTB's posts basically just amounted to the intellectual equivalent of "I'm rubber, you're glue", with a lot of curse words thrown in for good measure.

Kaiser Sousa's picture

thank u for that...

now all chumps move along....

nontaxpayer's picture

This. Blythe prolly hasn't even heard about Max Keiser, the climate change-banging Israel-bashing moron.

(you may junk me now)

Careless Whisper's picture

first, i'm long silver and gold. but not because of max keiser. you are correct, he promotes the cap & trade fraud scheme that will benefit the criminal bankers, yet he hates goldman and jp. pfffftt. right. and while france leads the war on libya, max keiser remains silent, while he dines on millefeuille at restaurant du palais-royal.

EscapeKey's picture

Anyone making investment decisions on basis of a showman deserves to lose everything.

Max Keiser is an entertaining doofus. So is Jeremy Clarkson when it comes to cars. That doesn't stop me from watching either, because as previously stated - they're entertaining.

Careless Whisper's picture

jeremy clarkson has the best job in the world.

bankrupt JPM buy silver's picture

There is no way they are long, you are on crack if you think you can continue the worlds greatest ponzi long PM's, that the most absurd thing I've heard in this rally.

Head for the Hills's picture

They probably just printed a fresh batch. 

You know paper SLV and metal is the same thing these days.

EscapeKey's picture

What a stupid argument. Yeah, they might have $2tn in assets, but you "forgot" to mention they have $1.95tn in liabilities.

Right up there with Spalding counting CDS notionals as "debt".

Arthor Bearing's picture


If the accouting rules were changed to discourage fractional reserve banking (which would be simple: you're not allowed to count the liability of others to you as an asset) then their assets would fall probably 95-98%. That's why the morgue needed a bailout when Bear Stearns went down, because the spiralling debt deflation would have taken down JPM, Goldman, and all the others

Bicycle Repairman's picture

Yes.  JPM is not going bankrupt.  Buying PM is a good means for catching the money that the FED is firing out of its "bazooka", however.

long juan silver's picture

Every single person here has pom poms a shaking

tmosley's picture

Whatever you say, William the Dumbass.

Fearless Rick's picture

Read this, dumbfuck, and tell me how you feel.

Roger Weigand, usually on the money.

tmosley's picture

They have bought time by becoming a COMEX registered vault.  It took them two days to get permission to do this, a process that takes 45 days for everyone else.

In the immortal words of Jay Sherman "It stinks!"

duo's picture

don't piss JPM off, or they'll dump their EXK shares and naked short HL.

French Frog's picture

does anyone know for sure if jpm are still net short? there's so much speculation about it that for all we know, they could actually be net long and enjoying the price rises fuelled by everybody intending on 'killing' them.

just a thought, rarely entertained in here despite the fact that probably no-one can prove whether jpm are net short ot long silver

overmedicatedundersexed's picture

french, HOrgan reports on silver contracts that are being settled for CASH. not silver.  is it JPM many think so.

Bless Wynter Benton, still investing buying PM's and PM stocks, with them and seems they are for the contracts then sell for big premium each month is working..Silver is out performing gold each month something is pushing it, JPM caught in a short squeeze could be one factor.

DosZap's picture


Either short or long they lose metal, damn sure do if short,and cause a DIP.

They went to Copper to make up the difference.

Mr. Rockeller, just how much money is enough?, Mr. R,

 Just a LITTLE more.

vas deferens's picture

Looks like JPM is hurting bad, they had to register as a comex vault!!?? Hmmmm   It took two days to register, normal time is said to be 45 days. Looks like someone was in a rush to deliver silver to themselves.



Will JPMorgan Now Make and Take 'Delivery' of Its Own Silver Shorts?

RockyRacoon's picture

Yeah.  Their "vault" is probably about the size of my post office box.

Just had a phone solicitation for a U. S. Bank credit card.  The guy asked me if I still lived at P.O. Box whatever.   I said yes, but it was starting to get a big cramped and I might move up to a nice, roomy dumpster.   He cruised right thru the humor and continued to read from his script.   Sad bunch o' bastards.

Xibalba's picture

Not to worry!  JPM is on the way!

Troll Magnet's picture


emsolý's picture

Reuters: "jitters over the euro zone sovereign debt crisis, violence in the Middle East and worries over radiation leaks in Japan conspired to blunt risk appetite."

Those are the same jitters that are making DAX +1.8% today, correctamundo?

Oh regional Indian's picture

++++1 jjjjjittery ffffat ffffinger iiiindeed!


hugovanderbubble's picture


Short Squeezes coming if SPX above 1320

Watch them


HelluvaEngineer's picture

...worries over radiation leaks in Japan conspired to blunt risk appetite

C'mon.  Really?  They're not even trying anymore.  Are humans auctually writing this stuff anymore, or is it just auto generated?

dark pools of soros's picture

is this real or a game?

WOPR HTF: what is the difference?


Gordon Freeman's picture

Actually, they just have a half-dozen hot keys, that spit out the tropes in various easily digestible combinations...

DosZap's picture

No, when your a dumbass journalist, and a sheeple,you print what makes you ticky.

Having no clue as to the real reasons.

Hannibal's picture
Will JPMorgan Now Make and Take 'Delivery' of Its Own Silver  

Some vault operators are more equal than others. JPM appears immune from processes that everyone else must suffer through. On March 15, 2011, the Commodity Exchange (COMEX) and the New York Mercantile Exchange (NYMEX) advised the CFTC that they had approved J.P. Morgan's application to become a licensed vault facility, using a "self-certification" process. The newly licensed vault, more:





swissaustrian's picture

This buys just some more time.

TaxSlave's picture

Ha, transfer from one hand to the other, then tell everybody what the price was.  Brilliant!

the not so mighty maximiza's picture

using a "self-certification" process.


yeah that sounds groovy

EscapeKey's picture

Using the same self-certification process, I have determined I am worth $1.5 quadrillion.

Now, who want to buy 1% of my net worth? I will sell it at a bargain price of $1bn, but you have to act fast, because there's only 100% to be sold.

Horatio Beanblower's picture

$1.5 quadrillion, eh?  Would you like to buy a derivatives bubble?

gwar5's picture

JPM moved operations offshore, and now this. Desperation.

More proof they're all crooks and the COMEX is owned.

Allows JPM to be in charge of good delivery standards of the Tungsten.

JLee2027's picture

I read the fact it happened in 3 days instead of 45 as total desperation. They are indeed, out of silver in the warehouse, at SLV, and at the LBMA.