Wednesday, April 20, 2011

Same shit, different pile. Cracks getting bigger.

Its getting boring again here in Comex land. I would love to report, but I feel its a bit repetitive at this point. I mean, how many times can I say, ZERO dealer deposits, and too many withdrawals?

Before getting into anymore technical stuff I would love to touch upon a few things that I've been getting emails on.

Firstly, a few people asking me if they should be selling their physical silver to take the money and 'run.' Well before you do that I would like to share a story about a big dealer I get my metals off of here in the great white north (great as in we pay $5.35/gallon and great as in overtaxed and really shitty roads)

My dealer has told me that out of 100 people buying a day, no more than 2 (2%) are selling it back to them. Of the two, many bought physical off them at prices lower than 10/oz, those two are usually selling half their positions and letting the rest 'ride.'

Crowded trade? Not so fast. The likelihood of a crowded trade is about 1-2 years away as it approached $500/oz. Yes, this is still my target, b/c at this point, it really will have no 'value' per say denominated in $US's.

Crowded trade? Fuck. I'm even the merchant of truth to my immediate family, I have been screaming for them to buy at any price (starting at $14) and guess what...? Maybe, maybe one has done it. I used to send out emails, facebooks (not on it anymore I cant support bullshit like that) and other forms of notification....but it just fell on deaf eyes. In fact, when I did try to push it, people got upset about it saying, "Silver!?" Can I buy Silver in my RRSP (401K US equivalent)? I just shook my head.

You see, as time goes by, and the price ticks up, and the bills at the grocery stores increases along with fuel and everything else...I'm starting to hear complaining about the 'inflation.' So I'll just sit here, on my computer, and type away to like minded individuals that had the metal capacity, and sticktuitveness to do their own research about this trade.

Okay enough of that crap, as I am sick of it. Moving on to more important things like options.

Okay, this is what I like to see still. Even at these 'highs' the smart money is still telling that we are going higher. Look at the volume of ITM (In the Money) calls being purchased as opposed to ITM puts. Its gone full retard. If you dont know ITM calls and puts are bought already past your strike price and can be exercised or sold off at any time if it remains past it. So, the amount of OTM (out of the money) puts being purchased here, in my opinion, are insurance trades on longs. If you have no idea what I'm talking about here it is in dumb down terms : Smart money still betting the price of silver is going higher or will remain at this level till May 21 expiry.

Oh and the other day I picked up some more phyzz at $43.19-I got tubes of Buffaloes this time as that is the only coin I dont have and at a great discount to maples or eagles I might add.

I will be releasing the new junior this weekend. Again everyone will be able to buy at the same level, even myself-we will all be in together on this one.

More to come later. You know how to thank me.


  1. The phyiz is the wiz baby. Buy the physical. Take delivery. Don't worry about price. Price fiat. If sgs has taught you anything, remember that.

  2. Excellent report.

    As some of you know, I'm a coin dealer. Sales of 90% silver (morgan dollars mostly) are selling at near spot on ebay. Since they are only 77% silver, the market is pricing them at over $50 an ounce of silver. There are several very large dealers with huge pockets grabbing and hoarding tens of thousands of common date morgans at recent coin shows.

    Yes, we are going higher, that's what the market is saying. A lot higher maybe.

  3. "I'm even the merchant of truth to my immediate family, I have been screaming for them to buy at any price (starting at $14) and guess what...?"

    I can count on one finger how many took my advice. I'm no pro - I make a nice living, but I've been screaming this groundhogday-esque (as good as 'sticktuitveness'?) mantra since 2007.

    They've all watched the 'bears' too, which was actually the turning point for the 'one'.

    Thanks again SGS.

  4. SGS,

    Thanks for all the hard work. Yes, I know how to thank you :D!

    What about this coming Wed, the 27th? Are you expecting a dip? We might even be close to the the magical $50 mark for a "traders taking profit" raid?

    Again,thx man....remember, you can't save em all.

  5. SGS,

    I understand being alone. The question I have in regards to my position in the family, of being the "bread saver" when SHTF, is "What happens when I'm the only one with the means to support anyone in the family?" NO ONE has taken my advice on accumulating silver. Should I help them if they're family? How much should I help them? How do I teach them to never repeat this mistake again in a loving manner? What to do, what to do... This has been on my mind for the last several years. Without any idea of where silver will end up at after this is over, I'm left wondering who will be still alive, who will have anything of value to sell and barter with, how long will we last on the savings I have?

    Many questions...


  6. Does anyone have an opinion on the miners lack of follow through? I'm so up on SLW, over 800%, that it would be a big tax hit to sell but 'they' sure have me scratching my head? Is it because Barnes is no longer the CEO, or that their contracts are going to be nullified, or their latest quarter is going to be shitty (find that hard to believe), or just because it has become easier to paint the miners' tapes than the underlying commodity, or the miners' are just being the "canary" of a big hit to PM prices, or the algos really are going long the metal and shorting the producers? Again, opinions anyone?

  7. Hey Jon,
    Looks like SLW is putting in a cycle low which will be finished next week - should rock up from there. Hang in there.

  8. The right time to sell Silver is easy. Never.
    With World currencies heading for the toilet you would never swap Silver for Fiat. One exception:- if you want to buy a Ferrari made by Fiat:)
    The only time to get out of Silver is when it's 1 : 1 with Gold. Then transfer into Gold.
    So stop worrying about when to sell.