Bob Chapman confirms 80% cash settlements for silver

you tube interview ^ | 4/15/11 | Bob Chapman (interviewed)

[Daisyjane69]

If you want to cut right to the chase, start paying attention at the 4:00 minute mark.

This 80% cash settlement for not taking physical delivery of silver contracts has been rumored for a while now. This is the first time I've seen someone with a name and some credibility seemingly confirm it.

[Daisyjane69]

Admin Mods:

I changed the title because it was not germane to this particular clip.

[Eaker]

Why don’t you post the actual link to the clip?

[Daisyjane69]

I’m sorry. I thought it would come up at the “you tube interview” part of my post.

http://www.youtube.com/watch?v=_IKbAmsGey0&feature=player_embedded

[TigersEye]

The link went straight to Youtube for me.

[Daisyjane69]

That means it worked, right?

[TigersEye]

LOL Yes, that is what I meant. Sorry if I wasn’t clear about that.

[samtheman]

What means what worked?

[samtheman]

Sorry, I guess you were talking about the link when you said “worked”, not about the scheme or the plan talked about in the audio.

Can someone translate this subject into plain English?

[Daisyjane69]

Yes, I’m sorry for not being more clear. I was referring to my limited and sometimes primative link posting skills. LOL

With respect to the content of the clip, for those “silver bugs” who notice such things, this has been a hot rumor for a number of weeks now. The notion that these banksters would be willing to pay an 80% premium for people to not demand the silver they were entitled to, seemed almost hard to believe. Can you imagine getting an 80% cash return on your silver and YOU STILL GOT TO KEEP OWNERSHIP OF YOUR SILVER? That’s nuts. And it sure makes me wish I were holding one of those 5,000 oz silver contracts, believe me. Man, I would do that all day long & twice on Sundays!!!!

Until now, it’s always been a rumor. No one has officially come out and said it is going on and it almost seemed like an urban legend or something. But Bob Chapman has some credibility on this. If he claims he has parties telling him this, I am inclined to believe him.

[TigersEye]

Does that mean they send you a check for 80% of the current value? Like a dividend?

[dennisw]

Does that mean they send you a check for 80% of the current value? Like a dividend?>>>>>>>

YES!
Means that at the end of your silver futures contract the Comex cannot scrounge up a 5,000 oz silver bar to pay you off. So this week that silver is worth say $46/oz. They are going to pay you that plus 80% more...roughly another $38

So you will paid off to go away at $84/oz. Thus making the true price of physical silver $84/oz and “paper silver” $46/oz

I understand that you can demand a 5000 oz silver bar only if your Comex contract is 100% bought in cash...not on margin. So I hear

[Daisyjane69]

Yes.

And you still own the silver!

[dennisw]

I am going to back track a bit. The true price of silver in the form of deliverable COMEX approved silver 5,000 oz bars is $84. There is a real shortage of them

But I'm sure you can buy still buy physical silver 100 oz and 10 oz and other physical forms for 5-10% above the spot silver price. APMEX prices will show this.

The Sprott physical silver trust in Canada is charging a 20% premium to buy in. Meaning the silver ounces you buy there that they store for you cost you 20% above silver spot of $46. This also reflects a shortage of physical silver

[Daisyjane69]

Your characterization is absolutely genius:

They pay you off to go away. Perfect way to state it.

But only for a while. If they want you to go away next month, they have to pay you again!

Lord, I wish I held just ONE of these contracts.

[LS]

I'm sorry, but that sounds just too ridiculously good to be true, and you know what they say about things that sound too good to be true. If this was a fact, every speculator in the WORLD would be driving the price of silver to $1500.

I don't believe in reptilian overlords.

[eartotheground]

I thought this was going to happen with gold, with the price starting to split. I guess I’m a sucker with my spdr gold shares? I can see it now running across the bottom of the screen on CNBC: GOLD SPOT 2500..GOLD PAPER..1550...

[dennisw]

http://bobchapman.blogspot.com/

Saturday, April 23, 2011
JP Morgan and HSBC are short silver 45 to one       (HBSC is a major Anglo-Chinese bank)

ShareBob Chapman - Sovereign Economist - 04-20-2011 :

1. Bob Chapman was tracking the markets for 52 years and he was a trader for 25 years ,
2. our government is desperate to keep gold and silver down and they can’t do it says>>>>
3.  Bob Chapman of the International Forecaster ,
4. Gold is going to break out here and is going to go to $1600 , $1650 ,
5. silver is another situation , the unusual situation is that JP Morgan Chase and HSBC are short 45 to 1 ,>>>>
6.  that means for every contract they have in silver they sold 45 and there is thousands of them ,
7. they’re naked short they can’t get out they can’t buy back into silver which keeps on going up ,
8. 3 things can happen here ,
9. they either can tell their clients we do not have silver and we are going to pay you 25 cents on the dollar
10.  or they can default in complete in other words what is called a force majeure or>>>
11.  the federal reserve can step in and cover their losses ....at 46 dollars a share their losses are about 90 billion dollars

[TigersEye]

So you will paid off to go away at $84/oz

And by "go away" you mean 'let your contract ride' and as Daisyjane69 says you still own it.

It does sound too good to be true but if they can't make good with physical silver it just may be. Great news if you have a silver contract and terrifying news if economic collapse scares you.

In any case; thank you both for helping me understand that.

[dennisw]

IF TRUE-—
The real essence is there is a huge shortage of COMEX approved deliverable 5000 ounce silver bars so COMEX pays people off at +80% to walk away and don’t bother COMEX

Silver bar of 100oz are available much much cheaper at about 3% over spot silver http://www.apmex.com/Product/20/100_oz_Engelhard_or_Johnson_Matthey_Silver_Bar_999_Fine.aspx

[dennisw]

I have to read up on it more but at 80% over “paper silver” that contract is finished. You go out and buy another if you want to try this stunt again

But I hear you can only demand delivery of physical silver when your contract was bought in cash, not on margin