Silver Backwardation Doubles Overnight

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Thu, 04/28/2011 - 10:39 | 1215810 BobPaulson
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There must also be a bull in new profile name requests from ZH topcalling trolls.


Thu, 04/28/2011 - 10:44 | 1215825 Long-John-Silver
Long-John-Silver's picture

The porch is crowded this morning. LOL

Thu, 04/28/2011 - 10:49 | 1215855 Dexter Morgan
Dexter Morgan's picture


Thu, 04/28/2011 - 11:05 | 1215929 What does it al...
What does it all mean's picture

ZH, be a little fair.  IT DID NOT go back to 49.79.  Prime trading market, with a short bias would make you a lot of money.  Don't buy and hope and definitely don't sell and despair.  TRADE, TRADE, TRADE.

Thu, 04/28/2011 - 12:15 | 1216115 GoinFawr
GoinFawr's picture

"...STILL holding short silver positions." (emphasis mine)
Sorry if it's confusing for you. (I know, I know: YOU initiated your short positions at exactly 50 US bitz and bytes, supahstah that you ah.)

Thu, 04/28/2011 - 11:42 | 1216161 Hephasteus
Hephasteus's picture

It's a bitch isn't. Need us in the casino making puts and calls and buying shares of etfs. Not buying and sticking in a safe where you 30 megawatt data center can't give you one fucking clue about what to do.

Fri, 04/29/2011 - 01:58 | 1216344 Hephasteus
Hephasteus's picture

Ya here's their perspectus.


In order to meet rising demand for the popular iShares Silver ETF (SLV), the trust set up to guide the fund is making plans to offer 50 million more shares to institutions.

In a filing with the SEC dated Wednesday, the ETF’s managers list a proposed maximum aggregate offering price of nearly $2.2 billion. The ETF’s parent is the world’s biggest money manager, BlackRock Inc. (BLK)


I see what's going on here. It's japan fallout. JPM screwed blackrock out of 3 billion and now they have to pay for it with ipo on SLV and somehow jack it and pull of a paycheck.

And the plot thickens.

Yup slv and gld etfs are going to blow up. Just a matter of time.


Thu, 04/28/2011 - 11:59 | 1216286 Re-Discovery
Re-Discovery's picture

I agree.  I made a call to stay in silver positions today, but we are seeing a bear attack right now.  The pops are better than the drops so far so I have stayed long. 

Seem like  the same concerted attack -- physical, etf, and miners all correlated -- that has occurred several times this past week.  I'm still long and will probably have to go negative 1% quickly to shake my day's position.  Will take profits on strong rally today.

Thu, 04/28/2011 - 17:25 | 1217950 Treeplanter
Treeplanter's picture

The miners must be easier to short than the metal.  Amazed to see silver up and miners down a little today.

Thu, 04/28/2011 - 10:53 | 1215865 66Sexy
66Sexy's picture

Take delivery.


Thu, 04/28/2011 - 11:03 | 1215920 the mad hatter
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According to wikipedia:

A backwardation starts when the difference between the forward price and the spot price is less than the cost of carry, or when there can be no delivery arbitrage because the asset is not currently available for purchase.

Thu, 04/28/2011 - 17:32 | 1217983 Ratscam
Ratscam's picture

cost of carry is somewhere max. around 0.2% for the may contract hence it is probably the 'or' version - physical sold out, uuups! 

Thu, 04/28/2011 - 10:57 | 1215904 Americant Expat
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I've been out there all week, I'm finally in from the cold and let me tell you, way too many freaks out there. This is the PM anonymous recovery group right? Hi, my name is Americant and I haven't bought any metal since the dip.

Thu, 04/28/2011 - 11:31 | 1216094 MasterB
MasterB's picture

Hi Americant. One day at a time ...

Thu, 04/28/2011 - 11:44 | 1216176 goldfish1
goldfish1's picture

his is the PM anonymous recovery group right?

It's the hair of the dog that bit you group.

Thu, 04/28/2011 - 11:54 | 1216242 Americant Expat
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Hi MasterB, why do I feel dirty when I write that?

Goldfish, I've been rubbing meself with shiny metal all morning with no luck, still no luck. Now I really feel dirty.

Thu, 04/28/2011 - 11:06 | 1215936 Creed
Creed's picture

There must also be a bull in new profile name requests from ZH topcalling trolls.



yeah I noticed too



Thu, 04/28/2011 - 12:02 | 1216288 aerojet
aerojet's picture

I still say that you silver barons are going to get completely fucked in the end.  All this bullshit about the Yuan going to a gold backing, it sounds like total bs to me.  The dollar will continue to fall for awhile longer and then suddenly it will find its legs and some other currency will be the whipping boy for awhile.  This was all planned out already.

Thu, 04/28/2011 - 13:10 | 1216455 GoinFawr
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Agree with that last part. Except that when the Euro (for eg) goes back to being that 'whipping boy' those pesky Euro-peons will increase THEIR demand for the PM's: you see how this works?

You're mired deep in the hegemonial 'everything is priced in USD' paradigm. Haven't you noticed that quite often these days when the DX/Y dead cats off some intermediate 'bottom' the PM's rise in concert with it? Same goes for when the PM's negate a retracement. (Self-promoting eg here)

IE while it is still fairly simple and effective for Bernanke to call up his old comrade Mark Carney and ask him for some help with the USD/CAD ratio, it is getting progressively more difficult to manipulate the inherently valueless FIATs as a whole against real money that has no counterparty liabilities.

I like to call it 'Divesting while the divestment is still good.'

It doesn't happen every time, not yet; gotta keep the mushrooms in the dark while feeding them bullshit, after all.

Thu, 04/28/2011 - 13:19 | 1216727 disabledvet
disabledvet's picture

Actually the collapse of the European Union would put a HUGE bid in the "metal" although amazingly "it's silver"--the poor man's gold.  "Greece paying 25%?"  Or "just default to gold?"  Or is it Silver?  That would be the banks that "lent Greece the 100 billion that is now worthless."  Apparently "they believe in the Zero Hedge" motto quite in "hedge, hedge, hedge, hedge, hedge, hedge, hedge, hedge....  But silver?  doesn't sound very European...

Thu, 04/28/2011 - 13:58 | 1216843 GoinFawr
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Actually my statement above wasn't quite complete, I'll round it out:

In the past couple of years when a fiat goes down against its peers investors owning that currency who have a higher standard for their definition of 'money' have been rushing to the PM's to protect themselves from price inflation (or even plain ol' 'inflation'-gotta keep my Mish gold leaf distinctions distinct). When a fiat rises against its peers people flush in that currency have been using their gains as an opportunity to divest will the divesting is still good.

Thu, 04/28/2011 - 10:41 | 1215812 schoolsout
schoolsout's picture

I broke out the stash and played pirate for a bit last night...

Thu, 04/28/2011 - 10:53 | 1215866 MilleniumJane
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Hopefully you had a willing wench to go along with it ;)

Thu, 04/28/2011 - 12:07 | 1216340 SME MOFO
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actually, ask slewie, usually no ladees about on ze pirate boats, if you know what im sayin

Thu, 04/28/2011 - 10:56 | 1215881 Nate Taggart
Nate Taggart's picture

Better for a good nights sleep than Ambien.  And it's hard to get to sleep at a decent hour after getting stuck on that damn midnight gardening schedule.

Thu, 04/28/2011 - 10:54 | 1215883 Dr. Richard Head
Dr. Richard Head's picture

I keep my junk silver in Crown Royal bags, hide them around the house, and draw pirate maps for me kids.  Argh!!!!

Thu, 04/28/2011 - 11:02 | 1215922 cowdiddly
cowdiddly's picture

Good idea, Except my two boys would just be looking for the Whiskey. Little Bastards.

Thu, 04/28/2011 - 11:09 | 1215968 tekhneek
tekhneek's picture

Haha that's fuckin' rich.

Thu, 04/28/2011 - 11:02 | 1215923 Josh Randall
Josh Randall's picture

That's Genius - Silver investors aren't only smarter but better people

Thu, 04/28/2011 - 11:16 | 1216000 Temporalist
Temporalist's picture

Just keep your hook away from your sack.

Thu, 04/28/2011 - 11:20 | 1216031 astartes09
astartes09's picture


Avast Cpt. Bernanke!  Hand over the Treasury and no one will get hurt!

Thu, 04/28/2011 - 11:37 | 1216131 barkster
barkster's picture

Aaaaaaaaaarrrrrrrrggggggghhhhhhhhhhhh! What do you mean the Treasury is empty?

Thu, 04/28/2011 - 11:45 | 1216179 tmosley
tmosley's picture

Those are as good as money, sir!

Thu, 04/28/2011 - 12:20 | 1216397 WeekendAtBernankes
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Ahh, lol!  I needed that.


Thu, 04/28/2011 - 12:24 | 1216433 barkster
barkster's picture

He would be prosecuted for counterfeiting FRN's for that today.

Thu, 04/28/2011 - 10:42 | 1215817 depression
depression's picture

Blythe Masters Bitchezzz !!!

Thu, 04/28/2011 - 11:36 | 1216141 barkster
barkster's picture

Isn't her royal title 'The Bitchess of Blythe'?

Thu, 04/28/2011 - 10:43 | 1215819 the not so migh...
the not so mighty maximiza's picture

i love silver

Thu, 04/28/2011 - 10:40 | 1215820 tekhneek
tekhneek's picture

I wonder how Dangertime's awesome short position's doing.

Thu, 04/28/2011 - 10:50 | 1215848 Long-John-Silver
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Who do you think is junking all of us? LoL

Thu, 04/28/2011 - 10:56 | 1215880 tekhneek
tekhneek's picture


  1. Great for me and long-john-silver, because we buy the shit anyway dollar cost averaging, pretty sure we both bought the dip this week.
  2. Yeah, it might fall off a cliff. I don't see a $35-$40 being a rough target after the horrible #'s come in. but... what if silver's past $100 by then?
  3. I could care less -- and will continue buying.

You heard this talk yet LJS? Q2 earnings = silver/gold collapse?

Thu, 04/28/2011 - 11:07 | 1215937 Long-John-Silver
Long-John-Silver's picture

They can spew all the propaganda they want about PM's. It's all Bullshit. The US Dollar is headed to the scrap bin of all prior fiat currencies. People are only now just waking up and seeing the coming collapse. Before this is over we will see Silver over $1,000 an ounce before it goes to infinity FDR confetti.

Thu, 04/28/2011 - 11:46 | 1216185 barkster
barkster's picture

Funny to consider that the British Pound Sterling was originally a POUND of sterling silver and today it buys .034 OUNCE

Thu, 04/28/2011 - 12:19 | 1216411 aerojet
aerojet's picture

But so what?  The dollar and everything else were once the same way, too, and someone could live decently on $5000/yr. in the 1960s before Nixon fucked us.  We all know fiat is a colossal crime committed against the non-politically connected, what is your fucking point?

Thu, 04/28/2011 - 12:38 | 1216510 barkster
barkster's picture

wasn't dissing the pound specifically, just pointing out how the dollar could fall a lot more. take a breath and untwist your knickers...

Thu, 04/28/2011 - 12:59 | 1216627 Al Gorerhythm
Al Gorerhythm's picture

His point is what you just argumentatively stated.

Thu, 04/28/2011 - 14:20 | 1217000 suckerfishzilla
suckerfishzilla's picture

Foreignors were allowed to trade their dollars for Gold.  That privilege was not observed for our citizens however.  It was illegal for US to own Gold.  Nixon made the best policy decision any President could have made at the time by taking US off of the Gold standard.  Are the stinking foreignors better than US?

Thu, 04/28/2011 - 13:25 | 1216767 disabledvet
disabledvet's picture

yeh, but "there all onboard this fiat thing" so "they won't have a clue what hit's them" when the dollar is...."not a pound" either.

Thu, 04/28/2011 - 10:57 | 1215901 narapoiddyslexia
narapoiddyslexia's picture

It might get a lot worse for dangertime. The GDP numbers seem to indicate we're entering a slowdown. And quite a bit of silver is a byproduct of copper, zinc, and lead production. They won't increase a byproduct's production if the economy tanks. They'll drop a byproduct like a hot potato if their main sellers go down. Moreover, this is from the latest USGS silver report for January 2011 -


"Peru’s Ministry of Energy and Mines reported that silver production declined by 7%, to 3,390 metric tons (t) in 2010 from 3,640 t in 2009. The overall decline was attributed to a 34% production decline at Sociedad Minera El Brocal S.A.’s (Lima, Peru) El Brocal Mine, a 29% decline at Hochschild Mining Plc’s (Lima) Ares Mine, and a 26% decline at Pan American Silver Corp.’s (Vancouver) Quiruvilca Mine."

Demand, meet supply.


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