Silver Reaches New 31 Year High At $38.50/oz - Backwardation Ends But COT Data Is Bullish

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Mon, 04/04/2011 - 07:15 | 1131635 aVian
aVian's picture

wow that was fast...bullish for sure

Mon, 04/04/2011 - 08:23 | 1131752 Snidley Whipsnae
Snidley Whipsnae's picture

LOL... Good one Turd! The Witch and Warlock to Venesuela... sounds right.

Mon, 04/04/2011 - 08:48 | 1131804 bankrupt JPM bu...
bankrupt JPM buy silver's picture

I am looking into this backwardation ending...according to my observations about whats going on in the vaults, I cannot see how this is possible.  Actually, I have NO idea how they are settling either with metal.  This is fishy.

 

www.silvergoldsilver.blogspot.com

Mon, 04/04/2011 - 07:25 | 1131644 FLUSA.com
FLUSA.com's picture

I am long on silver but I think it may be time for some profit taking.....

Mon, 04/04/2011 - 07:50 | 1131692 Pants McPants
Pants McPants's picture

I know....reading is a pain.

Mon, 04/04/2011 - 08:51 | 1131817 yabyum
yabyum's picture

Went to the coin guy for my payday junk silver purchase. A kindly older couple were walking out with some very heavy white bags. TOO LATE! they got it all! first time in three years I've been skunked! Bought generic rounds instead;)

Mon, 04/04/2011 - 11:21 | 1132453 RockyRacoon
RockyRacoon's picture

The Mint is back selling the 2010 silver quarter sets after taking them down from the website.  (Mint product: SV2)  The previous price was $32.99 as I recall.

The pricing is still very attractive for several reasons.  You all can figure out most of them, but for the tin-foil-hat crowd these are numismatic coins.   The possibility that they would become illegal to own is very slim to nonexistent.  

There is a tad  over 0.90 ounce of silver in the set (regular content of silver for pre-1965 coinage).   The Mint charges $4.95 for any purchase so that is all the charge for any size order. At $39.95 per set there isn't much downside.

I've got mine, so get what you want:

2010 United States Mint America the Beautiful Quarters Silver Proof Set

Mon, 04/04/2011 - 13:15 | 1132831 Temporalist
Temporalist's picture

Whoops my bad I thought the date was forward dated...

Mon, 04/04/2011 - 10:50 | 1132337 Calmyourself
Calmyourself's picture

Long on foreclosures "bought 35" and now long silver but about time to sell.  Your positioning is about perfect..

Mon, 04/04/2011 - 15:18 | 1133764 tsx500
tsx500's picture

FLUSA : don't be stupid

 

Mon, 04/04/2011 - 07:28 | 1131649 Snidley Whipsnae
Snidley Whipsnae's picture

Bens jawboning isn't working on silver.

FLUSA... You are going to 'take profits' in silver and invest in what?

Mon, 04/04/2011 - 07:49 | 1131688 FLUSA.com
FLUSA.com's picture

I need a Prius...seriously...that is my thinking anyway

Mon, 04/04/2011 - 07:55 | 1131703 Snidley Whipsnae
Snidley Whipsnae's picture

If you need one you need one. Makes sense to me.

Wife and I have 5 vehicles, which makes little sense, but two are big old Harleys, one is a 72 Chevy pickup frame of restoration with big block, etc, two are ten years old with less than 40K miles and maintained perfectly. One thing I don't need is more stuff in need of oil changes. Prius? is that an electric or hybrid?

Mon, 04/04/2011 - 07:57 | 1131709 velobabe
velobabe's picture

both.

a boulder cab company, has a prius vehicle.

Mon, 04/04/2011 - 08:29 | 1131765 fiftybagger
fiftybagger's picture

Snidely, I'm with you.  I'd rather walk right now than sell an ounce.

Silver for the people!

http://www.youtube.com/user/BrotherJohnF?feature=mhum

Mon, 04/04/2011 - 09:02 | 1131854 Snidley Whipsnae
Snidley Whipsnae's picture

I don't work steady anymore...retired some time ago and work part time at what I enjoy now.

If a person needs a vehicle to get to work and selling a little PM is their only option I understand. People do what people have to do.

Besides, one American selling a little silver is not going to effect the market a lot. It's the Chinese/East Asians and Mid East that are really making waves in the PM markets.

China is hedging their US Ts with PMs and they are not going to stop. If Ben raises rates and PMs fall along with everything else except the dollar you can bet the Chinese will continue to buy at new low prices... but PM prices will not stay down for long.

Get popcorn and PMs... enjoy the show. 

Mon, 04/04/2011 - 10:29 | 1132242 FLUSA.com
FLUSA.com's picture

Not very realistic...how would one walk 50 to 100 miles a day?

Mon, 04/04/2011 - 10:25 | 1132226 FLUSA.com
FLUSA.com's picture

it is a hybrid...I already have one but my wife always takes it and Im stuck with the gas guzzeling Durango....I guess the question is what will go up faster...gas or silver?  I really don't know....I just hate ploping 80 bucks into the tank each week..I guess when the system completely collapses....someday...gas will fall like a rock...and silver will be even in more demand...

Mon, 04/04/2011 - 09:31 | 1132009 Tejano
Tejano's picture

Trade silver for a Prius - that's a good one! So, its off to work I go, laughing all the way.

Mon, 04/04/2011 - 10:55 | 1132345 Calmyourself
Calmyourself's picture

You can buy a Ford Msutang with 305 HP that gets 31 MPG and you would buy a Prius full of heavily polluting nickel cadmium batteries to get 45, why?

Mon, 04/04/2011 - 13:03 | 1133039 JoeSexPack
JoeSexPack's picture

Many Prius faithful believe in feelings, not facts.

An extra $20K over a used VW diesel to save maybe 20% in fuel?

& don't forget higher repair costs for the duplicate power-train.

Might pay for itself in 10+ years, maybe.

No thanks.

 

Mon, 04/04/2011 - 12:25 | 1132839 luk427
luk427's picture

Buying Prius in developmental stage means they are using your money for R&d. Bmw deisel got better fuel milage.   http://www.timesonline.co.uk/tol/driving/used_car_reviews/article3552994.ece

Mon, 04/04/2011 - 07:27 | 1131650 Acidtest Dummy
Acidtest Dummy's picture

Silver, use it and it won't tarnish.

Mon, 04/04/2011 - 07:26 | 1131654 LoneStarHog
LoneStarHog's picture

Hey, GoldCore...Get a friggin' clue...many, many contracts were settled at HUGE cash premiums...NOT PHYSICAL, since the amount required COULD NOT BE OBTAINED AT PRESENT PRICES...cash settlements - many times under threat - IS A FRIGGIN' DEFAULT and it SCREWS THE PHYSICAL HOLDERS...pull your damn head out of your worthless ass!!!!!!!!!!!!!!!!!!!

Mon, 04/04/2011 - 08:43 | 1131798 Pumpkin
Pumpkin's picture

Yes, but is a gift to the buyers.

Mon, 04/04/2011 - 07:28 | 1131655 Dr. Impossible
Dr. Impossible's picture

danm..now i gotta reclassify my gold mine to a silver mine......again...

Mon, 04/04/2011 - 07:29 | 1131656 gordengeko
gordengeko's picture

Notice the nice little compression wedge buildup in the futures chart?

Mon, 04/04/2011 - 07:31 | 1131660 Snidley Whipsnae
Snidley Whipsnae's picture

Gold moving up smartly this am...

http://finviz.com/futures_charts.ashx?t=GC&p=m5

Mon, 04/04/2011 - 07:36 | 1131669 gordengeko
gordengeko's picture

Actually was referring to the blue yearly futures chart TD posted above.  If you mentally draw the trendlines over the last 10 years or so, there is a real nice looking wedge there.  All of the built up energy is going to release soon, I would not want to be caught short when this puppy pops.

Mon, 04/04/2011 - 07:40 | 1131676 Snidley Whipsnae
Snidley Whipsnae's picture

Agreed. Lots of pressure built up after recent expiry and this might be the week that it pops. I'm looking for a few days of sustained close above $1450. What line will the BBs defend next... $1500?

Mon, 04/04/2011 - 07:54 | 1131699 gordengeko
gordengeko's picture

Judging from past silver price movements in relation to the futures contract chart above, I'm guessing the move in silver will by far outmove the rise in gold.  We haven't hit the levels of speculative calls as in '04-'06 (which silver spot hit a roughly 55% fiat gain shortly after the move in calls in late '05) and with the compression wedge formation (strictly chart speaking) 40's will be a lock and 50's an extreme possibility maybe this year one this wedge breaks.  Just because the backwardation might have currently subsided, no way do I see silver spot retreating to low 30's again.

Mon, 04/04/2011 - 08:08 | 1131715 Snidley Whipsnae
Snidley Whipsnae's picture

I hope you're right. We bought large physical quantity at $7, 12 and 17... no paper. Also mostly gold... no paper.

If Ben has the nads to jack rates we might see a temporary pull back, imo. We will back up the truck but will be bidding against the Chiness/SE Asians, Mid East and India. Of course we are not in their league but will give it a whirl... if any physical is to be had at anywhere near spot.

BTW, looks like war broke out in the oil pits this am about the time London opened...

http://finviz.com/futures_charts.ashx?t=CL&p=m5

Mon, 04/04/2011 - 08:19 | 1131740 gordengeko
gordengeko's picture

That's a tough one.  If they do raise rates it will crush the fake recovery and possibly push PM's even higher do to the safe haven since the market is sure to correct but given the extreme amount of leverage in the market (all time highs) it could pull everything down temporarily.  Should that happen we wll have major problems, imo.  That will present a huge buying op in the PM physical market which many will take advantage of no doubt.  Going to be an interesting ride this year for sure.  Oil, I'm betting 120 crude.

Mon, 04/04/2011 - 08:28 | 1131763 Snidley Whipsnae
Snidley Whipsnae's picture

Yeah, I see it the same way in PMs. I like oil at 120 or above. Oil is the only commodity that I play paper games with.

That frickin Ben has us guessing again and there is nothing he likes more. I'm betting that he doesn't jack rates. He has spent too much effort and dollars buoying equities and crashing those markets would be difficult for him to explain. He would catch major heat from all directions. He might be asked to 'return to teaching to spend more time with family'.

Mon, 04/04/2011 - 08:36 | 1131770 Yardfarmer
Yardfarmer's picture

beware (and prepare) the ides of June.

Mon, 04/04/2011 - 07:32 | 1131661 firstdivision
firstdivision's picture

Financials are going to start cracking soon. 

Mon, 04/04/2011 - 07:34 | 1131664 Snidley Whipsnae
Snidley Whipsnae's picture

Blythe's team need to order their coffee to go on Monday mornings... laggards!

 

Mon, 04/04/2011 - 07:33 | 1131663 camoes
camoes's picture

PARABOLIC, BITCHEZ

Mon, 04/04/2011 - 07:43 | 1131683 Lone Mad Minute...
Lone Mad Minute Medic's picture

Time to raise at the table on the open!

Mon, 04/04/2011 - 07:44 | 1131686 Lone Mad Minute...
Lone Mad Minute Medic's picture

Any opinions on solid silver mines?

Mon, 04/04/2011 - 07:49 | 1131689 Snidley Whipsnae
Snidley Whipsnae's picture

Opinions?... I wish I owned one... Or more... Literally owned, that is...

Mon, 04/04/2011 - 08:26 | 1131755 Dagny Taggart
Dagny Taggart's picture

...as opposed to liquid or gaseous miners? I highly recommend you power read the past month of posts and comments at http://tfmetalsreport.blogspot.com/ and then do your own due diligence.

Mon, 04/04/2011 - 08:37 | 1131785 Snidley Whipsnae
Snidley Whipsnae's picture

lol... thanks, I've been reading Turd's site for a while. I have also been long gold since 1968, probably before you were born...seen about everything but a total, permanent collapse of the dollar as currency most world trade is settled in...Waiting for that one if Ben doesn't wriggle out somehow.

Crude? The one commodity that I play paper games with. Hey, isn't the internet great?

 

Mon, 04/04/2011 - 10:08 | 1132160 Long-John-Silver
Long-John-Silver's picture

Mines where Silver is produced is about to undergo a period of strikes by the workers even if they are not in unions. Their wages have been stagnant even as Silver has increased in price. Miners do not care that the mine owners sold forward at too low future prices. The Miners want a substantial increase in pay and  are willing to strike until their demands are met. 

Mon, 04/04/2011 - 11:06 | 1132397 Jreb
Jreb's picture

First Majestic is pretty solid. Steady gainer and up about 7.9% today on silver's spot rise.

Will liquidate some once spot get's over $39.00 take some profits then wait for the dip... the inevitable dip....

Mon, 04/04/2011 - 07:59 | 1131714 Johnny Lawrence
Johnny Lawrence's picture

I don't see how the COT data is bullish.  When sentiment moves to the extreme in either direction, the opposite usually happens.

Mon, 04/04/2011 - 08:04 | 1131718 Captain Benny
Captain Benny's picture

Silver miners striking in Bolivia and Mexico.... industrial demand far outpacing the rate which its pulled from ground and recycled combined.  Nothing to see here, please move along.... while I go out and buy a little more silver.

Mon, 04/04/2011 - 08:05 | 1131722 Oh regional Indian
Oh regional Indian's picture

This is how India will be screwed over. The more they tell people India is gold crazy, the more people believe it. And the more they buy. Many large Gold only retailers. That is a tell for me. Silver is being saved, for what? Quite a severe shortage of physical silver here.

Blinded by the golden light.

ORI

http://aadivaahan.wordpress.com/2011/04/03/re-fine-ment/

Mon, 04/04/2011 - 08:32 | 1131768 equity_momo
equity_momo's picture

"Wealth" still has to "hide" somewhere Ori. I expect more deleveraging - housing is dead but its taken its lumps  , deleveraging is largely going to focus on stocks now.  Where does that money run to? Sov debt --> US Govvies? EM? Its a crap shoot. Cash in the bank? Theres huge tail risk with that.

I think gold , silver and to an extent , other finite assets (land, fine art) will outperform handily in the next deleveraging wave. The rich will sell stocks to meet margin calls. They wont be selling Gold and nor will Central Banks. Any retail selling gold to pay the monthly bills will be irrelevant.

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