Use the Silver Dip to Convert Paper Silver into Physical Silver

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Mon, 05/02/2011 - 15:35 | 1231189 ivars
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Here we go again. Silver is crashing to 30, during May: (the chart is so old and bit of in timing,  its already boring, but its still valid):

Mon, 05/02/2011 - 14:37 | 1230937 HungrySeagull
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Mon, 05/02/2011 - 14:35 | 1230917 HungrySeagull
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Mon, 05/02/2011 - 13:41 | 1230625 falak pema
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silver will fall as they found 1 million tons of silver in Osama's bunker...this will flood the market and bring to an end the physical supply short these days. 

When you dig in Abbotabad you don't have to go far before you cry...silverrrrrrr...

Mon, 05/02/2011 - 16:40 | 1231489 akak
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Only 5 rupees to dig it from the ground!

Silver, infidels!

Mon, 05/02/2011 - 13:32 | 1230564 fasTTcar
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Check out  New trading site with no fees.

Someone sniped some 10 ouncers at spot + 5% last night.

Mon, 05/02/2011 - 13:02 | 1230403 Fred Hayek
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What dip?

The price is almost back to $48

Mon, 05/02/2011 - 13:01 | 1230393 RobotTrader
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Silver mining stocks are the absolute worst relative performers in stock market history.

Can't blame everybody for dumping them and buying physical instead.

Mon, 05/02/2011 - 11:51 | 1229963 acrabbe
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The best way to turn paper silver into physical silver is via a trading account that makes money based on volatility in silver prices, preferably traded for you by a former professional portfolio manager who knows what the F he's doing. Oh wait, that's me. You start with 10 to 30 grand. Every 5 grand of profits you cash out and buy another bag of the physical stuff. At my current performance averaging 45% a month in compounded returns for the past 3 months and a 991% Annual Return (based on the past 3 months, at the time of this post) Then you'd be able to cash out those paper profits pretty often to reload on another bag of coins/bars.  Keep in mind I only have 3 months of tracked trading dta because I only just realized I could trade my system publicly and allow people to autotrade my signals via the internet. I was a commodity broker @ 48 wall st. and then a hedge fund PM in midtown manhattan. Now I trade my cash independently as I have no need for the burdensome restraints of an organization that doesn't understand the true nature of this currently-in-failure-mode keynesian experiment.

the author has it spot on, convert your paper silver to physical. Of course, I would improve on that by saying convert your paper silver PROFITS into physical. Of course, the only way to do that is actually make paper silver profits. But how do you cram 6 years worth of intense silver and options trading education and experience into a few days and then use that knowledge to autotrade your brokerage account? That's right...

Mon, 05/02/2011 - 17:02 | 1231626 JuicedGamma
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"On this page, and others within this Web site, you are going to read about trading systems and their performance. These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown." Sounds great, how about showing us an audited trade list?

Mon, 05/02/2011 - 11:43 | 1229907 gorillaonyourback
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did everyone notice all the jibberish in the mainstream media of how silver is in a bubble?  Marketwatch must have had 5 pieces on the top of front page for 3 or 4 days last week.  well we got a crash but silver powered through lololololol

Mon, 05/02/2011 - 13:20 | 1230483 Temporalist
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The MSM cannot say "SILVER" without also saying "BUBBLE."  That Aussie trollop Amada Drury says "Can you say bubble" every time someone says precious metals.

Mon, 05/02/2011 - 11:41 | 1229880 MrBoompi
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I ordered more silver bars from APMEX and I stayed at a Holiday Inn Express.

Mon, 05/02/2011 - 11:21 | 1229713 ZeroHedgeFan
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Hello guys, I'm new here and have two questions for you experienced investors:

(1) How do you convert silver paper to physical during the Asian session? All US dealers close during Asian session. Do you know a special dealer in the US that opens during Asian session?

(2) I'm holding silver paper in leverage form (1:25). If I convert it to physical, I would have to reduce my position SIGNIFICANTLY unless I could find physical leverage. Is such thing exists?


Please advice

Mon, 05/02/2011 - 12:21 | 1230158 ZeroHedgeFan
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Guys, thanks for your advice. So basically I have to be in Asia to buy physicals during Asian session T_T (sad) Convert all profit to options? That's really risky. My purpose is to preserve purchasing power. Yes my leverage is a bit crazy but I can manage it (have done even higher leverage for years) ;-)

Any ideas about platinum? I think eventually it will catch up with gold and silver.

Mon, 05/02/2011 - 13:16 | 1230477 Temporalist
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Platinum will be something to avoid because it's been propped up by a false economy.  I still believe in buying the physical but it will not move up like Au and Ag.  Platinum had it's will come again but not in the near term.

Mon, 05/02/2011 - 14:09 | 1230809 ZeroHedgeFan
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Thanks for your analysis. Historically the gold to platinum price ration is 1:2. Once the economy improves, platinum should sky rocket! It might be a long wait tho.

Mon, 05/02/2011 - 12:03 | 1230034 gorillaonyourback
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simon black had a piece on that and he suggested going to asia

Mon, 05/02/2011 - 11:56 | 1229982 acrabbe
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My advice? Make more money trading silver. And while you're doing that, convert your crazy 1:25 leverage ratio to an all options portfolio. You can do both here:

Mon, 05/02/2011 - 11:48 | 1229926 Gargamel
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cash out.  go and buy physical.

Mon, 05/02/2011 - 11:16 | 1229690 Mountainview
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Take your Silver physical...Silver certificates, ETF's and other paper silver carry the risk of the issuer of the paper...

Remember Lehman certificates, Bear Stearns Funds and more... Go for nuggets...

Mon, 05/02/2011 - 11:12 | 1229651 Ceasar Palachi
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Ignorance is bliss.  I choose to stay ignorant of the goings on in the paper markets and instead smell the sweet aroma of physical bliss.  Like a child at Christmas, I can't wait for  the tearing sound of the physical silver price removing itself from the scene of the crime followed by the tearing sound of the seams in the britches of all the silver shorts and The Ben Bernank.

Mon, 05/02/2011 - 10:42 | 1229463 MrBinkeyWhat
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Last night I checked my silver holdings in the strong box. None vaporized.


Mon, 05/02/2011 - 10:11 | 1229285 medicalstudent
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if still backwardizing how can it possibly fall in any meaningful way?

Mon, 05/02/2011 - 09:55 | 1229214 swanpoint
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BTMFDC! "Buy The Mother Fucking Dip Cocksucker!"

Mon, 05/02/2011 - 09:27 | 1229075 Gargamel
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Did you see the flash bounce in platinum?    If this doesn't shake your confidence in paper markets I am not sure what will.

Mon, 05/02/2011 - 11:47 | 1229914 Gargamel
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Now kitcos chart no longer shows the dip that occurred. was it an error?   

It happened at the same time as the silver drop.  But now is missing from the live chart.

Mon, 05/02/2011 - 11:59 | 1230027 strannick
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Mon, 05/02/2011 - 09:18 | 1229045 Bansters-in-my-...
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Save a cow...

Eat a Fat Fucking Bankster.

Mon, 05/02/2011 - 08:54 | 1228918 mark mchugh
Mon, 05/02/2011 - 08:14 | 1228786 Kina
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The US economy is recovered and growing, no longer any reason to keep silver. Growth is going to expand the economy and the US debt will henceforth reduce. Japan's sudden hit by tsuanmi is only a scratch..

Europe is under control, central banks are all lending to each other their needs so all is well and covered.

So there is absolutely no reason why silver should be above $15 unless you have a wearwolf problem in your area.

Wait you mean it isn't fixed? It is getting worse? If BB doesn't print it is game over, if BB prints its game over.....Europe is walking a tightrope over an open cesspit? You mean everything can turn to shit in the blink of eye?

But silver is sooo high now. Yes yes I know equities are zooming up on the money printing, but they are not the bubble, truly.

What silver is only down because of corrupt manipulation by banks and corrupt regulators? You mean silver has been manipulated down artificially for a decade? But the current price is still a bubble?


Its going to take a decade for the US to untangle this mess, and it will be a very painful decade in truth.

Mon, 05/02/2011 - 14:50 | 1230974 penisouraus erecti
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"The US economy is recovered and growing,"

Based on what exactly? $5 gallon gasoline, 10% official (20% unofficial) unemployment?


Mon, 05/02/2011 - 16:28 | 1231436 Andy_Jackson_Jihad
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You get sarcasm.

Mon, 05/02/2011 - 11:57 | 1230016 strannick
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The US economy is recovered and growing, no longer any reason to keep silver.

-Your cute when you talk crazy

So there is absolutely no reason why silver should be above $15 unless you have a wearwolf problem in your area.

-Its the nation-wide Vampire squids that are the problem.

Sorry for feeding the troll. Back in your cage!!

Mon, 05/02/2011 - 07:52 | 1228744 White.Star.Line
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Those that hold paper silver and gold will end up being paid in devalued currency, non-deliverable metals, or possible total loss.

REAL silver looks purty.
It may bring riches someday, or maybe not.
Who cares?
Miners work harder than printers.

Mon, 05/02/2011 - 11:55 | 1229987 strannick
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Miners work harder than printers.

Effen Eh! Put some headlamps and slicks on Tim and Benny and send em underground on the tram to 'print' some new currency.

Mon, 05/02/2011 - 09:30 | 1229093 Manthong
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Does anybody have anything definite about the ETFS and Sprott ETFs? I tend to go along with the idea that there is something to be concerned about with IShares SLV having the physical. But ETFS is not wrapped up with the Morgue and crew to my knowledge and claims their foreign vault metal is not encumbered (I think). And Sprott trades at a large premium and presents the case that all the physical is in the Canadian mint, that the fund is closed and units only trade between shareholders. Does anyone know what specifically there is to be concerned about for longs in an IRA not ready to be cashed out for physical just yet?

Mon, 05/02/2011 - 13:11 | 1230457 Temporalist
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Just fyi JP Morgan is the custodian of SLV and GLD.

Mon, 05/02/2011 - 14:10 | 1230811 Manthong
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I knew that. In fact I did a little jumping in and out of both of those and locked in a few $K all the while knowing that I was playing the game.

Of course, phsyical is the way to go as conditions allow.

I would just like to know if and why ETFS and Sprott in particular might offer a enough peace of mind to stay long maybe even into the coming crap storm.  

Mon, 05/02/2011 - 11:29 | 1229810 Mountainview
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In 2008 commodity ETF's of ETF securities used AIG as counterparty and had some stressful moments when AIG was close to fail. The government

came finally in as saviour...

Mon, 05/02/2011 - 12:07 | 1230071 Manthong
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Any idea how big into AIG? Maybe just enough to cover transitional situations?

Geez, you'd think these guys would figure out that there is a great opportunity to build something truly solid (pun intended) and market the hell out of the building of known stockpiles. 

Even with a collapse of the present artifacts of wealth, a new artifact system will need to be established for convenience. References to "paper" is a misnomer even now. Everything will be digital and backed by metal not paper and politics. I think that Bullionvault and Goldmoney et al get it. But don't ETF's need to prove their legitimacy if they are to continue?   

Mon, 05/02/2011 - 07:38 | 1228710 Dangertime
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Things that make you go hmmmmm

2004-(5) - Silver goes from $4.50 to $8.25 in 9 months for an 83% gain.  Silver then crashes almost 30% to $5.50 in six weeks.

2005-(6) - Silver goes from $6.50 to $15 in 9 months for a 130% gain.  Silver then collapses 35% to $9.50 over a brutal eight weeks.

2007-(8) - Silver goes from $11.50 to $21 in 7 months for an 83% gain.  Silver then gets crushed by 25% to $16 over six weeks.

2010-(11) - Silver goes from $18 to $49 in 8 months for a 172% gain.  Silver then crashes x% for a loss of $yy over six weeks.

I wonder how the pattern will complete this time.

Mon, 05/02/2011 - 14:56 | 1230988 penisouraus erecti
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And........there are no differences this time? 14+ trillion debt, 3 or 4 wars, monetized debt, $5 gallon in giant QE bubble.....yeah, sounds like the same deal as those other times- better get out of PM's fast!

Mon, 05/02/2011 - 15:02 | 1231029 Crispy
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The OP never said SELL. He insinuates a pattern exists that creates an excellent buying oppurtunity.


Damn, most of you fuckers ARE that stupid.

Mon, 05/02/2011 - 15:16 | 1231106 penisouraus erecti
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LOL.....yeah, thats it.

Mon, 05/02/2011 - 14:48 | 1230956 Crispy
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 You junk the guy for posting hard numbers that actually occurred, while he speculates a pattern exists?

Whatta bunch of mopes.

 Taking this board down the crapper for junking something doesnt does not fit perfectly in with your own koolaid drinking.


The guy didnt say silver wasnt real money. All he did was post hard stats.


Again...bunch of chumps who never made a dime in the markets im sure.

Mon, 05/02/2011 - 14:02 | 1230746 Huckleberry Finn
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Yeah silver had some dips. What are you trying to prove? I didn't graph your data, but I see nothing but an overall increase from 2004-2010. Pretty pathetic when this is the best you can do.

Mon, 05/02/2011 - 12:08 | 1230063 Silver Shield
Mon, 05/02/2011 - 11:52 | 1229970 strannick
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How the pattern will complete this time? Easy, just watch the USDX as it keeps crashing through the floorboards.


6am USDX 73

8am USDX 72.67

Wonder how the Weimar fiat printing scheme will complete this time.

Mon, 05/02/2011 - 10:47 | 1229489 Robslob
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The same way the S&P 500 going from high 600's to high 1300's does...also things that make you go hmmm...

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