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

Tyler Durden's picture

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Abitdodgie's picture

silver bitchez , sorry had to do it .

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.

SheepDog-One's picture

The real valuation bubble is in stocks and bonds.

What does it all mean's picture

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

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.

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.

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.


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.

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.

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?

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...

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.


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.

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.

r101958's picture

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

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!

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.

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.


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.

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.

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?

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.

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?

SheepDog-One's picture

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

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.)

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.

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 







What does it all mean's picture

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

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...





Huskybritches's picture

Why do you hate America?


Do you hate us 'cause of our freedumbs?

Bringin It's picture

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

Hephasteus's picture

Yes that's banker talk.

People who owe you money= account holder

People you owe money to= terrorist

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...



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.


wandstrasse's picture

bitches, bitchez!

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

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. 

Ethics Gradient's picture

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

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?


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.

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..

Neoisolationist's picture

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

Overflow-admin's picture

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

Abby Normal's picture

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

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.

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.


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. 

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?

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.