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SLV Is Now "Hard To Borrow" At Goldman
And now for the latest news in the silver meltup: SLV just moved to Hard To Borrow status at Goldman Sachs. This pertains to institutionals who are Goldman Prime Broker clients. Soon coming to every prime broker near you. Comex margin hike imminent now that it is impossible to short the largest silver ETF in the world.
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SILVER BITCHES!!!!!!!!!
you just had to get that in, right?
Don't break out the champagne yet. Preparing for something!? Homeland Security/Miami-Dade Police are doing drills to protect their bosses -- the banks. Three black hawk helicopters do a practice drill last night dropping a SWAT team on the roof of Bank of America headquarters on Brickell Avenue in Miami.
http://www.youtube.com/watch?v=n6qwYKLg_NY
http://www.miamiherald.com/2011/04/19/2176185/military-style-helicopters...
Hmmm... starting to soil their pants, are they? :-)
i forecast in a few days we will hear vandals had set a fire in the gold storage facility at this location.
then in a couple years, insiders will make a movie about the decision to send this group in to shut the vault door, cause the fire had grown outa control.
Would be tough to either land a copter or repel onto a brightly burning building.
They are practicing for the inevitable hostage situations that are expected to develop at banks as people realize they have been cornholed with a sharkskin coated tungsten weiner. During the Long Depression they were lynching bankers.
Cool, the precedent HAS been set. Whats that whole history repeating itself thingy.
History never repeats,
but it usually rhymes.
mark twain?
Rhino it's funny the coincidences in life as I just saw something about shark skin being used as sandpaper by the ancient crafters of the world.
Ouch!
Try getting into a fistfight with a guy wearing sharkskin gloves. It's as bad as lion tongue for stripping skin off you.
Tell me about it - that exotic "Lioness BJ" I got while hanging with the Bear (Stearns) guys way back when about did me in.
"as people realize they have been cornholed with a sharkskin coated tungsten weiner."
Now that's funny! Well, it is as long as I'm not on the receiving end of that weiner.
You can tell who owns our "Law Enforcement" officers anymore. You can bet they aren't practicing to break into the bank and pull out the bankster criminals. Nope, instead you know they are training to protect the criminals from the average folks who have had enough of their crimes...the so-called terr'rists.
This county has turned into a joke. I hate to say it, but the sheople pretty much deserve the shit sandwich they're going to be served. I just hope they can figure out who served it to them and take out their anger on them instead of everybody else as they will be directed by Faux News, CNN, etc... I see a low probability of that though, as the nature of the sheople is to react, not think and figure out what's happening to them.
Black choppers bitchez!
I remember writing an essay on 1984 that focused on the symbolism of helicopters. They're used to intimidate people in my opinion anyway.
They are as often or more often the symbol of safety; the big metal bird in the sky coming to lift you off a roof or hot LZ. Think medivac, Coast Guard, Vietnam...
Unless you are the Vietcong or a patriot standing up to the Govt
Cue MASH music..
Yeah, I remember safety and Viet Nam in the same sentnce once. Like "Get me the fuck to Safety, those crazy slopes are trying to kill us".
One 2nd hand RPG later, they're down a very expensive symbol of the corporatocracy and you're out about $100. Fair deal!
Holy shit. That was taken from the building across the street from me. They are coming for my physical lol.
PS been reading since the blogspot days, first post. Figured it was ok to register since the black helicopters are apparently circling already anyways...
Yeah, it's when they stop and pick you up is when you should worry. Otherwise you can go....
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Ive heard the police had said it was part of a scheduled movie scene filming, which happens pretty often here, but it was more that they were trying not to look stupid for not knowing.
No source, just heard on the street...
fuck yeah, this was no game; they probably went in to steal/confiscate documents/etc.
Welcome to the club, YC2!
If you want first row seats this summer at re-education camp, make a donation to ZH.
move along people, nothing to see here.
Heyyyy... I posted here a month ago about a cargo helicopter taking a huge cylinder from BoA:
http://www.zerohedge.com/article/follow-londons-biggest-demonstration-de...
by boricuadigm-shifton Sat, 03/26/2011 - 11:17
#1102820
Anyone has noticed helicopters in Bank of America(or other banks) in other cities? Today I saw a huge helicopter hovering over Bank of America building in (Brickell) Miami, FL. I know, I know... conspiracy theory... But it may me think. What is a huge helicopter doing at 8:30am hovering over a bank trying to land what it look like a 15' diameter x 10' tall cylindrical object on a Saturday Morning?
Food for thought!
THere is definetely something going on.
Here's some nourishment for your brain: it was an air conditioning compressor.....duh
I can't wait until we the sheople start using silver for our currency between our private transactions.
Finally, those silver quarters, dimes and half dollars will come back out of circulation.
:)
Some day soon I hope. Screw Washington DC beltway bandits and the whole Fed banksters.
Next train, back to pre-1860?
I'm having a new Labor Rate sign made for the Shop.
Shop Labor Rate is $2 in Silver Eagle Coins per hour.
I wouldn't pay that, just put a sign up saying "accepting gold and silver" and hash out a deal. You can't just set rates in stone when silver is going up 60% in 4 months. You would get more takers if you accepted the equivelent FRN rate in silver but slightly below. You should give other people willing to trade you silver a deal as incentive.
Thanks TD. I just loaded up on ZSL at 100k. Everyone is so high right now it's sick. Dipshits at the gym are speaking with authority now about gold and silver.
time to sell when your co-worker in the next cubbie asks how your silver accumulation is coming.
This all sounds like a setup to me.
Amen to that. Espically when these folks were still in their tech undies when silver was at 4.
When the SnP the other day put the US on notice, the same fellow was all about selling treasuries. When I told him the 10 year was unchanged and the dollar had a nice day, he looked very confused.
These folks need to be punished just a wee bit to remind them that it's not that easy
The dollar's a piece of crap and losing value as we speak. So please sell me your silver. Or better yet, I'll buy it on the dip after the chickens sell.
I would sell that after options experation if I were you, silver will be higher next month but a dip should be here by tuesday.
Do not underestimate the manipulative play on silver that is being set up for this weekend, when liquidity is very low and many markets are closed. I hope you all loaded up your protective puts above $45., before this "news" (well known already within PD land) broke.
straddle performing nicely!
Bear raid tomorrow about noon according to Turd. Margin Hike too coming I'm sure.
almost too easy....meanwile...the 'big fade' is workin over at the miners party. No position limits means they gotta fook with the jr.'s first. Like a killer whale with a seal pup.
"Hey those seal pups were just asking for it with those sad little beady eyes all staring at me. They were asking for it I say!"
- The Global Kleptocrats
basically.
http://www.youtube.com/watch?v=UCDTT7Rc5pk
for a newb, what affect will a margin hike have?
If recent history is any guide, opposite of what they wish.
I'm noobish at this also but I think it means for those buying option puts or calls on futures will have to buy a bigger chunk at a time.
margin hike typically flushes out speculative positions who don't wish (or can't) pony up more money to play.
problem is that these 'hikes' have had diminishing returns and typically the market recovers in short order. I wouldn't be surprised this time to see nothing at all come from another hike.
the realization is that they may have totally lost control.
A margin hike forces people who are investing with a "leveraged" position to post more collateral.
So, say I want to buy a commodity like silver. In order to invest, I don't have to put up the full amount right away. If the amount is (a nice round number) $100,000, I can invest by putting in part of that amount (the margin).
So, they hike the margin requirement. If I'm all in with no extra cash to meet the new minimum amount, then I would need to sell some of my position to raise the cash needed to meet the new margin requirement.
On a grand scale, they hope the margin hike forces enough people to have to sell to cover (raise enough cash), thus driving down the price of the commodity because they have to sell at whatever price they can get to post the cash as collateral. This allows people who are underwater (losing money) on short positions to get out of there losers with a smaller loss.
This has always worked fairly well for the criminals in the past; however, we find the margin hikes humurous now because their effects are so small and short lived.
Perfect, thanks guys.
well, we don't want them ALL to fail, do we?
Here's Tyler's post last go-'round:
http://www.zerohedge.com/article/inflationary-guerilla-tactics-resume-co...
and you can track the movements following.
- Ned
Margin hikes mean nothing to people who to take physical delivery. In fact, these things usually drop the price making it easier for us to buy more. Lately, margin hikes have sparked buying have they not?
Hi JLee,
Can I ask you who's Turd and what do you mean with Bear raid (which markets)?
Thank you,
P
http://tfmetalsreport.blogspot.com/
Thank you
No problem. Not to long ago I was asking the same questions.
You buzzed in...
No I didn't...
Yes, you did..
Yea, well that's your opinion.
Good, the last bear raid was good for about 1.20 drop in price that lasted about 8 hours I think. I can live with 4 steps forward and 1 step backwards dancing.
EDIT: RAID IN PROGRESS NOW .75 drop inside of 30 minutes now.
http://www.kitcosilver.com/charts/24hoursspot.html
Honestly, this strikes me more as high volatility during holiday markets than a raid. The drops were very short, but not as short as I recall them being during other raids. With the thin volume, they should be sharper.
Unless they are changing their SOP, I don't think this is a paper short raid. Just volatility. It'll likely be back up in a few hours.
It bounced right off what looks like a $44.50 support line. You may be right.
Hello???? With that huge volume spike?
Raid.
They can't produce large amounts of volume. Instead, they can sell thinly traded markets, placing large sells all at once, which causes an extremely rapid move, in the order of a minute or so--five at the most. These moves were over 30 minutes.
So no, much more likely that it was just unfounded rumors of margin hikes scaring leveraged longs.
looks like the raid may have been today.
http://www.youtube.com/watch?v=HQwm1v1R-qM&feature=player_embedded
(In a good way ;)
Prez Camacho
--
Who is Not Sure?
brought to you by Brawndo. It's got what the market craves.
Turd and Mr Lennon have been all over this, their insights have been amazing.
Thanks to both of you for your observations. Although I am more of a gold guy, I hold a decent amount of silver, so I can enjoy the ride as well.
Wheeeeeeee!!!
SLV Hard To Borrow?
It's easy to borrow...but hard to pay back at a profit!
I wish I knew someone that stood for delivery at the Crimex to see what would happen. Practically, from what I have read, it's not a very efficient way to actually take delivery (as opposed to just purchasing from a wholesaler/retailer). Be curious to see what would happen.
I believe the minimum delivery block is pretty large.
Took a while (and the last time was 2008), but it's the most cost efficient way to pick up quantity (1000z bars + $0 commission vs. 10*100oz bar + 10*$x over spot vs. 1000*1oz coins + 1000*$y over spot). There are only drawbacks 1) your contract is netted to the actual pour weight of the bar (which can +/1 a pound or more) and 2) you can't easily unload a position in "small" increments (without a bullet casting furnace and buyers who personally trust you).
If they can't borrow it, then they'll just print more silver ... oh wait.
;-)
Is the emperor's manpon showing now that his pants are down?
whats a manpon dude?
a garment you wear whilst counting your silver.
well here is another rather disgusting definition of a manpon. BTW, never knew men had to do this for themselves.
http://www.urbandictionary.com/define.php?term=Manpon
Nice, I never actually read the definition before. I just assumed, now I know.ty
"And knowing is half the battle!" -- G.I. Joe
I blame down low homosexual catchers and Dave's Total Insanity sauce for the phenomenon.
Shit happens.
I was just going for a lebowski reference and some how i got hot sauce and anal sex. Zerohedge, oh the places you'll go.
Yeah, I wasn't quite expecting this outcome. To think someone actually came up with those definitions is what throws me.
God, this is disgustingly gross.
one of the silver bears obviously needs a case or so ;-)
Women wear Tampons...so...
An apparent sour attempt at mixing lowbrow and high brow humor.lol I will do better next time.
What is the rebate? That will tell you how hard it actually is to borrow. The hard to borrow list just means the rebate is not standard... might actually only be an extra 25 basis points.
Load up on those SLV Jun11 25 puts, cockmunch!
+ 10 for choice of insult.
I wonder why he was junked, he's right...
Truth hurts
Beacause the Math-Man-Moron is a troll that has posted nothing but shit about PM's - the whole time being wrong!
".... only $5 to dig it from the ground .....
..... only $5 to dig it from the ground .....
..... only $5 to dig it from the ground .....
..... only $5 to dig it from the ground .....
..... only $5 to dig it from the ground .....
..... only $5 to dig it from the ground .....
..... must ...... eat ..... silverholders' ....... brains ........"
The truth does hurt... all the fucking moron ZH readers junk anything that disagrees with their 'precious'
Meanwhile, the chinese keep raising rates and reserve requirements, the dollar has barely budged since Lehman, industrial uses are only 1/2 of annual supply and production costs are around $5-10 bucks an ounce. Oh yeah, and the backwardation has disappeared.
"But keep buying! It's going to the moon!" scream the ZH readers... ignoring all the evidence, and continuing to buy somthing that has move up almost 150% in six months, on some silly fear that the dollar will collapse and we will be back on the barter system. True, the dollar looks like shit. True, the debt levels suck. But that doesn't mean you should be buying something for $45 dollars that was selling for $18 a few months ago -- or $5 a few years ago. This is how bubbles work - logical idea, illogical price. The dollar may devalue some more, but buying silver at $45 won't save you... if anything, you'll be completely and totally fucked when the collapse comes. What makes you think any one will want the shiny rocks you have buried in the back yard - hoarding silver requirs the same faith as hoarding fiat... you're all just too stupid to realize it.
..... only costs $5 to dig it from the ground .....
..... only costs $5 to dig it from the ground .....
..... only costs $5 to dig it from the ground .....
..... only costs $5 to dig it from the ground .....
..... only costs $5 to dig it from the ground .....
..... only costs $5 to dig it from the ground .....
..... only costs $5 to dig it from the ground .....
..... only costs $5 to dig it from the ground .....
..... only costs $5 to dig it from the ground .....
..... only costs $5 to dig it from the ground .....
..... only costs $5 to dig it from the ground .....
..... only costs $5 to dig it from the ground .....
..... must ...... eat ..... silverholders' ....... brains ........
Ignoring evidence, like, say, the price? Which is, in fact, headed toward the moon?
You said silver's run was over at $34. You have no credibility here. I don't know why you bother.
Shoo.
I'm only trying to help out idiots like you... 95% long any one asset is suicide. Especially when said asset is a bubble.
I'm diversified... my losses on my puts don't mean shit right now... but when it crashes I'll make a mint.
Have fun with your 95% silver long allocation when it is back below $20... it only costs 5 bucks to dig it out of the ground.
But seriously at least buy some puts... you can buy even more ounces with the proceeds when it crashes. But seriously, I can't expect you to do anything remotely as intelligent as that.
And by the way, my Father has a few boxes of rolls of silver quarters that my grandmother had been hoarding before she passed away. He had no idea they were worth anything until he saw that I purchased some puts on SLV in his portfolio for him. They had literally been sitting in boxes in the basement since she passed away 20 years ago. And guess what - he's a seller now - He's quite happy to take the fiat... and I'm sure that there are a lot of other sellers of silver at these high prices too. My guess is the supply is about to increase even more.
No shit, ergo the whole point of a hedge. Yes, buying power is only useful when it is put to work buying something. Time to allocate some more resources and equipment with my silver.
..... it only costs 5 bucks to dig it out of the ground .....
..... it only costs 5 bucks to dig it out of the ground .....
..... it only costs 5 bucks to dig it out of the ground .....
..... it only costs 5 bucks to dig it out of the ground .....
..... it only costs 5 bucks to dig it out of the ground .....
..... it only costs 5 bucks to dig it out of the ground .....
..... it only costs 5 bucks to dig it out of the ground .....
..... it only costs 5 bucks to dig it out of the ground .....
..... it only costs 5 bucks to dig it out of the ground .....
..... it only costs 5 bucks to dig it out of the ground .....
..... it only costs 5 bucks to dig it out of the ground .....
..... it only costs 5 bucks to dig it out of the ground .....
..... must ...... eat ....... silverholders'........ brains ...........
Hey shithead troll, there is only around 20 cents worth of ingredients in an average loaf of bread --- let me see you go to your nearest grocery store and demand that they sell you a $3.00 loaf of bread for 20 cents. Yeah, that has success (and logic) written all over it.
Hey, I'm diversified too: I hold both Au AND Ag.
Tell that shit to holders of Weimar Marks...
How much have they recovered against PMs again?
And as far as prepping goes - PMs are just part of the equation - along with water, food, tools, etc. etc.
Means a retracement/top coming up in about 3-6 months after another 10-20 point rip.
Does anybody know a good source for the historical purchasing power of an ounce of silver/gold. For example. How many pieces of silver/gold were needed to buy a horse, slave, suit in say 1780? 1860? etc.
Google is your friend.
I did, but it's not as easy to find as you might think.
The oldest constant recorded for gold was found inscribed on an Assyrian clay tablet for a bill of sale around the time of Hammurabi. The equivalent for an ounce of gold would purchase 400 loaves of freshly-baked wheat bread.
In the United States, in the early twentieth century, a loaf a bread could be had for 5 cents. Thus, a 20 dollar gold piece would buy you 400 loaves of bread.
Today, with an ounce of gold at $1500., you could purchase 400 loaves of wheat bread for $3.75 apiece. Sounds about right to me.
And I bet their bread was much tastier than the GMO, preservative-laden, mass-produced crap that passes for most bread today.
Gibbon, Roman Empire: 1u Au = 1u Silk, (that is at least in the scanned books part of GOOG not doing evil, from late 1800's)
Marco Polo: 1u Au = 1u Pepper (I'd be screwed, thank the gods that McIlhenny was/is among the misguided children). Try his memoire.
There's something in Shogunate Japan about Au to silk ratio.
Your assignment now, please report back.
- Ned
I would be interested in this information as well...
Recent gold value equivalents are interesting enough: daughter's $550k house bought in 2005 with gold at $450 was equal to 1222 ounces, vs. today's est'd. house value of $300k / $1500 per ounce = 200 oz. gold.
thanks, despite arbrtrage fuzziness across two fuzzy markets. Puts things into perspective as I (we?) discuss situations with 'normals'.
- Ned
Min wage in 1964 was $1.25, gas about .29 gal.
Min wage today $7.25, gas at near $4.00 gal
In 1964 you could have bought almost 5 gallons, today, not even two.
But if you were paid in quarters in 1964, those same quarters (90% silver), would be worth......$8.08 apiece for a total of $40.40 and would buy 10 gallons of gas.
That pretty much covers the last 50 years.....
Min wage is mandated; its effect is to screw the (ethnic) categories who don't clear the hurdle. Do-gooder whining-bring it on.
- Ned
{I'll leave it to you to do NPV and taxes thing for hiding Ag disks under your bed for that period. Please expand.}
Slave: ~ 800 dollars
Pistol: 15-45 dollars depending
Suit : typically an ounce of gold would get you a GOOD suit.
Money was coined with gold and silver so just research coin weights and run some numbers in excel to get your answers.
Is that silver dollars? Or ounces of silver, so say 15-45 ounces of silver for a good pistol?
$800 Silver Dollars for a slave?, there is no way we can't afford that these days.
Al Sharpton isn't worth it!
800 Silver Dollars (371.25 gr Ag or .77 ozt)
The price is from memory (read that price quote for a young buck in a history book somewhere)
How much is a slave now? I was wondering what you planned to compare that with...
Chinese labor.
not limited to chinese, e.g.:
http://www.youtube.com/watch?v=jIfu2A0ezq0
but been goin' along since before the pyramids
- Ned
If you look around,
and you can't see who the slave is,
its you ....
This looks promising.
The IISH List of Datafiles of Historical Prices and Wages
http://www.iisg.nl/hpw/data.php#unitedstates
Excellent link, thank you.
Laborer in Philadelphia/silver grams per day/1801-1810: 8.7
Prices in grams of fine silver per metric unit/Manchester, UK/1872/Pork, bacon per kg: 8.80.
better load up on these hogs, lol
:)
Hey not a problem.. I couldn't find a complementary one for gold. The only information I could find, were several sites talking about 1oz. of gold equating to tailored made suits. Very telling I suppose, if one is a Wall Street banker, The POTUS or Mortuary attendant.
Based on the averages of those charts ( ~9 gr Ag / day) and some back of the envelope calculations along with current minimum wage amounts (7.25/hour pre-tax), silver was roughly "valued" at $200 / ozt in today's nominal dollar terms.
But then you also have to calculate that a laborer's rate may not have been equal to minimum wages back then.
Silver could theoretically ballpark from 200 - 350 ounce. And THAT is based on 18th / 19th century population levels. Multiply accordingly based on scarcity. Although to be honest you should also divide by worldwide production rates then recalculate also based on consumption / elimination of stockpiles as silver was not consumed then.
If electronic currency is eliminated our paper currency is literally 20 times more valuable. (M1 versus currency base)
ROUGH estimate: I figure that people will be working for a silver dime a day before this is all over.
You rock SilverRhino! Well at least I am ahead of the game, if I am only going to be making a silver dime a day. Make mine a Seated Liberty. They are my favorite.
An interesting comparison. In 1913 and average worker earned a $20 dollar gold piece every two weeks or $2 a day. Current melt price of a dime? $3.23, you may be on to something.
+++++ Well done! Thanks.
There are approx. 4 troy ounces of silver for each person in the world . Not a lot some estimates are much much lower .
I have read that there was once 2.2 Billion ounces of above ground Ag. That is now much less, I've read 300 million, but even if it were 3 billion above ground, 4 ounces per person...not even close considering there is near 7 billion people (6.8 billion I think). In your equation there would be 28 billion ozt.
The estimate I used was from a sight with a high one for the simple reason that even if there are 4 troy ounces per person(I also believe there is far less but go with me here) above ground now it still reflects the enormity of how little silver there is out there . At 4 ounces per person do you think a valuation of $45 one of the best bargains in the world ? I certainly do .
http://www.fordham.edu/halsall/source/medievalprices.html
Prices are not in silver, but can be converted.
Great link, thank you!
A pound is equivalent to how many ounces or grams of gold?
More interesting info.
"Classical historians regularly say that in the late Roman Republic and early Roman Empire the daily wage for an unskilled laborer and common soldier was 1 denarius without tax, or about US$20 in bread.[citation needed] (By comparison, a laborer earning the minimum wage in the United States makes US$58 for an 8-hour day, before taxes.) The actual silver content of the Denarius was about 50 grains, or 1⁄10 troy ounce under the Empire. In 2010, this corresponds to approximately US$2.70 in value if the silver were 0.999 pure (which it wasn't).[citation needed]"
PMs are traded in Troy ounces, 12 ounces to the Troy Pound. But Troy ounces weigh more
1 oz = 0.911458 oz(troy)
http://www.metric-conversions.org/weight/ounces-to-troy-ounces.htm
Ounces conversion
A unit of weight equal to one sixteenth of a pound or 16 drams or 28.349 grams
Troy Ounces conversion
A unit of apothecary weight equal to 480 grains or one twelfth of a troy pound
Silver is now at 27.43 pound sterlings per ounce or 913 pounds per ounce of gold.
At that time a pound Sterling was literally a troy pound sterling silver. Figure 16:1 silver to gold ratio and go from there.
Just short PAAS. Plenty of shares available, and by far the weakest of the group.
Think I will continue to short USGOV. Much more fun and immensely more profitable.
Robot Trader - Listen to your beautiful mom!
Comex margins will not be raised. Raising margins squeezes out the least capitalized players. The shorts are the ones with the capital problems. A margin hike will only fuel the fire. Why would the COMEX do that? They won't.
Because they are:
1. Stupid
2. Deperate
3. Desperate and stupid
4. Only following orders, mein Herr.
Tyler, forgive me for not reading between the lines , I'm a newb. Are you implying that hard to borrow is becuase everyone is shorting and you expect a huge drop soon?
btw, great webpage. The story behind the story here at ZH is great :)
With ordrinary stocks, longs have the option to tell their counterparty to not make the share lendable, or repoable. If everyone does this there is no way to borrow shares from brokers to those who wish to short. In ETFs it is a little more complex, although superficially a general pull of borrow could lead to same result.
So.... If no one can sell short shares then the stock will continue to melt up or crash because no one is on the other side of the trade?
No
Does that jack up the premiums on the ITM SLV puts I just bought?