Short Squeeze? Silver Surges Most In 7 Months

Tyler Durden's picture

Following yesterday's note on the near-record level of shorts in Silver futures, it is perhaps just a coincindence that spot silver prices are surging today - their biggest jump in seven months. Gold is also having one of its best 3-day runs in the last nine months, yet both moves are peanuts compared to what is going on in the "electronic" asset arena, namely the policy vehicle formerly known as "stocks" and BitCoin, both of which are racing for the title of most insane parabolic bubble ever.



Meanwhile BTC just hit $239 and S&P 500 futures are launching to new all-time highs as data points the other way...


Charts: Bloomberg and

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Dagny Taggart's picture


Duffminster's picture

Anyone following the precious metals may want to know what this article says:

Comex Gold Inventories Collapsing Most on Record


"...Over the last 90 days without any announcement, stocks of gold held at Comex warehouses plunged by the largest figure ever on record during a single quarter since eligible record keeping began in 2001..."


THX 1178's picture

Bitcoins are at $231.00. Holy shit. At one point in the past you could have gottenthem at 1.99. HOLY SHIT WHAT IS HAPPENING?

ACP's picture

Yeah, you'll definitely want to sell your tulip bulbs, er, bitcoins, as soon as you can buy a house with one.

Pladizow's picture

Its all about value, not price - what's silver doing, valued in bitcoin?

THX 1178's picture

Bitcoins are both a metric of the confidence in USD & EUR and a focus of speculation. So, yes BTC is in a bubble, but so is the USD which is bursting. Interesting dynamic. I still prefer SILVER BULLION IN MY POSSESSION.

Manthong's picture

Stand and deliver mo fo's.

johnQpublic's picture

i've got a feeling that folks in bitcoin will be slaughtered, and that right quick

anyone know if bitcoin can be shorted?

what was that 'betting' site that used to be referenced here on ZH?

NotApplicable's picture

I believe Intrade has been shut down.

Interestingly enough, I just googled "obama bitcoin" to see if it's a word he knows yet, and found a site betting on it. The bet is that he says the word by July 4th.

Pinto Currency's picture


The market is responding to government trying to legislate exclusive use of legal tender fiat currency against 5,000 years of market choice of gold and silver as money.

Virtual Bitcoin currency seems to have a number of Achille's heels and will eventually collapse as those weaknesses are exploited.

In the meantime, gold and silver continue their return as money in the consciousness of citizens after the abject failure of the coalition of government and banking to coerce the populace to utilize legislated fiat paper/digital currency for the past 100 years in the West.


mccoyspace's picture

You can short bitcoins here:

Canadian Dirtlump's picture

peoplelike mr. keiser are making 10s of thousands of dollars off of impoverished europeans clinging to bitcoin hope, who will get their faces melted off in their new safe haven. It's going to be sad.

smlbizman's picture

if you happen to be the last one at the party...all that is left is fat chicks....

americanspirit's picture

JQP - don't waste your time shorting BitCoin - short the Yen if you want to make some real coin.

xtop23's picture

Pretty crowded trade, that. 

malikai's picture

Collapsing. Just like Gold, DOW, S&P, everything. I'd post charts, but it's the same story everywhere.

AllThatGlitters's picture

With the current pop in silver, I suspect your "collapse" in silver and "bubble" in bitcoin is on the verge of a major reversal.

Silver has just gotten started near term.  We popped and consolidated. Now, it looks coiled for another big run.

Another surge is on the horizon.

Watch it happen today and tonight in real time:



dark pools of soros's picture

Blythe was getting laid today... She'll rip a new one on silver tomorrow

americanspirit's picture

dps - Blythe doesn't get laid. Her specialty is screwing others. With her knobby little knees held tightly together.

DCFusor's picture

Yup, when short term returns are "too good to be true" - RUN.  Because history shows, they always are, and he who gets out early is the winner.

And, FWIW, none of these curves are parabolic, they are exponential.  I guess math is too much for most traders.  Sure, the shapes look a lot alike at some points, but there IS an important difference.


DoChenRollingBearing's picture

This Bearing Rat likes being one of the first off a ship too.

Exponential...  I wish our sales in Peru were exponential...

BLOTTO's picture


Your ear(s) may be bringing...maybe cause of this guy? Thom Beecham

Trashin talking PMs


So, if the "collapse" takes several years to unfold, that should be long enough to destroy a lot of wealth and sanity the naive patriots have left. This, of course, is all part of the plan, and is why I am convinced that much of the "patriot" media is compromised. Who really writes for Zerohedge? If one invested according to them they would have been broke already.

francis_sawyer's picture

  "I guess math is too much for most traders.  Sure, the shapes look a lot alike at some points, but there IS an important difference."


Funny ~ I was thinking about just this same thing the other day when Chevy Volts crossed my mind...

reload's picture

WELL: It is a matter of record that Zerohedge has been calling stock markets higher, while ridiculing the mechanisms by which they are being forced higher. OK, we have had Hugh Hendry among others given `airtime` on here, advocating `short S&P - long Gold, but those who actualy pay attention to the DETAIL of the better articles posted here - will know, that Mr Hendry is very good at putting on cheap, deeply out of the money option strategies. So when he says Long Gold/ Short S&P it does not mean he is all in or that readers should be.

So lets be realistic, Mr Beecham (whoever he is) is likely threatened by the light shedding articles (swap lines, tri party repo`s, synthetic whale trades - etc,) WHICH ARE GROUNDBREAKING.

Trying to smear ZH as a bad place to get `investment advise` is beyond lame, and misses the point entirely. In any event, where in the media was the level of the R2000 or S&P first described as a FED policy objective? - on ZH I would wager.

I very much doubt the Tylers (whoever they are) will loose 1 millisecond of sleep over the opinions of Mr Beecham - whoever the fuck he is.

NotApplicable's picture

Sad thing is, lameness doesn't matter, since his target audience would have no clue. He's just doing advance character attacks for the day the financial world can no longer avoid what goes on here.

Another thing, Makow is already engaged in these attacks on other "fringe" bloggers, with each of them calling the other a psyop.

As for the Tylers, I judge them by their words, not by their identities, as they either have coherence, or not, wholly based upon the ideas they lay out.

All I hope for is that the ZH servers hold up the next time Drudge posts a link.

Ralph Spoilsport's picture

Makow is such a crackpot that Jeff Rense kicked him and his articles off his website (Makow claims that Mossad clandestinely installed small nukes disguised as Video cameras at Fukishima and deliberately caused the disaster. This was too much, even for Rense). Pretty entertaining feud actually.


dark pools of soros's picture

He had some good points-- if it was an attack it would of been a nuke from a sub

francis_sawyer's picture

Is he related to 'Mr. Wendal'?...



"Here, have a dollar,
in fact no brotherman here, have two
Two dollars means a snack for me,
but it means a big deal to you
Be strong, serve God only,
know that if you do, beautiful heaven awaits
That's the poem I wrote for the first time
I saw a man with no clothes, no money, no plate
Mr.Wendal, that's his name,
no one ever knew his name cause he's a no-one
Never thought twice about spending on a ol' bum,
until I had the chance to really get to know one
Now that I know him, to give him money isn't charity
He gives me some knowledge, I buy him some shoes
And to think blacks spend all that money on big colleges,
still most of y'all come out confused

Go ahead, Mr.Wendal

Mr.Wendal has freedom,
a free that you and I think is dumb
Free to be without the worries of a quick to diss society
for Mr.Wendal's a bum
His only worries are sickness
and an occasional harassment by the police and their chase
Uncivilized we call him,
but I just saw him eat off the food we waste
Civilization, are we really civilized, yes or no ?
Who are we to judge ?
When thousands of innocent men could be brutally enslaved
and killed over a racist grudge
Mr.Wendal has tried to warn us about our ways
but we don't hear him talk
Is it his fault when we've gone too far,
and we got too far, cause on him we walk
Mr.Wendal, a man, a human in flesh,
but not by law
I feed you dignity to stand with pride,
realize that all in all you stand tall

Mr.Wendal, yeah yeah yeah, Lord, Mr.Wendal"

Cathartes Aura's picture

while I like to keep an open mind when researching what's going down behind the curtain,  this part of Thom Beecham's chosen descriptive,

However, he was still thoroughly unwashed, and his awakening did not occur for another couple years. He is in his mid-40's, reads the Bible daily, and regards it as the best psychology textbook ever written.

gets a  /pass, from me at least.

xtop23's picture

Funny. Broke lol. I looked. Yep, my stack isn't one iota smaller.

deployedtoafghanistan's picture

The stack should keep stackin' - even according to the good book, it's all that lasts --

"Everything made from silver, gold, bronze, or iron is sacred to the Lord and must be brought into his treasury.”

-Joshua 6:19
Supernova Born's picture

A black hole to suck up a shitload of excess currency from true believers before it is shut down with zero compensation.

JimBowie1958's picture

How exactly do  you think the government can shut BTC down? The participants are all over the world and you would have to nab them all at once or else they could transsfer the BTC almost instantly to a new account, or burn to a CD and wait till the shit blows over.

You really do not  understand how TC works.

NotApplicable's picture

They don't have to shut down anything. All they have to do is to criminalize it.

See the idea isn't elimination of bitcoin, but merely of its legitimacy, in an effort to create fear in the masses who might otherwise flock to this safe haven.


phyuckyiu's picture

All they have to do is make it illegal in the United States, then all the Burning Man Playa freaks spouting bitcoin anarchy will have to move to another country to use them. Which, actually, come to think of it, the Bay Area would improve tremendously if these Mad Max Thunderdome dressing idiots with their dick piercings and Poly (That's latin for SLUT) lifestyle moved out.

Banjo's picture

I would also add that bitcoin is not unique or rare with regards the broader concept of money.

You or I could start our own competing virtual currency that performs the same function so could government or an economic group funded by government.

In fact I think a government funded virtual currency backed by "the government" and marketed heavily and assisted so that implementing trading in it is made easy. Would surpass bitcoin quite easily in adoption and use.

1. set up the competing virtual currency

2. set up large corporations to accept this, wal mart, amazon, mcdonalds

3. give everyone 1-5 new-bit-coins to start with

4. sell the electronic generation software/hardware combo aka so called "mining"

PersonalResponsibility's picture

Do you know how it works?  because I think your missing the point that there can be bitcoin2, 3, 4, ad infinitum.


phyuckyiu's picture

I have some Black Lotus MTG cards to sell you. Real cheap, a serious bargain at only $5,000. Get em before they're GONE!

TeMpTeK's picture

All they have to do is criminalize any competing digital currency as an act of terror as it will undermine the govts counterfeiting scheme..They did this already to Bernard Von Nothaus and Liberty Dollar? The they will ban the banks/ Businesses from accepting and converting Bitcoins to fiat or tangible items.. Then Bitcoin is over.. 

RockyRacoon's picture

It has been 2 years now, and Von Nothaus has not even been sentenced yet.  They confiscated over $6 million worth of his assets.  I think that just shutting him down and having him destitute was the objective.  That's all that was needed to stop an "alternative currency".  Actually proving that he was a counterfeiter was impossible.  Look for the same things in other "currencies" as well.

PersonalResponsibility's picture

doesn't need to be "shut down".  When bitcoin2 becomes popular, it'll shut itself down.  Then bitcoin3, and 4, and ...

McMolotov's picture

Be on the lookout for dogs and cats living together.

akak's picture

And for Bernanke claiming that gold is money and that the real rate of inflation is four times the CPI.

duo's picture

fire and brimstone coming down from the sky,

rivers and seas boiling, earthquakes, volcanoes!

catacl1sm's picture

Yes, it's true, this man has no dick.

Bearwagon's picture

Aside from Bitcoin or not, or silver and gold, that's the most interesting question: Holy shit, what is happening? But i don't know either.

seek's picture

Mt. Gox has a backlog of over 15K new clients yet to be processed.

Demand. That's what's happening. I've been in bitcoin a while, and have no doubt this is a bubble, but this could be a long-lived one with that many new users coming online. I'm seeing a half-dozen or more vendors announce that they're accepting bitcoin per day now, too. We're in an expansion phase.

My expectation is that we'll see another pullback of 20+% within a month, and also that bitcoin will break 1K before end of year. Maybe even by summer. Yes, it's insane, but that's the supply/demand imbalance.

DoChenRollingBearing's picture

+ 1 for a very interesting prediction.  

You walked the plank, we'll see if you predict things better than I do...  :)

DCFusor's picture

I think the + on that 20%+ is the key - I'd predict a larger fall....but that's me.