COMEX NEWS:
Gold:
-some short covering occurring
-44200 oz sent down for servicing, that's HUGE
-1,123, 900 still standing this month for delivery (1.38 tonnes)
Silver:
-OI rises a lot
-ZERO oz's received into the dealer AND customer vaults
-HUGE withdrawal from dealer (200, 792 oz's)and out of ALL registered vaults
-Incredibly large adjustment of 642, 786 oz's
-1, 430, 000 standing this month (no change form yesterday)
SLV: no physical left the vaults (there is probably nothing in them anyway)
Right before China raises rates, Blythe et. all crush commods, in hopes of covering some shortkies. After she gets back from the pisser, she realizes how fucked she is for the first time ever. Up until then, she thought the Ben Bernank and the J Dimonds could help her out. Well I got news for you honey, Benjamin has way bigger issues to deal with than the JP Morgue going tits up....or does he? hummmmm...
Overall anyone taking my advice and bought yesterday on a strong buy reco's is now rewarded. WARNING: Blythe LOVES wednesdays. Expect a MASSIVE raid, in hopes of salvaging whats left of her/his career. Be expecting this March's COMEX to have issues that will be unexplainable OR push up the price of gold/silver...they now have NO choice left.
QUICK NEWS:
$188 TRILLION of the $223 TRILLION in notional value of derivatives sitting on the Big Banks' balance sheets is related to interest rates, Michigan muni's about to implode, Suez workers say "eat a dick we aint workin", NYSE volume lowest of the year, Silver above $30, Greece is beyond broke needs more feta and olives to sell, Egypt, yes I know this is getting redundant, is still on fire.
Those Hitler videos never get old. That was too funny
ReplyDeleteIs the unusually light trading an indicator for market correction ?
ReplyDeleteNo, it's an indicator of unusually light trading.
ReplyDeleteVolume today was huge.
I mean the stock exchange. I have read two days in a row. The amount of shares exchanged is low. I wonder if that means a market correction is coming up. I wonder how silver will be affect. I think even the market crash, silver will be pushed back up. I think people have the comex insight. They are going to bust it open.
ReplyDeleteVolume is low becasue only the government is buying. Looks like Blythe is hitting silver pretty good after hours. Down $0.25 so far. Hopefully stays above $30 into tomorrow.
ReplyDeleteBlythe is about to throw the kitchen sink at this...no choice...
ReplyDeleteStill got a few bucks to buy some physicals. And time for me to switch my stock portfolio around.
ReplyDelete$12.88 spread on Brent to Crude right now = retarded.
ReplyDeletePeople might take you blog more seriously if you would stop making up statements like "SLV has no silver" If you would do a little research you would see that the physical audits of the actual silver bars account for every ounce held in the ETF. http://us.ishares.com/content/stream.jsp?url=/content/en_us/repository/resource/slv_vault_inspection.pdf&mimeType=application/pdf
ReplyDeleteYour concern for all the redemptions of silver from the ETF should be focused on the potential reasons, not some fictitious BS that the silver doesn't exist. The fact is no one really knows the real reasons except for the insiders. Possibly a few shareholders listen to people like you and are selling their shares to buy physical silver to hold in their own possession. Some major shareholders may be redeeming shares in basket amounts to hold in vaults outside of the ETF. One major source for the off-take may be from the shareholders who willingly lend their shares to people like JPM who then redeem those shares for the physical bullion that backs them. To be one of those "willing shareholders" all you need to do is hold your SLV shares in a margin account. When you hold your shares in a margin account you are authorizing your broker to lend your shares. A key feature of any margin account agreement is the "hypothecation and re-hypothecation" clause. This clause allows the broker to lend out your securities at will. Once your shares have been borrowed, you then become an unsecured creditor of the party who borrowed those shares. For all practical purposes you have no backing or interest in the SLV trust at that point. Your investment is 100% paper. If for instance a bullion bank needed 3 million ounces of physical silver and none was readily available in the open market, all they would need to do is borrow 3+ million shares of SLV from the pool of shares being held in margin accounts and simply redeem those shares for the underlying physical silver being held in the trust. So you see it's these so called shareholders who are lending silver to the bullion banks. It's not being borrowed from the SLV trust. If the silver shortage became critical to the point where a major bullion bank who had borrowed shares goes under, then those SLV shareholders who lent their shares would be screwed. They wouldn't be able to sell their shares because the shares are no longer in their account and can't be replaced by the party who borrowed them. Instead those shareholders would be in a long line of creditors hoping to pick up a few crumbs from a failed institution.
In the past, before the days of SLV and GLD, the only reason someone would borrow shares is to sell them back into the market short. Now, with real physical commodity ETF's, an institution can borrow shares and just redeem them in basket amounts with the trust. If the shares remain in an eligible margin account they may never have to be bought back by the party who redeemed them, as the eventual sale of the ETF shares is always settled in cash. Institutions like JPM control the whole process. They are an authorized participant for the ETF, the custodian, a bullion bank, a brokerage firm and a market maker.
When you hold your shares in a long (cash) account, the shares can not be borrowed. Your shares are backed by fully allocated and audited physical silver.
I trust decades of GATA research, and the webmaster here.
ReplyDeleteSLV is a scam for suckers....designed to divert dollars from real metal into paper.
Dude, did you just copied and pasted that from the JPM site?
ReplyDeleteMark,
ReplyDeleteI'm not too sure where to start. You seem extremely informed, but you sound like Erin on CNBC, by the books, fully audited.. yada yada. Thank you for the SLV history lesson. I will now dissect this post with the little remaining time I have left tonight.
1. "If for instance a bullion bank needed 3 million ounces of physical silver and none was readily available in the open market, all they would need to do is borrow 3+ million shares of SLV from the pool of shares being held in margin accounts and simply redeem those shares for the underlying physical silver being held in the trust."
-The entire premise of your argument and history lesson here revolves around the fact that SLV actually has, such , acquired, and allocated physical 1000 oz bars. Correct? Well, I hate to be the bearer of incredibly bad news, and I have material facts from a Sprott source, there is as much silver in the SLV trust as there is Gold in fort Knox. Of course, you may think Fort knox has Gold as well, not sure. I will further that discussion in Part 4 coming out Friday.
So I guess we cant really have a debate here, b/c I know there is no Silver in the vaults (or maybe they have the type of Silver, metaphorically speaking, like the types of planes and tanks they had in Calais prior to Overlord?)
2. "Your shares are backed by fully allocated and audited physical silver"
You have to kinding me. Have you seen Sprotts premium for ACTUALLY having the metal to back it up? I dont even know what to say to this. It takes Sprott 6 weeks to allocate 6 million ounces, but over night SLV under the JP morgue can allocate more than 300 million oz's upon inception?
3. "People might take your blog more seriously if you would stop making up statements like "SLV has no silver" If you would do a little research you would see that the physical audits of the actual silver bars account for every ounce held in the ETF"
I think you are living in Disney Land if you think JPM is actually reporting you proper numbers or some consortium that is paid by the JP morgue doing the audits. Are these the same auditors of WorldComm and Enron? Let me guess, you think the ADP and unemployment numbers are accurate too right? You may be LaLa land my friend. Its too bad, you seem really sharp.
4."Your concern for all the redemptions of silver from the ETF should be focused on the potential reasons, not some fictitious BS that the silver doesn't exist."
Why should that be 'my' concern? I have MY physical in MY hands, in MY possession. Do you? If cant hold it, you dont own it. Redemptions? Here's a fact. I know I have physical. As an SLV shareholder, do you really know you have yours when you need it? No you dont, just like you claim I dont know that they do have the physical.
I leave it at this. SLV is a tool to continue the ponzi-nothing else. Its used to keep printing fiat paper. If you see it as something different, then go all in with this investment vehicle, shit, I'll even send your the prospectus myself. You cant post something on here about JPM being honest and audited without being challenged. I would suspect a few posters are going to unload on you. I stepped back a bit, I'll them peck away at this...thank you for posting, please post more often.
"Be expecting this March's COMEX to have issues that will be unexplainable OR push up the price of gold/silver...they now have NO choice left."
ReplyDeleteWhat kind of issues? Failure to deliver (oh boy, would that be fun!)
Why do they have no choice?
They will not fail to deliver as that would fold JPM. What choice left? JPM covers shorts and runs the price up...I dont see any other scenario. A complete failure would be catastrophic. They will kick the can down the road, but the road will end.
ReplyDeleteEpic. Seeing this market over the last year struggle and then explode will bring me massive satisfaction. I started buying heavy at $15 per oz seeing that the COMEX almost caved in 2008. I figured with round 2 there'd be a similar event. Your right this is going to be EPIC.
ReplyDeleteMy bet is that the markets shoot to the moon and then they intentionality cave in the system.
Keep up the info SGS.
I'm happy I'm not the only one running in this game.
Hey GSG, Mark's post is possibly a meme injection (been studying these). They have a standard pattern - part personal attack, part discrediting, many assertions, slightly off topic but very true statements and enough material length to produce a mental 'buffer overrun' for anyone reading. I figure organised and targeted disinformation is expected at this point - calling it as I see it. But TPTB haven't realised no-one gives a hoot any longer... We like physical silver and we'll keep buying thanks all the same. Mark, you put a lot of effort into what you wrote (estimated 1 hour plus), you've been challenged; your rebuttal? Oh and for the record (a) I recognise they are probably keeping the shell game going to protect everyone from the awful outcomes, but .. let it all burn and (b) a mental 'buffer overrun' is where the ideas expoused still enter your head and lodge there regardless of your reaction (yeah, similar to the virus technique).
ReplyDeleteI am agreement with Warren. He is astute infidel. Be it my shame to confess as Allah is witness, "Mark" put me in gloomy mood and I exchange two eagles for hour with young American boy with strong legs.
ReplyDeleteMark, by my seventh grandfather's holy testes, I challenge you to address Warren's points. If you should fail, I pronounce curse on your whore daughter! May my 10 inch sword of Islam break her ribcage! By the foreskin of my unborn son Mohammed, a shoe upon your head! You are a bleeding pile on a camel's anus!
My local dealer tells me he has no idea what kind of premium he's going to have to attach to the new shipment of silver eagles. I'm getting as many as I can afford before I can't anymore. I suppose I'll be forced to start buying up more junk as the big boy coins get priced out of reach.
ReplyDeleteSGS, I bought 30 more oz. after your reply to my post last week. Thanks to all of you who addressed my questions. My tracking number shows my 30 shiny oz. being delivered today. I hate to buy it online, but the coin dealers in Concord NH don't have any silver. Anyway, today I get to open up 20 shiny 2011 AE's and 5 2oz. Year of the Rabbits. Those Australian coins sure are pretty.
ReplyDeleteMark, shut your pie hole and keep watching cspan, that healthcare debate will be broadcast any day now.
Mark:
ReplyDeleteAfter seeing Wall St get AAA ratings for toxic MBS crap, and blow up customers around the world with it, I simply do not trust Wall St in general and JPM in particular.
I don't care about your well-reasoned arguments. Enron had well-reasoned arguments. Worldcom, Tyco, Global Crossing had well-reasoned arguments. AIG, Lehman, Bear Sterns had them.
Words can't express the anger and mistrust I feel towards these malicious predators.
I do not believe anything about JPM can be trusted, and that includes SLV.
I'm not pushing any theories that the bankers aren't crooked or aren't manipulating the markets. I trust the bankers and the Fed about as far as I can throw them. I'm just trying to point out that the SLV trust is a valid financial instrument and that the silver bullion it holds is actually there. Most people are looking in the wrong place for fraud, deception or misrepresentation. As I tried to point out, it's the shares that can be borrowed, leveraged and manipulated. The trust is just an inanimate object. It doesn't sell, lend, trade or do anything but just sit there. The silver that the bankers use to create shares may be leased sliver, but the trust doesn't care where the metal comes from or who is on the hook to eventually pay it back. Once the metal is deposited and allocated to the trust it belongs to the trust and is only leaving upon the redemption of the corresponding SLV shares that it represents. ishares posts the bar list updated daily that lists every allocated bar by hallmark, serial number, weight, assay and storage location. https://ebts.jpmorgan.com/metalicsWebApp/ebts_downloads/BONYBARLIST.PDF Inspectorate International, the auditor of the physical bars, is a world recognized leader in inspecting, testing and auditing metals. http://www.inspectorate.com/metals_and_minerals/index.asp They don't just make up fake audit reports. James Turk's GoldMoney also uses Inspectorate International to audit the gold/silver in his fund, but I guess his audit reports aren't fake since his is a good guy and can be trusted. http://www.goldmoney.com/audit-certificates.html There is really not much else ishares can do to show that the silver is actually there. They aren't in the business of giving public tours through the vaults so that people can touch and ogle at the piles of silver.
ReplyDeletePeople don't (or shouldn't) buy SLV thinking that they personally own physical silver. SLV is a derivative: "a security whose price is dependent upon or derived from one or more underlying assets". The underlying asset in this case is silver bullion stored in the trust. It's totally out of context when people say "When you own SLV you don't own silver". Well, no kidding. The reason people buy SLV is that they don't want to hold and store all of that physical silver, but they do want exposure to the underlying asset and away from exposure to fiat paper dollars. The SLV/GLD ETF's fill that requirement quit well.
Who was that smarmy little gov't weasle that admitted before the CFTC that there are 100 paper oz. for every physical ounce in the SLV? SGS, perhaps you should post that video for Mark.
ReplyDeleteTom, it was Jeff Christian of CPM Group (www.cpmgroup.com), ex Goldman Sachs (yeah, surprise).
ReplyDeleteYou can read Mr Christian's generously dispensed wisdom at the link below (see 2nd comment).
http://www.gotgoldreport.com/2011/02/bullion-banks-get-smaller-in-comex-silver-futures.html#comments
"I trust the bankers and the Fed about as far as I can throw them. I'm just trying to point out that the SLV trust is a valid financial instrument and that the silver bullion it holds is actually there"
ReplyDeleteI am now in Contact with the auditor, look for a magnificent post on this soon my dear friend.