Silver Purge As Stocks Surge

Tyler Durden's picture




 

It seems the mere opening of the US equity markets is enough to spark renewed excitement over the fact that Europe's GDP data must be troughing right - or Japan's? Whatever it is, Silver (and gold) is getting monkey-hammered as Stocks surge on negligible volume... FX markets not so much; Treasuries not so much; credit not so much; Oil not so much...

 

Smells to us like whatever it takes to run up to overnight highs and take some stops in ES...

 

 

and stocks in a world of their own relative to risk-assets almost total lack of excitement...

 

Chart: Bloomberg and Capital Context

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Thu, 02/14/2013 - 14:37 | 3243713 Mugatu
Mugatu's picture

As soon as Hugo Chavez finally is declared dead (and not just on life support), Columbia will have to figure out how to balance their budget without the billions in aid and cheap oil from Venezuela.  That is when they will nationalize the remaining mines.  If you own any miners with exposure in Bolivia, you better get out now.

Thu, 02/14/2013 - 12:45 | 3243359 Fuh Querada
Fuh Querada's picture

In Germany for years now you pay 15% over spot for a tube of 20 x  1oz silver  coins (like Maples or Philharmonics) and that includes 7% VAT. Not brilliant, but still tolerable. Confirmed: Gold is free of VAT and the premium is 5% over spot for the common 1 oz coins. I suspect the UK is where you get fleeced.

Thu, 02/14/2013 - 13:29 | 3243502 ThirdWorldDude
ThirdWorldDude's picture

Tell your friend to purchase his silver from dealers located in countries with no VAT on silver coins nominated as "legal tender"... for instance Estonia.

Only problem is you have to wait a few weeks (my last purchase took a month) before you get delivery. And no, it's not because they're some Baltic slackers, it's because they're mostly sold out and I guess you're already familiar with the phyz market's "liquidity".

Thu, 02/14/2013 - 11:59 | 3243178 redpill
redpill's picture

Irrational paper markets that can't decide between deflation resulting economic collapse or inflation from central banker pumping. Meanwhile everyone who is in the real physical market has to watch the grotesque lurching thanks to these financial assholes who wouldn't know an actual silver coin if it hit them on the head.

Thu, 02/14/2013 - 12:47 | 3243364 ATM
ATM's picture

It's all very rational. The real course of the market should be deflationairy as the debt bubble unwinds. However you have the banking cartel standing on the printing accelerator doing everything they can to reinflate.

The reinflators will always win out in the end because they have unlimited ability to print.

All the swings up and down now are meaningless in the bigger scheme. All prices for everything will go up as the fiat currencies collapse. The real key is to find those assets whose real return will be positive and not get mesmerized by nominal returns which are meaningless.

 

Thu, 02/14/2013 - 14:28 | 3243687 JimBowie1958
JimBowie1958's picture

Irrational paper markets that can't decide between deflation resulting economic collapse or inflation from central banker pumping.

Welcome to todays version of balanced markets.

Thu, 02/14/2013 - 11:58 | 3243180 VonManstein
VonManstein's picture

Very reassuring :)

Thu, 02/14/2013 - 12:00 | 3243181 serog
serog's picture

Just how I hugged my kids after Sandy Hook, I shall roll around in phyz when I get to an undisclosed location tonight.

Thu, 02/14/2013 - 12:48 | 3243366 ATM
ATM's picture

What's Phyz's last name? I used to date a girl named Phyz.

Thu, 02/14/2013 - 13:39 | 3243549 ParkAveFlasher
ParkAveFlasher's picture

Ickle

Thu, 02/14/2013 - 15:51 | 3243948 serog
serog's picture

From Cranston?!

Thu, 02/14/2013 - 13:15 | 3243449 Meat Hammer
Meat Hammer's picture

I let my kids play grocery store with silver eagles.  They love it!  At least, they did before the boating accident.

Thu, 02/14/2013 - 13:28 | 3243498 Go Tribe
Go Tribe's picture

You lost your kids? I'm so sorry.

Thu, 02/14/2013 - 11:59 | 3243184 HyperLazy
HyperLazy's picture

Nat Gas took a hit too. Bought the dip.

Disclosure: Couple weeks ago I picked up a small position on GTAT - PE 3.9 and since it has a short interest of 30%, I am just gonna wait for the short squeeze and see if it turns into the next AMZN at over 9000 PE.

Thu, 02/14/2013 - 23:21 | 3245346 DirkDiggler11
DirkDiggler11's picture

Disclosure:
Go Pump your Bullshit GTWAT straight up your ass and set fire to it ! If you want to pump up your pathetic stock pick on ZH, then take out one of the annoying pop up ads everyone just loves.

Fri, 02/15/2013 - 13:37 | 3245717 HyperLazy
HyperLazy's picture

Dear DickWiggler1111!!!1,

Is your sarcasm meter broken? Let me draw you a map to sarcasm mountain - https://www.youtube.com/watch?v=SiMHTK15Pik

Having a bad Valentines day? Here let me make it worse. Wipe the troll jizz off your chin.

Uncordially,

HyperLazy

PS: GTAT is up 20% for me. Or should I have shorted it? Fuck head.

 

Thu, 02/14/2013 - 12:00 | 3243190 SWCroaker
SWCroaker's picture

Did you know that "Silver" is the word for "Monkey-Hammer" in 70 different languages?   It is the metal of choice for masochists world wide.   Scratch under the shiney surface, and you find red hair.   If Gold is having a bad day, then Silver is a monetary metal and has a worse day.   If Gold is up, Silver is an industrial metal and there is no need for it in a world were any sane individual would want gold.             It's left handed.                           Sigh.

Thu, 02/14/2013 - 12:02 | 3243205 youngman
youngman's picture

I do not know what a Monkey hammer is...but in Japan they take a hammer to a monkeys head.....fresh brains anyone

Thu, 02/14/2013 - 12:58 | 3243381 Raymond Reason
Raymond Reason's picture

So it can be used as both a noun and a verb in communication exchanges?  A store of value, a medium of exchange, an industrial metal, a health product, and a vampire slayer.  What's not to like? 

Thu, 02/14/2013 - 15:43 | 3243923 mick_richfield
mick_richfield's picture

Argentum kills werewolves, not vampires.

That's a mistake you can only make once.

Trust me on this.

 

Thu, 02/14/2013 - 22:14 | 3245182 StychoKiller
Thu, 02/14/2013 - 12:01 | 3243195 MillionDollarBoner_
MillionDollarBoner_'s picture

PMs are crashing because everything is fixed.

Didn't you get the memo?

Thu, 02/14/2013 - 12:01 | 3243200 youngman
youngman's picture

I can´t beat em...so I buy their dips...this was a good one...and I never sell...

Thu, 02/14/2013 - 12:03 | 3243209 s2man
s2man's picture

Yeah, good timing.  I'm headed to the LCS, today.

Thu, 02/14/2013 - 12:02 | 3243202 Confundido
Confundido's picture

Oops, Bberg just posted some positive news for Precious Metals, this time from England...I guess it's time to hammer them again, with more PM loans leases to expand supply...

Thu, 02/14/2013 - 12:02 | 3243203 Archetype
Archetype's picture

I need a tripple dose of Longsoupline NOW!

Thu, 02/14/2013 - 13:59 | 3243606 Shell Game
Shell Game's picture

Just BTFDYI.......this bullshit is a sword with two sharp edges.  Me thinks their side of the blade dulls as ours stays keen...

Thu, 02/14/2013 - 12:03 | 3243207 Stuck on Zero
Stuck on Zero's picture

Memo

From: Obama

To: PPT

Date: 13 Feb 2013

Subject:  Poor performance of stock market after SOTUS

Get your asses in gear or you are all fired.  When I give a wonderful uplifting speech I want the market to respond positively.  Get to it.

 

Thu, 02/14/2013 - 13:20 | 3243468 Meat Hammer
Meat Hammer's picture

P.S.  And if the market doesn't perform, I'll just say down is the new up and the sheeple will come running with investment dollars in-hand.  

Thu, 02/14/2013 - 12:03 | 3243208 TahoeBilly2012
TahoeBilly2012's picture

"These are not the droids you are looking for..."

Thu, 02/14/2013 - 12:15 | 3243248 outamyeffinway
outamyeffinway's picture

"These aren't the droids we're looking for." Move along.

Thu, 02/14/2013 - 12:34 | 3243327 Agstacker
Agstacker's picture

Lots of silver in droids...

Thu, 02/14/2013 - 12:04 | 3243213 Big Corked Boots
Big Corked Boots's picture

Silver is purging 'cause I bought some last week.

(sigh...)

Thu, 02/14/2013 - 13:16 | 3243451 Non Passaran
Non Passaran's picture

Buy some more this week and so on and so forth.
A no brainer.

Thu, 02/14/2013 - 22:57 | 3245299 Midas
Midas's picture

At least I know who to blame.  Give me a heads-up next time?

Thu, 02/14/2013 - 12:05 | 3243214 SheepDog-One
SheepDog-One's picture

HOORAY! What a wonderful world we got here now! WOW this is just SUPER!!

Thu, 02/14/2013 - 12:05 | 3243216 billwilson
billwilson's picture

Usually signals a bottom. Watch the relative performance of miners versus PMs. This is the hedgies dumping gold to buy miners. Miners will lead gold higher ... because this time is not, or ever, different.

Thu, 02/14/2013 - 12:06 | 3243217 thismarketisrigged
thismarketisrigged's picture

bernanke and obama, i wish you guys only the worst things i can imagine, 

 

fuck u guys, we american ppl should suffer while all these fraudsters make millions, fuck u all

Thu, 02/14/2013 - 12:06 | 3243218 DavidC
DavidC's picture

Tyler,
Thanks for that - I've been sat here in a WTF with the US open, bizarre considering Europe pre open was down after the initials. I'm still short above 14,000 but wondering about whether they'll pump it back up over again.

This is just absolute madness.

DavidC

Thu, 02/14/2013 - 13:03 | 3243406 Panafrican Funk...
Panafrican Funktron Robot's picture

I bought a 20 put/30 call strangle on April VXX options this morning, I figure either they'll keep grinding this fucker ever so slowly up, or we'll have a late December-esque correction around the sequester shit.  Or both.  

Thu, 02/14/2013 - 12:09 | 3243220 Dr. Engali
Dr. Engali's picture

I just checked my stacks and they are still there. It's almost as if they didn't even notice a thing.

Thu, 02/14/2013 - 12:07 | 3243221 unwashedmass
unwashedmass's picture

 

It appears, if you follow Harvey Organ's tracking of the Comex activity, that JPM doesn't actually have the silver to meet the March calls if they stand for delivery. 

So, CTFC is averting eyes

and let's all sell silver!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

The CTFC is laughable, laughable now. 

Thu, 02/14/2013 - 12:22 | 3243288 Confundido
Confundido's picture

Margins to be further reduced... and should that fail too, the UK Exchequer will stand ready to announce with no less than a week before required how much tons of precious metals they want to "take profits" on in an "auction". You bitchez are fucked!

Thu, 02/14/2013 - 12:07 | 3243222 OptionNinjaNYC
OptionNinjaNYC's picture

THE FARCE MUST GO ON !

Thu, 02/14/2013 - 12:07 | 3243223 unwashedmass
unwashedmass's picture

 

It appears, if you follow Harvey Organ's tracking of the Comex activity, that JPM doesn't actually have the silver to meet the March calls if they stand for delivery. 

So, CTFC is averting eyes

and let's all sell silver!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

The CTFC is laughable, laughable now. 

Thu, 02/14/2013 - 13:44 | 3243562 tmosley
tmosley's picture

They never do have enough, and only rarely do enough people stand for delivery to call them on it.  The last time it happened, MFG got Corzined.  No reason to think it won't happen again if these guys fail to learn from even the recent past.

One could make a lot of money playing in paper, but it just isn't safe.  Everything can be taken from you in an instant.

Thu, 02/14/2013 - 12:12 | 3243225 Cultural Capital
Cultural Capital's picture

So like let me get this straight.

People buy silver because they can't afford gold. Yet in the future when the lay people are even more screwed financially, somehow magically there will be a rush into precious medals at which time the sleeple will start buying silver at $500 or gold at $3000 when they don't even have the disposable income today to purchase at these "cheap" prices.  Haha... yea.. :) Seems like that's going to happen soon, given the global depression we are in. 

Think about that for a sec.  

Thu, 02/14/2013 - 12:17 | 3243258 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

People still have savings in cash and iras, just not as much. 1/100 of those people of some stake in gold. What if that changes?

Thu, 02/14/2013 - 12:18 | 3243262 Dr. Engali
Dr. Engali's picture

The people with no money have sold or are selling their gold at the "we buy gold shops" right now. The people who will be rushing into precious metals are people who have paper assets as they  lose faith in the system and as inflaton starts eating away at their returns.

Thu, 02/14/2013 - 12:22 | 3243284 scatterbrains
scatterbrains's picture

well because this is a run on the world reserve currency which is accelerating with every passing day.. it feels different from inside the host currency. Your money buys less and less shit and you wonder how gold or silver is going to find hot money to lift the price.  Then one day out of the blue  the U.S. pulls an Argentina and devalues...the world dumps U.S. dollars and wow no one had to spend  one  penny on gold and yet the price doubled. You have to see it from outside the dollar box.

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