Posted on 03/06/2011 6:27:42 PM PST by Errant
...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...
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"
It should now be obvious to all that silver is a fractional reserve system. Just like a fractional reserve bank, when there is more demand for the actual underlying good (i.e. silver or money) than there is a real physical supply for, it's called a "run on the bank". Those who get in line first, get their silver. Everyone else will end up as an "unsecured creditor", holding a worthless piece of paper when the music stops.
(Excerpt) Read more at marketoracle.co.uk ...
APMEX volume is insignificant compared to COMEX. APMEX is also buying from and selling to individuals who are behing the world market. Finally, I've notice that APMEX doesn't seem to have the amount of silver eagles on hand as before. Under "availabilty", they simply say "now".
... in other words: Got silver?
Exit82, well done, thank you.
I pay close attention to the physical market, and while silver is certainly still freely available, I’ve been hearing a lot of chatter about it drying up here and there.
While I’ve no proof, I’ve no doubt that COMEX has run dry and is on the brink of defaulting on silver delivery. All it would take is a group like the JPMs INSISTING on physical delivery, and then blowing the whistle loudly when COMEX defaulted, starting a “run” on COMEX in other markets.
I would find that rather amusing.
If true, we have a classic short squeeze in progress. $200 silver is an easy target.
But I doubt we will get confirmation. Comex has lawyers just like everybody else. And have NO DOUBT that if this is true, they have an NDA (non disclosure agreement) written into the final contract.
But it’s kind of like Comex is already eaten alive. The big players, the hedge fund managers, etc. KNOW that Comex is having trouble delivering. They KNOW how much stock Comex says they have in the vaults. They KNOW if they take out contracts more than what Comex can handle, Comex will pay a premium... 10%, 15%, 25%, it doesn’t really matter because I’d be ecstatic to make 10% every two months.
Next delivery month is May, so we very well could see Comex explode at the end of April.
It’s $36.40 on the Asian markets tonight.
I was responding to post 25, which had the $80 silver.
I didn’t catch that, thanks.
I think I still conveyed the basic concept to them.
The Bears will explain everything:
http://www.youtube.com/watch?v=AId_UiPtPpQ&feature=related
Go to www.zerohedge.com
for further info.
Only about 10% of the contracts are ever traded for silver. That's it, in a nutshell.
Thanks for the link!
There are only 1600 Comex silver contracts for March 2011 outstanding as of Friday March 4.
I suspect this story is nothing more than a well written story to excite.
What if they take the payout in cash then buy new future contracts and wait for delivery. It would payoff like a loose jackpot. Effectively no market.
APMEX does have 100oz silver bars available. Plus you can buy physical silver right now via Sprott Silver trust in Canada. It is a physical silver trust. Eric Sprott who runs it does not screw around
Last I read shares were 15% above premium. So lets say an oz of silver there costs you 40$ right now
COMEX is a precious metals brokerage house (I believe that would be the correct terminology), APMEX is a precious metals DEALER.
Be kinda like the difference between buying WalMart shares from Fidelity (brokerage) or buying flip flops at Wal Mart (dealer).
Kinda,,,,maybe.
>> “The only way out at this point is if the price of silver crashes back down to $15 an ounce or so and stays there for a few months until most of these contracts end.” <<
.
And that has been exactly what all the phony financial ‘advisors’ were saying was going to happen back in January, but those of us here that are regular metals buyers knew that was hogwash, because while there was a tiny pullback in gold and silver, you couldn’t get your hands on the physical metal, so we weren’t buying into that crap, but these dishonest sellers were counting on a pullback to satisfy their sales.
Does crime pay?
You would think at least one of these silver bulls would post some papers on the internet. He can blank out anything that identifies him
I am not anti-silver. Just a skeptic
Ever see the silver futurist on you tube?
This is on their website. Care to guess which year!:
“When December contracts in gold & silver are demanded to be satisfied via delivery of the metal, it will be clear that the COMEX is running a scam. A default is highly likely.”
Silver is on a tear tonight. And I was hoping for a downward correction. I read somewhere that less than 1% of 1% of the general population is buying physical silver. If just 1% of the population bought an oz of silver tomorrow it would cause the COMEXMORGANFED to lose control of their silver manipulation game and silver would settle at its normal 15 to 1 gold ratio.
It’s not that easy.
Near the end of February (before the contracts went off the board), there were about 65,000 contracts!
Most of these have been rolled over for May delivery, and the numbers for May are now somewheres around 89,000 contracts.
And we will probably see more get picked up during the rest of March and early April.
89,000 contracts is 445 million ounces.
No, I think it’s closer to wholesale vs. retail. You can (theoretically) buy a silver futures contract on COMEX and have it delivered. If they have any to deliver. But the minimum order is 1000 oz, a “mini contract,” or 5,000 oz, a regular contract. APMEX will sell you 1 oz.
>> “There’s not enough physical silver inventory to meet deliveries.
I think that’s it in a nutshell, someone else please elaborate” <<
.
They deliberately delayed shipping, counting on a big pullback, and have shot themselves in the foot.
No sympathy here.
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