This page has been archived and commenting is disabled.

SLV ETF Adds Massive 523 Tonnes Of Silver In Current Week

Tyler Durden's picture




 

There were some very odd occurrences in the world's largest silver ETF, the iShares SLV. After the exponential increase of the price of silver in the spot market, almost hitting $30/share on November 9, the SLV ETF, which like GLD purports to holding the underlying precious metal, saw a massive basket creation demand, amounting to a whopping 523 tonnes of actual silver added to the fund's holdings (equivalent to 16.8 million ounces, at a cost of about $456 million) for the week ending November 12, currently at a record 10,718 tonnes. While we don't purport to knowing how much free silver is available in the open market, the possibility that any one entity could have manged to purchase such a massive amount of actual silver, of which 352 tonnes was supposedly acquired on November 10, without completely destabilizing the actual supply and demand mechanics, and creating a vicious loop where basket creation leads to a further surge in prices, is just slightly mind boggling. As we have speculated earlier, we expect comparable activity in the GLD ETF to follow suit. Additionally, we will shortly look at this week's CFTC COT data to determine just how massively JPM's silver short has impacted the firm's P&L.

P.S. for those who may be wondering, the custodian, i.e., entity in charge of vaulting the "silver", is good ole RICO-lawsuit embroiled HSBC. (full SLV prospectus link)

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 11/12/2010 - 18:09 | 723479 tmosley
tmosley's picture

Don't let the numbskulls talk you out of your silver.  Just keep buying.  Its the only move that makes sense.

Dollars are poison.  Stocks are lava.  Paper PM vehicles are time bombs.  Have nothing to do with any of them.

Fri, 11/12/2010 - 18:12 | 723488 -1Delta
-1Delta's picture

Sentiment... sentiment. How many silver bears and dollar bulls do you know?

 

Exactly.

Fri, 11/12/2010 - 18:20 | 723514 tmosley
tmosley's picture

I know an equal number of silver bulls and bears, and I know an equal number of dollar bulls and bears.

The silver bears have been out in force on ZH the last few days, if you haven't noticed.  And 99+% of the US population is bullish on dollars, in that they continue to use them and hold them.  

These are unusual times, where the whole world is being sucked into absolute participation in FX wars.  You can't just account for traders when you talk about the fiat currencies that we all use and get paid in on a daily basis.  The risk has shifted away from the risk takers, and has been placed solely on the backs of those who use and hold fiat currency.

I do appreciate your sentiment, but now is the time to think a bit deeper than the standard trader.  The things that are happening now are much bigger than you are used to.  Previously, you were playing hide and seek.  It was fun, and perhaps profitable.  Now you are playing hide and seek in a burning building.  You might think that the old rules apply, but they really don't, or at least they are superseded by the new rules.

Fri, 11/12/2010 - 18:32 | 723548 Shameful
Shameful's picture

Most people I know have basically no holdings in PMs or inherited a position from their parents.  One of my friends holds some, but he got them from his dad who made him swear to never sell except in cash of emergency.  But most are still in dollars, but as Americans we will be the lat out of the dollar, we live in a totally dollar centric world after all.  Even the talk of a gulf oil currency flew under almost every one's radar.  And that bad boy would either kill the dollar or force the US to go on yet another campaign to keep the petrodollar going.

I cannot expect the dollar to last indefinitely when the world basically recoiled in shock and horror to QE2.  Not everyone is retarded, they know that Zimbabwe Ben has no intention of ever stopping it.  He can't, if he stops it the Treasury might find itself in a funding issue and the markets might have to acknowledge gravity.  This game can go on for years, but all good things come to an end.  Really for a fiat currency the dollar has had one hell of a run.

Fri, 11/12/2010 - 18:57 | 723597 VegasBD
VegasBD's picture

Its been a short run. ~40 years

Fri, 11/12/2010 - 19:23 | 723645 LowProfile
LowProfile's picture

That is the average lifespan of a pure fiat currency.

Right on fucking schedule, bitches!

Fri, 11/12/2010 - 19:26 | 723651 Shameful
Shameful's picture

Have to respectfully disagree.  40 years as the reserve currency and being totally fiat is pretty damn good.  Not sure that feat has been equaled in recorded history.  Fiat currencies are inherently unstable due to the ability to wizard it out of thin air and they usually don't make more then 40 without some revaluation or change.

Fri, 11/12/2010 - 19:31 | 723663 tmosley
tmosley's picture

40 years is indeed the longest any paper currency has ever gone without a revaluation/hyperinflationary episode.  We are now tied with Yuan China (ie Mongol China).  They managed to maintain a paper currency for a total of some 80 years, IIRC, with the longest stretch without a collapse being 40 years.  They had two more in that time period, before their empire crumbled.

People should look to Yuan China for the future, as in all of history, their situation was the most like our own.  They had the (known) world reserve fiat currency, were a military hegemon, technologically advanced, populous, and had a complex bureaucracy, just like us.  

Sat, 11/13/2010 - 08:54 | 724565 hpprinter000
hpprinter000's picture

We should implement the same system that the romans did, use cheap bronze coins and silver, but not gold as it can be too easily controlled.

http://img225.imageshack.us/img225/1390/crashmorganbuysilver.jpg

Sat, 11/13/2010 - 12:16 | 724735 tmosley
tmosley's picture

The Romans did use gold.  In fact, it was the only coin type that was never debased in their history.

Mostly because it was used in trade with India (foreigners wouldn'

t stand for debasement, more than likely), and the Romans made very little that the Indians wanted except for gold.  Eventually, all of the gold left the Roman empire, forcing them to use only silver and bronze.

Fri, 11/12/2010 - 20:54 | 723813 doolittlegeorge
doolittlegeorge's picture

more like "warlock" in our case.  damn peacenicks.

Fri, 11/12/2010 - 18:50 | 723589 puckles
puckles's picture

"You might think that the old rules apply, but they really don't, or at least they are superseded by the new rules."

I find that a scary variant of "it's different this time."  The Hunt brothers thought so, too.

You might be interested to know that Prechter came out with a special warning on Wednesday (specifically about gold, but since the two trade generally in tandem, it applies here as well.)  We dumped our gold, and grains, on that call, and kept the recently instituted shorts.  Damned good call.

Fri, 11/12/2010 - 19:36 | 723668 Arius
Arius's picture

keep listening to him...pretty soon you will lose your capital forget about earnings...

this time is not different...all fiat ends the same prechter or not...its just a matter of time.  if you choose to pick pennies under the buldozer, its your choice but one of these days the pennies you gathered wont matter because the buldozer will run you over...when? ask chuck prince 

Fri, 11/12/2010 - 19:58 | 723711 israhole
israhole's picture

LOL, but Chuck Prince was dancing in the streets the last time I heard.

Fri, 11/12/2010 - 20:41 | 723761 Arius
Arius's picture

 

with all due respect, i think he left Citi in a hole which will become their grave - there is no way out for Citi.

about him personally, if he is as "smart" as his quotes and actions led you to believe...i wont be suprised couple of years from now, to hear about him being on the street crying over his pile of worthless paper...

Sat, 11/13/2010 - 17:02 | 725191 Hook Line and S...
Hook Line and Sphincter's picture

Better than ending up like Freddy Prince.

Fri, 11/12/2010 - 22:34 | 724040 tmosley
tmosley's picture

Old rules: the market ruled.

New rules: the Fed makes the rules.

You really think this is not the case?  "This time is different" because we have completed the transition from a market based economy to a fully centrally planned one.  The rules are the same as they were in the USSR now.

Congratulations on saving 5%.  What are you going to do next?  What if silver opens up 25% on Monday? What do you do if China severs its dollar peg totally?  That particular decision will be made by approximately three people who have a thought process that is mostly unknown here in the west.  Are you going to depend on them maintaining their current course even as it brings them 15+% inflation?

When you get out of a burning building, you don't go back in to loot it.  Why try to time the actions of a madman who has set his own house ablaze?  It's madness.  Pure gambling.

Fri, 11/12/2010 - 23:57 | 724189 A Nanny Moose
A Nanny Moose's picture

It's always been about the golden rule Tmos. He who makes the gold...

Sat, 11/13/2010 - 07:29 | 724435 alexdg
alexdg's picture

Watch out! I never trade on any of EWI tips or warnings. When I bought into Silver, it was at 17$ and EWI was saying that is was going into a new phase and drop like a rock... good thing I unsubscribed their newsletter services! They keep calling for tops and a new "other shoe falls off" downturn/crash in the market. I'm sure after 2 or 3 years talking about "P5" everyday they will eventually get it right...

Sat, 11/13/2010 - 11:27 | 724671 mark mchugh
mark mchugh's picture

The Elliot Wave folks, like all chart watchers, base their interperations of the same flaw - they don't understand the difference between variables and constants.  They treat the dollar like a constant (think for just a second how funny that is).

Sat, 11/13/2010 - 12:59 | 724790 Treason Season
Treason Season's picture

Pretcher + Yale = Skull + Bones

Fri, 11/12/2010 - 21:55 | 723968 minus dog
minus dog's picture

" And 99+% of the US population is bullish on dollars, in that they continue to use them and hold them.  "

And how many of that 99% can even explain what those little green paper rectangles are, or where they come from, other than telling you the denomination printed on the front and looking at you like you're an idiot?

And even if they can tell you, a very solid percentage of that 99% is paid in dollars, and they have little or no real disposable income.  When you have no wealth, you don't sit around thinking about how you should store your lack of wealth.  They aren't "bullish" dollars - they aren't "bullish" anything.

Fri, 11/12/2010 - 22:42 | 724054 tmosley
tmosley's picture

So you are making the claim that no one has any money in the bank, or in savings accounts of any type?

That sounds a little off base to me. 

Further, if 90% of those with savings invest their savings in the stock market, does that make stocks a bubble?  If they pull their money out of the stock market and park them in cash accounts, does that make it a bubble?  Isn't the fact that they do things without thinking make that dumb money by definition?  So  you want to be doing the same thing that the dumb money is?  The same people getting fleeced on every front?

Sat, 11/13/2010 - 01:14 | 724275 Monetary Lapse ...
Monetary Lapse of Reason's picture

I agree with Minus... and I think you misread him Mosley.  I have read your comments before (Mosley) and consider you a valuable contributor.

Most people do not understand what money is, and most people.. let's say 85%, don't have enough investable net worth to really get too worried about it.  I am the flipside of the equation.. I only came to my monetary self-education because, after years of saving, and being told that I would not afterall have a pension (your know those Corporations) my net worth crossed into seven figures, and I decided that I had better figure out this investing stuff

Most people will get caught with their pants down when TSHTF

 

Sat, 11/13/2010 - 16:45 | 725169 Thanatos
Thanatos's picture

Tmosley,

I agree that you are a valuable contributor to this board, I have read and agreed with lots of your posts.

I think you might be a little off on premise that people have money in the bank. I am a worker drone in a hive full of drones, they are all professionals and many hold advanced degrees. Their salaries are probably average for Professionals across the US.

Less than 10% of these people have ANY investment outside of a mandatory pension and their home. Many people in the office have already borrowed against their pensions just to keep the ball rolling. They have to keep up appearances.

Out of 96 people, one buys PM's... Me.

It might be different where you live. Where I am, the people I mention ARE the well off ones...

So, I would have to say that most people I encounter don't have anything but debt to their name, no savings, no hope.

 

Fri, 11/12/2010 - 23:17 | 724126 DoctoRx
DoctoRx's picture

TM:  Perhaps the building's wiring is shot and can go bad at any time.  (Or perhaps the fire is indeed smoldering.)  Taleb has in the past recounted that in 2000 (if my memory is correct, but the exact yr is unimportant), he was shown a balance sheet analysis of FNM/FRE, and he concluded they will collapse, he just didn't know when.  In his BB interview linked to earlier today by TD, he used the analogy of shaking a ketchup bottle.  The ketchup won't flow and nothing happens despite repeated shakes.  Then on one shake- unpredictable which time- it splatters all over.

He also said something more imp. in that interview.  He said that at the onset of the Lebanese civil war, he was assured that the money printing was temporary.  Hyperinflation ensued over the long war.  He said that he is getting the same jittery feeling about the US as he had re the Lebanese event.

Anyone who could afford to be protected w PM from something worse than the 2008 events and doesn't do so is making a very large mistake.  IMHO

Sat, 11/13/2010 - 10:18 | 724624 Iam Rich
Iam Rich's picture

Just an aside but...

I don't think anyone under the age of 15 or 20 has even seen a ketchup bottle you need to "shake".  They are all squeeze bottles now and would look at you like you are nuts.

Something analogous to those that look at you dumbfounded about a new GD.  They have no experience with it and simply can't see it.

Fri, 11/12/2010 - 19:04 | 723622 strannick
strannick's picture

I know plenty, except they are all from silver bull sites. Everyone else looks at me like im a barbarous relic

Fri, 11/12/2010 - 19:56 | 723708 israhole
israhole's picture

-1Delta,

Good luck with that $USD long play.  I hear it's a great hold for the long term, and a great way to preserve wealth.  

Fri, 11/12/2010 - 18:15 | 723498 ATG
ATG's picture

Don't let the numbskulls talk you out of your silver...Dollars are poison

Silver may have shot its wad at $29 for some time

$USD on the other hand, targeting 115 from 70.70 March 2008 low

http://stockcharts.com/charts/gallery.html?s=%24usd

Fri, 11/12/2010 - 18:21 | 723516 tmosley
tmosley's picture

You just bet the farm on that one.  Zimbabwe Ben will surely do whatever it is you think he is going to do to make the dollar all better.

Fri, 11/12/2010 - 18:23 | 723521 EscapeKey
EscapeKey's picture

DXY 36,000!!!1!eleventyone

Somehow I disagree that a fiat currency out of a country which admits to monetizing their deficit is a really great investment.

Why don't you buy some CA municipal bonds to square your risk?

Fri, 11/12/2010 - 18:23 | 723528 Shameful
Shameful's picture

So can we get a time on the 115 USDX call?  Would love for my dollars to buy more.  Still get paid in them after all.

Fri, 11/12/2010 - 18:38 | 723560 Bill Lumbergh
Bill Lumbergh's picture

As bullish as I am on precious metals, there is the possibility of the dollar going higher despite Benny and his insane actions.  I reason that the dollar like every other currency has flaws and is being manipulated lower in some manner.  Assuming the dollar is currently forming a base then we have three higher lows forming a large symmetrical triangle.  Since the dollar is the "safe haven" due to its liquidity, any European melt-down that Benny and the boys cannot manage could create a repeat of 2008.  I am trying to keep an open mind on this as everyone is bearish on the dollar and sentiment in addition to fundamentals drives the markets.

Fri, 11/12/2010 - 19:19 | 723639 High Plains Drifter
High Plains Drifter's picture

Of course, anything is possible. Let us not forget. Dollars are a commodity. They do correct  like any commodity.

Sat, 11/13/2010 - 18:35 | 725304 strannick
strannick's picture

'I reason that the dollar like every other currency has flaws and is being manipulated lower in some manner'

Charlie Manson had his flaws too.

Fri, 11/12/2010 - 18:37 | 723554 High Plains Drifter
High Plains Drifter's picture

May we examine the product please?  Not that I would think they are lying out their asses to me. 

Fri, 11/12/2010 - 18:40 | 723564 tmosley
tmosley's picture

The bars are counted annually, and I think they are spot checked for purity.

The problem is that they are also for sale.  Why are these bars that are supposed to be held for investors for sale?  Someone could come along and buy all of the gold and silver out of these warehouses and GLD and SLV would be left with nothing.

It is quite likely that the gold and silver that are in the vault doesn't belong to GLD and SLV, but has been leased, sold, and traded a hundred times, such that there are a hundred claims on each bar there.

This will be quite the scandal.

Fri, 11/12/2010 - 19:20 | 723643 High Plains Drifter
High Plains Drifter's picture

How can they sell someone else's gold or silver, or lease it for that matter? Weird stuff if you ask me? They also have stated that in the case that they do not have product available they can pay someone off in dollars. Whoopie!!!

Fri, 11/12/2010 - 19:29 | 723656 Shameful
Shameful's picture

SOP

A long "proud" tradition in history of lending things that aren't yours and giving out certificates for more then you have in stock.  It's the fractional reserve way!  Just goes to show that the old tricks still work, even back from the middle ages.

Fri, 11/12/2010 - 19:37 | 723673 tmosley
tmosley's picture

Exactly.  They are practicing fractional reserve banking, even though they are claiming to be a vault.

A vault is a very different service from a bank.  It makes sense that this is the case, because if the warehousers weren't making money from leasing the gold and silver, they would have to charge a lot more than they are charging.  The fees on GLD and SLV are ridiculously low for what they are supposedly doing.

Fri, 11/12/2010 - 20:30 | 723767 Arius
Arius's picture

 

"supposedly" is the key word...

Fri, 11/12/2010 - 21:12 | 723854 Ckierst1
Ckierst1's picture

If memory serves (and it serves less) I think that at least some currencies got started essentially as warehouse receipts:

http://humanscience.wikia.com/wiki/Social_evolution_of_money

There was a segue from commodity money to increasingly tenuous "representative" money (a form of secular religion since it is faith based? - this becomes oxymoronic - but there it is).  The metals ETFs are transcendant?

Sat, 11/13/2010 - 06:37 | 724421 i-dog
i-dog's picture

"The fees on GLD and SLV are ridiculously low"

That says it all. Fake Rolex watches are cheap, too.

Fri, 11/12/2010 - 23:25 | 724134 DoctoRx
DoctoRx's picture

There's all the stuff w sub-custodians and stuff.  And the prospectus tells you the sponsor is held harmless if those guys "lose" the stuff.  So except for the audit, who knows where the physical gold goes?

Fri, 11/12/2010 - 19:18 | 723633 hamurobby
hamurobby's picture

I have to say, the leveraged paper made me a lot of silver these past few weeks. I made 20 rolls of junk silver quarters shorting the sp just today ;-)

and yes I continuously buy physical silver, however on ebay aparently everyone has found rolls of junk silver and have now created a heck of a premium at the moment :-(

Fri, 11/12/2010 - 19:53 | 723702 israhole
israhole's picture

" Just keep buying.  Its the only move that makes sense.


Dollars are poison.  Stocks are lava.  Paper PM vehicles are time bombs.  Have nothing to do with any of them."-tmosely

 

You got that right!  In addition to knowing where the silver is, you help yourself by taking physical out of the market.  Choke the fuckers!

Fri, 11/12/2010 - 18:10 | 723481 cossack55
cossack55's picture

And this while Sprott is looking for the same amount to purchase.  HHHHMMMMMMM......? And what about those Asian PM vigilantes and the LBMA. WTF?

Fri, 11/12/2010 - 18:38 | 723558 High Plains Drifter
High Plains Drifter's picture

They give Sprott hell, about buying large quantities of product because he wants delivery to his possession of said product ,completely assayed for quality.

Fri, 11/12/2010 - 18:11 | 723484 ATG
ATG's picture

As ZH and Bespoke posted, baskets created are naked shorts, created a potential giant sucking sound

Fri, 11/12/2010 - 18:14 | 723493 Quinvarius
Quinvarius's picture

There is truth to that.  Go here:  http://failstodeliver.com  .  Look up SLV and SIVR.  The fails definately picked up in the uptrend.

Fri, 11/12/2010 - 19:10 | 723631 CustomersMan
CustomersMan's picture

 

Lets just say for example, that I contracted with a legit silver mining company (not a Newmont Mining type company) but some other mining company to take delivery of their mined Silver, starting in 2040 and continuing for the next 2 decades. Lets say the company projects that in 2040 it will be the biggest silver mining company in the world and by then expect to be able to mine millions of ounces of silver from seawater. There's some research that says based on future technology they are working on its possible.

 

Who's to say its impossible, and today they actually mine silver in conventional ways, and so they qualify as a legit hedge/producer and delivering agent/principal.

 

They have contracted for future physical delivery to the trust, Yes or NO, maybe at a fixed price even? The trust pays them $50 million today for that contract and keeps the rest of the money for management expenses, incentives, directors, etc.

Is the contract worth anything? To who and for what purposes are questions.

I used this exaggeration to make a point.

Trust only in your hand silver.

Fri, 11/12/2010 - 18:11 | 723485 Ragnarok
Ragnarok's picture

One would think that some sort of government agency might want to audit SLV for possible fraud, but that would be presumptuous.

Fri, 11/12/2010 - 18:25 | 723531 NotApplicable
NotApplicable's picture

How is it fraud if it's in the prospectus?

Paper begets paper begets paper begets...

Fri, 11/12/2010 - 21:21 | 723873 Ckierst1
Ckierst1's picture

Is a ponzi scheme legal if it publishes a prospectus?

Fri, 11/12/2010 - 21:34 | 723906 Rotwang
Rotwang's picture

About 19 out of 20 Vulture Financed companies travel that route.

It's the twenty-bangers that make up for it.

Fri, 11/12/2010 - 18:48 | 723582 CustomersMan
CustomersMan's picture

 

  They may have already been taken aside for the kind of "chat" that you do not repeat or people go missing.

   By picking Silver as the commodity to war against,...you have hit not just close to home, but home itself. How can you seperate J.P. Morgan from the FED? Its not possible.

Fri, 11/12/2010 - 19:00 | 723608 Ben Graham
Ben Graham's picture

J.P Morgan is one of the principal owners of the Fed.

Fri, 11/12/2010 - 20:57 | 723817 doolittlegeorge
doolittlegeorge's picture

I hear they 'Smoke Cohiba" too.

Fri, 11/12/2010 - 18:14 | 723486 Turd Ferguson
Turd Ferguson's picture

And 17,000,000 oz is about 3% of the annual production of the entire world. All bought over two days?

Seems implausible to me.

Fri, 11/12/2010 - 19:02 | 723612 Ben Graham
Ben Graham's picture

Sprott bought $575,000,000 in silver from 11/3 to 11/8

Fri, 11/12/2010 - 20:29 | 723766 mark mchugh
mark mchugh's picture

Especially considering silver fell 3% this week.

Sat, 11/13/2010 - 00:14 | 724217 Burnbright
Burnbright's picture

Hmmm... so silver lost 3% but they added 3% of world production. Sounds like they just added 3% paper.

Sat, 11/13/2010 - 02:03 | 724313 prophet
prophet's picture

Math check.  Busy time.  "Only" about five or less times average daily run rate.   

Fri, 11/12/2010 - 18:13 | 723490 MGA_1
MGA_1's picture

I wonder if all this stuff surrounding silver is causing fractures in the financial system?

Fri, 11/12/2010 - 19:19 | 723641 Dapper Dan
Dapper Dan's picture

Excerpt from  a great article by Larry LaBorde on the Hunt brothers.

http://silverbearcafe.com/private/01.09/circlek.html

   On January 7th of 1980 the COMEX changed their rules to only allow 10 million/oz of contracts per trader and that all contracts over that amount must be liquidated before February 18th. . The CFTC promptly backed up the ruling. On January 17th silver hit $50/oz, Bunker had continued to buy. At that point in time the Hunt's silver position was worth $4.5 billion dollars bringing their profits in silver to $3.5 billion dollars. On January 21st the COMEX announced that it was suspending trading in silver. They would only accept liquidation orders. Silver dropped $10/oz and stayed around $39/oz until the end of January. Scrap silver, old silver coin collections and silverware came into the market - about 22 million oz in all. In early February the Hunt group took delivery of another 26 million oz from Chicago..

By March 14th silver was down to $21/oz. Volker had raised interest rates and the dollar had firmed up (this also made borrowing to speculate on silver more expensive). International Metals still held 60 million oz of futures contracts. Their margin calls on those contracts amounted to $10 million dollars a day! Bunker still believed the price would go back up if only he could promote more buying. He scrambled around Europe looking for a buying partner but the more the price dropped the harder it was to borrow more money against his silver holdings to buy even more silver to hold up the price. Finally on March 25th of 1980 the Hunt brothers ran out of cash. Bunker called Herbert and simply said, "Shut it down". Herbert promptly told his broker the following morning that they could not meet their $135 million dollar margin call that day.

On March 27th (silver Thursday) silver opened at $15.80 and closed at $10.80. The stock market crashed on rumors of Hunt liquidations of stocks to cover his silver losses and then rallied to close at about the same level. The next day silver rallied back up to $12/oz. The Hunt's bullion purchases were all averaged around $10/oz but their futures contracts were purchased at or about $35/oz. When it was all over they owed $1.5 billion dollars.

Fri, 11/12/2010 - 23:34 | 724150 DoctoRx
DoctoRx's picture

This history is interesting if you care about this stuff, but - no offense intended - really irrelevant.  The key point is that in October 1979 the Fed started raising interest rates w a vengeance.  By the time they got Fed funds well above the CPI, the fever in PMs had become a bubble.  Gold went from $385 to (briefly) over $800.  But it stabilized in the $600-700 range.  Silver burst back to $24 in Sept. 1980 w the outbreak of the Iran-Iraq War.  That coincided w Volcker's easing up on interest rates because of A) the recession and B) his desire to re-elect his patron Jimmy Carter.

Then Volcker kept the squeeze on w high real interest rates till August 1982.  That prolonged period of tight and expensive money destroyed PM's till 9/11 forced easy money.

It's all about the money-printing.  The longer and easier the Fed is relative to the real cost of living, PMs will be in structural bull markets unless and until they get so fundamentally overvalued relative to cost of production that such factors as every liar w a mine lease selling future "production" via the futures market brings down the price.  (That comment assumes no hyperinflation, in which of course PMs will literally be priceless.)

Sat, 11/13/2010 - 11:18 | 724662 fiddler_on_the_roof
fiddler_on_the_roof's picture

If COMEX had tried the same on Gold they would have failed.
Asians would have bought the Gold at a slightly lower price because
I think Gold was not too overpriced in their local currency. Hence I repeat
here Silver has no such support.

Fri, 11/12/2010 - 20:58 | 723820 doolittlegeorge
doolittlegeorge's picture

that's an interesting question...

Fri, 11/12/2010 - 18:15 | 723496 plocequ1
plocequ1's picture

It must be the Mr Max Keiser campain

Fri, 11/12/2010 - 18:16 | 723502 RobotTrader
RobotTrader's picture

Well, somebody big was selling silver today...

Probably some big CTA's getting margin called after getting destroyed on their ag positions.

Fri, 11/12/2010 - 18:43 | 723569 tmosley
tmosley's picture

One of the very few true things you have ever said on the subject.

There is certainly a lot of profit taking here as well.  We have run up very far, very fast, and the traders want to book dollar "profits".  Of course, in the end they will get nothing for their efforts, or 1% at best.

Fri, 11/12/2010 - 18:52 | 723590 Miles Kendig
Miles Kendig's picture

Some good calls out there regarding a dollar plus up to squeeze this space, among other things. 

Fri, 11/12/2010 - 21:00 | 723824 doolittlegeorge
doolittlegeorge's picture

now that the government doesn't like it anymore i must say i find myself strangely drawn to it.  how'd that relic called "Kodak" do?

Fri, 11/12/2010 - 18:20 | 723510 apberusdisvet
apberusdisvet's picture

Yes Virginia; there really is a silver fairy riding a unicorn that shits 10,000 ounce bars every minute.

Fri, 11/12/2010 - 18:25 | 723534 Shameful
Shameful's picture

How dare you talk about Blythe that way!?!?!

Fri, 11/12/2010 - 18:19 | 723511 Ripped Chunk
Ripped Chunk's picture

JPMorgan Chase =  Epic collapse

Keep buying silver brothers and sisters

Fri, 11/12/2010 - 18:23 | 723526 MGA_1
MGA_1's picture

Nah... backed by the govt.  What this *may* do is pit the Asia govt's against the US govt over silver deliveries... have to see how it all plays out.

Fri, 11/12/2010 - 18:31 | 723546 the rookie cynic
the rookie cynic's picture

Look what happened to the other GSEs: Fanny and Fred.

Goverment won't let them go bankrupt, but could we see similar stock movement in the TBTFs, like we did in Fannie and Freddie.

What say you REGGIE?

Fri, 11/12/2010 - 18:45 | 723576 tmosley
tmosley's picture

The government can't produce the silver any more than it can stop the tide from coming in.

Fri, 11/12/2010 - 22:20 | 724016 Snidley Whipsnae
Snidley Whipsnae's picture

MGA1 +1

Since the Fed is unaudited and unaccountable we really do not know where QE2, QElite are being directed.

Is the Fed printing lots of dollars to backstop JPM short positions via a backdoor?

The ten year rise in PMs is not helping the dollar look good and a massive attack by shorts with a coordinated margin increases by commodities exchanges will muddy the waters for G20 members. Was it a contrived 'just in time' move?

So some leveraged players in PMs got a bruise and learned a lesson. Physical PM holders were not hurt much. Consolidation and retest with stronger hands at the helm.  

BTW, local scrap PM buyers are running full page ads in 2 local newspapers wanting to buy complete silverware sets, trays, pitchers (and of course scrap gold)...but NO silver jewelry. What is that all about?

 

Sat, 11/13/2010 - 17:39 | 725237 Thanatos
Thanatos's picture

On Silver jewelry: A lot of silver jewelry is not halmarked, what is halmarked is often not what it says it is.

There is a TON of Mexican (35%~) Silver jewelry out there and a lot of it is stamped sterling or .925. This Mexican silver has a lot of nasty stuff co-mingled with it. When the refiners melt it down, they have to perform additional assays and processes on it to clear out all the cadmium, chromium, nickle, lead, etc. that the stuff contains. If they get it in with a batch of real .925 during a melt, it contaminates the whole batch and equipment, so they hate the stuff.

There are a few refiners that will handle the stuff, but you have to have quite a bit of weight to make it profitable.

Sat, 11/13/2010 - 08:59 | 724572 JonNadler
JonNadler's picture

you can't eat silver.

And besides if the Chinese raise their interest reates, Silver will drop. Sure the Chinese will raise interest rates and make their currency stronger, that's just what they want.

Sat, 11/13/2010 - 19:24 | 725367 Orly
Orly's picture

Why are you stealing avatars, asshole?

Hey, are you still here?  Omigod.  How dare you come here and pretend to be someone else, even though you're "anti-pretending" to be...

What a fucking dick!  Go "anti-pretend" somewhere else, moron.

Until you have something to add with some substance, don't come around here pretending to be someone else, or unpretending as it suits your psychosis.

it is what is known as "stealing."

You're a thief.

Nothing...

but a thief.

 

Cease and desist, fuckwad.

Sat, 11/13/2010 - 21:09 | 725501 JonNadler
JonNadler's picture

yawn   zzzzzzzzzzzzzzzzzz

Fri, 11/12/2010 - 18:19 | 723513 iamse7en
iamse7en's picture

I don't get all this mumbo jumbo. What effect will this move have on the physical silver market? Who is in charge of this SLV? Who makes these decisions? Why'd they do it? 

Fri, 11/12/2010 - 18:23 | 723527 cossack55
cossack55's picture

Bernie Madoff. No more questions.

Fri, 11/12/2010 - 18:26 | 723535 Shameful
Shameful's picture

And i the only one waiting for him to get a pardon and join SS.  They need a man of his proven track record to help challange the problems facing this nation.

Fri, 11/12/2010 - 20:04 | 723726 israhole
israhole's picture

Yep, Madoff had a great run.  50 years of steady 10-12% returns without ever placing a trade.  

Fri, 11/12/2010 - 21:02 | 723832 doolittlegeorge
doolittlegeorge's picture

didn't even pay his broker.  what a phucker.

Fri, 11/12/2010 - 21:03 | 723836 doolittlegeorge
doolittlegeorge's picture

didn't even pay his broker.  what a phucker.

Fri, 11/12/2010 - 18:22 | 723519 macholatte
macholatte's picture

basket creation = hording = speculative demand = bubble = Lawrence Welk

 

http://www.youtube.com/watch?v=Nj8GJ6rM1mA

Fri, 11/12/2010 - 18:22 | 723520 DollarDive
DollarDive's picture

When I order silver online, the invoice says:

5 oz (APMEX) .999 Fine Silver Bars(Nov 30th)
As low as $1.19 per oz over spot! These items are on a slight delay.
We expect to be able to ship these items by November 30th or...

------------------------------------

It will be interesting to see how long the delay really is.. :)

There is nothing after the  "..." on the invoice.  I'm not sure what this means, but I assume that it's giving the firm some wiggle room on delivery.  The idea of everyone buying a few ounces of silver is brilliant ..... KUDO's !!

--------------------------------------


Fri, 11/12/2010 - 18:32 | 723547 CustomersMan
CustomersMan's picture

  I don't believe for a second the trust has bought and will have delivered to it the amount of physical silver claimed.

 

  There may be derivatives including futures that have a claim on physical, but when push comes to shove.....it will not be delivered. What do you think cash settlement of the futures contract for silver is for?

 

  It's for screwing the true physical silver holders out of their rightful price.

Fri, 11/12/2010 - 18:57 | 723600 NotApplicable
NotApplicable's picture

Absolutely. I'll be interested to see what Harvey Organ has to say when next week's comex numbers come out, as there is no way these baskets are holding anything but paper.

While I'm no expert (on anything) here's what I see happening. Anyone who knows better, please correct me where I've went astray (or left holes).

New baskets of SLV shares get created when the ETF premium is too big to ignore. They buy paper silver on the cheap, stuff it into a SLV basket, and get paid, pocketing the premium. Later on, once the premium goes back down, they go back to the ETF liquidating baskets, buying back physical silver (once again) on the cheap.

Add to this the fun at the crimex with JPM, and the fails to deliver on SLV that Quinvarius noted, and one can see how this system works not only to suppress the price, but to accumulate physical while doing it. It's kind of like a set of bellows, pumping air back and forth to generate a bigger fire.

Fri, 11/12/2010 - 20:33 | 723771 TheGoodDoctor
TheGoodDoctor's picture

I was just thinking about this while reading this thread. This just confirmed my thoughts on the paper game. Thanks for clarifying.

Sat, 11/13/2010 - 16:53 | 725183 Al Gorerhythm
Al Gorerhythm's picture

This is a great place to dump and launder all your OTC "short" silver derivatives. No audits, no regulators, no deliveries, no silver.

Fri, 11/12/2010 - 18:40 | 723565 flaunt
flaunt's picture

I bought some 1 oz bars from apmex last month that aren't going to be delivered until the 17th of this month.

 

Fri, 11/12/2010 - 18:31 | 723545 SloSquez
SloSquez's picture

Massive short launching:

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

Me likes negative feedback loops.

Fri, 11/12/2010 - 18:48 | 723583 Miles Kendig
Miles Kendig's picture

It's just a paperwork issue.  Move along

Fri, 11/12/2010 - 18:56 | 723595 belogical
belogical's picture

It would not surprise me if they got the silver from the treasury on loan. The Asians are dealing with the most crooked individuals in this world. As Jim Sinclair always says, "the microwave their mother for the right price".

ICBM launch earlier in the week, Obama bad mouthing, looks like some fightings going on.

 

Fri, 11/12/2010 - 18:56 | 723596 Clint Liquor
Clint Liquor's picture

From the SLV Prospectus:

"Upon at least ten days’ prior notice, during our regular banking hours, any such officer or properly designated representative… will be entitled to examine on our premises the Silver held by us on our premises pursuant to this Agreement and our records regarding the Silver held hereunder at a Sub-Custodian…Unless we have received at least ten days’ prior notice and reasonable assurances (in our sole discretion) that any costs and expenses incurred in connection therewith will be indemnified to us, we shall not be required to move to our premises any Silver held at a Sub-Custodian for purposes of making it available for inspection as provided herein.”

Anyone care to guess how much of their Silver is held by the unauditable 'Sub-Custodians'?

Fri, 11/12/2010 - 23:40 | 724161 DoctoRx
DoctoRx's picture

Not only are the sub-custodians unauditable, the sponsor is not responsible for them "losing" it.  The risk is on the holder of SLV.

Fri, 11/12/2010 - 19:30 | 723657 Sean7k
Sean7k's picture

This is serious fun. I think the hardest thing to learn in investing is patience. If you are the type to see the road ahead, it is easy to get impatient and make terrible trades. To want it all to hurry, but you have to wait.

Paper silver will collapse, but when? Not until JPM and HSBC have recovered their positions and can come out ahead. They have a mission to accomplish and will be rewarded. 

Does this matter? No! If they continue to debase currency- gold and silver will continue to protect wealth better than any other instrument. 

Will there come a time to sell? Sure. Is it on the horizon? No. Is it over the horizon? No. What has to happen? All fiat currencies must not be debased. Investing in companies is useless if they are redeemed in fiat. 

Until then, real money is the only refuge. 

Sat, 11/13/2010 - 02:19 | 724328 Green Leader
Green Leader's picture

"Investing in companies is useless if they are redeemed in fiat. 

Until then, real money is the only refuge."

There you go!

I've been wanting to read something this direct. In reciprocity, it's time to bring the

Green tip of the day: today's tip is courtesy of one of our members, the 'Ambassador'. We need to stockpile lots of soaps & detergents (I'd say 10 years' worth) for the difficult times ahead. To conserve dishwashing detergent, get a little spray bottle like the ones hair stylists use and dilute 1:5. Spray sponges with the mix and also pots and pans. Detergent will go a long way.

Be well.

G/L

Fri, 11/12/2010 - 19:30 | 723662 bugs_
bugs_'s picture

I guess they'll need some new roads leading to SLV's vault.  523 tons would put a lot of wear and tear on those roads especially all in one week.  Those roads must be like totally ruined.

Fri, 11/12/2010 - 19:38 | 723676 mogul rider
mogul rider's picture

Buy the weakness - buy the weakness. Buy the weakness.

That's all that matters I'll buy gold and silver all the way as I have done for 15 years year in year out. As my family has done for generations.

 

Man -these ETF's are vorteces

It is becoming mind boggling the size of the ETF's and sucking sound they make when go on the buy.

My spider senses are telling me something is wrong in the force, I just haven't figured out what yet. But I have an ominous feeling about the events today.

That feeling has never been wrong in my life. I'm not sure if it's bad for gold/silver, bad for USD, bad for MUni's or what but something just happened today.

can you feel it?

Any thoughts guys?

Fri, 11/12/2010 - 21:51 | 723958 Ckierst1
Ckierst1's picture

I dunno, but whatever it is, I prefer to be long PMs, even if they are underwater because of the dip.  Vortices refers to a good cyclonic term.  I think that another side effect of the metals ETFs has been to suck funds away from traditional alternative (to physical) paper PM investments, namely mining equities.  It could be one of the reasons why PM equities seemed to be so slow to emerge from the "Crash of 08."  As for your spidey sense, there were several forces at play today and their impacts may have muddied the water somewhat.  I don't think the $ was all that involved in today's action.  It seemed more rangebound.  I think the China thing had a large impact and it may be ongoing until it is priced in.  It hammered damn near everything and kinda knocked Benny's/Barry's recovery into a cocked hat.  If this Wall St. shock continues, I wonder if it will trigger "08" grade liquidations in deflation, rather than the expected juicing up from QE II.   That may have been the shortest string ever pushed by the central banksters.  The Irish thing probably had an impact.  The looming expiry probably had an impact.  All kind of crap going on.  The herd is really skittish.  Chinese subs surfacing into the US task force???

Sat, 11/13/2010 - 00:24 | 724226 DoChenRollingBearing
DoChenRollingBearing's picture

Yeah, I'm feeling it, a creeping unease in the air, something wicked this way comes, and soon!

NO to precious metals ETFs!  Buy physical only.  But, it is of course possible that deflation may rear its head.  So I have no problem with large holdings in cash (that explicitly includes FRNs in the mattress) as well as large holdings of PMs.

Munis?  At this point not for me.  Lots of local .govs running into financial problems that might speak "DEFAULT!".

Precious metals, rural farmland, cash, stocks are all OK if diversified throughout.  If you do not have much, then get some of your money into PMs, the historical way to preserve wealth.

Sat, 11/13/2010 - 01:59 | 724311 mark mchugh
mark mchugh's picture

The whole mess is ominous, but I wouldn't make too much out of today.

Tyler's done work showing how POMO days are good days for stocks.  POMO's good for commodities too.  I think retail longs (in just about everything) ventured back to the trading floor today and were promptly mugged.

Today's action may have embolden shorts.  If they show up on Monday, it will be their turn to get mugged.  I really think the state of the market is so bad that mugging whoever shows up is the new normal.  Is that ominous enough?

Fri, 11/12/2010 - 19:57 | 723709 GoldmanSux
GoldmanSux's picture

Add to that last week's IPO of Sprott Bullion Trust of about $500 million.

Fri, 11/12/2010 - 20:00 | 723717 peterpeter
peterpeter's picture

> the possibility that any one entity could have manged to purchase such a massive amount of
> actual silver, of which 352 tonnes was supposedly acquired on November 10, without completely
> destabilizing the actual supply and demand mechanics, and creating a vicious loop where basket
> creation leads to a further surge in prices, is just slightly mind boggling.

iShares did not need to buy any silver, nor did any one party on November 10th.  Creating baskets of ETFs involves an authorized participant delivering to iShares the proper amount of silver for a creation unit (48,889 ounces per basket of 50,000 shares of SLV).

That AP could have already been sitting on a physical silver position and found that the best way to exit the market was to convert their physical into SLV and then sell SLV, and this is more likely the case than that they purchased the ounces on the market that day and decided to convert them into SLV shares.

ETF creation units outside of an initial offering or secondary are only created (or destroyed) by authorized participants (large broker dealers), and the act of creating units if anything does not imply that someone was buying large quantities of silver, but rather that someone already had a large silver position and was unloading.

Further, a change in price of silver or SLV does not require anyone to either buy or sell the underlying assets - it is at the sole discretion of the APs to arbitrage the ETF components (in this case silver and cash) against the shares.

It boggles my mind that this mistake is made over and over on this and other blogs (and more commonly with reference to gold and GLD), with the notable exception of KD who recently wrote this excellent post

http://fridayinvegas.blogspot.com/2010/11/no-gld-is-not-overdue-to-buy-2...

Fri, 11/12/2010 - 20:12 | 723728 Fraud-Esq
Fraud-Esq's picture

What big hedge funds have taken INCREASING positions in Silver? Anyone? 

Greenspan was a paid consultant for John Paulson before Paulson took his big Gold position. I'm sure most of you know that. I always thought Greenspan's old 1960 paper was the intellectual heft behind Paulson's Gold position (and the deteriorating conditions obviously). Always worth another read, even though he belongs in jail. When I learned Greenspan was consulting with one hedge fund, who made the biggest trades, it was as if was earning a massive profit off him BLOWING UP THE SYSTEM he previously deplored. 

Psychiatrists will study it someday, I'm sure. Prosecutors should study it now, but they won't. Congress should also eliminate conflicts of interest and erect a Chinese wall between the Fed and the industry, but they won't.

This will leave us all wondering how the guy who left the ticking time bomb behind at the Fed could then leave and consult with the ONE hedge fund which would make the TWO biggest trades in HISTORY based SOLELY on knowing the damage he had done. It's as if Greenspan shorted his OWN actions inside the FED for the two greatest trades in world history. Amazing, isn't it? Sounds like a book or movie, doesn't it? Try to fund that project, I dare you.

The media doesn't discuss Greenspan's exclusive relationship with Paulson, at all. It's blacked-out.

http://www.321gold.com/fed/greenspan/1966.html

Fri, 11/12/2010 - 21:10 | 723849 doolittlegeorge
doolittlegeorge's picture

i like this form of lunacy.  "Greenspan was like Pete Rose callin' the trades in while chairing the FOMC" ("buy gold"...he'd say with a low whisper...then a "who what?  oh, nothing going on here...please continue with your....yeah, that thing) LOVE IT!  Boy would this story line sell well in Hollywood!  We'd all be MILLIONAIRES! I think we have an all star cast ready to rock right here at ZH!  Who want's to play "the patsy Ben Bernanke"?  TD?  Is that your name i hear 'em callin'???!!!  "it's for the team, man. that would TEAM ZH now, mo fo!"

Sat, 11/13/2010 - 12:28 | 724752 technovelist
technovelist's picture

This will leave us all wondering how the guy who left the ticking time bomb behind at the Fed could then leave and consult with the ONE hedge fund which would make the TWO biggest trades in HISTORY based SOLELY on knowing the damage he had done. It's as if Greenspan shorted his OWN actions inside the FED for the two greatest trades in world history. Amazing, isn't it?

I'm sure it's just a coincidence!

Fri, 11/12/2010 - 20:13 | 723740 Silversinner
Silversinner's picture

Only gold and silver are money.

fiat is only promises and debt,it's

a nice game untill the music stops.

Promises will be broken and debt

won't be repaid and that will leave

most without wealth especially the

elder.Protect your personal property(rights)

from conviscation,buy some PM and deprive

the bloodsucking vampires of their source.

Gold and silver gave mankind financial

security trough the ages.It was,is and will

always be the most accepted international

means of payment under all curcumstances.

If one ownes PM your never without money.

Thousends of historic examples have proven

PM supirior on the medium(!) term over

gouverment issued paper currency.

Case closed

Fri, 11/12/2010 - 20:17 | 723745 Clint Liquor
Clint Liquor's picture

"iShares did not need to buy any silver, nor did any one party on November 10th.  Creating baskets of ETFs involves an authorized participant delivering to iShares the proper amount of silver for a creation unit (48,889 ounces per basket of 50,000 shares of SLV)."

Or as a 'Sub-Custodian' they could deliver a piece of paper stating they held the Silver. How convenient.

Fri, 11/12/2010 - 20:31 | 723768 KidDynamite
KidDynamite's picture

Tyler - can you explain what you meant by "without completely destabilizing the actual supply and demand mechanics" ???

 

I mean, surely you noticed the price of silver absolutely ripping... That would seem to reflect perfectly normal supply and demand mechanics, reflected by the accumulated silver that flowed into the SLV trust. 

Fri, 11/12/2010 - 20:32 | 723770 ziggy59
ziggy59's picture
interesting article: Grave Warnings to Precious Metal Investors

http://seekingalpha.com/article/236304-grave-warnings-to-precious-metal-...

 

 

Fri, 11/12/2010 - 23:13 | 724106 MsCreant
MsCreant's picture

Robo-inspectorate fraud?

What if robo signers have been used to sign off on inspected vaults that have not been inspected?

Fri, 11/12/2010 - 20:33 | 723772 f16hoser
f16hoser's picture

HSBC.....I'm sure they have all the Silver they claim to have. Why would they lie?

Can one independent person step forward with absolute proof that HSBC is actually holding all this silver? I don't think so........

 

Hoser

Fri, 11/12/2010 - 20:42 | 723794 mark mchugh
mark mchugh's picture

Anybody heard anything as to when Turbo plans to start shipping those 5 oz. "America the Beautiful" coins?

Or should I expect delays?

Fri, 11/12/2010 - 20:50 | 723808 mark mchugh
mark mchugh's picture

Check this out. 

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=130452948944

Somebody is "pre-selling" them on ebay for $375 ($75 an ounce)

Can I do that too?

 

Fri, 11/12/2010 - 21:04 | 723839 goldsaver
goldsaver's picture

Really? $75 an ounce and delivery sometime in the future? Must be a JPM employee.

Fri, 11/12/2010 - 21:16 | 723865 doolittlegeorge
doolittlegeorge's picture

yeah..."they're called the government."  i don't know why i find that funny.  it really isn't.

Sat, 11/13/2010 - 19:27 | 725372 RockyRacoon
RockyRacoon's picture

A seller can do this.  There are conditions:

http://pages.ebay.com/help/policies/pre-sale.html

Fri, 11/12/2010 - 20:55 | 723814 goldsaver
goldsaver's picture

This is a general question to anybody out there. Since this is an international forum, does any one knows of a bank with online banking but that accepts gold accounts? Here is the deal. I'm going to be closing my accounts the 7th of December, but my employer only pays by direct deposit. I also do a lot of online business (as many of us do). Is there a bank that would allow me to open an account but keep the deposits in PMs? I don't mind if it settles deposits/withdraws daily in fiat, I just want the balances kept in gold or silver available on demand? Anyone?  

Fri, 11/12/2010 - 21:15 | 723860 doolittlegeorge
doolittlegeorge's picture

MCC was talking on CNBC about banks that have a "private gold standard system" already.  They were Austrian of course but the actual names i don't recall.  interesting discussion actually...especially when the subject about "how easy it would be to do, actually" came up.  and that of course is the irony:  the banks could simply "start a gold standard."  why they simply "don't" has always been a mystery to me....

Fri, 11/12/2010 - 21:22 | 723874 mark mchugh
mark mchugh's picture

Maybe goldmoney.com?

*****I don't know what there deal is, so make sure you check it out thoroughly******

****This is not a recommendation****

Fri, 11/12/2010 - 21:59 | 723981 Ckierst1
Ckierst1's picture

Hit James Turk's website.

Fri, 11/12/2010 - 23:18 | 724128 goldsaver
goldsaver's picture

I've been reading about e-gold. Apparently the justice department claimed that they were a money laundering operation. They put the owners thru hell for a couple of years until they plead guilty to running a money laundering operation. Whats funny is that the sentence was 200 hours of community service and $200 fine. It looks to me that someone in Mordor at the Potomac did not want their operation to continue. Any one heard of this outfit?

Sat, 11/13/2010 - 00:13 | 724213 FEDbuster
FEDbuster's picture

As Max Keiser suggested every American should go out in the next couple of weeks and buy one oz. of silver.  Go to your local coin store, cash for gold place, etc... and buy one oz of silver.  Better yet, you should buy one oz of silver for everyone on your Christmas gift list.

Imagine what the demand side would look like, if say 100 million oz of physical silver was demanded by the public over the next month?  That would be the short squeeze to end all short squeezes.  I know I am looking to add a couple of rolls of eagles, if they drop to under $500./roll.

Sat, 11/13/2010 - 18:49 | 725321 DoChenRollingBearing
DoChenRollingBearing's picture

I bought my roll of Silver Eagles today.  Did my part.

Sat, 11/13/2010 - 19:24 | 725366 RockyRacoon
RockyRacoon's picture

I usually keep rolling bids on silver on eBay using esnipe.com to place the bids.  I makes me price and I keeps it!  If I get it, fine.  If not, move on.

Fri, 11/12/2010 - 21:01 | 723831 greenewave
greenewave's picture

For more on the Corruption on Wall Street, watch the YouTube video Bankrupt Motors IPO, Hedge Fund Fraud at (http://youtu.be/JmrZikbC0zE).

The American public gets robbed, and we are supposed to be thankful??!!

Anonymous- 

47 seconds ago

Great upload cgreen34, the best fictional writer in the world couldn't even make this nonsense? up. Makes me sick.

Fri, 11/12/2010 - 21:08 | 723846 goldsaver
goldsaver's picture

Check your link. 

Fri, 11/12/2010 - 21:08 | 723848 midtowng
midtowng's picture

That's a lot of paper silver.

Personally I'm glad that PM's got crushed today. I've been sitting on too much cash over the last few months. Now I have an entry point for adding to my position.

Fri, 11/12/2010 - 21:27 | 723885 doolittlegeorge
doolittlegeorge's picture

Gold resistance at $1300.  we shall see if this is merely a correction or the beginning of something more "severe."  also "never underestimate the sudden need for a war" from the powers that be should the fact that "things aren't going according to plan" make them realize "things really aren't going according to plan."  did you know in the the name of a project called "Manhattan" our government "liberated" a few hundred million ounces of silver in order to irradiate it?  just remember that when you walk around with that silver dollar in your pocket for 20 years and suddenly "the radiation detector goes off at the airport."

Sat, 11/13/2010 - 00:04 | 724199 gwar5
gwar5's picture

James Turk at King World News says there are massive physical purchase orders @ $1308- 1317

If/when gold gets that low the Brinks trucks will be busy delivering in your neighborhood

Then up she goes again. Gold will not be denied.

Methinks any USA austerity is a head fake can only slow the rise

Fri, 11/12/2010 - 21:58 | 723976 Endstrategy
Endstrategy's picture

How much are central banks shorting silver if so much physical is being bought up?

Fri, 11/12/2010 - 22:26 | 724025 Kina
Kina's picture

Of course without JPM and HSBC naked shorts gold and silver would be on its steady climb still.

 

It is galling that blatant criminal activity in the markets is the thing costing other people, and we have regulators who must know this intimately. They are intimately entwined with the criminal manipulators, systemically corrupt CFTC.

 

If people have lost money on silver it will have most definately been the fault of crimanal manipulation of the market.

 

Like everything else in the USA if it is a bankster raping your sister, the politicians will stand arouind chearing and the watchdogs sitting back laughing at you. Frankly, Americans no longer have a country, the country belongs to handful of banks and corrupt politicians.

Sun, 11/14/2010 - 14:35 | 726188 Thunder Dome
Thunder Dome's picture

USSA bitches.  Don't fight the Politburo.

Sat, 11/13/2010 - 00:05 | 724201 gwar5
gwar5's picture

If they're buying, I'm not crying.

Sat, 11/13/2010 - 00:30 | 724237 jpritikin
jpritikin's picture

The attraction of SLV is a wide variety of option strikes and expirations with tight spreads. Where else can I go for low premium silver options?

Sat, 11/13/2010 - 02:12 | 724320 nathan1234
nathan1234's picture

The only reason the dollar is still where it is , is because it is used as global resrve currency. If not no one would bother about it considering the state the US is in

Sat, 11/13/2010 - 07:52 | 724443 CU1981
Sat, 11/13/2010 - 08:13 | 724479 Silverhog
Silverhog's picture

Is this a move to open up the SLV market to more players or an attempt to cover existing paper? Lawyers must now be hitting JP Morgan with discoveries for their suing clients.

Sat, 11/13/2010 - 09:05 | 724574 JonNadler
JonNadler's picture
It’s time to play name that moron   Who said in June 20, 2008

“Gold: Don't count on $1,000. With oil prices rising and the dollar weakening, gold has climbed back above $900. But there's not much more headroom.”

 

b.      Paul R. La Monica

c.       Dennis Gartman

d.      Me

e.       Tyler Durden

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