SLV Silver Holdings Jump 3% From 2011 Lows

Tyler Durden's picture

One of the most pronounced self-reinforcing features of the silver drop from the last two days, was the outright drop in silver holdings in the SLV ETF, which in the span of 5 days, from May 2 to May 6, lost 760 tonnes of silver. The sheer momentum of this move, as some claim, was the biggest factor facilitating the record rout in silver. Well, as of yesterday this trend has reversed itself, and as of close yesterday SLV has disclosed that it added 311 tonnes of silver, or nearly half the underlying amount lost in the selloff. Nonetheless, the overreaction within the SLV complex was massive, as while silver spot remained well above 2011 lows, the SLV ETF holdings actually plunged to a 2011 low level which had last been seen in November 2010. And with silver rising fast again this morning, printing at $38.50 as we type, look for the downward momentum, which so many eagerly pointed to to indicate the relentless nature of the rout, to reverse itself. Add to this the fact that non-commercial specs are at multi year lows, and very soon the only possible argument for the bubble claimants will be that all silver has merely rotated out of very weak hands into truly strong ones.

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The Axe's picture

That correction has created a huge amount of over-head resistance, the trapped silver nuts will greet each price level up to 50 with more fact silver will not print above 41 this year 40 I plan to short again. sorry Silver Bears YOUTUBE stars yes..correct on silver NO.

HelluvaEngineer's picture

Looks like you may get your chance to re-short in a few hours.

SWRichmond's picture

This is a pure guess, but $42 looks like equilibrium to me.  We build from there, unless the deflationary sag sets in due to QE2 ending in June.  Which I am more than hoping for, because I've got a shopping list.

cossack55's picture

I've also got a list. Only one item on it. Hahahaha

Sudden Debt's picture


or tampons for the misses? :)





SheepDog-One's picture

Theyre never going to 'stop QE' they cant even go 1 day without buying the hell out of stocks and bonds with billions pumped in futures to keep the total scam running. If they were to stop it we wouldnt see 'deflation' we'd see a complete collapse of markets.

The Axe's picture

Flag me as junk if you must (ha ha) but when I started in the business, it was on Lehmans South African Gold Desk, and I saw a margin induced 6 day limit down gold correction. And baby it NEVER came back. And that is what you have here...Silver is done.

tmosley's picture

What?  There is no such thing as limit down in gold, you fucking moron.

Get the fuck out of here, you lying sack of shit.

The Axe's picture

Of course you are wrong, and if you were on Wall Street, I would come down to your office and shove your keyboard up your ass. 

tmosley's picture

There is no such thing as limit up or limit down on gold.  You are welcome to prove me wrong.  But you can't, because you are a stupid little shit of a troll who can't even get his backstory straight.  Or the price action of gold, for that matter.

GittyUP's picture

tmosely, Your are 100% wrong on this one. gold had daily trading range limits in the early 80's. Google is your friend. Also the Axe is correct to say inflation adjusted gold is not near its high yet.

tmosley's picture

lololol, you guys are bearish on gold because the price isn't at an all time inflation adjusted high.

THAT'S funny.

Also, lol at the utter lack of proof on the daily trading limits on gold. Not that I give a shit. That's the past, and until the US becomes a net creditor nation again, that little episode won't be repeating itself.

Rynak's picture

mogul rider? Is that you? :)

Hugh G Rection's picture

The Ass....


You are obviously an EE shill, paid in blowjob certificates (redeemable at Jamie Dimon's desk), to troll ZH and shit on silver.


Please report back to Blythe Master's office and give her anal glands a good cleansing.

Quintus's picture

" I saw a margin induced 6 day limit down gold correction. And baby it NEVER came back."

Are you for real?  Are you saying that gold prices today are lower than when they were when you 'Started in the Business'?  Presumably that's what 'NEVER came back' means?  I think you may have installed your screen upside down mate.

Jesus, I can see why Lehmans went tits-up with razor sharp traders like you on board. 

The Axe's picture

850 in 1980 is higher then 1517 in 2011...Yes that is what I mean...And thank you for your nice thoughts about my job performance

Imminent Crucible's picture

"in fact silver will not print above 41 this year again"

You'll be needing a new ZH ID a lot sooner than you think. What is "Axe", your third? Or fifth? Check for polyps while you're in there.

The Axe's picture

of course NOT.. your wrong..same id for years..And I will take my loses like a man if they happen, but they won't short 10,000 GLD long 300 July 31 SLV puts...Have a nice day

fuu's picture

Figures a former Lehman trader doesn't know the difference between your and you're.


OMG I sound like molecool now.

Hephasteus's picture

When you say in fact you won't see silver print above 41 again this year.

You mean to say when people are throwing as many dollars into silver as they are into gold. With that kind of insane buying pressure you can paint the tape? Yup you definitely worked for Llheman.

Sean7k's picture

Which indicates just how far gold and silver still have to run. Unless you're saying that a new Volker is going to magically raise the interest rates to 14%, we are going to lose a substantial amount of debt and allow the dollar to gain in value, manufacturing would have a new large base added to it and entice others to buy our bonds? 

Is this what you mean? Because if it is, you couldn't trade to save your life.

Goldenhands57's picture

Bingo! No majic this time around. Kool aid is a flowing like Niagra and there it no possible way to bring back the middle class from here. America's Industrial base has been gutted. We're a "Service Economy"..such as.. the same kind of "service" given by paid Hookers. We WERE a Nation of we are simply a pack of Wal Mart whores.  

Palmer Eldritch's picture

We'll see if you're right.  40-42 is a strong resistance zone.  I would cover on break of 42.50.  But, trolls never cover, right?

vast-dom's picture

the 3 Stigmata in this case being Gold SLV and Trolls.


SLV to $60 baby by end of year!

lizzy36's picture

So it will not go about $41 because you plan to short again at $40?

You do realize that odd lots don't move markets?

Just saying.

Ruffcut's picture

That was more than a correction. It was a pure intented bash down.

The big dogs want to control what you should have confidence in, like priceline and netflix. THe goldbugs were starting to cramp their style of ponzi. Like spoiled babys that don't get their way, would rather destroy the toy than let anyone else play with it.

SheepDog-One's picture

LOL The Axe applies fundamentals to the coordinated in-your-face manipulated PM takedown? What a dork!

Badabing's picture

Pump and dump SLV/GLD = volatility and physical collection for op/ex delivery. SLV moves the silver market more than the industrial users DYODD

Math Man's picture

Same thing happened after the first spike to 49 and drop on 4/25. Over 7mm ounces were added.  Then we got a quick rally followed by a huge drop.

Short covering drives the arb positive and adds OZs to the trust.

Basically, SLV increases volatility big time.

JW n FL's picture

by The Axe
on Tue, 05/10/2011 - 07:57


That correction has created a huge amount of over-head resistance, the trapped silver nuts will greet each price level up to 50 with more fact silver will not print above 41 this year 40 I plan to short again. sorry Silver Bears YOUTUBE stars yes..correct on silver NO.


I plan on buying ever dip.. I hope that they do sell it lower..

when the Republicans blow the debt cap and the full faith of the U.S. dollar is shit on... when we have forced austerity measures brought on by the Republicans.. we will see how fucking stable paper is?

Let me guess you would rather take the ignorance is blissful and at your starbucks this morning everyone looked happy route?

when men get hungry and watch their children become hungry while tax cuts / scratch that shit.. while $0 fucking tax dollars are paid by the richest.. so that the poor can pull themselves up by their bootstraps!

I dont think that the republicans really accurately grasp what this pulling up by the bootstraps entails.. it really is more like bootstraps will be used to strangle the rich, until dead so that the poor can eat.

The police forces nationwide have been cut by 25% - 50%.

That leaves the military who has been training for house to house now for a decade!

I hope I am wrong, I hope that I worry too much, I hope that I give the force of this event to much energy... I hope that people starve happily and stay out of my gated community or at least on the other side of the fence.

But! I will NOT! ignore what could very well turn ugly, using ALL of history as my template!

Hungry People are NOT! nice people.

Hugh G Rection's picture

Easy with the one-sided bashing.  Do you claim dems aren't just as bad.  The leadership on both sides is evil, and serves the same master.


DeadFred's picture

Whole bunch of trolls started life about 1 1/2 years ago.  I wonder what caused that.

akenathon's picture

you're right but don't forget that next week we have options expiry on SLV and some huge moves could be expected on the upside...

Silverhog's picture

Back to $50 early July  :)

tmosley's picture

I see you have abandoned all pretense of not being a perma-bear.

eisley79's picture

Dangertime called 50-60 two fridays ago, right before the monday correction, he nailed it, must be why he is lol'ing....i know its why i am lol'ing, everytime i see his name

JW n FL's picture
by Silverhog
on Tue, 05/10/2011 - 08:00


Back to $50 early July  :)


Next week? maybe the week after, MAX!


O Wait! it still is $50! if you want eagles in your hand!


if you want paper, then to lease and then take delivery of to pay back..


I am guessing that all of that equals $50 plus too..


So no matter what! if you want silver in your hand today! you are paying $50 or better.


If you want to trade paper, with no real delivery date for phyical silver.. it is much, much cheaper!

Bazooka's picture

If SLV and GLD are safe havens, why were they falling like stocks last week?

Why were nearly everly commodity falling with SLV and GLD?

Shouldn't SLV and GLD rise while everything else falls? 


SLV and GLD both crashed during 2008, May of 2010 and last near lock step with equities.

I'm still waiting to see SLV and GLD separate away from all other markets....rather it's a part of the "all the same market".


Construct's picture

Physical PM's and Paper PM's are two different things.

Stormdancer's picture

...and this is not 2008 either :)

Sudden Debt's picture




it's actually nothing more than a digital number on your screen when you log in into your trading account...

if you want to receive a paper you need to print it on your own copy paper and with your own toner. So you'll have to invest a little "PREMIUM" to get it on paper so to speak.





Two Towers AU AG's picture


He actually likes to see the digital number change colour from Green to Red.. something our Physical Metals cannot do...

So what if he cannot touch it feel it or see it shine.. -:)

Libertarian777's picture

at least in the old days the company would register your paper on their books and your broker would courier the paper to you.

now, its not even registered in your name. your holdings are a liability on your broker's books.

Funny how scrip is now the equivalent of 'unallocated' PM.

I know I know, I should trust the system. MERS works perfect...right...right?

I am more equal than others's picture

Owning physical PM is like owning a gun (with sufficient ammo to heat that barrell to white hot) and owning paper PM is like owning stock in a gun company.  When I need my gun, it is there and will accomplish the task I assign it.  Unless the gun company adopts a Dominos' Pizza delivery system, there is nothing I can do with that paper other than wipe my ass or use it to wipe up the blood that was spilled from those coming through my front door. 

GoinFawr's picture

Physical paper in hand indicates that you at least had the wherewithal to register your shares.

DaddyO's picture


OT: Speaking of guns, this article should give us pause. If it's not talk of PM confiscation, there is and has been much talk about the NWO trying to grab your guns as well.


Badabing's picture

I bought a car contract for my own transportation. The dealer handed me my contract and now someone else is driving the car!