Silver At Escape Velocity, As Another ECB Intervention Desperately Needed

Tyler Durden's picture

We apologize for this most recent silver update, but it is rather exhilarating to watch the main Tri-Party repo clearer, and Fed's pet bank squirm. Silver is now above $32.70 as the unleashed squeeze is claiming victims left and right, and the metal is up 7% from yesterday's low. Jamie: it may be time to shelve those dividend plans for a year or two but at least you got your bonus you sly dog, you. As a reminder, margin calls in silver, and they will be, ahem, sizable, commence at 3pm Eastern.

And in other news, the half life of ECB bond monetization interventions is now a few hours. ECB - meet SNB.

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MarketTruth's picture

<insert "Its On Like Donkey Kong" photo here>

jus_lite_reading's picture

I've got a silver coin, if you've got a plot of land, a horse, a plow and a fist full of dollahs!

CPL's picture

For what?  For silver to actually be valued properly for once? 

If it were in the 70 bucks range I would be screaming "back that truck up".  Right now it's still under valued by around 35%.  It would be the equivalent of people buying money at a 35% discount.

johnQpublic's picture


Refer to Franklin Roosevelt's August 9, 1934 Executive Order 6814:

"By virtue of the authority vested in me by the Silver Purchase Act of 1934 and of all other authority vested in me, I, Franklin D. Roosevelt, President of the United States of America, do hereby require the delivery of all silver situated in the continental United States on the effective date hereof, by any and all persons owning, possessing, or controlling any such silver, and do hereby require any and all persons owning, possessing, or controlling any such silver to deliver the same in the manner, upon the conditions and subject to the exceptions herein contained, such action being in my judgment necessary to effectuate the policy of the Silver Purchase Act of 1934. . . . Section 2. Silver required to be delivered..–There shall be delivered in accordance with the terms of this order all silver situated in the continental United States on the effective date hereof, except silver falling within any of the following categories so long as it continues to fall thereunder:

(a) Silver coins, whether foreign or domestic;

(b) Silver of a fineness of .8 or less, which has not entered into industrial, commercial, professional, artistic, or monetary use;

(c) Silver mined, after December 21, 1933, from natural deposits in the United States or any place subject to the jurisdiction thereof: Provided, however, That so much of such silver so mined in the continental United States on or before the effective date of this order which shall not have been deposited with a United States mint tinder the proclamation of December 21, 1933, shall, if processed to a fineness greater than .8 within 75 days from the effective date of this order, be delivered in accordance with this order, not later than 90 days from the effective date hereof, or if processed to a fineness greater than .8 after 75 days from the effective date of this order, be delivered within 15 days thereafter in accordance with this order;

(d) Silver held for industrial, professional, or artistic use and unmelted scrap silver and silver sweepings in an amount not exceeding in the aggregate 500 fine troy ounces belonging to any one person;

(e) Silver owned on the effective date hereof by a recognized foreign government, foreign central bank, or the Bank for International Settlements;

(f) Silver contained in articles fabricated and held in good faith for a specific and customary use and not for their value as silver bullion; or

(g) Silver held under a license issued in accordance with Section 6 hereof.

Section 3. Time and place of delivery..–The silver required to be delivered here under shall be delivered not later than 90 days from the effective date hereof to the United States mint nearest to the place where the silver is situated immediately prior to delivery: Provided, That such silver temporarily falling within the exempt categories enumerated in Section 2, shall be delivered at the end of 90 days from the effective date hereof, or 15 days after the time when it ceases to fall within such categories, whichever date is later. Any person acquiring ownership, possession, or control of silver required to be delivered under this order after 75 days from the effective date hereof, shall deliver such silver within 15 days of such acquisition.

SECTION 4. Amount returnable for silver..–The silver herein required to be delivered shall be coined into standard silver dollars, or otherwise added to the monetary stocks of the United States in accordance with the proclamation, bearing the same date as this order, relating to the coinage of silver, and there shall be returned therefor in standard silver dollars, silver certificates, or any other coin or currency of the United States, the monetary value of the silver so delivered (that is, $1.2929+ a fine troy ounce), less a deduction of 61 8/25 percent thereof for seigniorage, brassage, coinage, and other mint charges, as provided in such proclamation; that is, the amount returnable for the silver delivered in accordance herewith shall be an amount equal to 50+ .– a fine troy ounce, which amount is not less than the fair value, at the time of this order, of the silver required to be delivered hereunder as determined by the market price over a reasonable period terminating at the time of this order.

Section 5. Reimbursement of costs..–The Secretary of the Treasury shall pay all necessary costs, actually incurred, of the transportation of such silver and standard silver dollars, silver certificates, and other coin or currency of the United States, including the cost of insurance, protection, and such other incidental costs as may be reasonably necessary. Persons desiring reimbursement of such costs shall submit their accounts on voucher forms which may be obtained by writing to the Treasurer of the United States, Washington, D.C.

Section 6. Licenses..–The Secretary of the Treasury, subject to such regulations as he may prescribe, acting directly or through such agency or agencies as he may designate, shall issue licenses authorizing the withholding of silver which the Secretary of the Treasury, or such agency as he may designate, is satisfied

(a) is required for legitimate and customary use in industry, profession, or art by a person regularly engaged in such industry, profession, or art or in the business of processing silver or furnishing silver therefor;

(b) has been imported for reexport; or

(c) is required to fulfill an obligation to deliver silver in such amount to a third person, incurred or assumed by the applicant on or before the effective date of this order; Provided, That at the date of the application, the applicant owns such silver or holds the obligation of another to deliver to him such silver.

The Secretary of the Treasury may, with the approval of the President, issue licenses authorizing the withholding of silver for purposes deemed to be in the public interest and not inconsistent with the purposes of the Silver Purchase Act of 1934 and of this order.

Section 7. Deliveries in fulfillment of obligations or to licensees.–No person required to deliver silver owned by him or in his possession or control shall be deemed to have failed to comply with the provisions of this order, if such silver is delivered in fulfillment of an obligation incurred or assumed by such person on

Pemaquid's picture

One of the JPM turds.  Anyone got a few feet of rope?

johnQpublic's picture

i actually posted it as a warning to why you need to get physical and hide the stuff


never trust the government not to try and reach inyour pocket....and not just in tax season


surprised to get 8 junks so far...unless they are junking the premise

i've got mine and am getting more

and i've got the other pm(lead) to back it up if anyone comes a-callin

johnQpublic's picture

that 2000 dolar figure is the same number my 'inside' guy mentioned, but i thought it just had to be bullshit...and there it is again..

nice link...ty

did you catch my link yesterday to the Washington state law that will track all pm sales in excess of 100 dollars?

purchaser/seller take all info that you can think of minus bra size...fingerprints,ssn,dl number,address,height, shit, google it or find link on jeff rense website

i put up a craigslist add for ameros and got three responses...try it

i did philadelphia craigslist, offering price asked for any amero coins...request scans to filter out bs spammers

nmewn's picture

G/S ratio @ 42.53 and falling...I love it when a plan comes together.

Forgiven's picture

Government Silver Thief meet copper cladded lead hollow point.  Discussion over.

Hugh G Rection's picture



The validation of what most of us have known is nice, and the gain on the silver I have purchased is also nice, but I was hoping JPM could keep kicking the can down the road awhile.  I need more, MORE! 


Damnit Blythe you need to go balls deep with the shorts! Monkeyhammer this shit back down to 30 so I can load the truck again.

phil silver's picture

Who put the PM in JPM?

Silver Bulls you have my permission to remove it.

You won't catch me with my trousers down. 

natty light's picture

Phil Silver

great posting name

phil silver's picture

Thanks, my friend.

Keep it safe.


txapela's picture

please, dear god.


don't let silver crash.


and friday expirations to set in.


so that i can make a shitload of money on my miners come this biutiful monday.

tmosley's picture

That's just a conspiracy theory.

No such thing as a "bank holiday".


txapela's picture

well. fuck.


i forgot about president's day. i work on monday.

Triggernometry's picture

tmosley- I almost bought 100 pieces yesterday, then recalled some of your thoughts on price fluctuations due to contract expirations, and figured it might be best to wait a week or two. Any thoughts?

unky's picture

options expire on february 23rd and futures on february 28nd, hmm?

i also want to buy next week and would appreciate suggestions here, (by the way i want to buy in €, so consider the €/$)

tmosley's picture

Read Terd Fergison's blog.  It appears that other things are afoot now in the silver markets, and that the traditional telegraphing and price suppression mechanisms are breaking down.  Namely, the large number of people planning on standing for delivery has rendered it impossible for the cartel to sell any more unbacked shorts without screwing themselves further.

I will be buying next week, but I don't really care about price anymore, as I have already established a strong portfolio.  If I were buying for the first time using a large amount of savings, I would cost average my way in starting IMMEDIATELY, and then buy all dips until I was out of money.  If I were significantly expanding here, I would cost average, buying half now, and half on the next largish dip.  I don't like buying when the price is going up like this, as there is an increased likelihood for major pullbacks.  The fundamental picture here is so strong, and the rumors so pervasive that I would be willing to violate those rules at this time (and buy the fucking spike).  I just wouldn't go all in at this point.  For a regular monthly investment, I just ignore the price.  It's going higher, and you should only be increasing your stash by about 1% a month, if you are already heavily invested as I am.

For a relatively small purchase like that (100 oz), Id say that you don't really need to worry too much about this spike--you've only lost a couple hundred bucks, about 6 fewer oz.  If this is a big portion of your savings you are converting, then I would cost average, buying a high enough number to get the best price/avoid taxes/avoid shipping, and wait for a dip to buy the rest.  If this is "chump change", ie the amount you would normally put aside in a given month, I would say just go ahead and buy it now.

Hopefully that makes sense.

New_Meat's picture


" the fucking spike..."

Nice turn of phrase.  Do you think it will catch on around here? ;-)

- Ned

Triggernometry's picture


Thanks, your knowledge and insight are always appreciated. Just started buying pm's last year, still expanding my stores. My portfolio is solid, all tangible goods: food, water, filtration, textiles, pm's, cold steel, and copper coated lead to put in it.

DoChenRollingBearing's picture

The Bearing, on vacation in Costa Rica chimes in re tmosley:

+ $31.50

If you do not yet have a ´comfortable´ position (physical only) yet, dollar averaging in is great advice.  Start NOW!

I would advise that even stronger re gold.


EDIT: Disclosure, I have enough gold and silver, at least for now.

MrBoompi's picture

The way I see it, even if you don't buy the dip you're still paying 65 cents for something that should be worth at least a dollar.

IQ 145's picture

 The Silver market has a fourteen day cycle; wait exactly two weeks.

StychoKiller's picture

Next Tuesday is also "Birthington's Washday!" :>D

lieutenantjohnchard's picture

no need for apologies. silver bulls are entitled to a group hug every now and then.

TheGreatPonzi's picture

Silver is at 32.850 now. 

jus_lite_reading's picture

Only silver bullets can take down giant Morgue Vampires...

With that said, I have a dream, that all Zerohedgers become the new rulers of the world!


Cash_is_Trash's picture

Except Robo and Harry, they only spit shit about the inevitable rise of real money.

Fuckin'  CME is moving the goal posts again.

dogbreath's picture

I would like to be Tom Bombadilo from The Lord of the Rings.  Older than the hills.

H. Perowne's picture

Ground control, to Jamie Dimon

My shorts are dead, there's something wrong

bernorange's picture

Can you hear me Jamie Dimon?

Can you hear me Jamie Dimon?

Arthor Bearing's picture

Blythe Masters is blue and there's nothing I can doooooo

flacon's picture

There they are sitting in a tin can. Faaaaar above reality. 

Yancey Ward's picture

My face is turning blue, and there's nothing I can do.

Bananamerican's picture

silver's ...floa-ting in a most-a pe-cul-i-ar waa-aay

ApplesConspiracy's picture

And those bars look very different to daaaay