Posted on 03/03/2011 5:41:35 PM PST by TigerLikesRooster
China Gold Buying Surges amid Inflation Fears
China’s purchases of gold rose to 200 tonnes in January and February of 2011 as inflation fears lifted consumer demand for the yellow metal, according to a report by UBS.
(Excerpt) Read more at goldalert.com ...
P!
Bump
This piece is about silver, not gold.
Futures contracts are basically non-deliverable now. They are out of silver. They are settling “paper contracts” for $50 an ounce!!
Wynter_Benton update on their recent raid
With permission, I can update the results of our raid. It was successful beyond imagination but that “success” has spawned even more questions about the price of paper silver going forward. It was reported by SGS that he heard that on Friday Blythe was offering 30-50 percent premium and that at least 4500 hundred contracts will stand for delivery. I am here to give you a more accurate update (and a first hand account of what happened on Friday Feb 25). Our group was detemined to stand for delivery going into Monday because we were not going to take a 30 percent premium on a price of $33.50. It was reported that Blythe offered 50 percent premium. That was not even close in our case. We got over 80 percent premium. That’s right. Over $50 per contract on the condition that our group sell all our contracts. Our counterparty even threatened us with the ghost of Herstatt. They openly admitted that they could not deliver even 20 million ounces to us but that if we stood for delivery they would be sure that they make delivery to everyone else before they defaulted on us which would make us ‘unsecured creditors’. They told us directly that they could not allow even 5000 contracts to stand for delivery because they could not deliver a mere 20 million ounces. Like Vito Corleone said, “I’m gonna make him an offer he can’t refuse.” And indeed we did not refuse as this was our intention all along.
These sets of facts from our traders lead us to believe that the paper price of silver may have a difficult time surpassing $36 because if the counterparty at the Comex is so willing to pay north of $50 to dissuade people from standing for delivery yet the paper price of silver is still under $35, then we suspect that losses triggered by derivatives is the main reason for the price suppression of silver. We can see no reason why they would not allow the paper price to go up yet are so glad to pay off the comex contracts to show the world that so few are standing for delivery. In our mind, Comex could default with if as little as 4,000 contracts stood for delivery. We are very curious to see how high the paper price of silver actually trades during this run.
Posted by Louis Cypher
KMP or WPZ
sfl
Inneresting if true....where you get?
Harvey Organ’s blog. Yes, that’s his real name.
Harvey Organ’s blog. Yes, that’s his real name.>>>>>>>
Thanks mucho for your guidance am reading it right now ...that blog
5.56mm
I sure would not cry a tear for them if they turn out to be gold-plated tungsten bars.
On one hand we have the Department of Truth about to tell tomorrow that NFP based on various seasonal and birth death adjustments increased by 250,000. On the other hand, we have Gallup which actually does real time polling without a procyclical propaganda bias. And Gallup does't have any good news: "Unemployment, as measured by Gallup without seasonal adjustment, hit 10.3% in February -- up from 9.8% at the end of January.
The U.S. unemployment rate is now essentially the same as the 10.4% at the end of February 2010." And the one indicator that nobody in the mainstream media will touch with a ten foot pole: "Underemployment, a measure that combines part-time workers wanting full-time work with those who are unemployed, surged in February to 19.9%. This resulted from the combination of a sharp 0.5-point increase since the end of January in the percentage unemployed and a 0.5-point increase in the percentage working part time but wanting full-time work. Underemployment is now higher than it was at this point a year ago (19.7%)."
Unemployment rate:
And Underemployment:
A summary of Gallup's view on February jobs data which likely will be diamterically opposite to what the propaganda machine will spout tomorrow:
Jobs Situation Deteriorates in February
There is essentially no difference between the unemployment rate now and the one at this time a year ago; January's rate, in contrast, showed a 1.1-percentage-point year-over-year improvement. This suggests that the real U.S. jobs situation worsened in February. That is, jobs are relatively less available now than in January.
In the broader underemployment picture, the situation is much the same. January's year-over-year improvement of 1.0 points became -0.2 points in February. In turn, this suggests job market conditions in terms of underemployment also worsened during February.
This deterioration in the jobs situation combined with surging gas prices, budget battles at the federal and state level, and declines on Wall Street tend to explain the recent plunge Gallup recorded in consumer confidence. They also align with the continued "new normal" spending patterns of early 2011. Although Gallup's Job Creation Index has improved over the past year and showed modest improvement in February, the improvement has not been significant enough to positively affect underemployment and unemployment.
Warren Buffet said Wednesday on CNBC that the U.S. unemployment rate should be in the low 7% range by late 2012. If that is going to be the case, the job creation environment must change dramatically from what it is today.
So...are you saying or implying or reporting or positing that a huge silver short paid $388 million to cash out 4500 silver contracts @ 5000 oz each? = 50% premium over $34.50 = 17.25 * 4500 * 5000....?
Somehow I find that hard to believe.
Silver just cracked $36
$50 by then end of April.
$100 by Jan 1 ,2012
People keep saying “Oh, it’s a bubble...” “Oh, can’t eat silver....”
But none of this is happening in a vacuum. We could well see $6 to $9 gasoline in the same timeframe. Or five dollar loaves of bread.
And neither gas or bread has been shorted to the extent silver has.
It would be nice if you knew how silver contracts worked ...
The gold/silver ratio just dropped below 40.0
Yesss!!
Long AUMN.
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