Silver Spreads: Contango Crush Update

Tyler Durden's picture

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 01/20/2011 - 18:10 | 891472 Spalding_Smailes
Spalding_Smailes's picture

Monkey hammer meets bubble ....

Thu, 01/20/2011 - 18:14 | 891482 Richard Head
Richard Head's picture

Stick to using "blowtorch."  It's the only thing you're good at.

Thu, 01/20/2011 - 18:16 | 891493 goldmiddelfinger
goldmiddelfinger's picture

You tend to grope when you're losing

Thu, 01/20/2011 - 18:24 | 891524 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

You tend to lose when you're groping.

Thu, 01/20/2011 - 18:26 | 891529 goldmiddelfinger
goldmiddelfinger's picture

Not with women

Thu, 01/20/2011 - 18:28 | 891536 tmosley
tmosley's picture

Most women don't have an adam's apple.

Thu, 01/20/2011 - 18:30 | 891541 Spalding_Smailes
Spalding_Smailes's picture


Thu, 01/20/2011 - 18:52 | 891603 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Blythe does.

Thu, 01/20/2011 - 18:55 | 891613 High Plains Drifter
High Plains Drifter's picture

Darn, is Blythe shimmy?

Thu, 01/20/2011 - 19:37 | 891738 Bay of Pigs
Bay of Pigs's picture

Treat Blythe like a farm animal.

Thu, 01/20/2011 - 20:41 | 891865 Spalding_Smailes
Spalding_Smailes's picture


Clearing Member Firms 

Chief Financial Officers 

Back Office Managers 

Margin Managers 

CME Clearing 


DATE: Thursday, January 20, 2011 

Performance Bond Requirements: 

To receive advanced notification of Performance Bond (margin) changes, through our free automated 

mailing list, go to and subscribe to the 

Performance Bond Rates Advisory Notice listserver. 


As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile 

Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the 

following products listed below.  


The rates will be effective after the close of business on Friday, January 21, 2011. 


Current rates as of: 

Thursday, January 20, 2011. 


Thu, 01/20/2011 - 22:10 | 892125 Freddie
Freddie's picture



Where is this Tyler Durden? I am losing my ass in Blue Star Airline, Teldar Paper, Anacott Steel, SLW and GLD! 

You get me in at a 45-degree angle. All the way in. You slash and burn, you buy everything in sight up to 22.

Thu, 01/20/2011 - 20:22 | 891845 Turd Ferguson
Turd Ferguson's picture

I'll have a VERY IMPORTANT gold update later tonight. Will be sure to spam ZH when ready.

Thu, 01/20/2011 - 20:40 | 891879 RockyRacoon
RockyRacoon's picture

I'm on the edge of my seat in anticipation.  Thanks, Turd.

Thu, 01/20/2011 - 21:43 | 892054 Turd Ferguson
Turd Ferguson's picture

You got it, Rock.

Give me till about midnight eastern, though. Maybe sooner but lots to do before then.

Thu, 01/20/2011 - 22:14 | 892138 Freddie
Freddie's picture

Yes yes!  Tell us more. 

I am losing my ass in Anacott Steel, Blue Star Airlines, TelDar Paper, SLW and GOLD.

"Tell China that Blue Horse Shoe loves PM."

"Get Bud Fox on the phone! "


Thu, 01/20/2011 - 18:42 | 891578 kentfinance
kentfinance's picture

you guys are backwards. spreads went wider today. the carry is going up isn't it

Thu, 01/20/2011 - 19:10 | 891644 fmxconnect
fmxconnect's picture


Fri, 01/21/2011 - 09:49 | 892886 kentfinance
kentfinance's picture

could you post the curve? would be helpful if i am bass ackwards which it sounds like i am

Thu, 01/20/2011 - 19:18 | 891672 SwingForce
SwingForce's picture

I have my helmet on, go for it!

Thu, 01/20/2011 - 18:11 | 891473 fmxconnect
fmxconnect's picture

All that said, it's ridiculous for spreads to do this without a rally at some point.

Thu, 04/21/2011 - 10:59 | 1192324 prudentbear
prudentbear's picture

What is the most the spread has been in contango between the first two liquid months for silver?

Or where can i find out?

Anyone here buying the spread in anticipation of a delivery squeeze?

Thu, 01/20/2011 - 18:11 | 891477 TWORIVER
TWORIVER's picture

Stakes are getting high as Gold's (1345) up trend from 2008 lows is at 1296 today. Very big decisions are going to be made soon.

Thu, 01/20/2011 - 18:13 | 891480 fmxconnect
fmxconnect's picture

indeed, the200 day moving average is next up in the 1280 area if we dont stabilize soon.

Thu, 01/20/2011 - 18:14 | 891485 TWORIVER
TWORIVER's picture

Silver already has Head and Shoulders top in as we broke 28, looking for 26.5 then 25 there.

Thu, 01/20/2011 - 18:25 | 891525 JLee2027
JLee2027's picture

Or 5000. Just as plausible as those Ouija boards you use on something that is manipulated.

Thu, 01/20/2011 - 18:52 | 891604 TWORIVER
TWORIVER's picture

Not really using a Ouija Board, just looking at the supply demand picture represented on by a bar chart. I don't know what you use.

Thu, 01/20/2011 - 18:56 | 891615 JLee2027
JLee2027's picture

Common sense.

Thu, 01/20/2011 - 19:18 | 891671 TWORIVER
TWORIVER's picture

So then you see the Head and Shoulders top from 28 - 31, right? Thats what common sense would tell you.

Thu, 01/20/2011 - 19:35 | 891730 JLee2027
JLee2027's picture

I pay no attention to the men pulling the puppet strings, and you shouldn't either.  Stalin would call someone like you a "Useful idiot".

Thu, 01/20/2011 - 19:40 | 891752 Bay of Pigs
Bay of Pigs's picture

Common sense would also tell you to cost average in all the ay down to 26 if you think it's going that low. I don't. BTFD.

Thu, 01/20/2011 - 19:38 | 891745 Catullus
Catullus's picture

Don't bother. The bugs think they're the only ones buying or selling. They don't think someone else may be managing a P&L and have been late to the party in the recent rally. "what's consolidation? The fed could hyperinflate silver to 5000 in nanoseconds!!!"

Thu, 01/20/2011 - 21:47 | 892066 Exposer of Inte...
Exposer of Internet Shills's picture

I smell a stink here

Thu, 01/20/2011 - 18:12 | 891478 NOTW777
NOTW777's picture

why is this a surprise when we know who controls silver with the help of the fed government

Thu, 01/20/2011 - 18:15 | 891486 fmxconnect
fmxconnect's picture

it's a suprise because you don't need to sell spreads to fool the market. they are very illiquid. it's entirely possible that a bullion dealer is frontrunning someone who had spreads to sell.

Thu, 01/20/2011 - 18:12 | 891479 goldmiddelfinger
goldmiddelfinger's picture

Can't recall any widely heralded short squeeze "warnings" that actually played out.

Thu, 01/20/2011 - 18:19 | 891497 fmxconnect
fmxconnect's picture

1997:  silver trading 4.50... spreads g ofrom contango to backwardation. mkt moves higher 3.00 in a few days. spreads go backwardated at a 40% negative costofcarry. Buffet locks it in, essentially lending the silver he took deliver of back to the miners he duped. i traded it.


footnote: he lent it back to them at a 40% negative carry on it because the govt asked. his intentions were to squeeze the industry. there are many other examples. But this should do.

Thu, 01/20/2011 - 18:24 | 891519 goldmiddelfinger
goldmiddelfinger's picture

Touche. Guess I'm thinking more about equities patterns but was there wide knowledge of the setup?

Thu, 01/20/2011 - 18:49 | 891589 fmxconnect
fmxconnect's picture

Didn't mean to be so snarky. to answer: widely understood? No. Widely known what was going on in terms of spreads adn metal coming out of the warehouse, yes. Spreads are coming in, why " I dont know that is weird, probably bullshit. Lets get a beer."

Thu, 01/20/2011 - 19:27 | 891703 goldmiddelfinger
goldmiddelfinger's picture

Excellent! Thanks!

Thu, 01/20/2011 - 20:05 | 891807 fmxconnect
fmxconnect's picture


Thu, 01/20/2011 - 18:26 | 891528 6 String
6 String's picture

I can think of a few goldmiddlefinger in the equity markets. But, yeah, I tend to agree with you: the short squeeze theory is totally ridiculous and stupid to say the least. JPM isn't going to get "short squezzed" out of paper when the CFTC just confirmed the go ahead for them in the ongoing silver manipulation scheme....

This isn't a short squeeze. It's a classic hammer down. And they are going to keep hammering away. Seriously, short squeeze? Won't happen until the COMEX is wiped out which doesn't appear immediately immiment.

I'm long siver, but i expect to see the Chinese continue to push the price down thru JPM as they accumulate the phyiscal stuff. The spot price is a fucked up barometer for what the true price will probably be....

But patience is the name....which is what they are trying to hammer down on. Get the investment demand to wane; shore up physical.

It's a damn tug-o-war like everything else right now. But an immenent short squeeze theory is plain wrong-headed.

Thu, 01/20/2011 - 18:17 | 891484 plocequ1
plocequ1's picture


Thu, 01/20/2011 - 18:15 | 891487 Yen Cross
Yen Cross's picture

  Yes you are correct! xag is a buy intrest in my book. 100sma-200sma. Silver is a much better value than gold! 25.73-22.02. I enjoy the larger contract size. I can trade a 4 pip spread on the spot market. It has real value. Not perceived value. I like it!

Thu, 01/20/2011 - 18:16 | 891491 tellsometruth
tellsometruth's picture

called my local dealer, only sterling available today....

Thu, 01/20/2011 - 18:17 | 891498 cat2
cat2's picture

If you don't know who the chump at the table's you.

Thu, 01/20/2011 - 18:20 | 891507 fmxconnect
fmxconnect's picture

exactly. but we are flat.

Thu, 01/20/2011 - 18:22 | 891512 downrodeo
downrodeo's picture

damn, beat me to it...

Do NOT follow this link or you will be banned from the site!