Tuesday, August 2, 2011

Current Observations, Silver, Tinka, and the upcoming Fall season

I wrote an email today to an email list I have tucked away for special "Fuck you haters" emails. It went something like this:
Dear idiots: Fuck you for not listening to me two years ago. You better start.

Something like that.

I had a guy come up to me the other day (I wont tell you what I was doing) but he asked me if I had any gold teeth, chains, or anything gold I would like to 'get rid' of. I asked him a simple question; "If you are here asking me for gold teeth, should I be buying gold?" You should have seen the look on his face, like the ohhh shit, this guy isnt a sheep look. I didnt give him any gold. In fact, I wanted to email him a picture of me gripping my boner, and see if he could appraise that. Idiot.

I have been getting some interesting calls and emails from China. It seems the major Chinese buyers of physical Silver are not buying from dealers anymore, as they are getting rapped on premiums, and they are going straight to the mines at spot rate. This is going to put a huge strain on deliverable product to dealers soon. Just a heads up.

I am very frustrated with Silver. I like to flip SLV options for quick profits, but it seems like its being held down again and $10 from its highs is bothering me. I have a very good feeling that the large commercials are adding insane short positions this week, especially when Gold comes back down off its parabolic move today. This will leave Silver vulnerable to get pumped back down under $40 again.

I sit here with patience, but that guy on my shoulder keeps telling me it should already be at $100 just inflation adjusted terms at a minimum. So, I will buy more PHYZZ on the next red day. DO NOT CHASE CHARTS, buy when CNBC is saying the silver and gold bubble popped, again, for the 43rd time this year.

I spoke with some interesting lips today regarding the Tinka drilling. This person is on the ground drilling. All I have to say is I will be giving a full report of this later. I actually dont want to write it, as I would like to buy more shares first. But for current shareholders, wow.

Within the next 6 weeks, if there are ANY dips I am buying both Phyzz and options as well as the miners. Hopefully, if my programmer gets his ass moving, the new site will have a very dedicated tab for this.

In the mean time dont chase charts. It never works.


  1. My guess is that we won't see $40 in silver because any dip close to that is going to be bought aggressively. Just my guess.

  2. Dagong just downgraded US debt...oh boy, this could get out of control really fast.

  3. "they are going straight to the mines at spot rate"

    Cheers. Matches exactly what I've been hearing from physical market. Big smart buyers are not interested in busting COMEX paper nonsense. They go straight after the PHYZS from the source and let COMEX farce fall on its own. Mining companies welcome such kinda purchase b/c that way they are not dealing w/ Wall St. crooks.

  4. > this could get out of control really fast.

    Well we've been going at less than a snail's pace, so quick sprint ought to be good.

    Miners are severely undervalued - like as in severely! Nice to see Great Panther up 9% today.

  5. Anyone see this:


    THE ROYAL SILVER CLUB silver bond – paid in silver coins per month. $5,000USD = 1 silver coin per month for two years.

    StellaConcepts is promoting this as well – with a coupon code. He shows how you can hedge the $5,000USD with anything including gold price.


  6. We have to consider the possibility that everything gets crushed in a deflationary event similar to 2008. There are all sorts of black swans out there ready to flap their wings and send us all to hell. Also gold and silver sentiment is excessively bullish which usually means a correction is in order.

    The ADP and NFP numbers this week will tell a lot.

  7. "all sorts of black swans" is a oxymoron.
    Deflationary talk is built around the idea that money is scarce and no one is buying anything including commodities.
    Might happen for a day or two

  8. There's a big difference with gold and silver trades.

    Less and less people are trading the paper silver because there simply isn't enough silver to back it up which means the comex will one day default. It could be in 1 month, it could be in 3 years but it will happen.

    So that's why, not everybody wants to put it's money in that trade which suppresses the price to what it is right now.

    The December 2015 contract is now trading at a 0.65 discount to front month silver because of it!



    (will it happen in september? No. But the wheels will start to come off and become visible which will trigger hoarding of silver and a price explosion)

    Silver futures:

    Month Settle Estimated Volume

    Prior Day Open Interest

    JLY 11 39.546 108 380

    AUG 11 39.549 551 417

    SEP 11 39.558 58,320 60,423

    DEC 11 39.581 1,939 26,443

    JAN 12 39.582 6 133

    MAR 12 39.578 99 5,269

    MAY 12 39.565 110 1,578

    JLY 12 39.552 91 1,759

    SEP 12 39.532 9 218 >>>>>>>>>>>>>>>>>> TIPPING POINT!!! <<<<<<<<<<<<<<< HERE IS WHERE BETS ARE PLACED ON A DEFAULT!!

    DEC 12 39.480 273 8,004

    JAN 13 39.462 - 1

    MAR 13 39.423 25 400

    MAY 13 39.381 - -

    JLY 13 39.338 44 2,212

    DEC 13 39.251 145 6,744

    JLY 14 39.191 9 228

    DEC 14 39.102 49 1,174

    JLY 15 38.981 - 166

    DEC 15 38.901 30 450 !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    Compaired to gold:

    Daily Settlements for Gold Futures (PRELIMINARY)Trade Date: 07/20/2011

    Month Settle Estimated Volume

    Prior Day Open Interest

    JLY 11 1596.7 6 81

    AUG 11 1596.9 135,98 250,826

    SEP 11 1597.5 415 8,880

    OCT 11 1598.0 1,361 15,618

    DEC 11 1599.0 13,380 169,279

    FEB 12 1600.4 826 11,459

    APR 12 1601.9 160 6,146

    JUN 12 1603.6 86 14,424

    AUG 12 1605.5 1 5,016

    OCT 12 1607.7 1 4,112

    DEC 12 1610.2 159 11,711

    FEB 13 1612.9 - 1,560

    APR 13 1616.1 - 201

    JUN 13 1619.8 7 11,065

    DEC 13 1634.1 8 12,48

    JUN 14 1651.8 - 3,136

    DEC 14 1673.9 - 9,270

    JUN 15 1700.0 - 3,725

    DEC 15 1730.1 - 2,768

    This means that those wishing to purchase gold for delivery in December of 2015 must pay a PREMIUM of $133.40/oz to cover costs such as storage, insurance, etc. This is 8.35% of the cost of the front month contract!

    From over on ZH.

    So while Gold is clearly going to run a lot higher, Silver will go parabolic once the Comex crashes. The paper price is actually what's really killing the silver market. If the price would be at 150$, the comex might still make a shot because that would lower demand at bit and trigger some profit takers to sell silver.

  9. Flaunt, the prices are set in London and New York by the bankers, anything is possible.

    Just remember deflation and a crash in bullion prices would trigger massive buying, as the likely trigger would be massive interest rate hikes to attract buyers. If they do this, they go broke even faster.

    Its really just noise at this point, no way out of this debt unless they default or devalue massively.

  10. SGS, thanks, love me some M. Faber. And I am very interested to learn about the mining stocks. Keep it rockin'!

  11. Hi SGS - just noticed your productions about the jpmorg manipulations.

    Outstanding!! Are there any restrictions on people [as opposed to sheeple] posting any of your material on their weblogs?

    Please continue with your commentary - it is refreshing to know that others are also studying how the global power scammers plan to enslave us all in their paper debt instruments.

    Better yet - it enables us to take counter-measures.!



  12. Still bothering me.. When Bernanke was asked if Gold was money and he said "No".. I would really love to ask if I could buy his shoes and offer him either a $50 Federal Reserve Note or a $50 Gold Eagle and see which legal tender he accepts as money.. Just bugs me to no end.

  13. Federal reserve audit released today. Interesting is the Fed wisely (insert sarcasm) lent 16 Trillion to Banks and Companies around the world at 0% interest.


    Fucking Bullshit! All while 36% of people in Alabama collecting food stamps.

  14. correction: released 12 days ago

  15. Great post, thanks as always SGS!

  16. SGS,

    I had a guy come up to me the other day (I wont tell you what I was doing) but he asked me if I had any gold teeth, chains, or anything gold I would like to 'get rid' of.

    SGS, what were you doing in the hood? I think he was there to redistribute your wealth in the name of social good. I'll leave it at Dat...

  17. This comment has been removed by the author.

  18. sgs,

    my 3 fave net radio shows are robby noels, gary nulls, charles guliani ... I listen to robby 2 hours everyday, best voice on radio and knows a lot about so many things ...

    anyhow, some guy from sweden I think (blanking country) called in yesterday and told him you can't buy an ounce of silver for under $60 there (Usa equiv.)

    can anyone verify this?

    gold all time high again last west coast time tues night.

  19. another thought, celente is mostly in gold and i have heard him say several times now, including today, that if gold gets to $2000 he thinks the SYNDICATE/BANKS will play games with it and/or make it go away (whats the diff between $1995 or 3K when it comes down to it?) someone explain if .80 of 1% of people own gold why do the MONEY THUGS care? Don't they want gold to go to 5/10K since they own so much?

    Im sorry, I ask pedestrian questions sometimes, but I never hear these questions asked of celente (or others, I asked Chappy something like this on air and was ignored) when he makes his wild predictions like most of these guys ...

    I like GC but I have to call him out on this, since he NEVER EXPLAINS IT

  20. @Colin

    Lots of European nations have goofy VAT on silver products, which might be why that poor guy cannot get it under 60$.

  21. VAT on silver in the UK is a whopping 20%, somewhat less if you travel and collect in-person in cheaper European countries, eg Germany is just 7% VAT. So much for European fucking integration eh?

    Yes, it means we buy less, but the extra is reflected in the higher prices when we sell the silver on. Those who want to trade use routes like Bullionvault - yes, I know this isn't as safe as physical, so needs to be treated with caution.


    The way this market is trading....it looks more like a short squeeze of the WEAK SHORTS, than it does of increased SPECS and COMMERCIAL SHORTS.

    We will see when the COT REPORT comes out this friday. It is of close of tuesday, so we will see if indeed we are having a MINI-SHORT SQUEEZE.

    Regardless, America Eagle sales were good for silver in JULY.

    GOLD EALGES = 64,500 X $1,640 = $105.8 million
    SILVER EAGLES = 2,968,000 X $40 = $118.7 million

    This is the second month that Silver outpaced Gold in total DOLLAR SALES.

    ALSO...Ned Schmidts BUY RHODIUM and SELL silver really SUCKED FACE yesterday.

  23. Long time lurker, first time poster.

    I gave up chasing the charts and just went all in on Monday. Blew the whole wad of dry powder (although been buying consistenly small amounts since $17). And you know what, I feel great.

  24. SGS - send that guy a pic of your boner but photoshop it into gold!!! that would be fuckin awesome..... HA!!!!!