This page has been archived and commenting is disabled.

So Much For The Sprott Silver Scare: "Every Dollar From PSLV Sales Was Reinvested In Silver Equities"

Tyler Durden's picture


Earlier we reported that Sprott had sold $35 million worth of PSLV, which caused many to panic that the precious metals guru had indicated the market top in the market. Well, as it turns out and as he just told the Globe and Mail “We haven’t lost our enthusiasm for silver.” Quite the opposite... 

So why the sales? “Every dollar of money that was raised by selling shares of [the Trust]... was reinvested in silver or silver equities,” he said.

While silver’s price per ounce has soared in recent months, “silver shares have not done as well, which is almost shocking in a way, and it looked like there were opportunities in either getting some premium on PSLV shares and buying silver or buying silver equities.” The sales were made at an average price of about $21, up from their $10 IPO price about six months ago.

But that doesn’t mean Mr. Sprott is abandoning his trust. He says he still holds around 25 per cent of the total trust units between his funds and his charitable foundation.

As for future public offerings following the IPO, he says he is sticking to a promise he has already made. “There will not be an offering that negatively impacts the premium on the PSLV,” he said.

Sprott is not the first to observe the harsh push on silver equities. As we noted some time ago, metals are outperforming equities by a ridiculous margin, which is why anyone who has to have a connection with capital markets (like an advisor) would be foolish not to take advantage of this relative mispricing. Which by the way is massive. As the chart below shows, while SILV is up 42% YTD, the SIL ETF is actually negative for the year! All Sprott is doing is taking profits from the upper line and reinvesting them in the lower one, once again proving that relative value compressiona/divergence trades are the only ones that make any remote sense under a centrally planned regime.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 05/02/2011 - 19:12 | 1232128 lolmao500
lolmao500's picture

Stupid people selling their silver... Eh tards, have the fundamentals changed? NO? Then don't sell your silver, TARDS.

Mon, 05/02/2011 - 19:24 | 1232171 Cdad
Cdad's picture

I highly doubt people are selling their silver.  Rather, algo's are arbitraging their futures contracts and pumping that liquidity into leveraged silver trades [miners and royalty companies].  But, you know, if you see long lines of guys with canvas sacks standing in line at the pawn shop, please let me know.


Mon, 05/02/2011 - 20:59 | 1232427 Ahmeexnal
Ahmeexnal's picture

Word on the street is that the Rothschilds have lost patience with Dimon&Blythe.

Those two idiots were entrusted with a clear, simple mandate: to keep silver price supressed and to do it discreetly.

Due to their sheer stupidity and incompetence, they have managed to lower silver price from 10 to nearly 50 USD over the last few months, and in the process have blown wide open the possibility of a COMEX default and criminal charges against several banking outlets....and the jewel on the crown will be silver ripping away completely taking down the Roths with it.

It's not price discovery, it is VALUE discovery coming in a few days.

Dimon and Blythe? They won't face jail.

No....they will have a funeral at sea courtesy of the Roths.

Mon, 05/02/2011 - 22:51 | 1232685 SWCroaker
SWCroaker's picture

Now THAT would be worth dancing in the streets in celebration for.

Mon, 05/02/2011 - 23:10 | 1232717 Hearst
Hearst's picture

Anyone watching Silver?  At 10pm central time the price is up and down a dollar in just a minute or two.  Will constant dollar (or more) swings become the new norm?

Mon, 05/02/2011 - 23:24 | 1232757 tmosley
tmosley's picture

Chinese markets aren't closed tonight, bitchez.

Mon, 05/02/2011 - 23:58 | 1232841 Ahmeexnal
Ahmeexnal's picture

The margin hike game is up.  

Like trying to stop an 18 wheeler with cardboard boxes.

MathMan and his gay overlords are toast.


Tue, 05/03/2011 - 00:57 | 1232948 redpill
redpill's picture

Hey Blythe, BOHICA baby!  Silver stallion rides again!

Tue, 05/03/2011 - 00:16 | 1232872 tiger7905
tiger7905's picture

These comments from Sprott shouldn't be a surprise, he made comments in mid-march that he'd consider moving from silver bullion to silver equities at some point.

Tue, 05/03/2011 - 01:21 | 1232982 TwoShortPlanks
TwoShortPlanks's picture

Hey all, listen-in. I went into the Perth Mint today, did a big buy. In Silver they had only two 100oz bars left and everything else is...WAIT FOR IT...ancient 10oz bars of various sizes! LOL

Last week there was a line-up out the door and their entire inventory of Silver was cleaned-out.

I has gone from nuying lovely shiney bars to ancient cruddy things that look more like Lead Sinkers.

This shit's going down boys and girls, this shit is going down really soon.


Here's what I wrote earlier about these crashes.

Hi All, here's my take on what's happening.

If Banks and Financial entities realise that the USD is now doomed, who cares how much debt you have in USD, true???

So, if they buy huge short positions first, dropping the price of Gold and Silver, they can buy the artificial dip and take delivery of physical. Do a series of these events and you have dealt yourself back in the game.

Of course, there's no reason to come good on your short positions in USDs because they're worthless anyway.

You just need to con the CME into increasing the Margin Call, that's all.

Scam, scam, scam...BUT it really does confirm that physical is going to explode soon, very soon.

Tue, 05/03/2011 - 06:37 | 1233182 NotSpartacus
NotSpartacus's picture

I've had a similar experience this week.  I was in Dubai Saturday and bought the last 7 kilo bars in stock from the biggest silver dealer in the city.  Several people came in right behind me and were turned away.  In the US where my Dad buys for me, the dealer there who always had ample inventory, yesterday only had some pre-64 junk and one 100 oz. bar that was just sold to him... It's on baby, in a big way!!

Tue, 05/03/2011 - 04:44 | 1233130 DavidPierre
DavidPierre's picture

First the story was "Osama did it."

Then the story was "he's unfindable and
he taunts us from his hidden cave."

Now the story is "We got him!" and Obama
called in the strike personally.

Why they are playing this card now is
open to question.

Could it have something to do with the
badly botched birth certificate forgery? 

In the meantime, the mostly untold
9/11 story. One you probably haven't

It's hair raising in its implications and
100% nailed down accurate.

Core Of Corruption, Volume 1

In The Shadows

{Full Film}

Tue, 05/03/2011 - 09:26 | 1233537 i-dog
i-dog's picture

Thanks for that link. Excellent documentary ... absolutely full of documents, interviews, news footage and MSM documentary extracts at all steps along the way.

Anyone who watches it and then comes away believing that the ragheads acted alone needs to be euthanised ... as a danger to themselves and to any who depend on them for any decisions.

Mon, 05/02/2011 - 19:46 | 1232226 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Sorry Turd, when you posted the following on your blog you, respectfully, lost a lot of respect in my opinion:

"First of all and most importantly, as an American citizen, I am pleased that Osama bin Laden is dead. I am extraordinarily proud of the special forces and intelligence teams that carried out the mission that led to his demise. I am hopeful that this will bring some measure of closure for the families which lost loved ones nearly 10 years ago. Lastly, I beg you, please do not take this as an opportunity to pollute this blog with comments regarding 9/11 conspiracies and assorted CIA plots. If you strongly believe in that stuff, please vent somewhere else."

- How you can easily see the manipulation and corruption in the financial and commodities markets which lead to a lifetime of hardships, slavery and ultimately unnecessary death of citizens. And yet you don't seem to be able to make the 'leap' that your government would kill 3000 citizens on 9/11 to benefit themselves and their agenda... frankly i don't know.

Mon, 05/02/2011 - 19:49 | 1232244 Spalding_Smailes
Spalding_Smailes's picture

A teenage suicide bomber wearing a school uniform killed at least 31 cadetsand wounded 40 more at an army training camp in northwest Pakistan today, officials said.

bomber's uniform came from a nearby school, police official Abdullah Khan told the BBC. The disguise allowed the terrorist to bypass security checks at the heavily guarded Punjab Regiment Center in Mardan. He detonated his explosives at 8 a.m., as recruits were doing physical training on the parade ground.

A suicide bombing at the same training ground killed 35 people in 2006. Pakistan's GEO TV said it was the deadliest suicide attack in the country since Dec. 25, when a woman with a 
bomb strapped under her burqa killed 43 people at a U.N. food distribution point in the tribal district of Bajaur.

Khan told The Associated Press that an examination of body parts at the scene revealed that the bomber was a teenage boy -- an increasingly common phenomenon in Pakistan. In 2009, the Pakistani military released footage taken inside a Taliban training camp showing 
children as young as 11 being taught to become suicide bombers. Once trained, the young, brainwashed bombers are sold to other Taliban leaders for as much as $12,000.

Mon, 05/02/2011 - 19:59 | 1232279 akak
akak's picture

And I made some nice cookies today too.

Mon, 05/02/2011 - 20:05 | 1232294 EscapeKey
EscapeKey's picture

Which type? Choc chip?

Mon, 05/02/2011 - 20:15 | 1232317 akak
akak's picture

Oatmeal raisin --- with silver sprinkles.


Mon, 05/02/2011 - 20:50 | 1232406 Yits and the Yimrum
Yits and the Yimrum's picture

silver is down and Smales mail is back like flies on dung

I know, you predicted this huge drop in siver about $20's ago



Mon, 05/02/2011 - 20:57 | 1232422 Spalding_Smailes
Spalding_Smailes's picture

Irish Independent, 16 July 2010:

At the crucial September 25, 2008, meeting, Mr Neary insisted Anglo was not insolvent and that it had enough assets to cover its debts, new documents being investigated by the Dail spending watchdog reveal. 

"There is no evidence to suggest Anglo is insolvent on a going-concern basis. It is simply unable to continue on a current basis from a liquidity point of view," he told the Taoiseach


Irish Times, 14 Oct 2008:

"Ireland's banks are solvent and will be able to offset potential losses on property loans with their better-performing loans" 

Mon, 05/02/2011 - 21:04 | 1232439 akak
akak's picture

The word 'eczema' comes from Greek words, that mean 'to boil over'. Dermatitis’ comes from the Greek word for skin – and both terms refer to exactly the same skin condition. In some languages, dermatitis and "eczema" are synonymous, while in other languages "dermatitis" implies an acute condition and "eczema" a chronic one.[5] The two conditions are often classified together.

Mon, 05/02/2011 - 21:20 | 1232468 Spalding_Smailes
Spalding_Smailes's picture



One who sucks the baloney pony - aka chows wang, gives head, polishes helmet, ect. ..... You are a fucking polesmoker !


Mon, 05/02/2011 - 21:28 | 1232501 tmosley
tmosley's picture

Talking about yourself again, lot lizard?

Mon, 05/02/2011 - 22:19 | 1232602 akak
akak's picture

You are a fucking polesmoker !

Yes, indeed I am!

And yours was the cheesiest, foulist, most pathetically shriveled little pole that I have ever smoked.

Next time, for God's sake, take a break from your four-day stints in your troll chair, hop in the shower and pop some Viagra, will ya?

Mon, 05/02/2011 - 22:46 | 1232672 Malachi Constant
Malachi Constant's picture

Looks like with the Polesmoker post (paste from Urbandictionary, IMO) he was keeping up the thread of perfectly unrelated remarks without pointing fingers at anyone.

Mon, 05/02/2011 - 23:21 | 1232747 akak
akak's picture

Just as one would expect from a troll AI program.

Mon, 05/02/2011 - 21:51 | 1232549 clymer
clymer's picture

blah. Blech. MSM leaking into ZH via the condit of SS. 9-11 was an inside job. Learn it. Know it. Live it.


There is nothing into this charade for you, SS, besides the end of your republic.



Tue, 05/03/2011 - 06:46 | 1233187 ReeferMac
ReeferMac's picture

There's the problem people!!!!


"The disguise allowed the terrorist to bypass security checks at the heavily guarded Punjab Regiment Center in Mardan"


We force our children to have their naked picture taken and be groped by high school drop outs in order to ensure security in our country, and when was the last time we had a bomb go off over here? We don't need the Armed Forces over in the Middle East to secure peace, we need to send them the TSA!

Mon, 05/02/2011 - 20:00 | 1232272 barkingbill
barkingbill's picture

very good point. turd is great, but unfortunately he leans to the right in politics, he is smart but not perfect. i wish him well in coming out of the left right bullshit. maybe he hasnt seen all the info we have. good luck turd in your search for the truth. 

Mon, 05/02/2011 - 20:33 | 1232356 Freddie
Freddie's picture

Well on the left-right BS - ZH is filled with Dems who voted for you know who and they still defend him.

Mon, 05/02/2011 - 21:16 | 1232471 weinerdog43
weinerdog43's picture

What's your point? 

Mon, 05/02/2011 - 22:46 | 1232679 Malachi Constant
Malachi Constant's picture

They voted for Voldemort? 8[

Mon, 05/02/2011 - 23:15 | 1232731 Bringin It
Bringin It's picture

Stop promoting the partisan charade.  Don't play that game.  And no I did not vote for Obummer from out of space.

Tue, 05/03/2011 - 00:28 | 1232899 RafterManFMJ
RafterManFMJ's picture

+1. Although I will vote for Oblammer next time to get this wheezing train accelerating toward the tornadic shitstorm. Lets.Get.It.Over.With.

Tue, 05/03/2011 - 00:54 | 1232945 i-dog
i-dog's picture


Just Push The Goddamn Button, bitchez!

Tue, 05/03/2011 - 07:55 | 1233266 Hephasteus
Hephasteus's picture

Oh no he's figured out our simple mindedness. Now we will have to run onto facebook and join the other simple minded cretins with an inability to shut the fuck up.

I'm just like totally polarized like fucking sunglasses now.

Mon, 05/02/2011 - 21:52 | 1232554 clymer
clymer's picture

really, Turd.. Watch bld. 7 a few more times.



Mon, 05/02/2011 - 21:50 | 1232555 clymer
clymer's picture


Mon, 05/02/2011 - 23:24 | 1232756 Texas Gunslinger
Texas Gunslinger's picture

To those 9-11 conspiracy theorists:

If you truly think the American government orchestrated the 9-11 terrorist attacks, and all you do is sit at home and post comments on the internet about it, then you are truly the most pathetic, spineless individuals on the planet. 

People in Egypt riot over the price of cotton and corn.  You guys think the government flew jumbo jets into our sky scrapers, and all you can do is hunch over a keyboard and spew your nonsense.  If you truly believe the garbage you post, and this is the extent of your action, then you are as worthless as the govenment you criticize. 

I've only been here a week or so, but I've never seen a greater collection of kooks in my entire life. This really is the most bitter, paranoid, hate-filled corner of the internet I've ever experienced.  I find the Zero Hedge articles fascinating, but I find the comments mostly despicable and full of evil.  Everyone seems so miserable.

Jesus will handle your soul.  Until then, you may want a psychologist to handle your head.

Mon, 05/02/2011 - 23:56 | 1232813 akak
akak's picture


To the extent that posters here are bitter, unhappy, angry or miserable, it is probably in almost every case as a result of them waking up to and realizing the full measure to which they have been lied to, violated, cheated, swindled, persecuted and impoverished by an out-of-control, sociopathic elite who increasingly skillfully use the empty rhetoric of "patriotism", "sacrifice", and "defense" as finely-honed tools to further expand and further cement their enslavement of the average citizen to their centralized, one-world agenda.

What do YOU believe?


PS:  This forum, like any other, has its own unique character and "culture", part of that culture being an essentially unlimited tolerance for often crude and irreverent language, as well as a very libertarian, free-thinking questioning of all dogmas, creeds, orthodoxies and shibboleths --- and yes, at times that can include christianity too. If you find this shocking or uncomfortable, please do not take it as an insult in any way if I suggest that this forum might be unsuited to you, your personality or your beliefs.

Mon, 05/02/2011 - 23:47 | 1232815 OldPhart
OldPhart's picture

TexSlinger:  Zero Hedge may be a little too rough for your tastes.  There are more suitable websites for your sensibilities.

Mon, 05/02/2011 - 23:56 | 1232835 Richard Head
Richard Head's picture

Go fuck yourself.

Tue, 05/03/2011 - 00:01 | 1232846 tickhound
tickhound's picture

Dear Jesus,

Please send TG to Egypt with plenty of Haines t-shirts and corn nuts.


ps He told me the jumbo jets crashed into skyscrapers because he loves you.  Amen

Tue, 05/03/2011 - 01:04 | 1232962 roninmd
roninmd's picture

Don't you find it interesting that Osama was killed on Beltane?  It's a pagan ritual that requires a human sacrifice.  Whoever ordered Obama to kill Osama on May Day.. was a pagan not a Christian.  If you beleive that Jesus rose from the dead.  What makes you think other people can't follow thier own religious rituals.

Beltane is a northern euro fertility ritual thing. The same Europeans that setup NATO, aka the bilderberg. It's interesting that the Royal wedding was setup around the same time frame. Osama as a Beltane sacrifice was apparently America's wedding fertility gift to the British Royal Family.

Tue, 05/03/2011 - 09:28 | 1233567 Protonrick
Protonrick's picture

+ 3 pentacles

Tue, 05/03/2011 - 01:35 | 1233002 Ima anal sphincter
Ima anal sphincter's picture

Please change your avatar. You're fucking up the reputation of Texas. Sheeple production is not one of our strong points. It's 12:30am, I'm finally home from working two jobs. If I had the energy, I'd explain what a dumb ass you are. I'm also sure when the time comes to "take it back" you - "mister gunslinger" won't be man enough to join in.

Tue, 05/03/2011 - 01:40 | 1233003 wolverine521
wolverine521's picture

Hi TG,

David Ray Griffin is a fellow Christian and a leading member of the 9/11 truth movement.  Under the assumption that you really are a good Christian and that you do love America, please read the following book by Dr. Griffin:

     "Christian Faith and the Truth Behind 9/11: A Call to Reflection and Action"

From the Publisher

"WARNING: If, like most Americans calling themselves Christian, you prefer the comfort of acquiescing to the official version of 9/11 and the imperial wars it facilitated, DROP THIS BOOK NOW. But if you are open to the grace of honest inquiry and the risk of following the historical Jesus in confronting the evils of empire, this rigorously argued book is a MUST READ."

—Ray McGovern, CIA veteran analyst now with Tell the Word, a project of the ecumenical Church of the Saviour, Washington, D.C.

"David Griffin has previously made the case for the Bush administration’s complicity in 9/11 and the cover-up of this evidence by the 9/11 Commission. Here, in this important book, he puts these shocking realities in the context of Christian theology and the challenge to the churches. In a profound exploration of the nature and history of the demonic, Griffin suggests that American empire is a culmination of human demonic alienation from God."

—Rosemary Radford Ruether, emeritus scholar, Claremont Graduate University and Claremont School of Theology

"Do American Christians want the United States to act like the New Rome, invading other countries to impose its imperial rule and its control of other peoples’ resources? That is just what the U.S. is doing, increasingly so since 9/11, explains David Griffin. In this gripping summary of evidence for the truth behind 9/11 and the 9/11 Commission report, Griffin makes a compelling case that the imperial practices of the American government have become a destructive force in the world. And he clarifies the biblical and theological basis for Christians to challenge the resurgent American imperialism that often claims divine blessing on its destructive actions."

—Richard A. Horsley, Distinguished Professor of Liberal Arts and the Study of Religion, University of Massachusetts, and author of Jesus and Empire: The Kingdom of God and the New World Disorder

"Compelling reading. Here is a remarkably thorough presentation of facts regarding 9/11 events. Professor Griffin sets the events of 9/11 in a historical, religious, and philosophical context that is most enlightening. Although this context is also somewhat chilling, he holds out hope in his discussion of where we can go from here. I most highly recommend this book!"

—Steven E. Jones, Professor of Physics, Brigham Young University



Tue, 05/03/2011 - 01:51 | 1233013 wolverine521
wolverine521's picture

Gunslinger, I have to agree with you on this point:

"If you truly believe the garbage you post, and this is the extent of your action, then you are as worthless as the govenment you criticize."

It is a simple matter to go to:

and sign the petition there demanding a new 9/11 investigation.  If you are an architect or engineer then you should especially be getting your butt over there.

To all who relish the thought of bringing down the Morgue and their silver manipulation, what could compare with bringing down the bastards behind 9/11 and the endless war on terror.  Cracks are beginning to form already:



Mon, 05/02/2011 - 20:01 | 1232281 mogul rider
mogul rider's picture

Thanks for that Funky, I noticed it as well. How you can call Wall Street full of shit and then turn around and say these adminsistrations aren't is frankly unacceptable.


Unless of course youa re part of the adminsitrations then it all makes sense



Mon, 05/02/2011 - 23:42 | 1232733 i-dog
i-dog's picture

"frankly unacceptable"


Indeed, it calls his intelligence and rational thinking into question and shows him to be a JATA (just another technical analyst) ... interested in nothing but the charts and an incremental buck. Sad.

Mon, 05/02/2011 - 23:23 | 1232744 Bringin It
Bringin It's picture


Mon, 05/02/2011 - 20:04 | 1232290 breezer1
breezer1's picture

911 was an inside job. ted butler thinks slv has physical behind it. my wife thinks the nuclear problem will always be japan's. the day charlie sheen went live with his open letter to the sock puppet asking for a new investigation into 9/11 the only ? i had was how will he be neutralized.

like the great mass murderer/war criminal henry kissenger said,' its all about perception'. or something like that. oh look , my glass is empty. 

Mon, 05/02/2011 - 23:00 | 1232703 Ima anal sphincter
Ima anal sphincter's picture

I resemble that remark.

Mon, 05/02/2011 - 23:14 | 1232723 FeralSerf
FeralSerf's picture


"...great mass murderer/war criminal henry kissenger..."

You left out "of all time" between  criminal and henry.

Please let me refill your glass on the house.  You're drinking?

I say, "String the sonofabitch up."  Or maybe a slow roasting a la Jaques de Moley.  Dibs on  the popcorn concession.

Mon, 05/02/2011 - 20:12 | 1232315 George Huxley
George Huxley's picture

So many sheep on ZH junking you. Look up WTC 7. Or a guy named Alan Sabrosky. Or Larry Silverstein. Or anything having to do with the event at all. When you believe the official story it makes you look ignorant. This is really elementary stuff.

Mon, 05/02/2011 - 21:03 | 1232438 cxl9
cxl9's picture

...or you could stop wasting your time on crackpot conspiracy theories and get on with your life.

Mon, 05/02/2011 - 21:32 | 1232506 George Huxley
George Huxley's picture

You don't know what you are saying. If anything is crackpot, it's the official story.

Mon, 05/02/2011 - 22:00 | 1232569 clymer
clymer's picture

cxl9: "You're a crackpot. I do not have a reasonable, logical retort - I am just saying you're a crackpot because this approach used to work when people were less informed and the economy was better."




God you shills are


..getting old

Mon, 05/02/2011 - 21:55 | 1232566 Old. No. 7
Old. No. 7's picture

How about a little movie?

Mon, 05/02/2011 - 22:23 | 1232619 Cathartes Aura
Cathartes Aura's picture

...or you could stop wasting your time on crackpot conspiracy theories and get on with your life.

if you don't take the time to learn what is really happening in amrka/the world, then soon you may not have a life.

unravel the fabric(ated story) that hides the truths, for your sake and the sake of your family if you have  any, the sooner the better.

Mon, 05/02/2011 - 21:29 | 1232496 breezer1
breezer1's picture


Mon, 05/02/2011 - 22:36 | 1232651 RockyRacoon
RockyRacoon's picture


Larry Silverstein

The conflict of your convictions must be just excruciating.

Mon, 05/02/2011 - 23:13 | 1232729 FeralSerf
FeralSerf's picture

+ lots

The ADL is out in force.  Don't take it personal.

Mon, 05/02/2011 - 20:28 | 1232351 Freddie
Freddie's picture

People are foolish to believe anything from this govt, news media or TV.  All we get is lies.

Bodies supposedly dumped in the ocean.  A helicopters that supposedly failed and was blown up and everyone left on the second one. It happened last night or last week.  It was the ISI or the SEALs.  A 6'6" man living in a military town for years in a fortress but no one knew.

It happens a week after Trump gets very very close and poll numbers are tanking.  Young people are immediately tweeted to show up in DC to yell "4 more years."   Odd how the CIA could not get em under Bush but he pops up when their former contractor - (who's mum was also a contractor along with Geithner's father) - has record low poll numbers and Trump is all over his sh*t.

As usual - our troops are used like pawns.


Mon, 05/02/2011 - 23:23 | 1232740 FeralSerf
FeralSerf's picture

"As usual - our troops are used like pawns."

“Military men are just dumb stupid animals to be used as pawns in foreign policy.” --Henry Kissinger, quoted in “Kiss the Boys Goodbye: How the United States Betrayed Its Own POW's in Vietnam”

Tue, 05/03/2011 - 03:39 | 1233090 destraht
destraht's picture

The CIA knew about Osama's pharmaceutal intake and his medical conditions but they could not find him.

Mon, 05/02/2011 - 20:42 | 1232377 gordengeko
gordengeko's picture

-" How you can easily see the manipulation and corruption in the financial and commodities markets which lead to a lifetime of hardships, slavery and ultimately unnecessary death of citizens. And yet you don't seem to be able to make the 'leap' that your government would kill 3000 citizens on 9/11 to benefit themselves and their agenda... frankly i don't know."

"Do you now see how you are manipulated? The Fed/TBTF/Govt/Media Complex is desperately clinging to power."

Yes turd, please explain yourself.  I'm curious, or are you just bi-winning?

Mon, 05/02/2011 - 22:43 | 1232663 RockyRacoon
RockyRacoon's picture

I read The Turd for his PM comments.  Stepping outside his box was a tenuous move for sure.  I don't berate The Turd for his beliefs; we all have them.   So what?   I'm rather agnostic on the whole conspiracy thingy but I can perform my daily chores.   There is no need to "explain" himself for his thoughts.   Frankly, I could care less.   You must be awfully insecure if other people's beliefs threaten you.

Mon, 05/02/2011 - 23:04 | 1232700 gordengeko
gordengeko's picture

Not at all. I don't care either way about anyone's beliefs.  To each his own in that regard.  I'm just pointing out the obvious.  I agree with FMB when he said how can you see the manipulation with regards to the monetary system and financials but fail to bridge the gap with gov't/cia/kgb/etc and everything else.  Money rules this planet, which includes everything else on it.  Everything is intra-connected whether we want to admit it or want to research it.  But again, I won't stop calling out the obvious, which is if we can admit there is manipulation with fiat/money/oligarchs controlling govt's then how does it stop with 9/11 and Tim Osman?(not saying I believe that 100% but it does make my lil hamster spin that circle cage thingy)


I also know technicals rather well and know enough that technicals mean nothing by themselves.  The only reason I pay attention to them is because many use TA to base their decision making on whether they pull the trigger long or short.  The pulling of the trigger is what I'm interested in because that's what moves markets not how they came to that decision.  Having said that, I am also interested in how and why people think the way they do.  Call it morbid curiousty.:)

Tue, 05/03/2011 - 00:54 | 1232935 RockyRacoon
RockyRacoon's picture

OK.  Point made.   Didn't mean to imply that you had to explain yourself.

Mon, 05/02/2011 - 20:41 | 1232383 Chuck Walla
Chuck Walla's picture

So, if Bush planned 9/11, Obama, the Peace Prize winner, killed an innocent man, a patsy, a fall guy?  How will you ever vote for Hope & Change again?

Mon, 05/02/2011 - 23:33 | 1232777 FeralSerf
FeralSerf's picture

Bush was way too stupid to be entrusted with any planning except where the next line of coke was coming from.

Now Cheney, Rummy or one of their Zionist pals: that's another matter.

Yes,  odds favour Nobel Peace Prize Winner and Dipshit In Charge killing an innocent man, a non-volunteering patsy.  (What else is "new"?)   ObL may have had other issues though.  He was CIA, you know, and many CIA probably need executing.

Mon, 05/02/2011 - 20:44 | 1232395 Yits and the Yimrum
Yits and the Yimrum's picture

I believe this fairy tale was constructed to boost Obama and to do polling on how many actually believe this farcical tale.

The PTB need to benchmark where the dumbed down populace is moving, either wising up and continuing to degrade

The Turd gets my thumbs down as a talking mule turd that should be ignored.

Mon, 05/02/2011 - 23:28 | 1232770 Bringin It
Bringin It's picture

Re. Fairy Tales - Not too long ago, an elaborate false narrative was created around Jessica Lynch.

Turd jumped the shark.

Mon, 05/02/2011 - 20:43 | 1232400 FastBoat
FastBoat's picture

I must have missed the part where he took a position on anything other than don't post that stuff on my PM blog.

Mon, 05/02/2011 - 21:01 | 1232440 gordengeko
gordengeko's picture

Lastly, I beg you, please do not take this as an opportunity to pollute this blog with comments regarding 9/11 conspiracies and assorted CIA plots. If you strongly believe in that stuff, please vent somewhere else."

C'mon turd, your fans have questions.(I'm not one of them but since they drink your koolaid, I'll ask it for them.)

Mon, 05/02/2011 - 21:15 | 1232475 Captain Benny
Captain Benny's picture

As an American citizen, I am discusted by my fellow citizens (Yes even you Turd) who cheer the assasination of anyone.  You are all subjected to the same propoganda that I am, yet I for some reason reject this notion that its a good thing that our President proudly went in front of the nation to say that he unilaterally invaded a sovereign country to assasinate a leader of a movement.

I embrace all viewpoints, even those which would desire that my country become bankrupt and my people suffer for their foreign crusades.  Bin Laden didn't want me dead, he wanted my country to fuck off and leave the rest of the world alone.  That is exactly what I want as well.

Turd, you've got some technical analysis talent.  But please shut the fuck up about politics.  You've turned a blind eye to what is clearly in front of you by falling to the propaganda of the nation where you live.

Mon, 05/02/2011 - 21:41 | 1232531 Dollar Damocles
Dollar Damocles's picture

Tyler, would you get a fucking "like", or "I agree" button already?

Mon, 05/02/2011 - 22:24 | 1232589 agrotera
agrotera's picture

My feelings exactly Captain Benny--the whole "announcement" by our current President was like an episode from the twilight zone...

He seemed to want to convey a message that he single handedly killed OB, instead of simply conveying that Bin Ladin was found and resisted being captured and died in the confrontation...

When in our history as a country has any president boasted about a mission to assassinate? 



Mon, 05/02/2011 - 23:24 | 1232758 Bananamerican
Bananamerican's picture

yes, bad form, BUT " assasinate a leader of a movement...", OBL was a leading bowel movement that could have/should have been "wasted" 10 years ago....

Tue, 05/03/2011 - 00:06 | 1232856 agrotera
agrotera's picture

I agree,  it is just that the President's "form" sets precedents, and in my opinion, he should have spoke in terms of the attempt to capture OBL and that he resisted which resulted in his death....PERIOD, no more spin.

Tue, 05/03/2011 - 00:12 | 1232866 Bananamerican
Bananamerican's picture

BHO is in a continuum...from W...from the Clenis...a de-evolution....a general've noticed this?

The wheel will turn again to marquis of Queensbury perhaps after some period in the ashes....

Mon, 05/02/2011 - 23:36 | 1232791 FeralSerf
FeralSerf's picture

+ lots!

Tue, 05/03/2011 - 02:15 | 1233028 maximin thrax
maximin thrax's picture

"Invaded a sovereign country to assasinate a leader of a movement." Damn, cap'n, you make bin Laden out to be M.L. King! Osama's more like a kk-klansman than King. If Osama wanted to be a leader of a movement in which the US wouldn't target him for assasination, dedicated peaceful resistance and diplomacy, he should have followed Gandhi, not Forrest.

I love the part about "Bin Laden didn't want me dead, he wanted my country to fuck off and leave the rest of the world alone.  That is exactly what I want as well." So you accept a mass-murderer of your own people as some sort of "thinker" because he agrees with you on one thing? Oh, I see you've fooled yourself into thinking you're one of the lucky few that can see through all the "propaganda." You certainly occupy no position from which to advise people to "shut the fuck up," because if that advice was followed then only people who think like you, psychopaths and Mansonites, would be allowed to post.

You're just another one of the hypocrites who hates your nation, citizenry, millitary and all they stand for, yet won't leave us the hell alone to live in another country, which you are free to do, because we fatten your wallet. And you've not got the brains to understand we're at war with the very movement that you feel so ambivolent toward, whose leaders are legitimate targets. Turd's blog, I'm sure, will survive your departure. So will the US of A.

Tue, 05/03/2011 - 15:45 | 1235494 BigJim
BigJim's picture

So... because he hates US foreign policy and our beloved MIC, he hates his nation and citizenry? How does that work?

And exactly what all do they stand for?

Mon, 05/02/2011 - 21:30 | 1232510 Broder_Tuck
Broder_Tuck's picture

Well spoken. The Turd is an excellent silver aficionado though. He could do well by checking up the whole WTC number SEVEN complete bullshit official story that retarded children over the ages will have some questions about - to paraphrase Joe Rogan. BTW why have not someone taken him on board on the PM-train? That guy could blow COMEX sky high with his group mentality UFC-crowd.

To Turd:

From the official NIST-study on WTC-7

"Although the total diesel fuel on the premises contained massive potential energy, the best hypothesis has only a low probability of occurrence." 

Stick that in your pipe and smoke it.

Tue, 05/03/2011 - 02:47 | 1233058 maximin thrax
maximin thrax's picture

Speaking of children, they have a hard time handling things that can't be explained. They have yet to understand chaos. When one puts a brick on a gas pedal and sends a car speeding down a road at night with no driver and no moon, there's no telling where it will stop, what will stop it, where the hub caps will end up, where the headlights will come to rest, whether it will burst into flames or not, or whether or not the virgin Mary will be seen on a crumpled fender. Rest assured there will be many unexplainable outcomes. Only a child would take the unexplained as pre-ordained, demanding to know why everything happened they way it did.

That's a bit like taking everything that can't be convincingly explained about the collapse of WTC 7 as proof of some nefarious plan so folks may make order out of disorder and rationalize the irrational. However, if you want to get to the question of the collapse of WTC 7, you MUST explain how those responsible, if really an inside job, KNEW WTC 1 and 2 would collapse to create the necessary cover. There are those who say 1 and 2 must have been demolished by explosives because those towers were designed to withstand an airliner collision (just like the Titanic was designed to withstand iceberg impact - it works on paper). Other conspiracists concede that the fires could not have raged on the floors that ultimately collapsed in 1 and 2 without the charges going off prematurely, even at the very moment of impact. Even though both camps agree on an inside job, they contradict each other. So if one could not rely on the airplanes alone to bring the buildings down because the engineer said they probably wouldn't, and one could not rely on the proper sequencing of charges to blow the buildings completely and convincingly due to the impacts destroying the set-up, how then does one make sure at least the tower closest to WTC 7 falls?

Further, people like to argue "controlled demolition." Well, a controlled demolition would protect surrounding structures from damage (that's the control part, kiddies. Gravity pulls buildings down, demo teams design the rubble pile). Yet, you need damage to WTC 7 to provide cover for "pulling" that building. Therefore, you would NOT desire controlled demolition, despite what the zombies chant as fact. You want maximum destruction to surrounding structures if you want to set up WTC 7 for demolition. However, that negates the argument that it was a controlled collapse, therefore an inside job, because such a controlled collapse was neither desired nor evident.


Tue, 05/03/2011 - 05:56 | 1233159 Broder_Tuck
Broder_Tuck's picture

You need to read the NIST-report about WTC 7. "controlled"... jesus christ, thats semantics. You are really grasping at straws now are you.

Tue, 05/03/2011 - 09:16 | 1233503 maximin thrax
maximin thrax's picture

Not at all. People say, "look how the towers fell straight down - just like controlled demolition!" Whenever truthers loose the argument, they always revert to the "it could only fall that fast with controlled demolition" meme. An engineer who witnessed it reported to the media that it looked like a controlled demolition, and idiots picked that up and ran with it.  They don't reallize that the taller the structure, the straighter it falls. But I see you avoided the broader point hat WTC 1 and 2 had to fall to provide cover for WTC 7, so you have to explain how "they" knew the first two would fall (well, at least the one closest to 7) to have either A) pre-wired 7 in anticipation or B) had explosives ready to be deployed and then actually set them up in 7 within the time between the first collapses and the collapse of 7.

Tue, 05/03/2011 - 11:37 | 1234082 Broder_Tuck
Broder_Tuck's picture

I'm loosing patience. Yes you are right, now move along.

Tue, 05/03/2011 - 15:54 | 1235533 BigJim
BigJim's picture

So let's see - WTC 7 couldn't be a controlled demolition, because it looked too much like a controlled demolition?

Tue, 05/03/2011 - 11:40 | 1234152 Broder_Tuck
Broder_Tuck's picture

"If you tell the story of Noah and the ark (911 official bullshit story +  Obama Bin Ladeen fairytale for the intellectually challenged and clinically insane) to a eight year old retarded boy, he's gonna gave some questions"

retarded boy:  "AAAOOOOOOUUUUHHHHHAHAAA   There alot of holes in that story........I´M NOT THAT RETARDED!!!!!!!!!!!!!"

See from one minute:




Mon, 05/02/2011 - 21:47 | 1232545 Dollar Damocles
Dollar Damocles's picture

The gov lies and manipulates markets every day, lies about inflation, lies about economic recovery, lies about jobs, conspires with wallstreet to rape the middle class in a housing ponzi, but when it comes to war, WMDs, Tower 7, OK City bombing, WACO etc, they speak nothing but the truth.

I have to agree it is a bit inconsistent of the Turd.

Maybe if he researched the put options on American Airlines (this was talked about all over the MSM - dylan ratigan reported on it - one of many) that were investigated by the SEC, and then dismissed as "not associated with AQ" that might open his eyes?  Since then the evidence has dissapeared.  This is the same SEC by the way that did everything they could to not go after Madoff (see the excellent interview with markropolis on KWN) and turns a blind eye to all sorts of corruption.

Turd, fix your schizoprenia!

Mon, 05/02/2011 - 21:51 | 1232551 Dollar Damocles
Dollar Damocles's picture

Oh I should add Turd, that your "Santa" mentions that the key to 9/11 is to follow the put options.  So it isn't as though people you have respect for all swallow the government story.

Mon, 05/02/2011 - 22:22 | 1232620 Poofter Priest
Poofter Priest's picture

I'm sure he will stay awake wondering the same thing.

Mon, 05/02/2011 - 22:23 | 1232624 Beam Me Up Scotty
Beam Me Up Scotty's picture

Um all he asked is that people didn't pollute his blog, about metals with conspiracy theory.  He didn't indicate any opinion on that at all.  I'd say you are having an over reaction.

Tue, 05/03/2011 - 00:59 | 1232795 i-dog
i-dog's picture

So, he "polluted his blog" with sycophantic nonsense, then asked his readers not to respond?! Is he trying to imitate Denninger?

Mon, 05/02/2011 - 23:06 | 1232711 Ura Bonehead
Ura Bonehead's picture

Turd, I don't know you or your blog but you keep posting and waving that flag!!!  And let FunkyMoney worry about the aliens living under his bed.

Funky, haven't you figured it out yet?  It's all about you. And all the rest of us are in on it!  Don't forget to look under your bed tonight.

Mon, 05/02/2011 - 23:46 | 1232812 High Plains Drifter
High Plains Drifter's picture

a friend of mine called me a while ago and the subject of bin laden came up. i told her what i thought. she refused to believe it. i said the american people are so stupid , it is beyond belief. take the celebrations for instance. my friend said. well the american people need something to celebrate since everything is always so down all the time. i said, do you see the insanity in this?  do you see how easy it is to manipulate the stupid dumb down americans?  she didn't want to talk about it. end of conversation. so , i am sad to say, after about 6 years of slugging it out trying to wake people up, i have come to the conclusion, there almost is no hope......its like the JFK assassination. most amerikans think there was a conspiracy, yet in their minds, this was the only conspiracy that ever happened. how in the hell do you get around such logic is beyond me....

Tue, 05/03/2011 - 04:06 | 1233103 uranian
uranian's picture

building 7's collapse reported 20 minutes before it actually happened by the BBC:

Tue, 05/03/2011 - 08:45 | 1233375 JFK.4PREZ
JFK.4PREZ's picture

wow.  i've seen some strange 9/11 videos but thats near the top.  

Mon, 05/02/2011 - 21:28 | 1232505 Campagnolo
Campagnolo's picture

Turd, how can you possibly believe that Osama Bin Laden was assasinated?, using the eternal manipulation of patriotism?....I am in doubt about your blog now....

Mon, 05/02/2011 - 22:48 | 1232677 RockyRacoon
RockyRacoon's picture

Yep.  I junked ya.  The Turd's views on the crazy guy's demise have no bearing on PM movements.   My view on the Catholic Church have no bearing on my ability to clean out the gutters or mow my lawn.

Mon, 05/02/2011 - 23:50 | 1232825 FeralSerf
FeralSerf's picture

"My view on the Catholic Church have no bearing on my ability to clean out the gutters or mow my lawn."

Well, it should!   If they knew what your opinion was and they were still capable, they would have burned your sorry ass at the stake for heresy.

Lucky for you, the Pope doesn't read ZH, or so I've been led to believe.  Hey, we're all got to believe in something.

Tue, 05/03/2011 - 00:55 | 1232940 RockyRacoon
RockyRacoon's picture

I'll remember that the next time I'm on the ladder.

Tue, 05/03/2011 - 01:40 | 1233004 bruinjoe93
bruinjoe93's picture


Tue, 05/03/2011 - 04:17 | 1233109 uranian
uranian's picture

“Naturally the common people don't want war; neither in Russia, nor in England, nor in America, nor in Germany. That is understood. But after all, it is the leaders of the country who determine policy, and it is always a simple matter to drag the people along, whether it is a democracy, or a fascist dictatorship, or a parliament, or a communist dictatorship. Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is to tell them they are being attacked, and denounce the pacifists for lack of patriotism and exposing the country to danger. It works the same in any country.” ~ hermann goering during the nuremburg trials

Mon, 05/02/2011 - 20:06 | 1232273 mogul rider
mogul rider's picture

No the stupid people are the ones that think the only place to go is up. If anyone is a "tard" it's you dipshit.


Things have changed, if you haven;t noticed you are fucking tard, Did I sell my tradeable silver at 49+? Of course I did. Only a fucking idiot wouldn't.


Did I buy a shitload back cheaper - not yet

Did I trade my core absolutely not.


Fucking pumpers

Tue, 05/03/2011 - 10:03 | 1233705 oddjob
oddjob's picture

'I sold it all,but I still have some.'

Wise up Greenhorn.

Mon, 05/02/2011 - 23:04 | 1232712 bigelkhorn
bigelkhorn's picture

I subscribe to the guy from australia and his FFT economic newsletter at  that guy has called many big events before they have happend, including the stock market crash in 2008 and the current financial collapse of the US. (currently happening) I found him from a friend last year, and he has some important work.

He was calling for $48 in silver a year ago, and people laughed at him. Guess he is having the last laugh now. 

Sure is interesting seeing what he is saying now!

Tue, 05/03/2011 - 00:26 | 1232894 magis00
magis00's picture

Junked for link to waste of time email address aggregator website.  Garbage -- disprove.

Mon, 05/02/2011 - 23:12 | 1232719 Ura Bonehead
Ura Bonehead's picture

WHAT fundamentals?  Silver stopped trading on 'fundamentals' a long time ago.

Tue, 05/03/2011 - 01:35 | 1232999 Smu the Wonderhorse
Smu the Wonderhorse's picture

In Bahston, we say, "TAHD."

Tue, 05/03/2011 - 02:15 | 1233030 TumblingDice
TumblingDice's picture

very insightful

Mon, 05/02/2011 - 19:13 | 1232131 GubbermintWorker
GubbermintWorker's picture

Silver bitchez!

Mon, 05/02/2011 - 19:10 | 1232132 Bastiat
Bastiat's picture

Exactly!  Got ballz?

Mon, 05/02/2011 - 19:22 | 1232165 Strike Back
Strike Back's picture

Silver ones.

Mon, 05/02/2011 - 20:08 | 1232306 dlmaniac
dlmaniac's picture

+1 hohoho

Mon, 05/02/2011 - 19:11 | 1232136 EscapeKey
EscapeKey's picture

FFS $35m = $35,000,000 / $45 = 777,778 oz / 5,000 = 156 contracts delivered.

Much ado about nothing.

Mon, 05/02/2011 - 19:15 | 1232141 ZeroPower
ZeroPower's picture

But even more shocking perhaps, the silver equities are down while the broad market is up. There's the greater anomaly, IMO. Paper 1/2 short SPX; 1/2 short SLV; long SIL.

Mon, 05/02/2011 - 19:17 | 1232155 JustPrintMoreDuh
JustPrintMoreDuh's picture


The silver sky is falling ... NOT.


Mon, 05/02/2011 - 19:20 | 1232156 Bastiat
Bastiat's picture

Gonna be a riot when the all the hedgefund shorts try to get out of the tiny mining equity sector.

Mon, 05/02/2011 - 19:45 | 1232228 Flakmeister
Flakmeister's picture

Pleze, canIhaz short squeezie?

Mon, 05/02/2011 - 21:35 | 1232518 scatterbrains
scatterbrains's picture

I had it figured as ppt sanctioned naked short selling of the mining group by the power that be no ?  They can take these stocks down much further no ?

Mon, 05/02/2011 - 19:21 | 1232161 razorthin
razorthin's picture

Nice correction.  Already back to the linear trend on the August 2010 move.  Healthy action.

Mon, 05/02/2011 - 19:23 | 1232166 unclebigs
unclebigs's picture

Sprott is a self-promoting phoney.  Can't stand the blowhard.



Mon, 05/02/2011 - 19:33 | 1232203 akak
akak's picture

Weak, Uncle Fester, very weak.

Stop insulting us, and don't come back until you graduate from troll high school at the very least.

Mon, 05/02/2011 - 19:29 | 1232179 monopoly
monopoly's picture

Any one in miners, gold, silver for a week, a month or two should just buy AMZN. This ride is going to get really wild and I am in it for the long haul. Sure, I will be ridiculed, cursed, called an idiot, but I have been buying gold, silver for years now and do not intend to change unless this country changes dramatically. Bring it on. Make my day.

Mon, 05/02/2011 - 19:30 | 1232182 Misean
Misean's picture

What time is tomorrows margin hike?

Mon, 05/02/2011 - 19:36 | 1232211 lettuce
lettuce's picture

lol nice

Mon, 05/02/2011 - 19:28 | 1232183 redpill
redpill's picture

Paging RobotTrader for his public apology

Mon, 05/02/2011 - 19:29 | 1232187 knukles
knukles's picture

Sweet arb! 
Taking advantage of the premium demanded of the elegant structure of PSLV, exacerbated by current market conditions, arbitraging into lagging miners.


And just wait.  Betcha that sooner or later the same arb should likely reappear in the gold trust as the market once again refocuses upon the "shortage" of good delivery gold as was present some time ago.  Attention's simply been diverted to the current miasma in silver markets.

Mon, 05/02/2011 - 19:31 | 1232190 akak
akak's picture

Sprott decided to buy more silver the moment he discovered that it only costs $5 to dig from the ground --- that's like only $4.65 Canadian!  You'd have to be loonie not to grab your shovel!

Mon, 05/02/2011 - 19:43 | 1232223 TeMpTeK
TeMpTeK's picture


Mon, 05/02/2011 - 21:33 | 1232514 Sabibaby
Sabibaby's picture

It cost five dollars to dig how much from the ground?

Kinda like saying it cost 50 dollars to fly in an airplane. 

Give me five dollars and I'll give you a shovel full of dirt!

Mon, 05/02/2011 - 20:14 | 1232312 The Third Man
The Third Man's picture


Hilarious! :-)

Mon, 05/02/2011 - 19:31 | 1232192 bob_dabolina
bob_dabolina's picture

So he is underwater on his mining shares & PSLV is down?

So someone(s) other than just Sprott was/is selling.

Mon, 05/02/2011 - 19:31 | 1232198 Bastiat
Bastiat's picture

His action actually tightens the squeeze on JPM to the degree he's buying physical.

Mon, 05/02/2011 - 19:37 | 1232207 Drag Racer
Drag Racer's picture

looking at the futures page at Finviz and seeing most things down and the dollar up, its like giving me a case of dyslexia man. I can feel my head tilting to the side and my neck hurts. I just plain feel dizzy from it all.

Mon, 05/02/2011 - 22:50 | 1232687 RockyRacoon
RockyRacoon's picture

This chart doesn't affect my equilibrium at all:

Mon, 05/02/2011 - 19:37 | 1232212 Barb Dwire
Barb Dwire's picture

My internet went out a day earlier than planned (I am moving) so I got massively anally raped on my June AGQ calls. I'm sitting here trying not to throw up blood lol. I'm waffling between flipping them to puts on the open and riding anymore EE action, or riding these through the next week - I'm scared to look at what the theta is lol. Not pretty...

Mon, 05/02/2011 - 19:40 | 1232213 Spalding_Smailes
Spalding_Smailes's picture


PPPPPPPPPPSSSSSSSssssssssssssssssssssssss s, ...... KA ˆ BOOM' 


Then there’s hedging activities by miners. Park noted:

“Given that gold miners’ hedge books have been whittled to less than 5 million ounces by the end of 2010 (from more than 100 million ounces at the end of 2000), miners will no longer have to purchase gold on the open market (or earmark their current production) to cancel existing forward sales agreements.”

The result, asserted Park, could be that a “previously significant tailwind for gold demand will subside going forward, and could even reverse to a headwind if gold miners decide to rebuild their hedge books to lock in historically high bullion prices.”

Of course, lots of different twists and turns can develop to alter such a longer-term forecast, Morningstar analysts concede.

“While we think that some of these factors could continue to provide a tailwind for gold prices, we believe many of the factors cited above are unsustainable over the long run, thereby lending support to our lower long-run gold price forecast,” Park wrote.


Not so fast. Hedging has made a comeback.



In the past two months, at least five miners have executed silver hedges to protect against a fall in prices, bankers say.

Deutsche Bank estimates that in excess of 100m ounces may have been hedged. That is several times the size of total outstanding hedges in late 2010, estimated at about 20m ounces, and 15 per cent of annual silver production.

Does the rash of activity herald a return to widespread hedging for precious metals miners?

That question is of critical importance for investors in gold and silver, as well as the miners’ own shareholders.
Mon, 05/02/2011 - 19:44 | 1232224 penisouraus erecti
penisouraus erecti's picture


Mon, 05/02/2011 - 19:52 | 1232253 topcallingtroll
topcallingtroll's picture

Hey Printer Boy.

I was wondering if the backwardation was producers falling all overthemselves to hedge forward production.

Makes sense to me.

Mon, 05/02/2011 - 20:18 | 1232327 Math Man
Math Man's picture

Yes, backwardation is def from producer hedging.  Several articles on it. 

I get junked every time I post them though.

(this one is posted above)



Mon, 05/02/2011 - 21:05 | 1232455 akak
akak's picture

Go away, troll --- your anti-PM fearmongering is laughably ineffective with this crowd.

Mon, 05/02/2011 - 19:53 | 1232255 Bastiat
Bastiat's picture

Would never own a miner with any hedge at all.  If you can't do your own due diligence, stay out.

Mon, 05/02/2011 - 19:57 | 1232260 EscapeKey
EscapeKey's picture

Delivered over what period of time?

Mon, 05/02/2011 - 19:41 | 1232216 55mph
55mph's picture


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