Silver Shortages Accelerate As Wholesale Supplies Plunge: Krieger/Keiser - 1; JP Morgan - 0

Tyler Durden's picture

Is the Kriger/Keiser "Short Squeeze JPM to Oblivion" plan working? Judging by the wholesale availability of silver (or lack thereof) the answer is a resound yes. In Coin Updates News we read that "as of today, there are no longer any regular wholesale supplies of the 1 ounce through 100 ounce silver rounds and bars available for immediate delivery.  It may be possible to locate incidental quantities of some product, but most wholesalers are now promising two to four weeks delivery to allow time for the silver to be fabricated." Over the weekend we noted that even at the smaller, retail level, Silver American Eagles sold by the US Mint, have surged to a 2010 high in just the first three weeks of November. Is America now fully intent on ending Jamie Dimon's domination over the precious metal space?

More on the wholesale silver shortage:

As a result of the shortages, premiums have started to rise.  So far, the increases have been modest, on the order of 0.5-2%.  However, if the shortage grows, expect to see further and larger premium increases in the coming weeks.  We could see a repeat of the late 2008 gold and silver buying frenzy, where product availability got as slow as 1-4 months after payment.

At the COMEX close yesterday, registered (dealer) silver inventories fell below 50 million ounces.  Even if you include the eligible (investor) silver inventories in the COMEX bonded warehouses, which are not available to fulfill COMEX deliveries unless the investor specifically chooses to do so, there were barely 107 million ounces to fulfill around 725 million ounces of contractual obligations.  COMEX silver inventories are now down more than 10% from mid-June even while the amount of silver owed has soared!

On September 16, the COMEX further raised the silver contract margin requirement to $7,250—even though the price of silver had been dropping since November 9!  What is suspicious is that a lot of “insiders” were liquidating their silver positions starting the afternoon of November 15.  Is it possible that they may have received advance notice of the coming change in the minimum margin account requirement and sold in anticipation of lower prices the next day?

The next round of gold and silver options expiration occurs on Tuesday, November 23.  The attempt to suppress gold and silver prices upon the release of the US jobs and unemployment report on November 5 was almost a complete failure.  Unless something is done to knock down gold and silver prices before November 23, a lot of call options will be exercised, which would further increase the demand for physical precious metals.

I suspect, as do many others, that the two rounds of increasing gold and silver margin requirements were timed for no other reason other than to try to help hold down prices through November 23.

Most of this should not be news to Zero Hedge regulars who now realize that the last battle of endless fiat liability dilution is being fought not in the stock market, but in the precious metals arena, where the onslaught of physical purchases versus shorting in paper claims has never gotten as far as it has in the past month. Should JPM be forced to continue covering, not even instituting an infinite margin requirement on silver purchases by the Comex will do much if anything to prevent the "dreaded" end of a fiat system. Speaking of, if anyone has the recent performance of Blythe Masters, we would be overjoyed if it were shared with the Zero Hedge community.

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SheepDog-One's picture

WHOOP! Yea great to see it! I'll go take another few ounce coins out of JPM silvershort slushfund availability later today!

qrad's picture

silver bitchez! it's catching on! don't forget to pledge those ounces at http://standfordelivery.com so JP knows just how fucked they are!

MarketTruth's picture

No thanks on that website, they want verified ID.

Just KEEP BUYING physical silver and take delivery.

Turd Ferguson's picture

Great stuff. Just be sure to read Harvey Organ every night this week. The ongoing squeeze regarding the Dec10 contract is fascinating to watch.

FEDbuster's picture

A weak spot in the TBTF armor?  Bought a roll of eagles last week on the "dip".  BooooYaaa!

I still have a few thousand dollar margin on a JP Morgan Chase HELOC, maybe I'll max it out with a silver purchase?

Hook Line and Sphincter's picture

Since you are thinking the thought, trust they have aims to shut down access to their HELOC's asap. I was smited by just such action not too long ago. Make your move now, don't hesitate.

TheGoodDoctor's picture

Hmm what about just opening Chase CC's and use it to purchase silver? Hmmmmm.

Hook Line and Sphincter's picture


 

Chase PM Freedom® Credit Card!

 

66Sexy's picture

i did observe that a reputable online dealer (one that frequently advertises here) is giving up to $2 over spot for am eagles. they usually only give a buck over.

dlmaniac's picture

Yet another video on exposing silver manipulation here. It was done in earlier 2009 way before the current crash JPM campaign. Enjoy everyone.

http://www.youtube.com/watch?v=FywT-txGuss

 

Mr Lennon Hendrix's picture

Hiya Turd,

Ive checked on your new blog.  Good stuff.  Keep up the great work!

desgust's picture

YOU are under my radar as well! Thanks for  sharing!

 

MsCreant's picture

Agreed. That is foolish. 

kalum's picture

Bot a monster box of silvers Friday. Keep it moving

SheepDog-One's picture

Remember Keisers original point though, not a few people buying massive amounts, but if everyone bought just 1 oz coin it would screw em big time. So spread the news around tell everyone to buy some silver coins for presents instead of BS Apple IGadgets!

midtowng's picture

They make great Christmas presents too. A couple years ago I gave my niece and nephew a roll of junk silver bullion each.

Hearst's picture

I've been adding to my sterling collection as well.  Plates, jugs, flagons, bowls, goblets, Silver looks beautiful in other forms besides coins and bars.  A lot of really nice sterling can be bought off of ebay for below spot prices.  

With the added benefit that Silver is a natural anit-microbial it wards off colds and wont harbor bacteria.  All the cups I drink from at home are of Silver.  (Just be sure when buying that you are getting Sterling 925 and not Silver plate or inlay) 

I'm going to post a video of my collection of Silver ware soon.

 

 

Temporalist's picture

Plates, jugs, flagons, bowls, goblets but no flasks?  Everyone needs a flask and silver just makes it all the better.  Your post reminded me of something:

http://www.youtube.com/watch?v=LS75NtlH3gI

Hook Line and Sphincter's picture

Watch out for the candy/side servers, only the supporting base and internal stem are silver. Careful with any iridescence as well.

buzlightening's picture

Thx!  I was advocating a real vote for change by accumulating silver before '08 lil scamBO vote!!!!  Geeze my circle of influence is rather low but nice to see some people catching on!!  Bust Jpig!  Continue the extermination of the rat bastards by voting for real change and takin delivery of silver bullion!!

Eternal Student's picture

I killed two birds with one stone this weekend. Bought one coin, to join the protest. As well as to check this particular dealer out.

I'm going for 100 more today.

I'm also going to send some out to family members, with a note about this protest against JPM; and here's a coin so that they can join it as well.

That nice shiny stuff might get them away from American Idol for a little while, and wake them up a bit. Some of them haven't even seen real money before.

Tortfeasor's picture

I'm giving ASEs to my neices/nephews this xmas.  Anyone have a good book on pms i can give them to read?  9-11 years old.

DinkStretcher's picture

"Whatever Happened to penny candy" by Richard Maybury.  Part of our 6th grade homeschool curriculum for 6th grade.

Francis Dollarhyde's picture

Thanks for the recommendation. The reviews looked good, so I just ordered a few to wrap up with an ounce of silver for my nephews and nieces for Christmas. Indoctrinating the youth of America strikes me as a good way to invest for the future.

buzzsaw99's picture

I should buy an ounce and flush it down the sewer just to screw with JPM.

dark pools of soros's picture

take a picture and send to her -  http://www.cnbc.com/id/15840232?video=1310002361

 

love how they titled her "The Woman Behind Financial Weapons of Mass Destruction"   lol what a circus

Al Gorerhythm's picture

Weird.

As an alternative, buy an oz, store it. Next, take a pic of a burning $1 bill, arc it up beside your silver dollar. Send a copy, one to your bank, one to the Fed and one to JPM. 

billhilly's picture

Did my part yesterday and took an 876 oz bar out of circulation!  Keep on "keepin on" folks, we're winning!

Sabremesh's picture

A 60lb bar of silver? You sho 'bout dat?

tallystick's picture

The comex bars don't weigh 1000oz.  There is a range.

billhilly's picture

OH yeah, I'm sure.  APMEX sells some nice size bars at a reasonable ($ 0.24 - 0.39) mark-up.  It is a nice RCM (Royal Canadian Mint) Bar and it's coming back home to Canada.  Gonna be fun watching the delivery guy unload it saying "WTF"!

Al Gorerhythm's picture

Let him know it's machinery parts!

DoChenRollingBearing's picture

@ billhilly

Clearly a smart man shouldering his load.  Adios 876 ounces!

Pladizow's picture

This is the best way to fight a revolution - remove your dollars and buy physical silver.

Silverhog's picture

I knew my last 10oz purchase would break the bank.

Al Gorerhythm's picture

Yes it will. All in all it's just a......

nother brick in the wall.

http://www.youtube.com/watch?v=M_bvT-DGcWw

Money gets back

I'm alright Jack

Keep your hands off my stack!

spartan117's picture

Apmex seems to still have American Eagles in decent quantity.  Premiums are insane though.

LoneStarHog's picture

Insane compared to a corrupt paper price? When in the hell are investors going to separate the physical price from the corrupt paper price? 

Clapham Junction's picture

(comment edited out due to more public drunkenness.)

digitalhermit's picture

1000s of rounds also still available at bulliondirect.com around $1-2 over spot.

 

SheepDog-One's picture

1,000's of rounds of ammo also available and crazy low prices at www.gun-deals.com as well!

HelluvaEngineer's picture

recommend: aimsurplus.com, jgsales.com

flacon's picture

APMEX received a shipment of 250,000 American Silver Eagles (2010) late last week. They are down to 243,296 right now. 

traderjoe's picture

I've called 10 dealers (a few more to go) in my top 30 major metropolitan area. I was specifically looking for Maples (I like them better). Only two dealers had any Maples at all. Of the 10 dealers, 5 had no silver at all. The remaining, if they had any, it was a few items here and there. 

These were mom-and-pop type dealers, but there's no question supplies are getting tight. And admittedly, most probably don't want to re-stock at these prices just yet. The only one that offered to order some Maples for me said it would be early December delivery. 

[I usually go through Apmex, but wanted to get to know some local dealers too, and maybe clean out my entire city since that wouldn't take much. The remaining dealers with Maples are asking too high of premiums for my taste.]

 

MileMarker17's picture

If you think APMEX premiums are insane, take a look at what people are paying on Ebay for run of the mill, generic type 1 oz bars or rounds.  15-20% premium over spot.

When I bought all my silver in 2002 and 2003, I bought plenty of it on Ebay, back then when nobody wanted it, I always paid less than spot.

Temporalist's picture

Same here, different dates, but little bid competition until last year.  Since then there is a rare spot or under spot winner.  I saw 1oz go for $25 Sunday night though so it still happens.  I was tempted to swipe it but I didn't want to steal someone else's excitement if it was their first silver purchase.

Jesse's picture

 

That is Keiser.  Max Keiser.  lol

 

 

Joe Grannville's picture

It's frightening that anyone would consider Max Keiser's advice.

CrockettAlmanac.com's picture

And the bogeyman. Don't forget the bogeyman.

RockyRacoon's picture

It's typical that so many won't.