Silver Retraces Entire Post Crude Margin Hike Loss, Even As General Collateral Rates Rise On Broad Liquidity Withdrawal

Tyler Durden's picture

While the equity market resumed its now traditional (for the past 6 months) smooth levitation, with little to no volatility and even less volume, the most interesting asset class was silver, which after dropping to under $32 yesterday, following the various attempts by the administration to kill assorted commodities, rose by 4% today, closing at the day's highs and wiped out the entire loss from yesterday. Ironically, this happened even as general collateral rates rose today. "The reason for the rise is an increase in the volume of Treasury securities available to be used in the repo market as general collateral. The Treasury Department on Friday settled an issue of $25 billion in 49-day cash management bills, and the $99 billion in new notes it auctioned this week will settle on Monday." Of course, this was offset by another 56-Day CMB offsetting the winding down SFP (total SFP holdings are now cut in half to just $100 billion). So despite a major liquidity extraction from the market, not only did stocks rise (which can traditionally be attributed to POMO in a low volume environment), but the biggest beneficiary was silver, meaning that even in a tight liquidity regime, most investors now prefer to pursue commodities as an investment class, something which had not happened previously.

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Misean's picture

So, BTFD is still it.

Thomas's picture

BTFFC (flash crash). That was the shortest bear market I ever saw.

I bought some ounces right before the FC. Glad to be saved on that one. Of course, I've been buying since '99 and selling since...well...someday I will start.

Harmonious_Dissonance's picture

I bought the top earlier in the week (doh!) but hey, now were right back! No worries!!

Misean's picture

I have all my '99's in a special box in the safe. :D :D :D :D

Ragnarok's picture

(Borat voice) Is nice. 

potatomafia's picture

Crap, I was banking on it retracing back to the ~$30 range..  I hope I still get that opportunity in the next couple weeks.

Harmonious_Dissonance's picture

I'm picking up again tonight, screw it! Times are too crazy to wait for some 8 hour dip, IMO

Amish Hacker's picture

In a market where "buy and hold" means "for 20 minutes," an 8 hour dip is all you're going to get.

Triggernometry's picture

I'm buying tonight too, but I regret not buying two weeks ago when I witnessed the fucking dip to $27 at 1am.


Blank Reg's picture

I got my $7000 disability back pay and scampered down to my favorite coin shop and dropped some dead presidents on 10oz bars. There was no part of that, that wasn't fun!

silvertrain's picture

banging the close bitchez!!

mike97's picture

Blythe got her knuckles rapped today. Rumours are she's paying a very hefty premium to get the traders to not stand for silver delivery Monday.

Mad Max's picture

Inquiring minds want to know.

Harmonious_Dissonance's picture

31 days 22 hours 3 mins 10 seconds

duncecap rack's picture

Is that when they have to deliver by? I am a miniscule player who is trying to win enough money playing options to buy physical. I bought calls on a silver miner that are working out quite well but I am trying to get a sense of when the upwards momentum might level out a bit. Any thoughts would be welcome.

Hearst's picture

Any word on how many March comex contracts are standing for delivery?  Harvey posts Fridays info on Saturdays.

New_Meat's picture

check Turd Ferguson's blog.

dumpster's picture

Judge Judy Scheinlok


judge you are  clueless every time you post drivel

JP Morgan is short 10 years of silver supply.

how do you hedge when you have no silver ,, raid SLV as the Chinese are doing with share purchase agreements and take deliverable silver'

JP Morgan is hedged by paying 20% over spot market with fed funds ,


to pay off positions .

the folks say thank you take the dough and go long silver .. again ,


and as far as GE is concerned turn off those GE bulbs  power transmitted by GE Turbines.and are you sure your lap top does not have some GE part floating around

you must be in bed with the likes of GE management  





Bastiat's picture

Got her tit in the wringer and nothing but the crank to work with.

Fred Hayek's picture

Given such an incentive, what the hell does she think they're going to do next?

DosZap's picture

IF they simply say NO, the bitch will be broken, and its off to the races.

gwar5's picture

Silver is a nice place to be. Get more when you can.

camoes's picture

Eat silver Blythe! Oops, you're shorting naked, so no silver to eat, eat naked short bitchez!

tmosley's picture

But, but, but dey said it was gunna go to twenty :(

Harmonious_Dissonance's picture

So this site moves the silver market? Blew my mind to read Math Man knocking silver exactly the same time of a huge "flash crash"

frenchie's picture

by the way

this swiss forum considers ZH as the best financial information website :)

for instance on this last post:


velobabe's picture

oh i would ask tyler, but he never answers me. is zerohedge published in other languages?

New_Meat's picture

babe, every now and then it comes out in English ;-)

Math Man's picture

But it still remains below Monday's peak.

Face it.  Silver is over.

It ran 70% in six months, but it only costs $5 bucks to dig it out the ground.

It'll be back below $20 soon enough.

Harmonious_Dissonance's picture

Shit, he's back!! Here comes another flash crash!!  BTFD!

Misean's picture

Hey this dude's CD is skipping....that is soooo annoying.

Bastiat's picture

How big is your short position?  You must have loaded the boat this time.

bob_dabolina's picture

How much has M2 expanded over 6 months?

JonTurk's picture

harry, hi mate.

whats up on your recovering home appliances store?

SilverRhino's picture

>> Face it.  Silver is over. - Mr Bernank's anal-cyst has spoken. 

Keep dreaming.


lieutenantjohnchard's picture

math man might be the foil to robottrader as that cat hamywanger (or whatever) is to harry. my hunch is that math man might be laughing at us by posting ridiculous comments to rile us up. the joke is on me i guess for getting baited.

Hugh G Rection's picture

not you fault.  He is a professional baiter... a Master-Baiter.

RockyRacoon's picture

He's brave as well.   How 'bout Johnny Bravo?

sunnydays's picture

LOL  Good One!!  Very funny putting those two together!  Perfect - various meanings all in two words!

lieutenantjohnchard's picture

you said under $20 by june 21, 2011 on another thread, not "soon enough."

i love it when rookies attach a date and a price for a security.