This page has been archived and commenting is disabled.

Explaining Today's Silver Surge

Tyler Durden's picture


A few days ago, Eric Sprott decided to take advantage of the record premium over NAV of his physical silver fund PSLV (or for some other arbitrary reason) and to issue a $300MM follow-on offering, whose proceeds would be used to buy up silver to add to PSLV's existing physical holdings. Naturally, as soon as the news broke, the premium dropped to about 10%, making PSLV holders unhappy. This is not the first time that Sprott has done this: as a reminder after his April 2011 follow on offering in PHYS, we were fully expecting a comparable physical sequestration to occur via PSLV, to wit: "It appears to have already had an impact on silver, which jumped by $20 cents to another 31 year high on the news, as the market now likely expects a follow on offering in PSLV as well imminently." About 10 months later, it finally happened. As was to be expected, any short-term gains focused investors obviously became angry that by collapsing the premium, which we speculated was shortage driven, they have suffered a hit to their P&L (expressed in dollars of course, which as a reminder to the holders, should be largely irrelevant, especially to those who believe a PM-based barter system is imminent). Yet they forget the flip side to the equation: the money taken out of the premium, would be promptly used to take silver out of (hyper hypothecated) circulation, in other words, in the closed system, the drop in Premium would translate in a rising price in the underlying. Which according to UBS is precisely what has happened, and why silver moved as much as it did. Quoting from FMX Connect: "Today’s incredible move was the culmination of a comment made by UBS analyst Edel Tully. He stated that hedge fund manager Eric Sprott may be in the market buying spot futures in a private letter to his clients." And even as the premium dropped, the price of spot silver increased by over 5%, on the speculation of silver being taken out of the market and delivered to Sprott.

So to summarize: speculation that $300 million in physical silver may be taken out of circulation raises the price of the underlying by 5%. Does that mean that a $3 billion follow on would result in a 50% rise in spot; $30 billion in 500%, and so on? Something tells us the trade off of the premium collapsing to zero in exchange for $100+ silver would be equitable... And as we noted previously, the primary reason for the surge in in the NAV could be many things, but shortage of real physical silver is certainly the most likely one (and good luck trying to buy, transport, store, and insure $10MM or more in physical, without relying on some true physical representation such as PSLV). And if UBS' speculation is true, this has just been confirmed. Most importantly, it once again raises the spectre that anyone wishing to corner the silver market, can do so quite easily even in the aftermath of last year's parabolic move.

Full note from FMX Connect:

Market Recap:

As of the globex close, March Silver was up an astonishing 5.4% ($1.66) on the day, crushing big brother Gold (up .76% on the day). Silver was up an impressive 11 hours in a row, starting from 7 AM. Please enjoy our special commentary below.

Over the last week, and particularly today, silver saw heavy buying. FMX | Connect Managing Partner Vince Lanci discussed the potential for a breakout higher two days ago in an  interview hosted by Kitco News (WATCH IT HERE). Of particular note, when asked his opinion on Silver was “If you’re bullish on Gold you should buy Silver.”

Today’s incredible move was the culmination of a comment made by UBS analyst Edel Tully. He stated that hedge fund manager Eric Sprott may be in the market buying spot futures in a private letter to his clients. With declining open interest in a rallying market, it didn’t seem likely to us, but over the last two days we noted open interest has flat-lined and started to turn upward, a bullish indicator.

Intraday moves did not care about how the Euro did or how gold traded. When Silver crossed the 50-day moving average at 30.90 it left Gold in the dust. While thousands of Call butterflies traded in gold over the last few days,they ended the week essentially unchanged.. But the hundreds of calls purchased over the last few days in Silver proved to be big winners for longs with the May 40 Strike garnering the most interest. Finally, note the commitment of traders shows an increase in commercial shorts (an increase of 1,320). This means the bullion dealers have not thrown in the towel and this could just be a market fading away from an impulsive buyer. We’ll wait and see.

Directional Commentary:

Options: Gold volatility was lower going into the weekend and ahead of February options expiration next week. Skew was selectively higher. Options activity remains mostly neutral and is unlikely to manifest strong biases while futures trading is orderly. Conclusion: Neutral

Technical: Gold finished almost $10 higher on the day but still below the highly-cited 50-day moving average at 1673.60. We see this moving average as a strong impediment to gold’s near-term prospects. As a contrasting indicator, open interest has started to creep higher in Jnauary. This (and other factors) leads us to believe that Gold may be due for a near-term correction, but maintain it upward trajectory in the intermediate term.  Gold’s objective to the upside is a settlement above 1674 and its objective to the downside is a return to 1600. Conclusion: Neutral

Active Options

G 1675 C, G 1700 C
G 1600 P
H 1700 C
M 1900 C
Z 2000 C, Z 1100 P

ATM Volatility Curve:

As of 1:30 P.M.


Volatility Smile:

***From NYMEX Settlement



End of Day Straddles
      Future     Bid     Offer
G12     1664     25     29
H12     1666.8     65     69
J12     1666.8     101     105
K12     1669.7     130     134
M12     1669.7     156     160
N12     1672.1     182     186
Q12     1672.1     205     209
U12     1674.5     230     234
V12     1674.5     249     253
X12     1676.9     268     272
Z12     1676.9     286     290

As of 1:30 P.M.



- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 01/20/2012 - 20:34 | 2082914 Long-John-Silver
Long-John-Silver's picture

Silver Bitchez!

Fri, 01/20/2012 - 20:42 | 2082933 trav7777
trav7777's picture

yes I did try to long SLV short fkin shares to borrow

Fri, 01/20/2012 - 20:55 | 2082964 Not For Reuse
Not For Reuse's picture

so why didn't you just long ZI, instead of coming back and continuously bitching about it in 10+ posts? Need to work on the whole "outside box" thing

Fri, 01/20/2012 - 21:17 | 2083028 narapoiddyslexia
narapoiddyslexia's picture

See the link -

Edel [pronounced A-dell] is definitely not a "he."

Fri, 01/20/2012 - 21:32 | 2083062 aphlaque_duck
aphlaque_duck's picture

"long ZI"?

Fri, 01/20/2012 - 21:54 | 2083120 Not For Reuse
Not For Reuse's picture

what I like about Trav is that he understands BNW, and that he shares a first name.

What doesn't makes sense is approaching it based solely on IQ.

The whole point of BNW is to stratify.

I would rather have 10 helpful retards working for me, in proven physical capacities, than live in a world where everyone is 2 sigmas to the right and they all think they are god's gift to earth.

PS, I've got your long ZI right here

Sat, 01/21/2012 - 01:23 | 2083446 trav7777
trav7777's picture

I see your point and that's a valid argument.  IQ is just a starting point.  We don't have a system where retards are stratified...they get to vote here.

I'm not looking to stand up alpha island, but I do believe that Huxley was off-target on that, given the tendency of higher IQ societies like Scandinavia to be in far better shape.  Smart people are qualitatively different than the dumb, and this is something that seems to have escaped Aldous.

I wanted a PAIR TRADE, not a long futures position...wasn't I clear?

Sat, 01/21/2012 - 03:38 | 2083634 Not For Reuse
Not For Reuse's picture

Scandinavia is definitely something to reflect on.

All I'm saying is, if X is supposed to = Y, and X = 1.3Y instead, and you CAN'T get the short leg of a pair trade... Antediluvian probability theory, I know

Sat, 01/21/2012 - 09:29 | 2083893 UGrev
UGrev's picture

Hail, my subjects! for my lineage goes back to 810AD to the father (Halfdan the Black) of the first king (Kong) of Norway (Harold I). Eff your trades.. I'll just take an axe to your neck and take it...with my bare hands!! /end morning humor

Sat, 01/21/2012 - 12:22 | 2084117 ZeroSpread
ZeroSpread's picture

...actually..where is Robo, miss his "input" explaining why things swung this way today and why next week will be "worse" ;-)

Sat, 01/21/2012 - 14:30 | 2084423 NewThor
NewThor's picture

Imagination WTFPWNS IQ &/or Math

language is a big stumbling block of free will

the enemies gate is down

Superman, where are you now?

Sat, 01/21/2012 - 04:26 | 2083694 Max Fischer
Max Fischer's picture



.....and this is something that seems to have escaped Aldous.....

Given that the structure of DNA wasn't discovered until 20 years after the publication of BNW, it is not surprising that Aldous would have some gaping holes in his genetic engineering fantasies. For you to have been duped by something so obvious casts* you squarely into the Epsilon negatives.  

I had never thought of it before, but I bet the possibilities presented in BNW really appeal to you.  Finally, poor whitey will get some respect for all those transistors and refrigerators he invented!  The only problem with being one notch above the blacks, is that you're still two notches below the Asians and Indians (dots, not feathers). Perhaps if we thoroughly sterilize, dehumanize and whitewash mankind into perfect little groups devoid of individual character, all the KKK trailer park pigs won't seem so reprehensible - and, well, that's a plus.   

Max Fischer, Carpe Hunc

*yes, that's a pun. 


Sat, 01/21/2012 - 15:08 | 2084539 Ahmeexnal
Ahmeexnal's picture

Finally, poor whitey will get some respect for all those transistors and refrigerators he invented!  The only problem with being one notch above the blacks, is that you're still two notches below the Asians and Indians (dots, not feathers).

What angers Trav the most is being 10 notches below "the tribe".

Sat, 01/21/2012 - 10:05 | 2083931 GMadScientist
GMadScientist's picture

You wanted a pair trade, but waited until the last minute to put it on (like the lilly-white pussy you are) and got punked.

Teeny violins, motherfucker.

Sun, 01/22/2012 - 02:21 | 2085931 delacroix
delacroix's picture

I knew a guy with a masters degree, who couldn't change a flat tire. I knew a kid, that most thought was mildly retarded, who could jury rig broken things to work, with stuff he could find, for free. once you get put in a box, it's hard to get out.

Sun, 01/22/2012 - 20:04 | 2087208 UP Forester
UP Forester's picture

If you want to ponder the theory of relativity, quantum mechanics or the entire history of Keynesianism, find someone with a PhD.

If you want to fix anything with shit left over from the last 100 years or so, come to the U.P.

Nobody up here has any money to pay anyone, so we build, grow and fix everything ourselves.

Fri, 01/20/2012 - 21:09 | 2082999 tmosley
tmosley's picture

Keep trying, dumbass.  Use any savings you have for the kid's college accounts.  Use your last fucking penny in that trade.

Fri, 01/20/2012 - 21:13 | 2083013 francis_sawyer
francis_sawyer's picture

aka - "The Gerber Plan"

Fri, 01/20/2012 - 21:22 | 2083035 bob_dabolina
bob_dabolina's picture

Steve Jobs

Mark Zuckerburg

Bill Gates 

John Quincy Adams 

All dropped out of college. College is a sham and with todays inflated prices an outright ripoff; $60,000 a year to go to Columbia. A four year degree costs $240,000 and that doesn't even count books (which is probably another $10,000)

Fri, 01/20/2012 - 21:27 | 2083050 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Zuckerberg is Scull and Bones, Gates was hand picked by the Illuminatti, and Jobs was born into the system, because he is a jewe.

Fri, 01/20/2012 - 21:29 | 2083053 bob_dabolina
bob_dabolina's picture

Nothing for John Adams? Not even a Free Mason ref.?

Fri, 01/20/2012 - 21:39 | 2083078 Bay of Pigs
Bay of Pigs's picture

Maybe he owned slaves and wrote Brown Sugar that was later made famous by the Rolling Stones.

He wasn't called Big John Adams for nothing...

And Bob, we didn't quite see the "low 20's" in silver you called for by the end of 2011, but close enough at $26 or so. You called it much better than I did. I stand corrected.

Fri, 01/20/2012 - 21:50 | 2083086 bob_dabolina
bob_dabolina's picture

Steve Jobs owned slaves, they just happened to reside in China. 

Fri, 01/20/2012 - 22:00 | 2083129 Bay of Pigs
Bay of Pigs's picture

Not a fan of Zuckerburg or Gates, although I'll cut Jobs some slack. 

College or no college, Adams doesn't belong on a list with any those guys.

Fri, 01/20/2012 - 22:09 | 2083160 bob_dabolina
bob_dabolina's picture

Larry Ellison 

Michael Dell

Kirk Kirkorian

Ted Turner

Ralph Lauren

Roman Abramovich (it pays to have a bestie like Putin)


Andrew Lloyd Webber were also relatively recent dropouts

Some older ones were

Howard Hughes

John D. Rockefeller

If you were interested.

Fri, 01/20/2012 - 22:16 | 2083186 fuu
fuu's picture

Jon Huntsman

Fri, 01/20/2012 - 23:19 | 2083274 Oh regional Indian
Oh regional Indian's picture

Bawney Fwank Hunts Man.


Silver Hunts.....Brothers?



Sat, 01/21/2012 - 02:16 | 2083563 hamstercheese
hamstercheese's picture

Ian Anderson dropped out of high school...

Sat, 01/21/2012 - 22:45 | 2084601 DanDaley
DanDaley's picture

Degrees are mostly crap, really, other than as an entrance ticket.  I've known many multiply-degreed people who were DTABOR -dumber than a box of rocks.  Screw the degree, show me what you can do!

Sat, 01/21/2012 - 02:16 | 2083564 BidnessMan
BidnessMan's picture

And threatening mass suicide.

Fri, 01/20/2012 - 21:56 | 2083131 Vic Vinegar
Vic Vinegar's picture

Zuckerberg is Scull and Bones, Gates was hand picked by the Illuminatti, and Jobs was born into the system, because he is a jewe.

Perhaps that's a joke that I am too dense to comprehend.

Fri, 01/20/2012 - 23:04 | 2083259 BLOTTO
BLOTTO's picture

In the case of both Google and Facebook, three talented students in their 20's came out of obscurity to establish multi-billion dollar enterprises. Do you suppose they had some help?

He is one of the most ''successful entrepreneurs'' in the last decade. Having made a fortune through his Facebook empire, he reaches more than 500 million people worldwide. It seems like a fairytale. A student creates a new interface to connect the people throughout the world. Well, it sounds great doesn't it? It would, if we were true. 

Here is a good video that demonstrates that Facebook was indirectly funded by the CIA with the goal of learning and storing everything there is to know about you. Why? To monitor and ultimately control.

Still pretty fuckin funny now eh?

Zuck: Yeah so if you ever need info about anyone at Harvard

Zuck: Just ask.

Zuck: I have over 4,000 emails, pictures, addresses, SNS

[Redacted Friend's Name]: What? How'd you manage that one?

Zuck: People just submitted it.

Zuck: I don't know why.

Zuck: They "trust me"

Zuck: Dumb fucks

Fri, 01/20/2012 - 23:18 | 2083271 Vic Vinegar
Vic Vinegar's picture

That link is dead dude.  And Zuckerberg is a chubby nerd with a shitty looking gf.

Sat, 01/21/2012 - 10:52 | 2083985 mendolover
mendolover's picture

ooof.  Wasn't FB originally for the preppy scum to rate each others gf's?  Wonder how he would have fared back then with this yung lady?

Fri, 01/20/2012 - 23:44 | 2083299 Freddie
Freddie's picture

Who did Larry Ellison work for as a contract programmer was developing Oracle's database?  CIA.

Fri, 01/20/2012 - 23:54 | 2083314 Vic Vinegar
Vic Vinegar's picture

Is there a less user-friendly interface than Oracle?  I'm trying in vain to look up an account balance and somewhere L.E. is kicking it on his yacht.  Something is very wrong with this picture.

I don't know if your comment is accurate, but I appreciate you changing it up.  And if this is true, is the key takeaway from it that the primary driver of success is CIA experience?  Because if it is, I would like to apply for a gig at the CIA.  They probably don't need to do a background check on me as one was already done after I started commenting here.  LOL!

Sat, 01/21/2012 - 00:51 | 2083402 jomama
jomama's picture

there was friendster and myspace before facebok.  it's not like the guy invented the wheel.

he was lucky in the sense that it was a website that was originally free of ads, and where you couldn't make face profiles.

right place at the right time.  and it wouldn't surpise me in the least if he had a little federal help to squeal on your neighbor, so to speak.

Fri, 01/20/2012 - 23:14 | 2083267 Bausti
Bausti's picture

JQA was educated at the best schools in Europe, (back then they were far superior to our colleges) while being John Adam's  (his dad's) secretary.  He spoke French before he spoke English which spooked his father.  JQA was far ahead of his contemoraries in America.  The Monroe Doctrine of James Madison, which was keep Europe out of America, was his brain child.  We are still learning this lesson.  Europe has been a mess for over 3 centuries.

Sat, 01/21/2012 - 04:28 | 2083695 slewie the pi-rat
slewie the pi-rat's picture

i've always been a little troubled by john & abigail's roles in forging and using the alien and sedition acts of 1798

how this might effect dad's secretary is anybody's quess

American Experience | John & Abigail Adams | People & Events | PBS

Sat, 01/21/2012 - 00:01 | 2083331 insidious
insidious's picture

I'm not, and almost no one is in the class of the individualy you mentioned, but I got a job as an engineer because I have a degree in engineering, my wife got a job as a teacher because she has a bachelors and a masters in education. My daughter just got a great job as an RN and she would not have gotten the job without an education and a degree - but I agree that the whole college thing is way to expensive.

Sat, 01/21/2012 - 09:09 | 2083877 StychoKiller
StychoKiller's picture

Govt subsidizes unqualified college students, that don't really concern themselves with tuition expenses, since Big Brother is picking up the tab.  Is it any wonder then that universities start sucking harder at the teat?

Fri, 01/20/2012 - 21:15 | 2083020 The Deleuzian
The Deleuzian's picture

Trav...That's a good strategy...Central Fund and Sprott always seem to underperform...Hey, collect the scraps...Nothing wrong with that...

Fri, 01/20/2012 - 23:59 | 2083324 slewie the pi-rat
slewie the pi-rat's picture

i got into that comment of trav's too!

transpersonal deleuzians?  L0L!!!

but after reading tyler's intro, i mechanically thought of the arb:  sell PSLV, buy silver, myself!  so, i found it fascinating that trav "couldn't borrow the shares" for the short leg

apparently, if we take him @ his word [& why not, trav BEing trav?], he was late and all the available shares had already been borrowed and sold OR his broker didn't figure he was "worthy" of this trade and fed him a line of BS~~~same result

i never heard of someone not being able to short an ETF, so a did a little research and PSLV is not an ETF, it is an ETV~~~ExchgTradedVEHICLE.  next:  what's the diff?  wheels?

Euronext - ETV segment > FAQ  had the answer for me (paste): 

What are Exchange Traded Vehicles (ETVs)? ETVs are simple and transparent open-ended securities which trade on regulated exchanges. ETVs enable investors to gain exposure to assets without trading futures or taking physical delivery. ETFS-branded ETVs are secured, undated, zero coupon notes that are designed to accurately track the underlying asset index or individual asset. Are ETVs very similar to Exchange Traded Funds (ETFs)?

ETVs are similar to ETFs because they are both open-ended, continuously traded and have multiple market makers. The main difference is that ETVs use a secured, undated, zero coupon note structure, whereas ETFs typically use a fund structure.

so, now i know!  now i'm wondering is the "no shares available for shorting" is a widespread phenomemon or just a brokerage thing at the time trav tried to place the order?

Sat, 01/21/2012 - 00:19 | 2083352 The Deleuzian
The Deleuzian's picture

I've never heard of anything the 'big boys' concocted you couldn't short...This is really interesting...The whole 'Vehicle' thing kind of scares me...

Question is...How much legroom does it have? 

Sat, 01/21/2012 - 01:06 | 2083420 CompassionateFascist
CompassionateFascist's picture

None. And when TSHTF - unless you're a good friend of Eric, or Warren, or George - no engine.

Sat, 01/21/2012 - 01:08 | 2083421 CompassionateFascist
CompassionateFascist's picture


Sat, 01/21/2012 - 01:10 | 2083424 Putty
Putty's picture

There was no available borrow. The short stock rebate was quoted low, but nary a share to be had. The little folks aren't allowed to play.

Sat, 01/21/2012 - 01:30 | 2083455 trav7777
trav7777's picture

bingo...maybe i could have synthetic'd it with some puts or a vertical credit spread or something.  Will have to investigate NAV premium ranges for a good entry, but the pair trade is a guaranteed winner

Sat, 01/21/2012 - 01:55 | 2083514 slewie the pi-rat
slewie the pi-rat's picture

not sure how to get a synthetic up to that 30% for the arb/pair short

maybe short a reverse mining ETF or something

this IS nuts!  when i first thought of that, i thought it was funny, but now it's starting to make sense! 

gee!  maybe i have a magic bong!

bingo-bongo, BiCheZ?

Sat, 01/21/2012 - 02:47 | 2083605 The Deleuzian
The Deleuzian's picture

When NUGT/DUST changed from 2X to 3X a few weeks back...Any big pullback in the miners is gonna shove this bastard (NUGT) back against the wall with a spring...How much can get shaved off without this becoming some sort of twisted Zeno's paradox?

Sat, 01/21/2012 - 01:46 | 2083502 slewie the pi-rat
slewie the pi-rat's picture

thxz!  i needed that!

luckily, i wasn't eating our drinking anything! 

Sat, 01/21/2012 - 03:12 | 2083631 Fips_OnTheSpot
Fips_OnTheSpot's picture

I am sooo long on silver coins, you wont imagine =)

Sat, 01/21/2012 - 04:17 | 2083688 AgShaman
AgShaman's picture

I can visions of sugar plums dancing in my brainbox....I see silver everywhere

Sat, 01/21/2012 - 10:59 | 2083998 mendolover
mendolover's picture

ding ding brother!  Fortunately for someone like me who can't understand techy stuff like this article (I'm not a trader and feel honored most of the time to be among the brain power up here, except for some of the bigots) it only takes a little common sense to understand that the bigger the stack the better off we will be.

Fri, 01/20/2012 - 23:20 | 2083275 non_anon
non_anon's picture


Fri, 01/20/2012 - 23:30 | 2083283 The Deleuzian
The Deleuzian's picture

What's your avatar...I see a phenyl ring with what a couple hydroxyls...What is it?  Just curious...

Sat, 01/21/2012 - 01:00 | 2083412 DeadFred
DeadFred's picture

Pretty fuzzy but I'm guessing trimethoxy phenyl propylamine. Looks a bit more like methanol side groups off the ring, then three carbons with a fuzzy end group. Not an intuitively obvious avatar, but a dead dancer/actor can't be too judgemental.

Sat, 01/21/2012 - 01:41 | 2083492 The Deleuzian
The Deleuzian's picture

Good eyesight for a dead disco dancer!

Sat, 01/21/2012 - 02:55 | 2083615 non_anon
non_anon's picture

my fav. hallucinogen, mesc.

Sun, 01/22/2012 - 17:24 | 2087001 DeadFred
DeadFred's picture

Ah, trimethoxy phenyl acetylamine for the win.

Sun, 01/22/2012 - 18:23 | 2087079 Kipper und Wipp...
Kipper und Wipperzeit's picture

you have excellent taste, sir. 3,4,5-trimethoxyphenethylamine has some truly unique and lovely properties. the alpha-methylated analogue isn't bad either, as are the methyl & bromo analogues, and especially the chlorinated version of the alpha-methylated analogue, provided you don't mind a 16 hour experience. good to see there are some other, uh, enthusiasts around here.

Sun, 01/22/2012 - 18:22 | 2087080 Kipper und Wipp...
Kipper und Wipperzeit's picture

you have excellent taste, sir. 3,4,5-trimethoxyphenethylamine has some truly unique and lovely properties. the alpha-methylated analogue isn't bad either, as are the methyl & bromo analogues, and especially the chlorinated version of the alpha-methylated analogue, provided you don't mind a 16 hour experience. good to see there are some other, uh, enthusiasts around here.

Sat, 01/21/2012 - 02:47 | 2083600 defencev
defencev's picture

The whole article is total bullshit. I would say the arguments presented would make some sense if the move was restricted to silver but platinum and palladium are creeping up too. I saw various arguments explaining this but in my view the ultimate reason is growing speculation about imminent QE3 in the works by shit Bernanke. It also may explain the sharp move up in commodity currencies like AUD, NZD end even to lesser extend CAD. The move in AUD looks especially absurd in light of substantial slow down in China.

 Shit Bernanke and Marxist Obama acting in tandem rapidly move us to the edge of abyss. I wish Ron Paul had a chance but the man  though arguably unusually honest for politician is simply not up to the task of winning such a tricky thing as US Presidency.

God save America...

Sat, 01/21/2012 - 02:53 | 2083612 AgShaman
AgShaman's picture opposed to the sell-outs he's running against? You've already had 100 years of puppet enablers doing the bidding of the banking cartel and crony capitalist oligarchs....

Fools like you need to wake the **** up....shuck off your 'programming' and realize the path and choices laid before you are not some quaint little soundbites you've been brainwashed into regurgitating.

Fri, 01/20/2012 - 20:36 | 2082917 francis_sawyer
francis_sawyer's picture

There was a GAP on the daily candle chart on spot silver & a reverse H&S is now forming...

Otherwise this is all hyperbole for the moment...

Disclosure: Long physical silver (because I need to replace the stockpile that was lost in a boating mishap)...

Fri, 01/20/2012 - 21:48 | 2083110 blindman
blindman's picture

i have a peculiar compulsive behaviour that
goes like this. every time i read the term
"boating mishap" i need to hit a green arrow
with the cursor. very strange

Sat, 01/21/2012 - 01:20 | 2083436 ebworthen
ebworthen's picture

Boating, and ice fishing.  Damn stuff goes straight to the bottom; glitters and flashes all the way down though.  Pretty.

Sat, 01/21/2012 - 01:38 | 2083482 blindman
blindman's picture

and to think the many times i have been
ripped off buying those clad coins thinking
they were bullion. i could puke.

Fri, 01/20/2012 - 22:55 | 2083249 Osmium
Osmium's picture

"This was no boating accident"

Sat, 01/21/2012 - 01:03 | 2083414 DeadFred
DeadFred's picture

That wasn't a shark it was a vampire squid.

Sat, 01/21/2012 - 06:18 | 2083761 _ConanTheLibert...
_ConanTheLibertarian_'s picture

Unless you were rowing in the middle of some ocean, what about learning to dive and try to retrieve your silver?

Sat, 01/21/2012 - 10:40 | 2083973 Rakshas
Rakshas's picture

Head and shoulders or falling wedge?

Fri, 01/20/2012 - 20:36 | 2082918 tom a taxpayer
tom a taxpayer's picture

How much more milk can the old cow give?

Fri, 01/20/2012 - 20:40 | 2082927 francis_sawyer
francis_sawyer's picture

When they run out of milk, just pay them $5 to get them to help you dig it out of the ground...

They're already equipped with cloven hoofs...

Fri, 01/20/2012 - 20:42 | 2082932 tom a taxpayer
tom a taxpayer's picture

My mistake. I meant to make the comment on the Merkel post.

Fri, 01/20/2012 - 21:20 | 2083036 Iam_Silverman
Iam_Silverman's picture

"My mistake. I meant to make the comment on the Merkel post."

That cow?  Why, she will keep giving milk as long as she can get it (taxes) from her citizens.

Fri, 01/20/2012 - 21:14 | 2083014 Irelevant
Irelevant's picture

I'm afraid we will be doing the digging in one of those FEMA designer camps. The Panama canal was dug mostly by hand. Forced labor is very profitable you know.

Fri, 01/20/2012 - 21:56 | 2083130 Bicycle Repairman
Bicycle Repairman's picture

White Sea canal.

Sat, 01/21/2012 - 04:58 | 2083712 HungrySeagull
HungrySeagull's picture

And Buckrys Shovels

Fri, 01/20/2012 - 20:40 | 2082924 Quinvarius
Quinvarius's picture

Silver went through the top of a massive descending wedge.  The paper dam broke and physical took over.

Fri, 01/20/2012 - 20:46 | 2082940 francis_sawyer
francis_sawyer's picture

Look... I'm a silver BULL... But if you want to talk about PAPER TECHNICALS, the price above the $35-$35 area (which has weekly chart gaps and is missing a lot of PAINT from September, July, & last March) still has to be dealt with...

I'll be a bull to about $36... Then you'd be chasing... PHYSICAL Ag owners need more patience than this...


Fri, 01/20/2012 - 21:30 | 2083055 Snidley Whipsnae
Snidley Whipsnae's picture


Patience? Ask the losers that were players with MF Global about their patience... anyone still playing with paper PMs is a lunatic... You included Trav777... and, as Satyajit Das recently said "Trust No One With Your Money". The COMEX is now a joke and many Compliance Departments have explicitly banned participation in the COMEX. Big buyers of bullion are now going directly to miners/refiners and avoiding the CRIMEX altogether.

BTW, did anyone notice the timing of little Timmy's trip to China and the US/Israeli decision to stand down from 'military exercises' near the Strait of Hormuz? Hmmm? Power follows the PMs and the PMs are heading East. PMs are not money (and therefore power) Benny? Guess again azz hat!

From Reuters:

"Executives from CME Group Inc, IntercontinentalExchange Inc and other U.S. exchange operators will meet this month to discuss how best to safeguard customer money at the brokers they oversee.


They expect to make proposals for rule changes by the end of the quarter.


But if, as CME officials have suggested, the broker knowingly misused the money and deceived regulators, no amount of checking could have prevented the losses, Roth said.


"I think the search for a silver bullet is probably futile," Roth told Reuters from his Chicago office. "If someone wants to break the law, you can't prevent that without sitting with them 24 hours a day."

...and from Jim Willie via Jesse's Cafe Americain:

"Inflation; The Only Tool Left"

Fri, 01/20/2012 - 21:37 | 2083070 francis_sawyer
francis_sawyer's picture


Look... I think I'm on your team... But THIS ain't the breakout you're looking for...

When I say PATIENCE... All I mean is "keep stacking"... This is STILL going to go on for longer than anybody (around here) wishes... I wish I could say differently... Yet at the same time I'm happy for the additional TIME...

I've really come to the conclusion that TIME (at this stage in the game), is as valuable as the PHYZZ (while the games are being played)...

Fri, 01/20/2012 - 22:10 | 2083166 Prometheus418
Prometheus418's picture


I'm appreciating the extra time.  At my age, there is no multi-million $$$ bank account- every pay period that makes good is an opportunity to squirrel away PMs and food for the rainy day that seems inevitable at this point.  Every month is giving my children an extra two months of proper nutrition at this point, so another year or two would be just fine by me.


Sat, 01/21/2012 - 01:04 | 2083416 Snidley Whipsnae
Snidley Whipsnae's picture

FS and Prometheus... I'm not saying that this debacle is going to collapse soon. I am saying that anyone that continues to play the rigged paper game is a damn fool.

Like everyone that sees what is coming, I continue to prepare. But, trying to beat the rigged casino, the LBMA and CRIMEX, is akin to playing in front of an oncoming locomotive.

Get your assets out of reach of the US Gov any way you can, do not place your assets in the hands of anyone that represents a counter party risk. Assume that there are hundreds more MF Globals out there and that they are going to continue to steal their customers money and the US Gov isn't going to do one damn thing to stop them.

Ignore this advice at your own peril.

Sat, 01/21/2012 - 01:22 | 2083444 ebworthen
ebworthen's picture



Sat, 01/21/2012 - 09:07 | 2083873 mick_richfield
mick_richfield's picture

I would normally agree -- I thought that after MFG, open interest at the COMEX should just go to zero -- but the current open interest long silver seems to be ... so confident.

They can't possibly simply be ignorant.  I can't believe that.  Instead, I have the feeling that they know something I don't.


I totally agree, though, in general, about counterparty risk. 

I think that all the people I see still playing this game are collecting pretty sea shells after the ocean has mysteriously withdrawn to the horizon.  Me, I'm running for my car. 

That line of darkness you see just above the horizon?  That's not a storm. 

It's a wave.

Sat, 01/21/2012 - 17:37 | 2084986 spinone
spinone's picture

Don't speculate, accumulate

Sat, 01/21/2012 - 01:13 | 2083428 CompassionateFascist
CompassionateFascist's picture

Too bad. We've got until the next American warship tries to run the Straits.

Fri, 01/20/2012 - 21:43 | 2083095 Poor Grogman
Poor Grogman's picture

Ker Ching ...
Early payday..

Sat, 01/21/2012 - 08:41 | 2083858 MittRomney2012
MittRomney2012's picture

Are you serious?

'The paper damn broke and physical took over'

I cannot believe the things these brainwashed Silver fanatics say.

Fri, 01/20/2012 - 20:42 | 2082930 zerotohero
zerotohero's picture

Lets get PHYSICAL.

Fri, 01/20/2012 - 20:46 | 2082939 bob_dabolina
bob_dabolina's picture

OMG he bought futures contracts! What is he some fucking idiot playing the paper game? Doesn't he know paper silver = $0?!?!!?!?!?

Fri, 01/20/2012 - 21:03 | 2082983 knukles
knukles's picture

Sprott as in hisself may have bought silver futures or may have done the same for another of his funds, but PSLV (Sprott Physical Silver Trust) operating within the four corners of the deal documents as outlined in the prospectus, my not purchase any "paper" product.  It owns silver bullion or cash equivalents.  There may be a delayed settlement with respect to any physical purchase, but they are effected through the spot market.
Further, holdings are in a in allocated, fully physcal, LBMA good delivery, unencumbered segregation at the Royal Canadian Mint which, assuming physical inspection by the trustee within any preceeding 3 day period, provides for the Crown corporation to guarantee (essentially insured) the silver barring war, acts of God, etc.
   There's physical
   There's paper shit like the CRIMEX
   And then there's the Sprott deals which in my HO are just about as good as it can get holding it anywhere other than your own paws.  Which seems to me an A-OK deal for pure investment purposes, barring ownership for the armageddon scenario which if one really stops and thinks about, is just plain fucking bad news.  Bad enough that gold will likely not do squallouch for most holders.

Fri, 01/20/2012 - 21:10 | 2082992 bob_dabolina
bob_dabolina's picture

PSLV is a paper product. 

He's gona' get MFGlobaled, we're allllll getting MFGlobled!!!

I rec. only physical and have the canned tuna and mustard seed ready. The wolves are comin' boys, the whole shabang is coming down imminently.

Fri, 01/20/2012 - 21:11 | 2083006 tmosley
tmosley's picture

Closest you can get to physical in paper.  I'm not buying, but I can see why others would.

But you are too arrogant to accept that you are wrong about your investment thesis, so you keep popping in to make an ass out of yourself.  Too bad.  We could have been friends.

Fri, 01/20/2012 - 21:14 | 2083017 bob_dabolina
bob_dabolina's picture

He stated that hedge fund manager Eric Sprott may be in the market buying spot futures

Why wood he due dat?

Fri, 01/20/2012 - 21:19 | 2083033 tmosley
tmosley's picture

He's got enough physical to risk losing $300 million in cash.  He blows up the market by making the default plain while holding a vast hoard of physical silver in his own vaults.  If they fail to deliver by ANY method, he has the notoriety to raise the alarm bells loud enough for EVERYONE to hear (as opposed to Celente, who only those in the "doomer" camp heard).

That is a very good strategy, and one I thought of a few years ago, but didn't have enough money to pursue (takes at least tens of millions of dollars, possibly hundreds of millions).  I certainly didn't have the name recognition to force the issue were I forced out of my position before I could take delivery.

Fri, 01/20/2012 - 21:31 | 2083042 bob_dabolina
bob_dabolina's picture

I enjoyed that. Thank you.

I dreamed of cornering the market once too.

Fri, 01/20/2012 - 21:34 | 2083065 The Deleuzian
The Deleuzian's picture

It's good to see you guys not throwing cyberspace knives at eachother anymore.............

Sat, 01/21/2012 - 01:36 | 2083475 trav7777
trav7777's picture

then you graduated to legos?

Sat, 01/21/2012 - 13:09 | 2084218 bob_dabolina
bob_dabolina's picture

Your shits been weak lately. Get on your fuckin' game face tiger.

Fri, 01/20/2012 - 21:34 | 2083064 ozziindaus
ozziindaus's picture

"That is a very good strategy, and one I thought of a few years ago, but didn't have enough money to pursue (takes at least tens of millions of dollars, possibly hundreds of millions). "

How much were you short, tens of millions give or take $16? Please. Now you're embarrassing yourself. 

Fri, 01/20/2012 - 21:48 | 2083109 WonderDawg
WonderDawg's picture

What is it, my birthday or something? Two "silver" headlines tonight, I knew the entertainment value would be extreme. Tmo, this one was a bonus. "I once thought about cornering the market" LMAO. You're a gem.

Fri, 01/20/2012 - 21:53 | 2083117 tmosley
tmosley's picture

As in, I thought it would be a good strategy, and it is interesting that Sprott is pursuing it.  I'm not claiming that I ever had a chance of doing it, just that that would be how you prove the COMEX is a fraud one way or the other.

Fri, 01/20/2012 - 22:07 | 2083159 Bay of Pigs
Bay of Pigs's picture

COMEX has been a fraud for over 30 years...

No fuckan way Sprott is buying futures. Totally counterproductive to what his stated objectives are.


Sat, 01/21/2012 - 16:26 | 2084796 fmxconnect
fmxconnect's picture

exactly. Sprott buys SPOT from dealers... bullion dealers who hedge buy futures, leaving them with an EFP exposure. the futures are tehmost transparent pricingmechanism... they fade away and all subsequent deals price higher. Comex futures are not paper YET. The EFP is stable. our bet is that he is usinga broker who is simply buying the last batch sloppily to beat the VWAP. 

Sat, 01/21/2012 - 01:12 | 2083426 DeadFred
DeadFred's picture

If the silver market does this for your birthday may you have many more.

Sat, 01/21/2012 - 01:40 | 2083489 trav7777
trav7777's picture

wait a second...he's going to fucking risk $300M of his CLIENTS' money to prove a point, just to make a knownothing tool on ZH look smart for once in his life?

The dude is in the making money business, not the "CRASH COMEX" business.

It's a ludicrous and stupid strategy and one that would cost him hundreds of millions for a jihad that only internet lemmings think is important.

You "certainly" didn't have the name recognition? fuckin way man!  You don't say?

Or the money or the brains.

Sat, 01/21/2012 - 02:07 | 2083543 BidnessMan
BidnessMan's picture

For folks with physical, crashing the COMEX would be a very good way to make their physical a lot more valuable.

Sat, 01/21/2012 - 02:14 | 2083559 slewie the pi-rat
slewie the pi-rat's picture

that's very ethical of you, trav, but at the risk of leading you into a life of moral hazard:  how could anyone born of woman resist the temptation to try?  especially w/ 0PM? 

now, we're not talkin some lo-brow criminal rip-off or ponzi, here, or some "jihad of internet lemmings", imo

if someone thought s/he had a shot at it, who could resist?  who?  i can't think of one person who wouldn't just pull the pin and lob it

well, maybe blythe

assuming she had a human mother, of course...

Sat, 01/21/2012 - 02:21 | 2083576 tmosley
tmosley's picture

EIther he got more silver, or made his existing silver more valuable.  It's win-win, but you are too stupid to understand that, and too hate filled to even bother to try to process the idea.

You belong in a padded room.

Fri, 01/20/2012 - 21:42 | 2083089 Whatta
Whatta's picture

you are on the wrong-headed side of this deal....

I sold SLV puts, bought long shares of PSLV at 13.25 and a roll of Kookaburras to celebrate - and am well up on all.

Fri, 01/20/2012 - 22:14 | 2083179 delacroix
delacroix's picture

I'm not worried about acts of god, but acts of those doing gods work. I hope that's not included in the etc.

Fri, 01/20/2012 - 20:47 | 2082943 ruffian
ruffian's picture

Edel Tully is not a HE

Fri, 01/20/2012 - 20:49 | 2082945 The Deleuzian
The Deleuzian's picture

The $32 level for silver is important...Getting mildly excited again!!!

Fri, 01/20/2012 - 20:51 | 2082951 atomicwasted
atomicwasted's picture

Sprott needs to stay away from canoes and high windows.

Fri, 01/20/2012 - 20:53 | 2082958 The Deleuzian
The Deleuzian's picture

Sprott needs to just keep his mouth shut!!!  The metals do best as a cloaked ship!!

Fri, 01/20/2012 - 20:58 | 2082969 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Today was a huge day for silver.  Long term this is bullish, but due to the way stocks have been ramped coupled with economic weakness, I think it might have been a pump to gain same leverage.  The President's Working Group is the largest hedge fund there is, and they go about their business front running big moves.  I like to think almost every bankruptcy lately has been front run by the PWG.  They have the insider information to know which corporations are weak, and they can make good money front running theses moves.

The same goes for PMs.  They can game these markets, earn a buck, and then use the revenue to go back into the market and lower the price.  This is why silver appreciated to $50 so rapidly.  The PWG lifted their shorts, went long, and then put the shorts back on the top.  There are other market fundamentals that matter, but my point is that this Group does front run big market moves.

Considering there is still a lot of shorts on silver at $25, I would think that there would be one more dip to that number.  Yet the game is getting long in the tooth.  Miners have under performed (due to the same manipulation) and I imagine that on gold's next rise retail investors will finally move in.  I think that the average investor is beginning to think about investing in gold.

Another reason I think that silver may test $25, gold may test $1550, and the Dow may test 11,500, is that the Fed wants another official QE program.  We do have POMO, OT2, and FX swaps, and I consider all of them forms of monetizing debt, but the Fed wants a bigger program.  I don't think it will be next week, I do think it will be the next month or the next.

So we are approaching an inflection point, and silver pointed to that move today, but I don't think it will be for at least a few weeks.

Fri, 01/20/2012 - 21:07 | 2082995 The Deleuzian
The Deleuzian's picture

Mr. I am the Walrus/1983 A Merman I shall be...

My worry is similar...The Equity markets are at way nose bleed overbought uber bullish nonsense territory...My gut tells me we'll have a pullback with an equity correction...The miners price behavior is troubling...They're negative for the early year...Never a good sign...Question is...

Are the banksters powerful enough to trump paper vs. physical once again...You gotta think at some point the answer to that question is no...But at what price?

Fri, 01/20/2012 - 21:16 | 2083021 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It's a tricky game because Central Banks need gold at a certain price (because they use it as collateral, a reserve, and an asset on their balance sheet).  So it muust remain at a certain level to balance their liabilities, but they don't want it to get to high or else the status quo, that gold is a useless metal, goes away.  The string is as tight as can be, which is why their is so much volatility in the PM market (sell big, and buy bigger).

Fri, 01/20/2012 - 21:27 | 2083048 The Deleuzian
The Deleuzian's picture

The fly in the ointment to me are the miners...Shit...The HUI is barely hanging on to 500...This sucks bigtime for all the obvious reasons...I can't think of a time where the PM's brokeout without the equities reacting as well...The miners are going to have to react at some point...They portend trouble for the whole F**king script...............

Fri, 01/20/2012 - 21:41 | 2083082 francis_sawyer
francis_sawyer's picture

With the miners, you're still playing the paper asset game (that runs the risk of being nationalized in the blink of an eye)...

Axiom: If you don't hold it in your hand... It ain't yours...

Fri, 01/20/2012 - 21:47 | 2083103 bob_dabolina
bob_dabolina's picture

I could do so many dirty things with your axiom

Fri, 01/20/2012 - 22:00 | 2083143 francis_sawyer
francis_sawyer's picture


Fri, 01/20/2012 - 21:58 | 2083134 The Deleuzian
The Deleuzian's picture

FS...The thing with the miners can't be overlooked...I've heard all the arguments to infinity +1...Not to say that 'it's out of the question'...But so is physical ownership...There's always a question of confiscation...No!!  I feel better owning both...But a good portion physical for sure

It's hard to see a ramp up in the PM's without a corresponding ramp up in the miners...I think it's as simple as that...

I agree with almost everybody here that at some point...Physical will be next to impossible to get regardless of premium...At that point...These miners are going to go apeshit...Especially the junior's with healthy proven reserves...I believe were talking internet stocks ala 1999....

Fri, 01/20/2012 - 22:07 | 2083156 francis_sawyer
francis_sawyer's picture

I'm not arguing as to whether or not they (miners) go apeshit...

My problem is REDEMPTION... Nobody has ever redeemed anything until they have taken an asset and converted it into physical goods... PERIOD...

So think of all he pitfalls...

- Miners get nationalized

- PM's get confiscated or declared illegal to privately own

- Price of energy goes to the moon (outpacing the cost of mining)

- fiat currency (in which the "ownership" in mining shares is redeemed becomes worthless, reset, or devalued)

- abundancy of physical items to purchase (using said currency) inflates, or becomes unavailable)...

ME? I'd just STACK... Thanks for all the labor & work you put into it & thanks for the crooks to awkwardly manage to price of it in open markets, allowing me the possibility to do so)...

Fri, 01/20/2012 - 22:15 | 2083183 The Deleuzian
The Deleuzian's picture

All reasonable concerns for sure...I do love the sound of 90% halves 'ka chinging' against eachother...It's like sex...hahahha...............

Fri, 01/20/2012 - 22:26 | 2083201 tmosley
tmosley's picture

Don't forget "they are paper shorted with infinte printed moniez".  The end result of that is someone, probably the miners themselves, buy up their own shares and wind up going private.

Sat, 01/21/2012 - 02:22 | 2083528 BidnessMan
BidnessMan's picture

And the miners are fine with issuing lots of stock. There are lots of underwater options and warrants that would get exercised as soon as mining shares go up.  New outside investors get massively diluted while the insiders unload / exercise their warrants and options.  Paper in a mining stock, paper in SLV, paper in COMEX - its all paper like it was in MF Global.  Will get inflated and diluted away, or just taken away - Southpark "and it's gone...." style.  

Add in the nationalization / confiscation risk, plus regulatory risk (Sorry HECLA, your mine is closed for a year, and if the pumps don't run and your mining machinery at level 5200 gets destroyed by underground flooding, tough shit).

Anyone wonders why mining shares are lagging?  A blind hope they will eventually actually get the metal out of the ground, get to keep some of it, and the insiders will actually share some of the proceeds with the chump common shareholders.  BRE-X baby! Compared to stacking existing silver and gold with no mining risk / insider pump and dump risk?  

So who in their right mind would buy mining shares?  

I am stacking....


Sat, 01/21/2012 - 02:33 | 2083585 AgShaman
AgShaman's picture

FDR did all of that and more in the 1930's. First the gold confiscation....then the lock down of gold exports....then the nationalization of gold mines.

One EO right after the next

Obama worships the dictator FDR

Look at doesn't always repeat....but it often carries a similar tune

FDR and Obama could get historically Madonna and Lady Gaga

Sat, 01/21/2012 - 12:20 | 2084112 Bam_Man
Bam_Man's picture

There is a big difference between 1933 and today.
Back in 1933 almost everyone owned some gold bullion.
Today it is mostly in the hands of the rich and the super-rich.
There will be no confiscation this time. Not even an attempt.

Sat, 01/21/2012 - 13:21 | 2084238 AgShaman
AgShaman's picture

They are this day...confiscating people's gold from the 1930's

So I wouldn't be so certain as you...that they wouldn't try it.

If the govt. is so out of touch with their role in society whereby they sneak thru bills like NDAA 1867....

People should wake up...and be prepared for the Draconian hammer to come down upon them.

Their hunger for power is insatiable....when desperation sets in upon them...I'd be willing to bet they will try anything to retain their power base.

Sat, 01/21/2012 - 17:42 | 2084994 spinone
spinone's picture

Not really confiscation if they willing sent it to the Treasury, is it?

Sat, 01/21/2012 - 19:11 | 2085152 AgShaman
AgShaman's picture

Holy ****!

Could you possibly be that damn dumb?

Maybe you should go back and reread the article. Confiscation is an appropriate word for such a seizure.

Sat, 01/21/2012 - 14:42 | 2084456 DosZap
DosZap's picture


Actually he did not CONFISCATE shit.He threatened to do so.

Americans were FAR more law abiding and respectful, with a great mores, and values system.We were a strong Judeo/Christian based caucasoidal majority based population.

That was then , this is now.

They want it, if you haven't lost it in a boating incident,as most here have.

They will have to come after it, IF you still have it.

I guarantee you strong armed tactics will bring about a major outflow of Pb.

This AIN'T your  Great Grandpa's America any more.When the people have seen the PTB are lawless, you expect them to be Lawful?.

Dream on.

Sat, 01/21/2012 - 15:26 | 2084588 AgShaman
AgShaman's picture

Those are your words.....based on faulty analysis. You don't seem to be too informed on the subject.

FDR made it the law of the land.

To get caught disobeying his order was to face 10 years in prison....or a $10,000 fine. In todays terms....that 10k fine equates to 165k dinars. Perhaps that has a bit to do with why 1605 safe deposit boxes went unclaimed after being remanded to the US Treasury. I sure wouldn't want either of those two punishments....considering gold was worth $21 bucks an ounce.

Must've been convenient for FDR to revalue gold at $35 the following year eh?

No....I think I got it right....and since neither one of us was alive back in 1933 to comment on how things "were" back then...

I'm sticking to the belief that people were more trusting of their govt....and it didn't have so much to do with the morals and values you are alluding to.

Combine that with the fact that they were on a Gold Standard back in the 1930' many more people were involved in PM ownership.'s around 1% of the population.

I think the lack of values and morals will factor more in todays time. Class warfare is easily fomented amongst the unwashed masses (look at OWS movements). I don't think they would have any problem with firing up the propaganda machines to pit the have nots against the haves (in terms of those involved in owning gold).

Do you think the overwhelming majority of the public will be quick to defend your rights to be "stacked" should $5000+ gold come around....and they have found themselves to be still standing at the station....wondering how they could have missed the train?

I think the govts financial problems are just as bad this time around as in the 1930's. The problem is the country is overflowing with weak minded "entitled" trustees of the State...looking for handouts instead of claiming back their self respect and becoming more self reliant and self sufficient. This could very well "pit" neighbor against neighbor. The prepped and ready are being villified everyday as domestic ******ists. Holders of gold are called "hoarders" of gold....and considered the same type of anti govt. dissidents as RP supporters.


Sun, 01/22/2012 - 02:17 | 2085929 RockyRacoon
RockyRacoon's picture

You might find this article by David Ganz of interest:

Fri, 01/20/2012 - 21:08 | 2082998 francis_sawyer
francis_sawyer's picture

I'll go along with what you say (but in the context of my comments above)... I fucking hate PAPER TECHNICALS (but don't dismiss that the PWG types use them as gospel)... Look at the charts... there are chart gaps &/or "fills" needed up above the $35 range on e separate occasions from '11...

technically, there's an urge to fill them...

Then, it can go back down & retest $25... For me, it really doesn't matter... I had a hard time trying to BUY physical under $30... & I REFUSE to buy online (or with a credit card) for obvious reasons...

I'm JTOL here...

Sat, 01/21/2012 - 12:39 | 2084147 BeerBrewer09
BeerBrewer09's picture

I had a hard time finding physical locally at ~$26. Other people were acting on the SALE like I was. The price manipulations seem to shake the PMs out of the poor/desperate folks who view the high price points as a time to SELL.

I always buy.

Sat, 01/21/2012 - 10:58 | 2083995 IrritableBowels
IrritableBowels's picture

Not sure if silver's performance has been 'newsworthy,' MSM-wise, but I've heard a few people talking seriously at work about 'investing in a true store of value.'  And then I realized the subject was SLV.  Idiots.

Even still, the word is getting out and physical holders will finally see the fruits of their labor. 

Fri, 01/20/2012 - 20:59 | 2082973 somaplease
somaplease's picture

I wish I knew what the hell you are talking about.  All I know, is something about Sprott and buying and price goes up = happy.

Fri, 01/20/2012 - 21:05 | 2082990 knukles
knukles's picture

S'all ya' really need to know. 
Sprott buying good.
Don't own CRIMEX shit. 
Or GLD or like stuff.

Fri, 01/20/2012 - 21:35 | 2083067 somaplease
somaplease's picture

Done good sir!

Sat, 01/21/2012 - 00:45 | 2083394 AgShaman
AgShaman's picture

Sprott is the same as many of the Silverbugs.

He believes the Comex is settling contracts with SLV paper.

The CME has rules in place to allow for EFP and EFS agreements to settle PM metals contracts with ETF shares instead of physical.

I think he really doesn't care about it either way....but means to channel Sun Tzu...and steal the Comex's "Mojo" by taking market share away from BlackHole's SLV fund.

People that buy SLV paper are no different than people that buy shares in the miners....once it finds it's way to the broker with the "Matrix" plug connected to the DTCC....they will use your fiats against you....and short the **** till you cry for yer Mama

Fri, 01/20/2012 - 21:04 | 2082985 AUD
AUD's picture

Silver is, or at least was, in backwardation in recent weeks. I'd speculate this move is more related to that than anything Sprott says or does.

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