Wednesday, September 28, 2011

CEO Midas Letter James West on the Silver Paper market

The Silver futures market (paper) is NO longer a price discovery mechanism. You need to look at the long term Macro picture.

CASE FUCKING CLOSED. THIS IS NOT A LIQUIDATION. Fast forward to 2:35 on the video.

Click here to watch...


  1. Here ya go SGS...

  2. True. eBay is probably the best price discovery mechanism going because it is global and free. The divergence between real physical and paper silver will intensify as time goes on. More intense than what happened in 2008. Physical is getting harder to acquire by the day. And even less available when the Wall St. crowd starts buying at this bottom...

  3. @Robert - I agree 100% - Silver is still selling at $42-$48 on there.

  4. I show a silver wolf selling for $58 with 2 days left

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  6. Since the beginning of the recent silver crash due to market manipulation, I have been logging the amount of Silver Eagles sold through APMEX.

    Just want to share with you this graph that represents the amount of silver that was sold each hour at APMEX since September 25th 2011:

    What we can observe from this graph is that there was HUGE volume on the days silver was smashed (September 25th and September 26th). People were buying A LOT. You could think that fear was the dominating emotion when it hit 30$/oz, but not really... When fear is present in the markets, NOBODY is buying and EVERYONE is selling.

    Look at the peaks I have identified with the red arrows... There was more than 9k silver eagles ounces sold in one hour on September 26th 2011!

    I let the graph speak by itself ...

  7. @mrktwtchr,

    Excellent data mining. We should brainstorm as a community to determine what other data should be captured that is lost every day. Easily split up the work.


  8. If you ask me, the best place to look at the availability of gold/silver is looking at Tulving.

    They publish a very narrow buy/sell margin. They have the cheapest prices printed on the internet. Also, they have a good selection of the gold and silver staples.

    They are sold out of some things, but they have plenty of other things at very good premiums. (ASEs:spot+$2.69, Maples:spot+$1.99, junk, etc).

    They also trade in volume, always have a large inventory, and must surely hedge properly. (500 oz silver is the minimum order.)

    If a vendor has high premiums or sold out, he must either have a small inventory or does not not hedge properly.

  9. @ mrktwtchr, Excellent! I have always wanted to do that with the loop-hole in APMEX's JavaScript. Fantastic.

    @ highrise408: Great find with the article about Bernanke. Like I said last week, the ONLY advantage of paper money is that it can be PRINTED at will for free.

    ""If inflation falls too low or inflation expectations fall too low, that would be something we have to respond to because we do not want deflation," Bernanke said." HELL YEAH! HE IS GOING TO HYPERINFLATE to fend off the massive hyperdeflation. Just like all the other times fiat money has failed. He's doing the exact same thing.

  10. nice work on farming that data mrktwtchr. I know a lot of folks appreciate it.

    Stay solvent.

  11. mrktwtchr Great Chart ! Let them Drive the Price Down! It won't take much time to Drive the Bullion Banks Dry! Why Pussy Foot around on this.. This will once again disconnect the Paper Crap from the REAL! I've got a car sold tomorrow, and I know where the money is going.. It's going to the STARS!

  12. On the bad side of things, so will Food, Water, Energy :( But will be RICH ! lmao... There's a lot of Bad heading our way folks.. Be way Long all the other Physicals.. Food, Water, TP,(I like the soft stuff, FIAT is rough, Ditch it!) You know the rest of the drill..