Posted on 05/07/2011 10:29:16 PM PDT by Nachum
While it appears that the COMEX will be able to survive May delivery in silver, Blythe and friends may not be able to kick the can down the road much longer. In 2009, total COMEX registered silver supplies were 87.4 million ounces. Fast forward to May 2011, and registered silver supplies are now 33.2 million ounces. This is a drop of 54.2 million ounces in registered silver supplies in 2 years, or an average drop of 27 million ounces/ year! Translation: the end game in the silver manipulation may well arrive in the next year.
(Excerpt) Read more at silverdoctors.blogspot.com ...
The list, ping
Let me know if you would like to be on or off the ping list
Lemme know when I should start cashing my teeth in!
Not for a while yet. They are manipulating the market right now. 4 changes in margin regulations in one week. This has forced Silver down temporarily.
So what does this mean in English?
In English it means, the big silver markets who have been manipulating the market, may soon be out of silver to pay the long players. The long players are the people who buy a contract, expecting the price of their commodity to go up before the end of the contract. It it does theoretically the comex has to pay the long contract holder the commodity, or as they say they will take delivery. Comex may not have enough silver to cover the long contracts they have out.
Thank you! One more question, how will this impact the price of silver?
Less supply and high demand = higher prices
what that tells me is that there is a very high incentive for the market to be manipulated in such a way to PREVENT silver from going up.
I long for the day that the paper silver market is abolished. No buying on margin, you purchase only the metal with your purchase fully paid for with no margin leverage.
I’m fine with secondary markets and their leveraged paper, but keep that completely separate from the price of silver.
Now, of course, the other side of the coin here is that silver’s so grossly overvalued as to be insane. Even with the bubble bursting, it’s got a ways to go downward to return to sanity. Buying in this market is just throwing your money out the window. $26-$28 is where it should be valued, even then, that’s still higher than the perceived value of the consumer.
No matter how much it’s being used as a hedge against the continued printing of dollars, until the consumer starts to believe that silver should have a much higher price, all that’s going to happen is stocks are going to back up onto the speculative market while demand will dry up in the manufacturing and jewelry market. A coin collector can appreciate a rise in the spot market, a consumer just doesn’t want to pay that much.
And thus, again, the cycle of boom and bust in the silver market.
I have found this website to be a very useful source of information on the economy, gold, and silver.
http://goldismoney.info/forums/
My mom has half of that amount in her jewelry closet.
Unless the value of the dollar gets turned around, expect silver to turn around and go past where it was a week ago, by the end of this year. Our market is being manipulated by Soros.
So in other words, this is a Ponzi scheme?
Short version: COMEX has been selling silver it does not have?
Well, now we know where you started shorting it at.
Cheers!
It would then have to buy bullion on the spot market driving the prices up further....would it not?
I deserved that.. My qualifcations for my opinion: 28 years selling handmade sterling silver jewelry in both retail and to the trade setting. The retail trade market has a very definate viewpoint as to the price per gram for jewelry and at present prices, it exceeds the reasonable markup the trade applies to prices.
There is no interest by consumers to pay more at the moment, and margins are being absorbed on the wholesale level. Industrial consumers also are putting high pressure to keep their costs down and are bypassing the spot highs with locked in contracts.
So when I speak of a target number, it is reflective of what the two largest silver markets are willing to pay. Excess production is flowing into the commodities market as fast as possible and will swiftly overwhelm the direct demand from those who want to invest in silver. It is the biggest reason why silver highs are generally short lived.
I still can buy sheet sterling at $30 spot prices, even during the highs of a couple weeks ago. They don’t expect to sell at higher spot prices and view the longer market as going down.
I’m sorry. I wasn’t trying to be an ass, but I usually lash out when someone proclaims what the market price of a certain something should be. I totally understand your perspective on the price of silver but you need to remember that the people in your industry have become accustom to a certain value (due to historical stability) which really doesn’t affect the actual value (perceived or otherwise).
People who are selling you sheets at $30 spot are either stupid, or protecting their business and/or hoping the price comes down. I’d bet it’s the latter.
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