Wednesday, April 13, 2011

Question for Gold Pro's...?

If OI rises, there are, historically, deliveries, as people are standing. Why are there no deliveries this month in a delivery month? Ring the alarm, bells whistles should be going off.

There was a meeting today by the CFTC, it was closed doors. They know exactly whats going on.

Here is the problem: They do NOT know how to handle it. Its TBTF.

The COMEX is bust. It will be propped up until the PTB say its bust. Keep buying the fuckin dips. It will get more obvious come June (Gold's most active month) and May for silver.

QE3, or some other BS name or no name or denial altogether is already commencing.

Dont be scared. Hold it in your hand. Because if its not in your hand, you dont own it.

We have options expiring this Friday, which it seems to be every friday these days. Weakness should be felt like a gift now. Embrace it. Trust your instincts, not your CNBC and you will see the light.

I would also like to comment on the options below.


I have a theory. Say you are the morgue and you know silver is not going down. So you get one of your traders to front a $million dollar trade on the $25 SLV put. This causes a stir, and in turn causes others to do the same.
What they dont tell you, is that the morgue is its own clearing house, and that could be its own trader causing the stir. And then when the OI expands and others follow suit, JP can write the calls and make MILLIONS in the premiums as the following days ensue, especially if they can hammer silver a little more as well.

I leave you with this video. Enjoy.

57 comments:

  1. I watch both videos, the first one from 25th Hour and the second one that's up now. I have to say, I like them both. That movie is fantastic, by the way.

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  2. You probably posted my favorite scene from 25th Hour, but here's another one worth watching again: http://www.youtube.com/watch?v=J9D_ibaVGMU

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  3. don't know bro' - think very large money (tax payer probably) is backing this up. Wouldn't it be crazy to be shorting this market? The fundamentals behind silver are insane. I think it's paper settlements until industrial buyers go around the comex and start buying directly from refineries. Could last a lot longer than peeps think

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  4. I'm holding out until I can sell direct to an Industrial user..

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  5. Yet another way for the Origami brigade to try to control silver prices?

    (Reuters) - The Singapore Mercantile Exchange will launch cash-settled gold, silver and copper futures contracts on April 15, the exchange said in a press release, which may carve out a new market for speculators seeking arbitrage opportunities.

    http://www.reuters.com/article/2011/04/13/commodities-smx-idUSL3E7FD03Z20110413

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  6. THINK OUTSIDE THE BOX

    Have any of you ever considered the possibilty that when the Dollar dies, you will be using silver or gold to buy or trade. It won't be valued in dollars or more than likely sold to some industrial user.

    Few saw the stock market crash and depression of the 1930's.....but some did. Most were caught like a deer in the headlights. I have read different accounts from several people who wrote about a coming market collapse in the middle 1920's.

    What is coming to the USA and the western industrialized countries is far worse than the 1930's. When the dollar dies, base metal mining will fall off a cliff like WILEY COYOTE. Hardly any see that scenario. That will take a large portion of silver production off the world market.

    On Top of that, we will have nationalization of mines like you have never seen before. Why? Because silver and gold will be money again and not some lame industrial metal that westerners can loot from third world nations.

    Silver and Gold will be best used by those with good functioning brain stems to buy farmland with a modest home in the country. Suburban real estate will become increasingly disfuctional as high fuel prices and shortages rock the market.

    People who think there is the grand conspiracy for the wealthy to buy a great deal of real estate for pennies on the dollar fail to comprehend that a falling EROI (energy returned on invested) will make most commercial and residential real estate a NON VIABLE ASSET as time goes by.

    BUFFOONS, GADFLYS and NITWITS promoting real estate thru infomercials on late night CNBC will be the laughing stock in 5-10 years. There are even some big name investors who are bragging that they are dumping big money into Florida. All I can say....the bigger they are, the bigger they fall.

    Prepare for the worst and hope for the best. Unfortunately if you look around and see who is calling the shots in GOVT and on MSM, more than likely the WORST WILL HAPPEN.

    word...

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  7. @SRSrocco
    I think the scenario you describe is likely to happen. Also division of labour would decrease as most people will have to grow their own food.

    But division of labour will not stop and alternatives to today's fiat currencies will gain from the dollar collapse.

    Our current exponential monetary system must end.

    You say silver and gold will be used for trade, and I agree. But aren't you interested in new systems?

    My favorite one is Ripple. But there's also bitcoin, LETS, Gesell's freigeld (for example, the chiembgauer), etc.

    I think that the p2pfoundation maintains a list of "open currencies".

    No one here is interested in alternative monetary system beyond gold and silver?

    Don't get me wrong. I would prefer trading with gold or silver than with fiat euros as I do these days.

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  8. 04-13 08:28: Acme Packet has resistance at $74.15, a recent pivot high

    SGS, thoughts?

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  9. Heward: What in gods name are you doing trading a stock called ACME packet? LOL sorry, I used to use this stock as a comic relief name.

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  10. @SRSrocco
    Excellent comment. Peak oil guarantees the end of the current fiat system.
    Be careful with buying farmland that's too isolated in the country unless you have the resources to hire workers that can double as security. In collapsed countries like Mexico and Argentina they have bands of robbers who will take over and kill everyone at an isolated farm.


    @Timon
    I think a new currency system is unlikely. In times of stress people fall back on old tried systems. The internet is going to become increasingly expensive to access, and increasingly home to more theft as security resources are cut.

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  11. Holy shit on the OI of SLV $25 put!!!

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  12. SGS:

    Quick question. I have a substantial amount of my net worth in IAU in a pledged account (to cover my mortgage). I can't pull the funds$, but I'd like reinvest it in a less-worse EFT. Do you think the Sprott Physical Gold Trust PHYS would be a reasonably safer alternative? (Yes, I do have physical in my safe deposit box).

    Thanks for your thoughts.

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  13. --Peak oil guarantees the end of the current fiat system. --

    Peak oil is a myth...the easy, pool, suck it up with a hose 1800's technology oil is running out. But wait, look at the trillions of barrels of shale oil out in the Western US and Canada. Enough for centuries.

    And whatever you think of the oil situation, it's hardly the driver of a dying monetary system. Central Banks, printing money, are the killers.

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  14. The dollar and fiat currencies are not going to die. Yes the dollar will have a heart attack but fiat currencies are akin to national identity. They're too convenient. IF they die we'll have digital currency. Put aside your wishes and be practical.

    Peak oil is real. Abiotic oil is possible but irrelevant. We use oil faster than the earth could conceivably produce it.

    If we want to access the shale everyone who relies on the Colorado river for water will have to relocate. The amount of natural gas used to produce it would suffocate the midwest. Get real. Production will be small scale for a long time.

    The COMEX becomes irrelevant when the industrial users and investors side step it and go right to the miners. Then all shit hits the fan. If you don't own any silver stocks at that point you will feel like the biggest swinging dick on the planet. Hold on to your positions.

    All imo.

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  15. California siezing the contents of safety deposit boxes:

    http://blog.mises.org/16433/california-seizing-property-from-safety-deposit-boxes/

    Hey, they need the money to pay for all of those great gubmint programs.

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  16. News Unit,

    I just want to add that at this time, if you go to the coin shops in the area I live in, there is plenty of junk silver, and most of the time, plenty of retail silver bars. Very rarely do they not have any.

    SE

    P.S. verification word - Bumbox

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  17. "The COMEX becomes irrelevant when the industrial users and investors side step it and go right to the miners. Then all shit hits the fan."

    Finn, that is what I'm talking about! It's the ONLY way you can stop COMEX. Make them IRRELEVANT. See, I can probably scrape together enough money to buy one or two contracts and ask for delivery, but I chose not to because I want physical.

    SE

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  18. Do you believe in deflation or hyper-inflation?

    Chris from the WT, believes in deflation so does that mean silver prices drop back to 15-20 dollars?

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  19. News Unit, I've talked a guy that runs one of the coin shops in your area and he had indicated that he gets his junk silver and some of the bars from retired people and estates trying to settle their affairs. He is having a hard time keeping it in and does have people to call to unload it onto. I am on his list and he never calls. Maybe he lost my number, don't know. Another guy, in the dells had indicated that he quite a bit of junk silver, but didn't advertise as well as he should be doing. I think if you follow the premise of the 3 stages of the silver shortage, there will be people willing to unload some silver a certian prices, especially if they have been holding it for many years and are sitting on a profit. Others, don't know what they got; it was part of an estate and are letting it go because they don't know any better. If people are parting with it, so be it.

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  20. SGS, with all dues respect, these are the kind of posts I enjoy coming to your blog reading. Minus the occasional F-bomb, is shows you do take things serious and you are a serious reporter...Thank you for this post.

    Great blog.

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  21. A portrait of a bankster and nobody noticed his slick haircut:

    http://www.flickr.com/photos/32245200@N00/4489968217/

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  22. JC: You should see the auctions in this area and what people will pay for silver and gold. And I thought EBAY was inflated! The best thing anyone can do now is stick with the internet dealers and buy in bulk.

    The guy in the Dells is great and he knows his coins.

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  23. Jack....because you have taken the ENDLESS OIL FIESTA HOOK...LINE and SINKER...I would like to share some interesting facts about all that so called oil.

    EROI VALUES OF OIL

    USA 1930's OIL = 100/1
    USA 1970 OIL = 30/1
    USA 2000 OIL = 11/1
    TAR SANDS = 5/1
    SHALE OIL = 4-5/1

    EROI is the ENERGY RETURNED ON INVESTED. For example for every 1 barrel of energy invested in 1930, 100 were produced for market. America was built on HIGH EROI OIL. Look around at the great Interstate highway system. That was built on Cheap and high EROI oil.

    Shale Oil is a NON-ISSUE for those who are real geologists. The Army Corps of Engineers gives the USA a grade of (D) for the infrastructure.

    250,000 water main breaks a year and that will go up exponentially when the dollar dies. The reason that the infrastructure has been negleted is due to the failling EROI. The same thing occured in the Roman Empire towards the end.

    Those who study PEAK OIL, understand the falling EROI. The Rest get taken by SOUND BITES from the OIL INDUSTRY who believe that the earth has a creamy nuggent center of oil.

    Its a shame.....but don't believe me...just stay alive a few more years and most will become BELIEVERS to the notion....IF ITS TOO GOOD TO BE TRUE....ITS TOO FRICKEN GOOD TO BE TRUE.

    As for GANGS coming to farmlands and killing the people....I would like to remind Blindweb this is not South America. The folks in my small ranching community for example have been brought up on guns and hunting right at the time when they pop out of the womb. Too many folks with rifles, shot guns, handguns and etc to be taken down.

    Of course there are no guarantees in life, but I would BET that surviving the collapse will offer those much higher percentages than in the big cities or large suburbs.

    CHOOSE WISELY

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  24. rocco,
    I agree with Jack. There is no peak oil. Now think about this. You and 4 buddies own all of a certain important material that the world depends on. However there is an abundance of it.
    So you get together with the 3 others and say hey we can make much more money if we creat a crisis. Lets start a big war in the midlle east.. BOOM oil goes up. Please go listen to Lindsey Williams. The US and Cnanda alone has enough Oil to run both countries for Centuries.
    I do agree witht he rest of your post tho.

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  25. Sierra_hbpt....I have listened to Lindsey Williams on Alex Jones. I would advise you all to read M KING HUBBERT who was a geologist who forecasted the peaking of USA OIL in 1953. He forecasted the Peak would occur on 1970. Guess what....that was the year the US PEAKED at about 10 million barrels a day.

    He was the laughing stock of the Oil industry. He went to congress in the 1970's to warn them of what was to come if they did not prepare.

    I am not here to debtate this....as time will slap those across the forehead with the truth.

    I mean not to be sarcastic....but the ROMAN EMPIRE fall due to a falling EROI. Joesph Tainter wrote an excellent book on COLLAPSE OF COMPLEX SYSTEMS. He made he connection of the falling EROI of ROME to the USA today.

    You all don't need to believe this now.....time heals all ignorance.

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  26. O'Buttfuck talking up the US green asswipe...

    AC

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  27. SRS,

    Great posts. Buy and hold physical and you will not get burned. A downturn now and then will happen, but the big joke will be on the dirty banksters soon enough.

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  28. ONE MORE POINT

    Don't you folks understand SIMPLE MATH??? Did you see the EROI OIL VALUES? These are not something one can make up. These EROI oil values are falling. Sure the Bakken Oil producers are making a profit as they can produce oil at 5 times cost, but this makes everything more expensive.

    MONEY PRINTING just like the DEVALUATION of the ROMAN SILVER COIN was a SYMPTOM of the falling EROI...not the DISEASE itself.

    Remember there are millions of metric tonnes of GOLD in all the OCEANS....but the grade is a fraction of a fraction. At some point getting more expensive oil becomes a ZERO SUM GAME like Ethanol. You spend more energy to make ETHANOL then you get from buring it.

    I will be putting an article together at some point that I hope ZERO HEDGE will post on their website. It will show all the details as to why LINDSEY WILLIAMS and others like him are wrong. Don't get me wrong....I like Lindsey...but SCIENCE is SCIENCE...and MATH IS MATH.

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  29. Please lay off the Caps Lock.
    There's no need to SHOUT at anyone.

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  30. Its my style. I am not shouting...but rather HIGHLIGHTING. But if it offends...I will try to keep it at a minimum. Funny though....our country is falling apart and my CAPS are what you are concerned about the most?

    Interesting.

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  31. SGS,
    Not to beat a dead horse, but did you learn anything new at fight club this week? Inquiring minds want to know.

    Thanks for your blog and videos.

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  32. Great posts SRS, so you could say that the GOVT EROI is the same. These Fucktrons( word stolen from SGS) spend 5 Billion and get a one time return of 500 million LOL

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  33. I DON'T KNOW WHAT WE'RE YELLING ABOUT!

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  34. rocco.... Great points. EROI is serious business. Lyndsey Williams.....? I just don't trust the guy. Makes my Spidy sense go crazy.

    Speaking of EROI, you will really enjoy these articles about Peak Silver and EROI. Everyone should read them, fascinating.

    http://www.financialsensearchive.com/fsu/editorials/stangelo/2009/1105.html

    http://www.financialsensearchive.com/fsu/editorials/stangelo/2009/1111.html

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  35. SilverDoctors......true. Today's chart pattern is what I term as the REVERSE ENEMA "V" CHART.

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  36. Finn....LOLOL....those are my fricken articles.

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  37. Come on!!!!! You can't imagine how many people I forwarded those too. Hilarious! Are you serious?

    Two of the best articles I've read on silver and I've read 'em all. Twice.

    Linked them on my blog as well.

    Shoot me an email: finnthecelt@hotmail.com

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  38. Rocco,
    You don't offend me with what you say.. I agree with you 100% with everything except oil.. How old are you? were you around in the 70's when they were saying the same that we were running out of oil? Remember, OIL is abiotic. It is not a fossil fuel. Again just like we see with 4 to 8 large banks manipulating the price of silver and gold, you have 5 to 10 large oil companies pumping us in the butt to raise prices.

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  39. Yes, I also wrote this one as well which I linked in the PEAK SILVER article:

    The Most Important Aspect that most Economists and Analysts Fail to Recognize
    http://www.marketoracle.co.uk/Article14756.html

    Both of those articles were posted on Financial Sense, Market Oracle and GoldSeek.

    I got the BIG ONE I have been working on for months that ZERO HEDGE was very interested in. I hope to finish it soon. It brings it all together focusing on the USA and other western countries who have followed our lead into oblivion.

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  40. I'll get to it. Printing it now.

    You know I have those two articles in my briefcase? I tried emailing you once last year I believe, maybe the email link was dead.

    Wondering when you'd write more....too much. LOL.

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  41. Sierra_hbpt....I don't believe in the ABIOTIC OIL theory. Sure there is some...but it is a fraction of the total. Oil fields all over the world are depleting. None are filling in fast enough to offset a Global Depletion rate of 9.1% yearly.

    Hey....I did believe in Abiotic for a brief period, but when you read real geologists who are not pawns of the Oil Industry, you will realize Peak Oil has already occured.

    Again...I plan on putting together a detailed article to give more info on this. If you would like to read it, you may see some additional holes in the Abiotic Oil theory.

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  42. rocco, I read that one too but I'll read it again. I remembered the reference to Bob right away. When he wrote that Mexican Silver article I remember being so irritated. He made it way too simple.

    I started studying peak oil years ago (latoc, oil drum, energy bulletin, etc) and knew Bob was full of it.

    Please reach out when you write your next article. Thx

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  43. Geez, was hoping to read more about silver and not oil. Sigh. Does anyone ever talk about gold? Anyway, I read it all and take it all in. Also, noone mentions long-term food storage. Got mine. Food inflation is nuts!! Good luck all!

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  44. Ledbedder....where do you think silver producers get the energy to mine Silver? Yup...its oil. I will finish by saying this....

    A falling EROI will make SILVER a WIN WIN.

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  45. Spending large amounts of intellectual energy thinking about and speaking about oil is a waste of time. Sure it matters in the short-term, but why not get ahead of the curve and think long-term? Oil will soon be obsolete! We now have the technology and you will soon be hearing much about it. Oil is a dinosaur;) or is it abiotic? Who fucking cares!!

    http://peswiki.com/index.php/Directory:Andrea_A._Rossi_Cold_Fusion_Generator

    Is NOT a scam, do your own research. Stop wasting time and start preparing.

    DDT

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  46. Chris is bang on. Silver keeps bouncing back after being hammered over and over. Physical drives the price and eventually the paper scam will collapse when the Comex is avoided altogether. 606 Million oz traded in one day W.T.F. Pure unadulterated BS! The comex is trading at a 1000:1 paper/silver. The more these events happen the more obvious the scam!

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  47. SRSrocco, those are some great articles! You are not retarded.

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  48. see everyone is having fun here. what a day. just got back again. If you bought the dip on Tinka you are winner winner chicken dinner today. More to come tonight.

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  49. SGS, I didn't buy more, but I didn't sell either. I was thinking late last night about buying but the time the golden sun warmed me up this morning it was already up 11%, then 16%. :)

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  50. SleepingVillage....you bring up a good point that has been brought up before. I will address it again. Another energy source will not solve PEAK SILVER, PEAK GOLD, PEAK COPPER, PEAK CEMENT or whatever.

    All those millions of homes that were built over the past 10-30 years, all need to replace Air Conditioners, Refrigerators, Heating and AC units, etc and etc. Everything has a lifespan, and most fall apart normally right after the time that they state on the damn thing. Just think about all the stuff in the USA that will need to be replaced just to keep up with maintenance.

    Anyone who is an appraiser whether they are Residential or Commercial realize all working systems have a lifespan and they depreciate it accordingly.

    Those who believe a new energy source will SAVE us fail to realize there are 8 gallons of oil in every tire. Go to Walmart and almost everything is plastic....it all comes from oil.

    Pesticides, Herbicides, Fungicides and fertilizers come from Oil and Natural Gas. Also, Potash a main fertilizer in farm production is projected to peak in the next decade.

    Are you going to SPRAY COLD-FUSION FAIRY DUST on the soils of the Mid-West?

    Again....people mean well when the state new HAIL MARY SAVIORS, but they fail to look at the whole picture.

    The Romans did the same thing. They focused on one thing, and that was raising money to keep their legions strong so they could defend their borders. Unfortunately, they failed to deal with Soil Erosion and disintegrating Infrastructure.

    So...Sleeping Village, COLD FUSION (if it is a viable alternative) still fails to address all the other problems coming down on the USA and advanced civilizations.

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  51. Yes, and I addressed your reply at that time as well. I stated that fossil fuels would become obsolete as an ENERGY SOURCE. Go back and read it. We will of course still use oil to make useful things we use every day, as you pointed out, and as I also did in the previous thread. You do realize that plastics and a shit load of other products made from oil can be recycled don't you? Tell me the percentage of the oil we mine that is burned and then how much is used to make products that can be recycled;)

    I also asked you in the prior discussion why it was such a bad thing that "things" need to be replaced. I suggested building these things in North America again, like it used to be before we gave away our middle class in the name of shortsighted, immediate profit increases. What's wrong with manufacturing things that we all use? Do you want your children to work at Mcdonalds or maybe be a pool boy? To have a strong/balanced economy, we cannot all be only consumers. This is exactly what got us into this debt-based mess we're in. Manufacturing is what built America. Do you understand this?

    Have you ever heard of organic fertilizers? Nitrogen fixing plants? and the idea behind limiting use of pesticides, herbicides?

    I'm afraid it is you that is failing to see the bigger picture. I hope you give this some serious thought when you're writing your pieces.

    You make some great points in your articles, but I'm afraid there's a whole pile of holes that need filled in your theory.

    Watch out for the COLD-FUSION FAIRY DUST, it might open your mind.

    DDT

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  52. I was a pool boy one summer. The best summer EVER! Divorced women are crazy in the sack!

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  53. Sleeping Village....yes you are quite the wise one....and I the NITWIT.

    I am perfectly versed in the understanding of organic gardening. My wife and I do that sort of ritual here on our small farm-ranchette.

    If you want to turn the USA Modern Commercial Farming into Organic, you need to ask 85-90% of the population to leave or starve to death. Unforunately, there is not enough COW PLOP to fertilize the soil.

    Sleeping Vil, we are HACKS in here. There are plenty of good scientists who have done the research already. Charles Hall, and David Murphy have done excellent research on the EROI.

    I don't mind your IDEALISM or believing in the HAIL MARY SAVIOR, most want that. When collapse comes, most will still be walking around talking on cell phones that don't longer work or tapping on computers with a blank screen.

    Ask SGS....its called NORMALCY BIAS.

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  54. I certainly never implied you were a nitwit. Misguided, yes, but you obviously never read anything I wrote. My point was that EROI is irrelevant when you have a cheap and abundant energy source. We don't need someone with a PHD to tell us that. Give us "hacks" some credit! Cheap and abundant energy is the essential key to making us secure and economically strong.

    You said; "A falling EROI will make SILVER a WIN WIN", I wanted you to see that you're making some dangerous assumptions.

    You need to read up on organic fertilizers, and organic farming a bit more, there's more to it than just cow shit. Just read a simple wiki article on it. We most certainly wouldn't need to ask 85-90% of the population to leave or starve to death, that's ridiculous. You're tempting me to pick on you:)

    You can call it idealism or whatever you like, I'd prefer to call it common sense and passion. Just because we've done things a certain way for a long time doesn't mean it's the best way. New ideas make this world go around and allow us to progress as a species. Always have, always will.

    Oh yeah, you never answered my questions I asked you earlier. How are we supposed to learn anything from each other?

    DDT

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