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Silver Surges Over $46.25/oz As Rumours Of A Short Squeeze And Cornering Market Gain Credence

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From Gold Core

Silver Surges Over $46.25/oz as Rumours of a Short Squeeze and Cornering Market Gain Credence; Speculators Smell Blood

Gold and silver have surged to new record nominal highs in dollar terms (all time and 31 year) with the dollar falling sharply on international markets. Silver has continued to surge in all currencies and has surged to a new record nominal high of $46.25/oz (£27.85/oz and €31.54/oz) on growing rumours of a short squeeze involving a billionaire or state interest attempting to corner the silver market (see FT news story below).

Bloomberg Composite Silver Inflation Adjusted Spot Price – 1975-2011 (Weekly)

Traders and technically minded investors are firmly focused on silver’s record nominal high of $50.35/oz. Some with a longer term fundamental focus continue to see silver in triple digits if it is to match the real record highs of $130/oz seen in 1980. The inflation adjusted silver chart puts the present sharp rise in the all important historical context.

The massive concentrated short positions of some Wall Street banks have incurred serious losses and a desperate attempt to close their futures positions due to the tight physical marketplace may be leading to a short squeeze. This is something that GoldCore and a few other analysts have warned of for some time.

Cross Currency Table

We have long said that the very small silver market was ripe for cornering by private or state interests and that appears to be happening on some level. However, there are an increasingly large number of silver buyers who realize the market can be cornered and they are buying in anticipation of this event.

The blogosphere has again been ahead of the curve and dismissal of much circumstantial evidence of silver manipulation, a short squeeze etc. as “conspiracy theories” is becoming less easy to do. It looks like many investors internationally and one or a few private individuals and states are cornering the silver market.

At one stage the Hunt Brothers cornering of the market was a “conspiracy theory” – it soon became fact.

Silver’s volatility is set to increase and sharp corrections are likely, however the sharp falls seen after the Hunt Brothers manipulation ended are unlikely today given the very strong supply and demand fundamentals.

US Dollar Index – 5 Year (Daily)

Gold’s movement today, unlike in previous weeks and months, is very a function of dollar weakness as gold has remained at the same price in terms of other major currencies.

The degree of complacency regarding the risk of the dollar coming under severe pressure remains high (as seen in Financial Times Lex column on gold and the U.S. dollar today – see below).

Below the lows of 71.32 on the US Dollar Index (see chart above) is unchartered territory and the U.S.’ massive $14 trillion plus debt will likely lead to the dollar continuing to fall particularly against gold. In a worst case scenario, it could lead to a form of a run on the dollar when speculators smell blood as happened to sterling when the Bank of England was “broken” by George Soros.


(Financial Times) -- Silver surge prompts conspiracy theorists

In 1980 it was the Hunt brothers. In 1998 it was Warren Buffett. And in 2011?

For anyone unversed in the history of the silver market, those dates refer to market squeezes that caused surges in the silver price. The talk among some conspiracy-minded traders and analysts is that something similar could be happening today.
It is easy to see why: during the past 12 months the price of silver has risen 154 per cent, outpacing gold (32 per cent), wheat (65 per cent), oil (45 per cent), and indeed almost any investment you’d care to mention.

Perhaps the most telling measure, the ratio between the price of silver and that of gold (ie the price of an ounce of gold divided by the price of an ounce of silver) has dropped to 33.5 times – after averaging 60-70 during the past decade.

The last time the ratio fell even close to this level was in 1998, when Warren Buffett’s Berkshire Hathaway quietly accumulated a huge position in the silver market, driving prices up 90 per cent in a few months to what was then a 10-year high of $7.90. On Wednesday, silver hit $45.37.

Before that, the last time the ratio was below 40 was in the early 1980s, following the most notorious silver market squeeze – that of William Herbert Hunt and Nelson Bunker Hunt, two billionaire oil baron brothers.

Is something similar happening today?

The silver market is never short of a wild rumour. The difference this time, though, is that the conspiracy theories are being seriously considered by senior figures in the industry.

As one senior banker puts it: “I just do think it has the smell of somebody with a pretty significant buying programme … Silver is the sort of market that every decade attracts someone.”

The reason why the conspiracy theories have taken hold is because few traders or analysts can see a convincing reason for silver’s astonishing rise. According to data from consultancy GFMS, the silver market was in a surplus of 178m ounces last year.
Crucially, of course, that surplus was mopped up by investors. But visible investor positioning is hardly overwhelmingly positive – indeed, last week, even as silver prices rose, investors cut their bullish positions in the US futures market by 8.4 per cent.

Hence the conspiracy theories. Some of the whispers making the rounds in dealing rooms in London and Zurich include:

A Russian billionaire with an eye for silver has been discreetly buying (for some reason Russia seems to be the most popular location of this putative billionaire – he or she could also be Middle Eastern or perhaps East Asian).

There has been a secretive silver buying programme by the People’s Bank of China or some other central bank (but China is the favourite).

Chinese traders are using silver imports as collateral to obtain credit in a similar way to copper – thus vastly inflating the country’s silver demand.

It is impossible to say if there is even a grain of truth in any of these tales. While some traders are taking them seriously, others believe the rise in prices is perfectly well explained by very strong, inelastic industrial demand plus extremely high retail demand in the US, India and China.

One explanation for why the silver market is confusing to many bankers and traders may be that they typically deal with large investors and so see little of the flow to retail investors and industrial consumers.

What is certain, however, is that with the view that silver is a speculative bubble so widespread, a sharp and painful correction can’t be ruled out.

Again, history may be informative. After the Hunt brothers’ squeeze in 1980, the price of silver collapsed 80 per cent in four months; the Hunts were later sanctioned for market manipulation and went bankrupt.

And following Warren Buffett’s silver play in 1998, the price of the metal dropped 40 per cent and Berkshire Hathaway recorded its worst annual results on record, relative to the S&P 500, in 1999.

(Financial Times ) –Lex - Gold and the dollar: bottoms up

As of this week, one troy ounce of gold will cost you more than $1,500. Meanwhile, the US dollar, on a trade-weighted basis, is back to a post-crisis low. These facts are not coincidental, and reflect well-embedded trading trends that could persist for a while longer. They do not, however, cohere with events in the real economy.

Gold’s ascent has been far greater in dollar terms than when measured in other currencies. Worries about US inflation are part of this, as are low interest rates. The real interest rate on cash is the opportunity cost of holding gold – so, with rates historically low, there is less reason not to hold gold.

“Carry trading”, as investors borrow at low dollar rates and park money elsewhere, is made easier by very low levels of volatility. That money generally finds its way into the emerging markets commodity complex.

But this reflects mutual confusion. Sharply higher commodity prices are – even hawkish central bankers concede – deflationary. Discretionary spending falls when non-discretionary spending on essentials has to rise.

Meanwhile, continued rises in commodity prices, and the flows of funds they bring with them, have prompted capital controls in countries such as Brazil, and repeated measures to tighten money and to limit price rises in China.

And, despite all the betting on emerging market exports, the weak dollar has had a predictable effect – strip out petroleum costs and the US trade balance has steadily improved as the dollar has made US exporters more competitive.

Such market inconsistencies can carry on for a while. But if investors want signals that the dollar has bottomed, note that volatility looks unsustainably low and that real interest rates cannot fall much lower and are likely to rise with the end of the Federal Reserve’s QE2 bond purchases.

The dollar is now almost exactly back to its post-crisis low point from last year, a classic point for chart-driven traders to start buying it again.

(Telegraph) -- Gold Price Could Rise to $1,700 An Ounce

Gold's decade-long rally could last for another four years, with the price climbing to $1,700 an ounce, analysts predicted, as the precious metal reached another record high in morning trading.

Inflation will help the price of gold go up, but the strong gains seen in recent months are likely to be tempered as the world economy improves.

A poll of 12 analysts by Reuters found the average price forecast for gold in 2015 was $1,700, a 12.7pc rise on the all-time high of $1,508 reached today.

The forecasts ranged from $1,000 an ounce to $2,750, but even if the price reached the top end of that, the pace of gains would be slower than in recent years.

The price of gold increased by 24pc in 2009 and 30pc in 2010.

Today, the spot price rose as high as $1508.88 an ounce, before falling back slightly to $1507.45, a 0.3pc increase on yesterday's closing price.

The metal's price is being supported by worries over European sovereign debt, fighting in the Middle East and the state of the US public finances, which are weighing on the dollar, the other traditional safe haven for investors.

"The US effectively lost its triple-A rating in the eyes of investors that really matter quite some time ago, back when gold broke $1,000 an ounce," said Fat Prophets commodities analyst David Lennox.

(Irish Independent)-- A golden opportunity beckons but can the metal keeps its shine

Investors turn to gold in times of trouble, but the herd instinct has run riot

GOLD is a bubble and wise inves-tors would do well to avoid its charms. You would think that in this country, after getting so badly burned by the property bubble, we would be wise to another ballooning bubble. But not a bit of it.

As in a lot of countries at the moment, gold is proving to be a very popular investment.

Investors generally buy gold as a hedge against any economic or currency crises. But gold is displaying the classic characteristics of a bubble, and investors need to be careful that this is not the year that it bursts.

A bubble occurs when a particular investment performs particularly well. This tends to draw the attention of investors. This in turn leads to more money being put into the investment which causes further price rises.

Investors get even more confident. This leads to an upward spiral that takes prices far above the levels which can be justified by any rational assessment of the real value of the future cash flows an investment may generate.

The gold bubble could stay inflated for a while. But that doesn't make gold less speculative and risky than it was a year ago.
However, investors need to note that you will never look too wise tying to call a bubble.

This week gold tipped over $1,500 an ounce, up from less than $500 just five years ago. That works out an eye-popping annualised return of 23pc.

Fear is driving the price ever upwards. Investors have always turned to gold in times of trouble, but it is questionable if rises like this can be maintained.

If you like bling, then gold is the thing.

But if you are buying gold as an investment you need to consider that it is nothing more than a bet that someone else will be prepared to pay more for it tomorrow than you did.


This year could mark the last of the heydays for gold, warns Pat McCormack of Barclays Bank Ireland.

"The dollar isn't about to collapse, hyperinflation is not lurking around the corner, the gold price has already risen a long way and there is no yield -- nor any prospect of one.

"It wouldn't be a surprise to see gold at some stage fall by 20pc to 30pc if investors were to regain confidence in other assets."

You should never have more than 5pc of your investment portfolio in gold. This is especially so as gold has few industrial uses.
Almost every industrial use of gold is also an industrial use of silver. Since silver is much cheaper than gold you can imagine that people would rather use silver than gold for industrial purposes.

And gold does not pay you a return, unlike a share or a deposit.

With a share you have some hope of getting your money back over time from dividends.

In fact, if gold were a house, it would be one you could not live in and could not get rent from.

One of the richest men in the world, and truly the most successful investor of our time, Warren Buffett, is not a gold bug.
Speaking about gold, he said recently: "Look, you could take all the gold that's ever been mined and it would fill a cube 67 feet in each direction.

"For what that's worth at current gold prices, you could buy all -- not some -- all of the farmland in the United States. Plus, you could buy 10 Exxon Mobils, plus have $1 trillion of walking-around money. Or you could have a big cube of metal.
"Which would you take? Which is going to produce more value?"
It is hard to argue against the Sage of Omaha.

- Charlie Weston Personal Finance Editor
(Editors Note: A lack of facts, blind belief in ‘gurus’, preconceived notions and a little knowledge are dangerous things)

(Irish Independent)-- Consumer demand in India and China will be long-term driver of stable high prices

With the price of gold continuing to test record nominal highs, it would be easy for investors to think they've already missed the boat if they're seeking decent returns.

After all, in dollar terms, at over $1,500 an ounce, the price has risen two-and-a-half fold in the past five years; and even over the past 12 months, it's up 37pc.

Geopolitical turmoil, a yawning US deficit and concerns over its credit outlook, as well as instability in the euro region, are all elements that are helping to underpin gold prices.

This week, Evy Hambro, who manages the $17bn (€11.7bn) Blackrock World Mining Fund, said that he believed gold prices may keep rising for "some years into the future".

"When you look at the underlying fundamentals in gold, they're all very supportive of today's pricing points and of pricing points higher than where we're trading right now," said Mr Hambro.

"So we would expect to see this positive, gradually rising price trend in gold to continue for some years into the future. I think some of the uncertainty that exists around exchange rates, quantitative easing, what paper money will buy you in the future, all of that is only helping gold from a financial point of view."

But it's simple consumer demand that is also expected to sustain high gold prices. The World Gold Council (WGC) -- a London-based organisation that promotes the use of the metal -- recently estimated that by 2020 cumulative annual consumer demand for gold in India -- the largest market in the world for gold jewellery -- will increase to in excess of 1,200 tonnes.
"India's continued rapid growth which will have significant impact on income and savings, will increase gold purchasing by almost 3pc per annum over the next decade," the WGC forecast.

"In 2010, total annual consumer demand reached 963.1 tonnes [in India]," it noted. "As seen in the last decade, Indian demand for gold will be driven by savings and real income levels, not by price."

Mark O'Byrne, the founder of Dublin-based GoldCore, a company that acts as a broker for well-heeled clients wanting to buy gold bullion and which also has a wealth management arm, also believes that consumer demand in India and China will be the long-term driver for sustained high gold prices.

In China, citizens weren't permitted to own gold from 1950 until 1982 -- although significant amounts of gold were reportedly smuggled into the country from Hong Kong and Singapore.

Commercial gold trading only resumed in China in 2003. It's only in recent years, however, that as the country's middle class expands, that gold jewellery has become an affordable luxury for many.

Mr O'Byrne also points out that the price of gold might be at a nominal high, but it's still way off what has previously been reached in real terms.

Around 1980, gold almost reached $2,400 an ounce in real terms when adjusted for inflation; and today's price would probably have to touch $2,200 an ounce or so to match that performance. Mr O'Byrne thinks $2,400 an ounce remains a realistic long-term price target.

But more than just buying gold in the hope of big returns, Mr O'Byrne says he and his team advise clients that about 5pc of their investment portfolio should be gold, helping to provide a shield against the vagaries of inflation, currency and equity fluctuations.

"With interest rates remaining low in most countries, there is little reason not to own gold, as the metal currently offers the best returns around," according to Gavin Wendt, founding director with Australia-based MineLife.

He believes that coupled with the debt turmoil in Europe and violence in the Middle East "it's a perfect storm for precious metals, including gold and silver".

(Bloomberg) -- Gold Climbs to Record on Dollar, Debt Concern; Silver Advances

Gold climbed to a record in London and New York for a fifth day, trading above $1,500 an ounce, as a weaker dollar and debt concerns boosted demand for the metal as an alternative investment. Silver rose to a 31-year high.

The dollar slid to the lowest level since August 2008 against a basket of six major currencies. Greek two- and 10-year government bond yields reached euro-era records amid speculation the nation won’t be able to avoid restructuring its debts.
Fighting in Libya and Japan’s nuclear crisis helped gold, which typically moves inversely to the greenback, to gain 6.1 percent this year.

“The key element determining gold’s near-term direction right now is the U.S. dollar,” Edel Tully, an analyst at UBS AG in London, said today in a report to clients. “Sovereign debt concerns in U.S. and Europe along with inflation fears provide a good backdrop for gold.”

Immediate-delivery bullion gained as much as $6.32, or 0.4 percent, to $1,508.88 an ounce and was at $1,507.70 by 11:21 a.m. in London. Gold for June delivery was 0.6 percent higher at

$1,507.80 an ounce on the Comex in New York after reaching a record $1,509.50.

Bullion rose to $1,507 an ounce in the morning “fixing” in London, used by some mining companies to sell output, from
$1,501 at yesterday’s afternoon fixing. Seventeen of 20 traders, investors and analysts surveyed by Bloomberg, or 85 percent, said bullion will rise next week. Two predicted lower prices and one was neutral.

Dollar Decline

The U.S. Dollar Index dropped as much as 0.9 percent before a report forecast to show U.S. house prices fell for a fourth month, underscoring prospects the Federal Reserve will maintain monetary stimulus. Central banks in Europe and Asia have raised interest rates to help combat accelerating consumer prices. The U.S. Treasury Department projects the government could reach its debt ceiling limit of $14.3 trillion as soon as mid-May and run out of options for avoiding default by early July.

The uprising in Libya, which began Feb. 17, has settled into a military stalemate near the central oil-port city of Brega.

Italy, France and the U.K. said they are sending military advisers and trainers to help Libya’s disorganized and poorly equipped rebels, as French President Nicolas Sarkozy called for intensifying airstrikes against forces loyal to Muammar Qaddafi.

“Trading is expected to be thin today and next week as market participants will be out” because of holidays, UBS’s Tully said. “The lack of liquidity means that gold may not be as orderly as it has been this week and we could see large price swings.”

Silver for immediate delivery climbed as much as 1.8 percent to $46.07 an ounce, the highest price since January 1980, the year the metal reached a record $50.35 in New York. It was last up 1.5 percent at $45.9188 and has surged 49 percent in 2011. An ounce of gold bought as little as 32.73 ounces of silver in London today, the least since June 1983, data compiled by Bloomberg show.

Palladium was 1.2 percent higher at $769 an ounce. Platinum rose 0.7 percent to $1,816 an ounce.


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Thu, 04/21/2011 - 08:23 | 1191792 Abitdodgie
Abitdodgie's picture

silver bitchez , sorry had to do it .

Thu, 04/21/2011 - 08:36 | 1191823 SheepDog-One
SheepDog-One's picture

Blood, beotchiz!

Thu, 04/21/2011 - 09:00 | 1191890 What does it al...
What does it all mean's picture

A lot of ink saying one thing.  Silver is up, the bubble is about to be popped.  I doubt anybody has a concrete proof that JPM is shorting silver.  If they are that stupid, the fed is even dumber, because they would not let it fail and the price would again be "manipulated." 

Silver may be going to $100 and it may be going to $25.  These statements are useless.  And Obama "may" be human and I "may" be a tulip...  I wish ZH would run a paper portfolio and see how much money the editorialized advice can produce.  (Instead just emphasizing the positives and ignoring the downside.)

Careful people.   Good luck to all.

Thu, 04/21/2011 - 09:06 | 1191935 SheepDog-One
SheepDog-One's picture

The real valuation bubble is in stocks and bonds.

Thu, 04/21/2011 - 09:16 | 1191982 What does it al...
What does it all mean's picture

I agree with this actually.  But people are just so emotional about gold and silver.

Thu, 04/21/2011 - 09:25 | 1192021 centerline
centerline's picture

Got to keep people confused.  Most people have little in terms of financial ability to own PMs. And even less financial savvy to make good decisions.  But, if even for a moment enough people think that it is wise to have some small position in PMs to "potentially" protect themselves, the demand would cause the market to explode.  Especially in silver (poor man's gold).  All it takes is for a "groupthink", herd-like, collective spark to cause a horrible chain reaction here.  Horrible for the system of course.

Thu, 04/21/2011 - 09:39 | 1192067 wandstrasse
wandstrasse's picture

well, I admit I do belong to the general / non-financial public. Nevertheless I read ZH and the like and this brought me to spend 75% of my cash savings for physical silver and gold, starting late 2009. 75% is relatively much, but from an absolute figures view it is a JOKE compared to what some ZHers post... 40kgs silver yesterday... bought 100 ounces per week... OMG!!!)...

So I know both sides and I would like to tell you that MANY MORE normal people think about PMs as you might think, here in Germany definetely. Just people do not admit in public they bought PMs. Like myself, they do not want to be considered doomers and they feel like they paid a far too high price and they do not want to ridiculed because of that. I would NEVER tell a fellow-citizen that 75% of my savings were spent for PMs.

Thu, 04/21/2011 - 10:07 | 1192160 centerline
centerline's picture

Over here in the states, I can almost guarantee that very few people are doing anything to protect themselves.  Normalcy bias is a powerful thing - and the MSM spin is nothing short of complete.  Nonetheless, you are are right on about keeping quiet.  Smart move on part of anyone taking any real, physical position.


Thu, 04/21/2011 - 10:33 | 1192225 narapoiddyslexia
narapoiddyslexia's picture

Warren Buffet would rather have 10 ExxonMobils that a cube of gold 67 feet on a side. I've got news for him. In 100 years, the cube will still be there, but ExxonMobil will be but a dim memory.

Thu, 04/21/2011 - 12:36 | 1192762 jeff montanye
jeff montanye's picture

i'll take the cube too.  especially if i can have it all.  

how many more exxonmobils are there, potentially, in the world?  hard to say, but not zero.  and the long term chart looks toppy.  

how much more arable land is there than what the u.s. has?  again, hard to say but far from zero.  and the price is declining after quite a run.  

what will a trillion dollars be worth in 100 years?  uncertain but certainly far less than a trillion.  and the price is also declining after quite a run.  

unlike the dollar, the cube is added to very slowly and with considerable and growing difficulty and expense.  and the price has been rising for ten years after a twenty year bear market.

Thu, 04/21/2011 - 11:05 | 1192355 JW n FL
JW n FL's picture
by centerline
on Thu, 04/21/2011 - 10:07


Over here in the states, I can almost guarantee that very few people are doing anything to protect themselves.  Normalcy bias is a powerful thing - and the MSM spin is nothing short of complete.  Nonetheless, you are are right on about keeping quiet.  Smart move on part of anyone taking any real, physical position.


from today on msn...



3 myths that will pop the gold bubble

Gold is not an investment, and gold is not contrarian. And its value is not bulletproof.

By InvestorPlace on Thu, Apr 21, 2011 7:54 AM

Myth 1: Gold is an investment



Myth 2: Gold is a store of value


Myth 3: Gold is a contrarian trade


Dis-Information on FULL BLAST!!! Can you hear them?

Thu, 04/21/2011 - 11:36 | 1192506 barkster
barkster's picture

i am getting nervous with continued relentless price rise but the bottom line is this: what would i do with the proceeds from selling any pm's? there is nothing else i trust right now...

Thu, 04/21/2011 - 13:49 | 1193059 mayhem_korner
mayhem_korner's picture

Disinformation is predicated on fear.  For Benny & the bankster complex, control is lost - all efforts are now aimed at perpetuating the illusion that it isn't.


Mon, 04/25/2011 - 20:37 | 1206096 tomster0126
tomster0126's picture

wow, what are they trying to say?!  this is disturbing to me, I can't believe most people are reading this as the truth.

Thu, 04/21/2011 - 12:25 | 1192711 Stares straight...
Stares straight ahead's picture

Also, "talking" about it exposes you to break ins and robberies, maybe not your friends that you confide in but the friends of friends that may hear it in casual, careless conversation.

Thu, 04/21/2011 - 13:20 | 1192932 r101958
r101958's picture

I am glad I wasn't confused when I bought it at $14-18 an oz.

Thu, 04/21/2011 - 09:48 | 1192094 SheepDog-One
SheepDog-One's picture

But people are NOT 'emotional' about stocks? Go to Yahoo! message boards and look at those stock lunatics by the train car full! NO ONE is a more maniacal bunch of cultists than the stock bubble minions....and I think PM holders by far are the most common sense people around. Most all of them are not buying PM's because its all shiny and kewl, its because they can see the Maniacal Monetizers WILL NOT STOP!

Thu, 04/21/2011 - 10:03 | 1192125 What does it al...
What does it all mean's picture

You have a fair point.  When it comes to money, everybody is emotional.  So, here is a thought, why don't ZH point out that Gold barely moved and Silver is up 15% since last Monday?  A simple pair trade to short Silver and buy Gold will be a good paper trading exercise for ZH.

In a way, this post/article is there for ZH to hedge themselves...  pretty ironic (ZERO hedge).  So that 3 months from now, we can show that ZH pointed out the bubble or the subsequent collapse.

Thu, 04/21/2011 - 11:08 | 1192376 JW n FL
JW n FL's picture

by What does it al...
on Thu, 04/21/2011 - 10:03

 So, here is a thought, why don't ZH point out that Gold barely moved and Silver is up 15% since last Monday?  A simple pair trade to short Silver and buy Gold will be a good paper trading exercise for ZH.


Why is this a good pair trade, looking to short silver?

WAIT! by the Numbers!

The reason you are the help, is becuase you can not see the logic of a Pair Trade beyond the numbers presented.

I could go on but it would be like trying to explain the world is not flat.


Thu, 04/21/2011 - 15:25 | 1193544 What does it al...
What does it all mean's picture

I doubt there is anything about pair trading that you can teach me.  But you can't dispute the facts that Gold hasn't moved.

Mon, 04/25/2011 - 20:39 | 1206105 tomster0126
tomster0126's picture

Gold hasn't but what are your thoughts on a shift in the near future?  I see gold skyrocketing in 5-10 when the dollar is grossly inflated.

Thu, 04/21/2011 - 13:42 | 1193033 tmosley
tmosley's picture

That's great, but what do you do when you and the market realize that silver is going up due to tight supply caused by decades of overuse?

Thu, 04/21/2011 - 18:09 | 1194377 Banjo
Banjo's picture

Wow three junks for that comment. I guess it proves your point. I have massive exposure to metals but on my mind is exit strategy (various) e.g. for gold would I have the guts to sell out at 2:1 or 1:1 when a mania is at it's peak? Silver is a more difficult proposition re: exit strategy there is lots of information to sift through.


Anyhow no one should buy something because they "love" it everything has a time e.g. Real Estate would have been great from 2001 to 2005.


Best of luck.

Thu, 04/21/2011 - 09:25 | 1192013 bb5
bb5's picture

"But if you are buying gold as an investment you need to consider that it is nothing more than a bet that someone else will be prepared to pay more for it tomorrow than you did."-----does this only apply to gold or to all investments?

Thu, 04/21/2011 - 09:47 | 1192096 SheepDog-One
SheepDog-One's picture

PM's are NOT an investment, they are insurance against the actions of lunatics printing the world currency into oblivion!

Thu, 04/21/2011 - 10:17 | 1192142 What does it al...
What does it all mean's picture

It applys to anything that you buy and potentially sell.  Same thing goes for Cars, Houses, , diamond rings and Country club memberships.  Sure, some enjoyment is factored in, but the point is that it is *not* only for utilitarian purposes.  (and people already factored this for you at the offers.)

Thu, 04/21/2011 - 18:13 | 1194401 Banjo
Banjo's picture

Keep buying Stocks, Cars, Bonds and retain cash. If gold and silver are not for you then I encourage you to stay well away from the market.

Thu, 04/21/2011 - 13:23 | 1192940 r101958
r101958's picture

Exactly, Sheepdog.

Thu, 04/21/2011 - 10:07 | 1192136 NewThor
NewThor's picture

In almost every culture through out known history,

Gold and Silver have always been considered a form of 'Money'.

Could they face a correction? Yes. 

But i don't see them dipping below $30 ever again.

There are 5 times the Paper Silver claims against the REAL amount of

silver on the planet. Paper Gold and REAL Gold is somewhere near the same ratio.

So I believe GOLD and SILVER will actually be undervalued no matter the price

until the day SLV and GLD catch on fire like the paper tigers they are.

Notice how no one ever says SLV and GLD are bubbles?

When they are the biggest bubbles known to man.

I'm sure the evil gang will try to pound PMs down,

but we over estimate the NWO's power.

Remember, they don't have China, Russia or India on their team,

and those kids have been stealth buying Gold and Silver for a while.

When FIAT dies it's sick death, Gold and Silver hold their value and

the basics like Guns, Bullets, Food, Water, Whiskey, Smokes, etc. become

the REAL DEAL gimme gimme gimmes.

Hmmm. How many packs of strings should I have handy for my

acoustic guitars? 10, 20, 30?

So anyone who is LONG in PM's is probably

'MAD MAX LONG'. And in that situation, 1000 shares of Apple

wont even get you a pack of smokes.

We ain't ever going to pay the $14.5 trillion dollar debt off.

The EURO won't survive.

You can poo poo the Mystical and the Magical

but those with their finger on the spiritual pulse of the Universe 

recognize that 2012 is going to bring about CHANGE unlike anything

mankind has ever known.

Shiva and Vishnu. Chaos and Destruction.

Thor Vs. Loki and the Great Serpent.


and from the rubble a new way will be born.

The whole world is due for a MASSIVE correction.

We had a chance after World War II to create a near Utopia,

and we fucked it and raped it and spent a zillion dollars on 

the devil's PR firm convincing the world that we're awesome and holy.

While we fucked and raped the world again and again, 

in God's name.

Stocks, Bonds, FRN, T-Bills are all marks of the Beast.

Silver and Gold are the exploded core dust from burnt out stars that

traveled the universe to get here.

Choose wisely.

God Bless 







Thu, 04/21/2011 - 10:06 | 1192152 What does it al...
What does it all mean's picture

You win, you seems to have more conviction.  Just like the terrorists...

Thu, 04/21/2011 - 12:19 | 1192680 Creed
Creed's picture

I think you have an agenda



by What does it al...
on Thu, 04/21/2011 - 10:06


You win, you seems to have more conviction.  Just like the terrorists...





Thu, 04/21/2011 - 13:38 | 1193011 Huskybritches
Huskybritches's picture

Why do you hate America?


Do you hate us 'cause of our freedumbs?

Thu, 04/21/2011 - 10:52 | 1192294 Bringin It
Bringin It's picture

Nice post.  Did that other guy just call you a terrorist??

Thu, 04/21/2011 - 11:06 | 1192361 Hephasteus
Hephasteus's picture

Yes that's banker talk.

People who owe you money= account holder

People you owe money to= terrorist

Thu, 04/21/2011 - 14:54 | 1193319 What does it al...
What does it all mean's picture

I am not a banker and I have no agenda.  I welcome an intellectual debate, not a 3 page treatise rant.

I am pretty sure Silver is going down under 40, and probably under 30.  I just want ZH to be fair when it does.  (Just like ZH is pretty bearish since October 2008, if it is an investment strategy, it would have lost a lot of money.)  The timeframe could be next week, next month, or next year.

The one post by "NewThor " with "uptopia", "holy", "World War II" points to Jihadist teachings, not that he/she necessarily is one.

BTW, the terrorist clearly HAVE won!  Just think about it everytime you fly, everytime you gas up, and everytime you think about NYC and potential 9/11 happening again.  It is not a war, but constant terror, and terrorize they have.

Sorry for distracting from the main point of the post, let's see how silver performs, going forward.  It is an asset, like any other...



Fri, 04/22/2011 - 06:38 | 1195580 Hephasteus
Hephasteus's picture

I know what you are going to do. I know it's not going to work. You can set up the show and run it from monday till the end of the month. But you won't have any idea what we see in it.

Now quit babbling about your lame stream cult bullshit and start the show.


Thu, 04/21/2011 - 09:15 | 1191976 wandstrasse
wandstrasse's picture

bitches, bitchez!

(some meta-redundant self-referential tautology or so)

Thu, 04/21/2011 - 08:40 | 1191852 Twindrives
Twindrives's picture

As we speak Blythe is chewing on her soiled panties and Jaime Dimon has his knee pads on in Ben's office. 

Thu, 04/21/2011 - 08:51 | 1191880 Ethics Gradient
Ethics Gradient's picture

Don't apologise, man! They'll only sense weakness.

Thu, 04/21/2011 - 08:24 | 1191798 Glasgow Gary
Glasgow Gary's picture

As everyone thinks silver will sell off violently at 50.00, this tells me we go even higher first. 60-65 before the 4th of July?


Thu, 04/21/2011 - 08:29 | 1191809 YouBetYourLife
YouBetYourLife's picture

Even that may not be high enough.

Although nothing goes up in a straight line, the trend for PMs is clearly up.  Fiat is becoming increasingly untrustworthy as a store of value by those who are aware of what's going on (e.g., U Texas and some US states). 

When the general public also figures it out, who knows how high PMs may go.

Thu, 04/21/2011 - 08:38 | 1191828 youngman
youngman's picture

53% of the people in the USA pay no income tax..they spend everything they get..and then some with credit silver buyers there.....maybe a coin to be "cool".....I think the rest of the people will switch over after the Fed stops QEII......stocks will drop and interest rates will jump....this will scare people into the market as silver and gold will jump also....the very wealthy are already here and are taking posession of their metals and moving them to their own safe havens....countries..vaults...wherever..

Thu, 04/21/2011 - 08:48 | 1191867 Neoisolationist
Neoisolationist's picture

I think it's 47 percent pay no income tax. 53 percent pay it.

Thu, 04/21/2011 - 09:15 | 1191979 Overflow-admin
Overflow-admin's picture

Fact: more than a half  DO NOT pay income tax.

Thu, 04/21/2011 - 09:25 | 1192022 Abby Normal
Abby Normal's picture

47% pay no Federal Income tax, 53% pay no net tax as some pay small tax offset by government benefits.

Thu, 04/21/2011 - 09:25 | 1192012 mick_richfield
mick_richfield's picture

True -- never in a straight line.  Although sometimes things go up parabolically and stay that way forever.  My chart of silver priced in Weimar Papiermark seems to have reached a permanently high plateau.

Oh, and ... Fed delenda est.

Thu, 04/21/2011 - 08:29 | 1191810 Saxxon
Saxxon's picture

I have a three-year outlook of $100/oz before I begin to sell coin.

I missed the last $10 of this move in paper trading (beloved AGQ) because I simply 'couldn't believe it'.  But my hard collection benefitted.

If they try to fuck with spot price in the U.S. I will truck over to Asia to sell it.


Thu, 04/21/2011 - 08:48 | 1191866 SheepDog-One
SheepDog-One's picture

But the problem is by the time silver reaches even $70, by then we'd be living in a country with a collapsed currency, gas at $7 or $8 and the problem with the grocery store wont be the insanely high prices, but trying to get thru the mobs of looters alive. 

Thu, 04/21/2011 - 09:28 | 1192038 Abby Normal
Abby Normal's picture

Exactly and there'd be better investments at that time as people had to sell off their good liquid assets to meet debts/margins and that would put downward pressure on Silver.  Can the world sustain $200/barrel oil and/or $80 silver or is it a self-correcting price?

Thu, 04/21/2011 - 09:42 | 1192082 Ckashan
Ckashan's picture

Exactly but at this point the whole purpose is to inflate debt away but if prices got that high then it surely would be over.  A ensuing price correction probably would creat a depression which in that case we lose.  Potentail outcomes don't look that great from here other than a managed constant stream of inflation that results in another black swan.

Thu, 04/21/2011 - 08:34 | 1191816 Xibalba
Xibalba's picture

I've had a $25-$75 range for the year.

Thu, 04/21/2011 - 09:14 | 1191969 Pegasus Muse
Pegasus Muse's picture

Eric Sprott --

"We truly believe that this is the investment opportunity of a lifetime, and increasingly so, others are taking heed. What is clear to us is that with equal investment dollars now flowing into silver and gold, the current 35-to-one ratio is unsustainable and has only one direction to go: lower."

Thu, 04/21/2011 - 12:51 | 1192815 tiger7905
tiger7905's picture

Interesting after his commentary yesterday Sprott has a marketing piece out offering a coin gift with $20k purchases. It would seems he's trying to stir things up more.

Thu, 04/21/2011 - 10:10 | 1192166 Idiot Savant
Idiot Savant's picture

As everyone thinks silver will sell off violently at 50.00, this tells me we go even higher first. 60-65 before the 4th of July?

Until we know the outcome of QE2 and possibly more easing (QE3), I wouldn't begin to try and guess where silver will go the next couple of months. I'm not touching it until we know what Bernanke is going to do.

Thu, 04/21/2011 - 10:54 | 1192315 Bringin It
Bringin It's picture

Re. what Bernanke is going to do.  I think some people already know.

Thu, 04/21/2011 - 12:31 | 1192739 WeekendAtBernankes
WeekendAtBernankes's picture

A little bird told me that word at the NYFed is a muni bond bailout.

Thu, 04/21/2011 - 08:27 | 1191800 Careless Whisper
Careless Whisper's picture

If Max Keiser and Lady Gaga triggered this short squeeze of the decade, I will LMAO !


Thu, 04/21/2011 - 08:53 | 1191892 Hephasteus
Hephasteus's picture

This is too fucking funny. They think the thousands and thousands and thousands of pissed off people are a billionaire or a state.


Thu, 04/21/2011 - 09:15 | 1191963 SheepDog-One
SheepDog-One's picture

Yes of course they have to change the nightmare theyre seeing and put it in their only sensible context, this all has to be 2 billionaires battling, 1 is long and 1 is short. Thats just retarded.

Thu, 04/21/2011 - 09:26 | 1192016 Hephasteus
Hephasteus's picture

They want it to be a easily fixed problem.

Not thousands and thousands of this.

Thu, 04/21/2011 - 09:41 | 1192077 Hearst
Hearst's picture

And not a word in that FT article about JPM or HSBC though 30 + lawsuits exist against them for rigging the Silver market.  You'd think a FT article would be prestegious enough to mention that.  Oh wait, FT, Fukin' Trash, got it.

Thu, 04/21/2011 - 08:27 | 1191801 uwsjack
uwsjack's picture

Yes, cornered... by 1 billion Chinese. Tougher to prosecute.

Thu, 04/21/2011 - 08:28 | 1191804 Saxxon
Saxxon's picture

In the past year, sterling silver silverware and tea sets have become popular items for mainland Chinese to bid up at auction.  Not sure about the bullion, yet.  Could be the tea sets escape their import tax while bullion would not.

Thu, 04/21/2011 - 10:05 | 1192150 TGR
TGR's picture

Actually one of the most recent investment fads in China has been baijiu, or Chinese white spirits/wine. People have been pushing prices up heavily on what is basically a fairly attrocious beverage into the thousands of dollars for some brews.

As for gold and silver, far from anything near levels of mass-participation yet in China. Give it time.

Not sure what to make of this, but literally half an hour ago, on the news (broadcast across China) they had a small segment near the end of the bulletin on gold and silver's price levels. The newsreader closed by saying, with supposed authority, "Analysts say gold and silver prices are set to fall in the near term".

At least he added the near-term, though don't quite know why they took such a slant.

Thu, 04/21/2011 - 08:29 | 1191806 diwolf
diwolf's picture

Before a bank gets into trouble, buying silver is illegal. I bet all my money on that.

Thu, 04/21/2011 - 08:48 | 1191873 SheepDog-One
SheepDog-One's picture

Yep, youre likely quite right. Not only buying will be illegal, but holding gold will also be declared an act of terrorism by these scum sucker banksters. People go ahead and laugh but just watch and see!

Thu, 04/21/2011 - 11:14 | 1192402 Founders Keeper
Founders Keeper's picture

[Not only buying will be illegal, but holding gold will also be declared an act of terrorism...]---SheepDog-One

I'm not laughing.



Thu, 04/21/2011 - 08:27 | 1191807 Ancona
Ancona's picture

Silver is going to keep on moving up, because the dollar is going to keep on moving down. It really is that simple.

Thu, 04/21/2011 - 09:09 | 1191949 WonderDawg
WonderDawg's picture

It's never that simple. Linear extrapolation will take you right to the poor house.

Thu, 04/21/2011 - 09:14 | 1191973 SheepDog-One
SheepDog-One's picture

So youre saying the Maniacal Monetizers will reverse course? You can believe that, I do not. And even if they did, the equity and bond markets would faceplant, dragging down the FED and the banks again....better keep your PM's.

Thu, 04/21/2011 - 09:39 | 1192068 WonderDawg
WonderDawg's picture

That's not what I said. I said it's never that simple, and linear extrapolation is a good way to get wiped out. Remember 5-6 years ago when real estate always goes up? The consensus argument was that real estate always appreciates, so buy now or miss out on the road to riches. Well, that didn't work out so great.

My point is, it is never as simple as the consensus argument tries to make it. I've got some PMs that I bought two years ago, for the same reason many people here have them. A hedge. Silver goes to $80, I probably won't be able to resist the temptation to take some profits. If it drops down below $30, I'll probably buy some more. I just don't think it's wise to put all your assets into one class. Nothing moves in a straight line forever. All I'm saying is be smart, take some risks but don't gamble everything on one roll of the dice. The markets today are insane, and it's never as simple as it seems.


Thu, 04/21/2011 - 09:42 | 1192081 SheepDog-One
SheepDog-One's picture

Thats also not what I said, I never said 'put everything you have into silver'. Also these past bubbles like housing, hell I called that a big bubble in its heyday and was considered retarded warning people that it was headed for a trainwreck some years before it did.

Silver is not in a bubble, its highly supressed as no way does $46 silver account for the collapse of FRM world reserve currency...not even close.

Thu, 04/21/2011 - 10:26 | 1192208 WonderDawg
WonderDawg's picture

I didn't say that you said put everything into silver. I was clarifying the point that I was originally trying to make, that you then misinterpreted.

Thu, 04/21/2011 - 15:28 | 1193558 What does it al...
What does it all mean's picture

I agree with you, but at this point, I can't resist the temptation to short...

Thu, 04/21/2011 - 12:49 | 1192801 tmosley
tmosley's picture

Yeah, that was me.  Get it right!


Thu, 04/21/2011 - 08:30 | 1191811 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

The issue is:

Silver is too affordable at these prices.

Seriously, i look at ebay daily and buy a couple of nice look'n ounces just for the fun of it to add to the main bulk stash...

... what's the alternative, stick money in the scum theiving banks? No way.

Thu, 04/21/2011 - 08:39 | 1191831 SheepDog-One
SheepDog-One's picture

I hear that. And when I hear people say 'I think I better sell my silver now and take profits', in what, collapsing dollars? Why? 

Thu, 04/21/2011 - 09:12 | 1191964 Thadeous
Thadeous's picture

I would like to pay my truck off someday. I think I will cash out in the next couple months in order to do so.

Thu, 04/21/2011 - 09:39 | 1192070 SheepDog-One
SheepDog-One's picture

Just remember before turning in your silver to pay off a truck in a couple months, by then you may be able to get any truck you want for free as long as you can hijack a tanker truck for the gas.

Thu, 04/21/2011 - 11:26 | 1192451 JW n FL
JW n FL's picture

if you are going to sell your silver for dollars... take the dollars and buy guns and ammo... or vodka / the like... and you will be fine.. no worries, just dont hold dollars.


and as for the bubble... <--- has shadow stats inflation rate that you can plug in for a more accurate number.


During the Hunt brothers' accumulation of the precious metal, prices of silver futures contracts and silver bullion during 1979 and 1980 rose from $11 an ounce in September 1979 to $50 an ounce in January 1980. Silver prices ultimately collapsed to below $11 an ounce two months later. The largest single day drop in the price of silver occurred on Silver Thursday.[1]


In Shadow Stats Terms! Silver would have to reach OVER $500 per oz to equal $50 an Oz in 1979.


in the best case 1666 to 2070 Average inflation.. the softest of ALL offered.. Silver would have to reach $167 per Oz to EQUAL $50 per Oz..


So, other than everyone above who talks about how they feel gold is this or silver is that... the Inflation Adjusted Numbers Speak for themselves and follwoing a 1970's Oil Rush / Shortage that is already here but being covered up.. I would say a solid price move well north of $46 is justified and reasonable.


I was quoted last year as saying Silver Plus $100 and Gold plus $2,200.. I stand by those numbers with ease.


anyone who would like to pick on sheep or the boys / girls and debate any of the finer facts.

Thu, 04/21/2011 - 11:57 | 1192593 JW n FL
JW n FL's picture

and lets NOT! forget if we make it out of this, it wil require a hair cut by the Fed becuase of all the debt the Fed will end up holding.. Treasury Purchases.. Executive Order 11110 was issued by President John F. Kennedy on June 4, 1963


Imagine in 5 years maybe 10? "IF" (I said "IF" stupid fucks) we make it thru this No Taxation for the People who have GREAT! Lobby Representation and Austerity for the Starving.. that the FED will hold more U.S. Debt than anyone else.. Thusly blowing out the FED's Debt / full on hair cut! will make the debt being carried else where more manageable.

Thu, 04/21/2011 - 12:51 | 1192809 Thadeous
Thadeous's picture

I'm all on board with you guys. I really think that getting debt free is just as important as buying more guns. If I had zero guns I could see the logic, but I don't.

Fri, 04/22/2011 - 03:57 | 1195495 Lord Koos
Lord Koos's picture

Vodka and guns, the new hot investment vehicle.

Thu, 04/21/2011 - 08:33 | 1191812 Dangertime
Dangertime's picture

Careful, your bubble is going to summon JPMor-TRON!

Thu, 04/21/2011 - 15:15 | 1193507 akak
akak's picture

I troll, I troll, it's off to work I go!

Thu, 04/21/2011 - 08:33 | 1191814 buzlightening
buzlightening's picture

Echos, echos, echoooos, in empty, emppppppty, emptyyyyy, silver bullion vaults, vaaaullts.

Thu, 04/21/2011 - 09:39 | 1192062 Sausagemaker
Sausagemaker's picture

+46.25 That was friggin' hilarious!

Thu, 04/21/2011 - 08:34 | 1191818 gaoptimize
gaoptimize's picture

Re-post of my rap from Tuesday night:

Silver to the moon silver to the moon

Futures short squeeze bringin Blythe to her knees

Prices sky high gonna make her wanna cry

Bring on your bear attack, we'll take delivery by the sack

You keep your paper contract

Silver to the moon

Thu, 04/21/2011 - 08:33 | 1191820 tallen
tallen's picture

Down with JPMorgue and the Crimex!


It's dipping right now. BTFD!

Thu, 04/21/2011 - 08:37 | 1191834 Chappy
Chappy's picture

I'm confused... I thought we were expecting a big pullback becuase all the SLV shares were getting hard to borrow and an imminent bear raid.?

Thu, 04/21/2011 - 08:44 | 1191844 SheepDog-One
SheepDog-One's picture


Thu, 04/21/2011 - 10:29 | 1192221 fredquimby
fredquimby's picture

Sir, you are mistakenly listening to "top calling trolls" I believe they are called. They were saying the same stuff at 20, 25, 30, 35, 40 and now 45. I believe we will get a bit of a quiver around the Bunker and Hunts 48, but I see nowt stopping this until about $140 when lots of things collapse. By then oil will be $220 and geezer up above who just paid off his truck will surely enjoy sitting in it. On his driveway. Looking in the mirror trying to see the silver he just sold....

Silver is going up till the Bernak stops printing.

In my eyes, it really is that simple!

Thu, 04/21/2011 - 13:26 | 1192955 r101958
r101958's picture

Well said Fred.

Thu, 04/21/2011 - 15:36 | 1193611 Confuchius
Confuchius's picture


Most folks think (an oxymoron, we know) that Au & Ag are "investments".

We think of them rather as insurance. (against the oncoming collapse of paper "money")

It is beyond stupid to keep looking at one's insurance policy every day (hour, minute) to estimate when it's possible to cancel it.

BBeyond stupid. beyond ignorant.

Thu, 04/21/2011 - 08:40 | 1191836 eigenvalue
eigenvalue's picture

Short squeeze is a fact not rumour. Just look at the SOFO rates. Backwardation again today. GOFO rates seem to collapse soon.

Thu, 04/21/2011 - 08:38 | 1191839 SheepDog-One
SheepDog-One's picture

Disturbing video of Jamie Dimon taken earlier this morning, apparently somewhere in the woods of Manhattan-

YouTube - Deliverance Squeal

Thu, 04/21/2011 - 08:40 | 1191840 Dan The Man
Dan The Man's picture


what bubble...michael bubble?

Thu, 04/21/2011 - 08:43 | 1191857 The Axe
The Axe's picture

Glad I waited until today to travel into Manhatten to sell my half my coins(1989 for you ZH)  46.75 from 5  

Thu, 04/21/2011 - 08:48 | 1191863 umop episdn
umop episdn's picture

In 1980 it was the Hunt brothers. In 1998 it was Warren Buffett. And in 2011?

We gots Gen Ben and the Inkjets with a solid nomination, but maybe the X-Tra Normal Silver Bears have something to say about that.

Thu, 04/21/2011 - 08:51 | 1191881 SheepDog-One
SheepDog-One's picture

I'd like to see Ben fire up his silver printing press! Lets see how that works out.

Thu, 04/21/2011 - 08:52 | 1191877 Goofy Bastard
Goofy Bastard's picture

I'm absolutely long and have been for quite some time, but I'm never impressed with these stories of shadowy unknown rich people acting in the market to make this market completely parabolic.  Not that it's not headed that way, but we just don't need these unsubstantiated rumors out there to make it look like pure conspiracy theory.  There's nothing weird about what's happening.  The currency is getting trashed, hard assets are rising as a result.

Thu, 04/21/2011 - 08:55 | 1191891 SheepDog-One
SheepDog-One's picture

Yea I think what we're seeing is simply a world reserve currency rejected and being replaced with gold and silver by the people, and theres really not a thing the 'elites' can do about the high demand other than declare it illegal.

Thu, 04/21/2011 - 10:01 | 1192129 bonddude
bonddude's picture


Thu, 04/21/2011 - 08:50 | 1191878 whoopsing
whoopsing's picture  flying mother nature's silver seed to a new home......

Thu, 04/21/2011 - 08:55 | 1191893 Iam_Silverman
Iam_Silverman's picture

"And gold does not pay you a return, unlike a share or a deposit."
Oh yes, like the huge dividends proffered by the TBTF banks?

"With a share you have some hope of getting your money back over time from dividends."

Not if the share certificate was for Enron, GM, United Airlines, or Six Flags or, well, you get the point.

So, if it's true that this is just a major short squeeze, what happens after the loser on the short side has to buy his replacement bullion at an inflated price?  Does the price pull back to the same level where it started going parabolic due to the demand from the "squeezer"?

Thu, 04/21/2011 - 09:02 | 1191911 SheepDog-One
SheepDog-One's picture

I think most PM buyers are doing so due to distrust of the TBTF banks, and the currency itself, and severe lack of trust that the Maniacal Monetizers will reverse their course before they completely destroy everything. The present PM buyer is not switching from PM's to bank deposits or stocks as a 'trade', they buy PM's because they know its all BS.

Thu, 04/21/2011 - 10:37 | 1192236 fredquimby
fredquimby's picture

Nah, I'm doing it because I accidentally read a FOFOA article about 2 years ago. Been a gold n silver addict ever since. Sad really, every time I get paid, whooosh, it just disppears into bloody PM's. I'm bloody starving.


Thu, 04/21/2011 - 08:59 | 1191901 gordengeko
gordengeko's picture

"The blogosphere has again been ahead of the curve."

This is no conspiracy theory, thank you Max, Mike Kreiger and ZH!  It is only with the help of alternative news sites that are willing to step up and not be afraid to report the REAL news do we have a chance.  Sooner or later they have to part ways with those shorts.

Thu, 04/21/2011 - 09:39 | 1192060 Overflow-admin
Overflow-admin's picture

Strategies that doesn't fit rulers opinion are generally called conspiracies. But there is nothing bad in conspiracy, if you look at the ethymology:
1325–75; Middle English < Latin conspirare  to act in harmony, conspire, equivalent to con- + spirare to breathe; see spirant, spirit

I should disclose that I conspire with all people that I don't even know, but that aim to shake the financial word and the elites by taking delivery of silver.

Thu, 04/21/2011 - 09:43 | 1192074 gordengeko
gordengeko's picture

Same goes with the "Occult".  Absolutely nothing evil with that term at all.  It simple means hidden.  And believe you me, these people are into the Occult BIG TIME!

Thu, 04/21/2011 - 09:00 | 1191907 sudzee
sudzee's picture

As fiat turns to real money the system is starved via reverse leverage. One dollar out screws the system of 20 or 30, a million out with leverage becomes 20-30 million. Keep buyin physical pm's. Its your patriotic duty to pull the rug out from under all the corruption. Gold and silver are the anti-christ to gov's and banksters. Fiat is for fun but real real money will save your butt.

Thu, 04/21/2011 - 09:00 | 1191916 johnnymustardseed
johnnymustardseed's picture

When you consider the price of silver, $20 billion would buy all the silver in the world and Pepsi for example has a market cap of $106 billion. Silver of sugar water at 5x??? Really not a tough decision

Thu, 04/21/2011 - 09:33 | 1192048 mick_richfield
mick_richfield's picture


Silver -- the choice of the new generation.

Thu, 04/21/2011 - 09:40 | 1192073 Overflow-admin
Overflow-admin's picture

Always... Silva-coina!


Thu, 04/21/2011 - 09:02 | 1191917 velobabe
velobabe's picture

did anyone else know that the global economy is improving? is this a rumor? or a conspiracy?

Thu, 04/21/2011 - 11:06 | 1192375 Bringin It
Bringin It's picture

Ivars, I'm pressed for time.  Which one of these links goes to your Sarah Palin tribute site?  Thanks.

Thu, 04/21/2011 - 15:19 | 1193533 akak
akak's picture

"Gosh darn it, I can see the top of the silver bubble from my house, you betcha!"

Thu, 04/21/2011 - 09:03 | 1191932 sunnydays
sunnydays's picture

The articles are all over the place in information.  Some saying Don't buy because it will drop.  I wonder if that was actually Jon Nadler penning those? 


The ride is getting faster and steeper.... I am enjoying it. 

Thu, 04/21/2011 - 09:07 | 1191946 SheepDog-One
SheepDog-One's picture

Dont listen to what an article says. What is the point of buying and holding physical PM's? Insurance against currency collapse, not what some article says about a 'bubble', and if ANYTHING, PM's are UNDERvalued! How do you price in US Dollar collapse in silver...$47? Ridiculous! Hell today silver should probably be $70-$100 to be anywhere near valued to wealth loss of the dollar.

PM buyers have to be a tough crowd, will you hold it when they declare its illegal and an act of terrorism? We'll soon see how many do!

Thu, 04/21/2011 - 09:20 | 1192003 GOSPLAN HERO
GOSPLAN HERO's picture

Agreed. Gold and silver are returning to the throne of real money.  The gubbamint won't get my PM!

Thu, 04/21/2011 - 10:02 | 1192138 bonddude
bonddude's picture

so underowned. so are test kits to authenticate.

Thu, 04/21/2011 - 09:06 | 1191941 Downtoolong
Downtoolong's picture

I said it before, I’m happy for any individual investor who is making money off the silver war going on right now. But, I’m also disappointed that our markets have been reduced to this kind of high risk nonsense. We’ve all lost something when the only hope of making a decent return on our investments is to jump right in the middle of a raging battle between a major Wall Street bank and some mysterious multi-billionaire, who is probably borrowing over half their funds for this speculation from another Wall Street bank, or worse yet, your pension fund.

Thu, 04/21/2011 - 09:09 | 1191953 SheepDog-One
SheepDog-One's picture

People can see the Maniacal Monetizers will not stop until the dollar lay in total ruin. Silver and gold rising is not some battle between 2 billionaires, 1 long and 1 short, thats just retarded.

Thu, 04/21/2011 - 11:23 | 1192436 slaughterer
slaughterer's picture

Gekko -vs Wildman 2011-style.  Hogwash.

Thu, 04/21/2011 - 09:19 | 1191971 gordengeko
gordengeko's picture

No you see this is the beauty of it... It is not some rogue billionaire (at least that I know of) this is a global insurrection against corporate occupation.  They have had their grips on humanity for a very long time, the goal is a NWO.  The only "battle" that is going on is whether or not people will realize what the ones in power are doing.  They are telling us, there are no secrets.  Silver just happens to be the front line battle because of the position of JPM.  That is their achillies heel, not gold.  Unfortunately JPM is connected to the US dollar and the US govt as well as the monetary system.  So yeah, everyone is going to feel it.


I would "suggest" that if you have money in Chase, you pull it out soon.

Thu, 04/21/2011 - 09:29 | 1192035 High Plains Drifter
High Plains Drifter's picture

i have been saying this since day one.  its silver bitchez, its silver.  BUY BUY BUY !!! 

Thu, 04/21/2011 - 09:15 | 1191978 Re-Discovery
Re-Discovery's picture

Yeah . . uh . . just load up the truck with silver and we'll sort it out tonight.

Thu, 04/21/2011 - 10:44 | 1192258 fredquimby
fredquimby's picture

A geeza at work (unbelievably an American) just picked this little load up today.

Yup, people are starting to listen....he is only the second out of 50 at my work to buy silver though...



Thu, 04/21/2011 - 09:17 | 1191962 GOSPLAN HERO
GOSPLAN HERO's picture
Thou shalt not steal.

The paper FRN is a defaulted promise to pay gold or silver.  It is evidence of theft that has taken place.  If you pay for things in paper FRNs, you are not only using a false weight and measure, but you are continuing the theft; both actions being deceived, and deceiving others.

Thu, 04/21/2011 - 09:16 | 1191987 SheepDog-One
SheepDog-One's picture

Everyones very concerned and warning of the 'PM bubble'...for you, the PM holders well being of course. Yea sure.

Hey why arent those same people putting out grave warnings of ridiculous extreme overvaluation bubbles to calm as Hindu cow bond and stock holders?

Thu, 04/21/2011 - 09:19 | 1191988 outamyeffinway
outamyeffinway's picture

I get so irritated with Gold Core. They mention the Hunt brothers "manipulation" as if NO ELSE was buying silver. There were plenty of other big buyers. Also, they were not hiding the fact that they were buying. How is that manipulation?

Also, they reference the silver adjusted CPI using the governments methods of calculating it ignoring the fact that they've changed the way they calculate it. The original CPI equation used would have silver over $480 an oz.

Thu, 04/21/2011 - 09:27 | 1192024 High Plains Drifter
High Plains Drifter's picture

sounds like nadler wrote this hit piece..........

Thu, 04/21/2011 - 15:23 | 1193543 akak
akak's picture

I'm surprised they aren't stooping to using such phrases as "Radical Silverbug Extremists", as that bastard Nadler repeatedly labeled the advocates and holders of gold in 2008 and 2009.

Thu, 04/21/2011 - 09:38 | 1192061 SheepDog-One
SheepDog-One's picture

Its fun to pick apart these articles. Yes its the height of simpleton-ness to say the Hunt Bros were the ONLY ones buying silver, and the CPI today is not near the way CPI was added up back then. Also the '2 billionaires chomping cigars, 1 long silver 1 short and doing battle' is hillarious.

Thu, 04/21/2011 - 09:20 | 1191992 Re-Discovery
Re-Discovery's picture

No news is good news (for me.) 

I mean the accepted financial media should just quit en masse.

Thu, 04/21/2011 - 09:26 | 1192018 High Plains Drifter
High Plains Drifter's picture

GOLD is a bubble and wise inves-tors would do well to avoid its charms. You would think that in this country, after getting so badly burned by the property bubble, we would be wise to another ballooning bubble. But not a bit of it....

whatever you say pal. tell that to the university of texas......duh???

Thu, 04/21/2011 - 13:02 | 1192852 WeekendAtBernankes
WeekendAtBernankes's picture

Sorry about the junk, didn't realize you were quoting the article.  That's what happens when you spend 3x the time reading comments as you do reading the post!

Thu, 04/21/2011 - 13:45 | 1193052 JW n FL
JW n FL's picture

you can un-junk the same way you junk.. moron! i junked you cause you cant fix stupid!

Thu, 04/21/2011 - 09:28 | 1192028 GOSPLAN HERO
GOSPLAN HERO's picture

U.S. Constitution ...

Section. 10.  No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts ...

Thu, 04/21/2011 - 09:40 | 1192071 High Plains Drifter
High Plains Drifter's picture

the constitution is a powerful document. there never has been one produced like that before and never will be again. however, its power is given to it by the actions of good , moral men. without this interaction, it is just a piece of paper collecting dust at the smithstonian. now we read what is contained therein, and we say, well this is  the way it is supposed to be but then we go along just to get along so its power is nonexistent. until we give it , power, it will always lie dormant. in Christianity there is a thing called faith. Faith in things not seen, however believed in. sometimes actions are undertaken as a result of faith, faith that God will come through in the end. a similar belief system is entailed in the constitution. either its real or it has no meaning. if it is real, then actions must be made to give it, its power and so that we can follow its precepts. the men that wrote it were not perfect men and perhaps not all of them or most of them really had our best interest at heart. but it is , what it is. when i read its words, i understand them fully as anyone else can. if we do not act and give it, its power, then we are implicity saying that we have no faith in our system, that it was all a big lie. maybe it all was a big lie. but the fact of the matter is that even though it was all a big lie (and i believe this to be the case) nevertheless this system of laws and rules that we have lived under can somehow be reborn with a lot of work on our part. this is one thing i know for sure. therin lies my faith, in that, what must be done will be done, albeit by a very small number of good men and women...........

Thu, 04/21/2011 - 13:51 | 1193078 JW n FL
JW n FL's picture The FBI says it doesn’t need a Judge to sign Warrants! Police State here we come!

Rigged Market Capitalism & Propaganda within the U.S. by the U.S. PLUS! PLUS!!

Thu, 04/21/2011 - 09:33 | 1192054 Jason T
Jason T's picture

it wasn't just the hunt brothers in 1979 early 1980.. the Saudi's were part of the "group" that participated in the outright buying of the silver contracts along with the hunt brothers.  never credit given to the Saudi's.

Thu, 04/21/2011 - 09:46 | 1192086 ACompleto
ACompleto's picture

Once silver gets to its rightful place alongside gold, will there be a third metal we need to start rolling into?

Thu, 04/21/2011 - 10:00 | 1192126 Abby Normal
Abby Normal's picture

Platinum is 10 times as rare as gold and requires 10 times the energy to produce.  It also has rare property to strip off hydrogen atoms that makes it critical for both catalytic converters and coming fuel cell technology.  Palladium also rare byproduct of nickel mining - not much left.

Thu, 04/21/2011 - 10:05 | 1192151 bonddude
bonddude's picture

good point but perhaps to rare to become money.

Thu, 04/21/2011 - 09:44 | 1192089 smartknowledgeu
smartknowledgeu's picture

the dumbest thing I read this week here. the second dumbest thing I've read this week is in the article above:

"few traders or analysts can see a convincing reason for silver’s astonishing rise."

Attention: silver's rise is not astonishing except to moron traders and analysts that can't figure out that silver has regained its monetary status and that due to JPM and other banker price suppression schemes, silver remained severely undervalued for years. Silver is merely playing catch up in price now and has a long long way to go despite what will likely be a volatile year with volatile corrections and more volatile explosions to the upside as well along the way.

Thu, 04/21/2011 - 09:49 | 1192097 americanspirit
americanspirit's picture

When Ben was a little boy, one day he wound up in the principals' office with a detention slip. The principal looked little Benny over sternly and said "What kind of trouble have you been causing now Mr. Bernanke?" Ben hung his head and said " I was blowing bubbles in the back of the classroom and the teacher caught me."

Before the principal could pronounce sentence on the unfortunate young Benny, the office door swung open and in walked another little boy holding a detention slip. "And who are you and what did you do" the principal demanded.

"I'm bubbles" was the reply.

Thu, 04/21/2011 - 11:45 | 1192546 jomama
jomama's picture

don't quit your day job ;)

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