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 ...
video from turd Ferguson....you know his blog? http://tfmetalsreport.blogspot.com/
IIRC the Hunt brothers were on the other side of a deal like this and ended with more then a haircut.
They claim that’s their plan. Milk COMEX/JPM until they croak.
You actually could see $15 silver.
But you won’t see that unless you also see $30 bbl oil.
Just the way these things work...
Don’t hold your breath!!
Possibly, but where there is smoke ...
Besides, there's all that newly created currency by ALL the central banks looking to trade for something real (e.g. silver, gold, commodities and so forth).
>> “Only about 10% of the contracts are ever traded for silver. That’s it, in a nutshell.” <<
.
Not sure about the 10% figure, but basically yes, and most speculators don’t have the bread to take delivery anyway, so usually they are safe.
Are you suggesting silver will go to $15?
Unless your losses are taken care of by several hundred billion "missing" TARP/Stimulus dollars.
Whose website? When?
Are you sure you're reading that correctly? 15% above spot is over $5 and eagles at APMEX are less than $4 over spot in quanity.
You recall correctly.
Investors (Hedge funds) are standing for delivery or being bought off by JPM (et al) for paper money. Then, the funds buy more the next month, knowing full well they can stand for delivery or be bought off. This can not continue for many more months before JPM is broke. See Max Keiser.
So we are told ...
I’m not sure I know who/what/where is the mechanism whereby they decide what to publish as the “spot price”.
We will probably end up seeing it as some kind of weighted average from major dealers/sellers.
Ask/Bid type averaging. But no matter what gets accepted as “official”, it would have to be based on true metal exchange, not futures or paper contracts.
It’s amazing that they can get away with it.
Personally, knowing what is going on with TARP and the QE’s and debt and the global economic situation (China’s bubble, etc.) I don’t see how silver and gold can come down much from where they are. Sure, there will be dips, but I think this is the new support where they will remain.
here is one source:
Spot is like any other commodity. There is a market. Several sites link to it. Some are delayed a few minutes.
LOL, I've been waiting on same since $18 to add a bit more.
“Unless your losses are taken care of by several hundred billion “missing” TARP/Stimulus dollars.”
This theory intrigues me. Makes some real sense.
Chinese are also relieving the markets of a bunch of physical.
With the national stockpile gone, consumption far outrunning production, and the public waking up to the whole situation, silver has a very good chance of being the investment of the century.
>> “but I think this is the new support where they will remain.” <<
.
Until the soverign debt crash starts heading toward deflation :o)
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