Site Down Again and a Chart Update

173
Tue, Apr 10, 2012 - 7:26pm

I would have made this new post earlier but, as you know, the site was down again. It sure seems strange that this silly, little site would crash so often but...whaddayagonnado? Anyway, here's a quick update.

First of all, while the site was actually working this afternoon, our pal SRSRocco posted this handy little chart showing the decoupling today of gold and silver from the DowJonesIndex. Whether or not this is a one day phenomenon is something to be watched. For now, it's just an interesting anomoly.

The move in gold thankfully took us through the $1650 level which had been so pesky yesterday and this morning. Though I'm happy to see it break 1650, gold is still in a bit of a no-mans land, as you can see on the chart below. Until gold can break out of this down-sloping channel and cross back through the 200-day moving average, which would require a close above 1685-1690, there isn't any real reason to get excited. Yes, the CoT was terrific and gold appears ripe for a rally but, with The Cartel and the WOPRs in charge, no one should rush off and buy until that 1685-1690 level is bested.

Silver is in a similar funk. Though it still appears to be forming a very nice, rounded bottom with a solid floor near $31, I just simply can't get overly excited about buying until it gets solidly back above $31.

A quick update on OI. Yesterday, I predicted that total gold OI would recover back above 400,000 based upon yesterday's trading action. This is, in fact, what happened as total OI is now 402,386, a jump of about 2,800 contracts form Monday. Though I of course can't say for certain, the OI jump seems to explain yesterday's action. Gold rallied (some spec longs added) and then was capped at 1650 several times (Cartel shorts added). The net result is a jump of 2,800 OI. Simple as that. In silver, Thursday's rally was clearly short-covering and the decline yesterday was due to some shorts being added back on. The stage is still set for silver to stage a sharp, serious short squeeze in the near future. Again, though, I wouldn't expect anything dramatic until silver crosses back through $33. From there, the short squeeze could take silver quickly back toward $35.50.

Lastly, one final mention of the appearance by The Wicked Witch of New York on CNBS last week. Over the weekend, Ted Butler wrote the best summary that I have seen for the event. Today, the entire piece was released on SilverSeek and I encourage you to go there and read it.

https://www.silverseek.com/commentary/jpm%E2%80%99s-tv-appearance

Better yet, though I'm still unsure how all this internet copyright stuff works, since Ted has released it into the public domain, I guess there's no harm in me reprinting it here. So, here you go. (What's nice about doing it this way is that it allows me to add my personal emphasis through the "bolding" of certain parts.)

JPM’s TV Appearance

Theodore Butler
April 10, 2012 - 7:35am

There was a very interesting and potentially significant development dropped into the silver equation this week. I’m speaking of the appearance of the head of commodities for JPMorgan, Blythe Masters, in a short interview Thursday on CNBC. There has already been widespread reaction to the clip and I must admit that it touched off a whirlwind of different thoughts in my mind. Quite frankly, I’m glad I’ve had a bit of time to sort them out before commenting. If you haven’t had the opportunity to view the segment, here’s the link.

https://www.cnbc.com/id/46969993

I first discovered and revealed that JPMorgan was the big concentrated short in COMEX silver in the fall of 2008 (having inherited the position from Bear Stearns). https://news.silverseek.com/TedButler/1226344970.php Since then, Ms. Masters (The Wicked Witch of New York) has become somewhat of a lightening rod in the silver manipulation discussion world. (Deservedly so.)Although I don’t believe I have ever mentioned her by name, she has been, more often than not, vilified in most Internet quarters. (Again, deservedly so.)While I can empathize with the extreme sentiments that can arise from the outrage over the lingering silver crime in progress and the damage that it has caused to many, I don’t see much benefit in personal attack. (Except in this case.) Now, more than ever, we need to focus on the facts. (and not the fact that she still pines for Turd Ferguson and the Anaconda.)

Since my thoughts are varied, let me see if I can put them into some semblance of order. First, let me give you my visceral feelings and then settle into a more measured and objective analysis. There were quite a few important statements that did come from the interview that go to the very heart of my allegations of manipulation in silver by JPMorgan. I won’t dwell on my knee-jerk reactions, but I do feel I should make them known.

There is no doubt that this wasn’t a spontaneous event. The presentation wasn’t accidental. I’ve watched CNBC fairly religiously for as long as it has been in existence (but with the sound muted for much of the day) and the last firm recollection I have of any mention of a silver manipulation was more than three years ago, when Joe Kernan (first-class douchebag) commented on the Wall Street Journal (worthless fishwrap) article on Sep 25 2008 about a CFTC investigation into silver. I remember Kernan joking about some new Hunt Bros plot to drive prices higher. (What a jackass.) Never again have I heard the silver manipulation mentioned on that network. CNBC has never seriously broached the subject to my knowledge. So I was taken back when the reporter specifically asked about the allegations of manipulation in silver, as if they were widely recognized as common knowledge. I got a special kick out of the reference to all these allegations coming from the “blogosphere.” (TFMetalsReport)(As opposed to the mainstream media, I suppose).

It would be safe to say that the interview tried to present JPMorgan as a contributor to worthy causes, who would never dream of manipulating silver and as a strong proponent of financial regulatory reform. All of JPMorgan’s positions in silver were claimed to be non-directional and only transacted to accommodate legitimate client hedging needs. To the typical CNBC viewer, who has little interest in silver to begin with, I would imagine that the segment appeared little more than a puff piece on an obscure topic. But I doubt that this was all that it was. There was an intent and purpose to this presentation, as many have already suggested.That’s what makes it so potentially significant.

To my knowledge, this is the very first time that JPMorgan has openly acknowledged the allegations against it for manipulating the price of silver. Please think about that. It’s been more than three years, dozens of class-action lawsuits and a ton of reputational abuse (remember “sink JPM, buy a Silver Eagle”?) and this is JPMorgan’s first rebuttal? Years ago, I used to wait for process servers and Fed Ex-delivered cease and desist demands; but I had just about given up on JPMorgan ever responding since so much time had passed. Don’t get me wrong, I’m very glad not be sued; but I am a little underwhelmed with how JPM finally did respond. I can’t help but ask myself – why now and in this tepid a manner? A public relations campaign on CNBC to an audience not remotely aware of the allegations to begin with hardly seems the lasting solution to making the problem go away. So what was the motivation?

Here’s where all the knee-jerk conclusions come in that just might be correct – they are feeling the heat, maybe they know something may be forthcoming from the CFTC (worthless bureaucrats) and are trying to stay ahead of the fall-out. My friend and mentor, Izzy Friedman, says they see the physical shortage about to hit, but none of us can be the fly on the wall and know the details. But we agree that the appearance likely means JPMorgan may be in trouble of some sort. JPM sees no other way out than to claim their COMEX silver short position was and is legitimate and they are prepared to stick to that story come hell or high-water. The beautiful thing is that, no matter what, this is great news. The fact that JPMorgan has spoken up first on the allegations of them manipulating the price of silver and not the CFTC, is particularly good news. (More on that later).

Best of all, this may and should open a dialogue on this issue. Ms. Masters (chain-smoking Chupacabra) gave very reasonably-sounding explanations to the allegations of silver manipulation. But they were very simple explanations offered in the blink of a TV sound bite. To those convinced that silver is not manipulated, her words explained all. To those convinced that silver is manipulated, her statements were false and misleading. That’s because the questions and answers in the TV segment were prepared and scripted. But because they only barely penetrated the surface, they fell far short of setting the matter to rest.

The great thing is that this can be resolved with just a little further explanation. You see this is not an instance of he said, she said. This is a case of fact and commodity law and the right questions and answers. So let’s drill down to the answers given to see if they really addressed the allegations.

The main theme advanced by Ms. Masters (B-cup Barracuda) is that JPMorgan holds no unhedged silver positions and all its short positions are a direct result of offsetting client positions in the OTC or swaps market. Therefore, it matters little to JPMorgan whether the price of silver rises or falls. For the sake of argument, let me stipulate for the moment that JPMorgan has offsetting client positions behind their big net short position on the COMEX. I don’t believe there are truly legitimate client positions backing JPMorgan’s COMEX short position, but let’s set that aside for a moment while I try to show that client offsetting positions or not, JPMorgan’s COMEX short position is still manipulative. JPMorgan claims they are not manipulating silver, but those are just words. Their actions are quite different. What’s more important, words or actions?

The allegations against JPMorgan for silver manipulation are centered on their concentrated short position on the COMEX. Nothing more, nothing less (aside from HFT). Claiming there were some unspecified client positions offsetting the concentrated short position doesn’t alter, in any way, the fact that the concentration still exists. The point is not the nature of what may be responsible for the concentrated short position, but the concentrated position itself. Even if JPMorgan owned every ounce of silver they held short on the COMEX in physical form, holding 25% or so of any licensed futures market would be manipulative to the price, in and of itself. It doesn’t matter what excuse is given for holding an excessively concentrated market share; such a market share would be manipulative.

If a single trader held a 25% share of any other major futures market, say in crude oil or corn, there would be emergency meetings and decrees to break that concentration before the sun went down. Farmers would be descending on Washington, DC in tractors if a New York big bank held a short position equal to 25% of the Chicago Board of Trade’s corn futures market. It wouldn’t matter one wit to the regulators what was behind the position. Such a market share in a major commodity futures market would be unthinkable. But 25% has been JPMorgan’s usual share of the net COMEX silver (minus spreads) since it took over Bear Stearns and often it has been much larger than 25%. JPMorgan can’t deny that market share in silver as that is borne out in government statistics, so it is doing the next best thing - trying to change the issue into what may be behind the position. What’s behind the position doesn’t matter; the position itself matters.

I’ve often said that I think JPMorgan is stuck with their excessively concentrated silver short position on the COMEX. This TV attempt to explain it all away strengthens my conviction. The thing about the concentrated short position is that there has always been one big silver short holder on the COMEX. It started with Drexel Burnham, got moved to AIG Trading, on to Bear Stearns and, finally, to JPMorgan. My sense is that it won’t be passed on again. JPMorgan is the final holder and I sense them knowing that may be behind the attempt to explain it away. Never, in the 25 years I have been engaged in attempting to end the silver manipulation, has there ever been a public acknowledgement from the big silver short. There is one now.

If holding a giant COMEX short position is such a sweet deal, why wasn’t JPMorgan holding such a position prior to Bear Stearns’ demise? If legitimate client positions stand behind JPM’s short position that implies most of the world’s silver hedgers only do business with JPM, no one else. Why aren’t other banks and financial institutions looking to compete with JPMorgan on the short side of silver and edge them out? That’s because no other firm wants to get stuck like JPM is stuck and reduced to offering flimsy excuses to pre-arranged softball questions on TV.

The CFTC tracks and reports positions and concentration data by individual trading entities based upon who controls the account. If a legitimate hedger wants to sell short on the COMEX to hedge production or inventory it can do so in its own name and for its own account. It doesn’t need to join with others and do it in someone else’s name and in concentrated form. There is no legitimate reason why JPMorgan’s clients can’t hedge in their own names to the extent JPMorgan is claiming, especially since allegations of concentration and manipulation are being lodged against JPMorgan. You would think that JPMorgan would be doing more than pleading their case on TV. One would think JPMorgan would advise clients to hold the COMEX short positions in the customers own names to reduce JPM’s concentration.

Unless, of course, that there is only one major client behind JPMorgan’s concentrated COMEX silver short position. In other words, if JPMorgan is representing only one or a very few related clients and that is what backs the concentrated short position on the COMEX, then that raises the issue to a whole new level of possible criminality. If JPMorgan is facilitating and enabling an unnamed client or clients in holding a concentrated short position by agreeing to put it in JPM’s name on the COMEX, then JPM may be the transfer mechanism in what can only be described as hiding the identity of a market manipulator. The terms aiding and abetting and fraudulent conveyance come to mind. In many ways, particularly if the real hidden short is foreign and outside US jurisdiction, that’s even worse than JPMorgan holding the position itself. Enabling a foreign entity to evade US commodity law and manipulate a US futures market? This gets worse the deeper you dig.

Much is made of the great size of the OTC market when compared to the COMEX. While I think that claim is bogus, many insist that the OTC market (including the LBMA) is much bigger than COMEX. In fact, the client positions that JPMorgan claim backs the concentrated short position on the COMEX, are implied to be OTC positions. But if the OTC market is so much bigger than the COMEX and JPM is the acknowledged leader in OTC trading, then why doesn’t JPMorgan just hedge its client’s OTC positions with other OTC positions? Why resort to selling short so excessively on the COMEX where it gets picked up in CFTC data? If JPMorgan offset their clients’ OTC positions with other OTC positions, we wouldn’t be having this discussion. All these positions wouldn’t be included in the COT and Bank Participation Report data and I wouldn’t be able to analyze and write about it.

This is also what makes all the threats about traders abandoning our listed and regulated exchange traded markets to the regulatory-free big international OTC markets a pile of junk. Because the COMEX is the most important derivatives market in the world for precious metals, any large silver derivatives position must be reflected in COMEX positioning. If JPMorgan could just make this COMEX concentrated short position disappear by dealing instead on the OTC market, they would have done so long ago. The simple answer is that they can’t because the OTC market is smaller than the COMEX. JPM is reduced to trying to convince anyone who will listen that the COMEX concentration doesn’t matter because the real big short is someone else hiding behind a tree that you can’t see because of client confidentiality. It’s no wonder many folks are coming to hate the banks, because the banks always have a slick answer to what we all know is simply bad behavior. How about the reporter asking JPMorgan what the heck are they doing trading in silver in the first place? Shouldn’t they be out taking deposits and making loans like banks are supposed to?

The real problem is that the COMEX sets the price of silver for the world. Therefore, JPMorgan’s concentrated short position, by its size, unduly influences the price of silver. Manipulation aside, this gives JPMorgan control of what price its clients transact in the supposed private silver hedges with JPM. This is a serious conflict and certainly not in the clients’ best interest. What fair and open good business practice would permit JPMorgan to first set the price on the COMEX and then use that price to transact hedges with clients at the “set” price?

It is because I go so far back with this silver manipulation that I see it in a different perspective than most folks. Eight years ago, on May 14, 2004, the CFTC made public a long letter which denied that any silver manipulation existed. The letter took aim at me (not mentioning me by name) and concluded that investors had best be very careful before investing in silver. On the day of the letter, the price of silver was around $5.60. https://www.cftc.gov/files/opa/press04/opasilverletter.pdf

Almost to the day four years later, the CFTC released another long public letter, dated May 13, 2008, which basically re-iterated that there was no silver manipulation or undue concentration on the short side on the COMEX. On the date of this letter, the price of silver was $16.66. https://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/silverfuturesmarketreport0508.pdf

I’m not much for cycles, but it would appear that we may be at the anniversary of a four-year cycle that began in 2004. The question is if we will get yet another long-winded and soon disregarded public letter from the CFTC assuring us there is nothing wrong in silver or will it play out differently this time? The remarkable thing is that the first two CFTC letters had absolutely no effect on persuading growing numbers of observers that silver wasn’t manipulated. Even more remarkable is that the basic issues haven’t changed over the past 8 years. The only thing that changed was the big silver short. In 2004, it was AIG Trading; in 2008, it was Bear Stearns. Today, it is JPMorgan.

One thing I am encouraged by in JPMorgan’s breaking of the silence is that it may indicate real change. Prior to now, the CFTC always did the dirty work for the silver manipulators. By publicly denying that a silver manipulation existed in 2004 and 2008, the CFTC automatically protected and coddled the silver manipulators, who didn’t have to answer to anyone. This CFTC cover also protected, effectively, the silver crooks from civil litigation. The COMEX commercial crooks, including the CME Group, could always hide behind the CFTC’s skirts and proclaim that they were highly regulated and if they were doing anything wrong, the CFTC would say so. If the CFTC protecting the silver crooks didn’t cause your blood to boil, you need new blood.

Please don’t get me wrong; it is shameful and deplorable that the CFTC has taken no action against the silver manipulators for so long. But one possible advantage to that delay now is that it may be forcing JPMorgan to speak out instead. That’s much better. Particularly given how hollow JPM’s words were in their first public defense. Of course, the CFTC can still manage to cover themselves with additional shame if they do decide to side with JPM and the CME once again. For the sake of everything that is still good with the US, let’s hope they don’t. Let’s hope that the CFTC continues to allow JPMorgan to explain its concentrated short position.

Ted Butler

April 7, 2012

For subscription info, please go to www.butlerresearch.com

OK, that's all for tonight. More on Wednesday. As I take my leave, here is the original in the series. An oldie but a goodie. TF

The Wicked Witch of New York

About the Author

Founder
turd [at] tfmetalsreport [dot] com ()

  173 Comments

SilverWealth
Apr 11, 2012 - 9:09am

yo Ted

Though I appreciate the article I sure wish the writing was a hell of lot more condensed. Maybe Ted and Adam Hamilton can have a write-off some day for those who have 4 extra hours in the day.

Be Prepared
Apr 11, 2012 - 9:14am
Be Prepared
Apr 11, 2012 - 9:18am
Monedas
Apr 11, 2012 - 9:24am

Apologies Accepted For Johnny Horton !

Oh, Canada....get over it ! Monedas 2012 Comedy Jihad World Tour

stan84ley Xeno
Apr 11, 2012 - 9:31am

xeno

thanks for that chart. it shows concentration for Feb-07 2012. Do you maybe know where I could find the same chart that would show an average of the whole year or few years?

What I had in mind with my first post was chart on the 13th page of this pdf file:

https://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/silverfuturesmarketreport0508.pdf

thanks

Groaner
Apr 11, 2012 - 9:42am
dropout
Apr 11, 2012 - 9:44am

Money - Silver or Gold? Or Both?

The point is moot.

BOTH.

For thousands of years both gold and silver have acted as a medium of exchange. Sometimes singly, but more often than not, together. They still do to this day. Anyone who says that silver is not money and is purely an industrial metal requires ignoring, because they are showing their ignorance. in the extreme, of history.

Historically silver supply (in relation) to gold has been around a ratio of 17:1 Recently it has run up as high as approximately 80:1 It occurs naturally in the earths crust at about 15:1 Just twenty years ago the above ground physical silver supply was quite ample. Today, this supply has dwindled away because of cheap pricing, to the point where physical silver is in shorter supply then that of gold. And still only $33.00/oz?

Can you say price manipulation? I knew you could.

Remember; Gold is the money of kings. Silver is the money of gentlemen. Barter is the money of peasants. Debt is the money of slaves.

Groaner Groaner
Apr 11, 2012 - 9:47am

It spikes are really good volume, then,

the seller is sitting there ,, pounding it back down again.. this is tedious.

paulindoon
Apr 11, 2012 - 9:51am

Could this have something to

Could this have something to do with Ag/Au spike this AM?

https://www.theregister.co.uk/2012/04/11/doj_may_sue_apple_over_ebooks/

DoJ could start Apple ebook price-fixing lawsuit this week

US Justice Dept gears up to throw sueball

The US Department of Justice is getting ready to launch a lawsuit against Apple over alleged ebook price-fixing, according to whispering sources.

Those familiar with the matter told Reuters that the DOJ could sue Apple as early as today, since it wouldn't or couldn't sort out a settlement with the department so far, but no final decision has been made yet.

gbend
Apr 11, 2012 - 10:03am

Great D in D article

At the bottom of last night's Harvey Organ is a great article by Dave in Denver

LaMachinna
Apr 11, 2012 - 10:11am

XTY!!

Sure is nice to see you round these parts again! Welcome home.


Apr 11, 2012 - 10:14am

Is silver money?

Victor's claim that silver is more of an industrial metal is not without merit (and logic). But that position goes against the grain of a majority of people in the world who certainly do hold silver to be money. In this case, I argue that the majority will rule. If my silver is not "money" in a certain nation, the majority of nations where it is valued as such will still be setting the world price for the metal. I do not fear a crash in silver value when the world economies are pushed into a gold standard.

right now I am about 5% gold and 95% silver in my stack. I sense a need to beef up the gold holdings. I plan to convert to 70% gold if the GSR falls below 30.

What do others feel is a good balance? 50/50?

¤
Apr 11, 2012 - 10:15am

stan84ley

Welcome aboard!

TD Doctor J
Apr 11, 2012 - 10:24am

I'm at 70/30 gold to

I'm at 70/30 gold to silver.

I do believe in the long run that silver will do better, perhaps much better, and like you when the ratio closes I plan on moving more into gold perhaps 90/10 gold to silver. It's all about the concentration of wealth... the portability of it. If I've got to go, I'd rather be able to carry it in my pocket or backpack, than need to break out the old handtruck.

silverstool
Apr 11, 2012 - 10:26am

To be first?

Courtesy of the Urban Dictionary

pace car 34 up, 16 down
the first slow turd, followed by a bunch of quick ones. I was all jammed up until the pace car passed.
BUDDHA PRINCESS
Apr 11, 2012 - 10:26am

US $ Looks to Fed Beige Book, Officials’ Comments for Direction

  • FX Markets Look to Fed Beige Book, Officials’ Comments with QE3 Speculation in Focus
  • Japanese Yen, US Dollar Correct Lower Against Major Currencies in Overnight Trade

Another lackluster day on the European economic data front keeps the focus on Federal Reserve monetary policy expectations as traders mull the probability of additional stimulus in the aftermath of Friday’sdisappointing US employment report. The first bit of meaningful evidence needed to determine if that outcome as a one-off outlier or a real turning point in the fragile recovery is on tap ahead as with the Fed Beige Bookregional economic conditions survey. Signs of faltering momentum are likely to drive QE3 hopes, weighing on the US Dollar (ticker: USDollar) while boosting risk appetite and stocks-linked currencies, notably theAustralian, Canadian and New Zealand Dollars, and vice versa.

The Fed speaking calendar likewise remains in focus. Atlanta Fed President Lockhart, Boston Fed President Rosengren, Kansas City Fed President George, St. Louis Fed President Bullard, and Vice Chair Yellen are on the docket. Only Lockhart and Yellen are members of the rate-setting FOMC this year, but judging by yesterday’s impact of remarks from the Minneapolis Fed’s Kocherlakota and the Dallas Fed’s Fisher, markets may nonetheless find directional momentum in the gamut of commentary.

The greenback and the Japanese Yen retreated against their major counterparts in overnight trade as currency markets corrected after yesterday’s aggressive risk-aversion push across most asset classes. Asian stocks followed Wall Street lower, with the MSCI Asia Pacific regional benchmark equity index down 0.8 percent. On the data front, Australian Consumer Confidence fell for the second consecutive month according to data from Westpac while Home Loans recorded their largest drawdown in 11 months. Japanese Machine Orders data surprised to the upside, posting a 4.8 percent month-on-month increase compared with forecasts for a 0.8 percent decline.

Asia Session: What Happened

GMT

CCY

EVENT

ACT

EXP

PREV

22:00

NZD

NZIER Business Opinion Survey (1Q)

13

-

0

23:01

GBP

BRC Sales Like-For-Like (YoY) (MAR)

1.3%

0.0%

-0.3%

23:50

JPY

Bank Lending Banks ex-Trust (MAR)

0.9%

0.7%

0.8%

23:50

JPY

Bank Lending incl Trusts (YoY) (MAR)

0.8%

-

0.6%

23:50

JPY

Machine Orders (YoY) (FEB)

8.9%

3.0%

5.7%

23:50

JPY

Machine Orders (MoM) (FEB)

4.8%

-0.8%

3.4%

0:30

AUD

Westpac Consumer Confidence (APR)

-1.6%

-

-5.0%

0:30

AUD

Westpac Consumer Confidence Index (APR)

94.5

-

96.1

1:30

AUD

Home Loans (FEB)

-2.5%

-4.0%

-1.1% (R+)

1:30

AUD

Investment Lending (FEB)

4.4%

-

-6.8% (R+)

1:30

AUD

Value of Loans (MoM) (FEB)

-4.0%

-

0.0% (R-)


Euro Session: What to Expect

GMT

CCY

EVENT

EXP

PREV

IMPACT

6:00

EUR

German Wholesale Price Index (MoM) (MAR)

-

1.0%

Low

6:00

EUR

German Wholesale Price Index (YoY) (MAR)

-

2.6%

Low

Critical Levels

CCY

SUPPORT

RESISTANCE

EURUSD

1.3042

1.3133

GBPUSD

1.5804

1.5989

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

BUDDHA PRINCESS
Apr 11, 2012 - 10:27am

The CME Daily Delivery Report

The CME Daily Delivery Report showed that one lonely gold contract was posted for delivery tomorrow.

The GLD ETF had a tiny withdrawal of 14,582 ounces yesterday. But there was a more substantial withdrawal of 1,262,261 troy ounces out of SLV.

There was no sales report from the U.S. Mint.

Over at the Comex-approved depositories on Monday, only 977 ounces [1 good delivery bar] was reported received...and 449,480 troy ounce of silver were shipped out the door. The link to that activity is here.

By Ed Streer

tmosley
Apr 11, 2012 - 10:31am

Commodity money

Just because silver is used in industry, that doesn't mean it isn't money. Cocoa beans were used as currency in Aztec and Maya cultures. Their dual role as money and commodities made them MORE valuable, not less. Demand is additive.

The more salient point is that silver will be more volatile due to the ever shrinking size of the stockpile (making it vulnerable to sudden changes in the supply situation) as well as changing industrial conditions. This is likely to make it MORE valuable, not less, but it is SPECULATIVE, rather than storing wealth.

But there is nothing wrong with speculation, especially when there is a way to do it that avoids the possibility of margin calls and preserves supply for future needs.

BUDDHA PRINCESS
Apr 11, 2012 - 10:32am

Stock and bond markets rocked by fears

Stock and bond markets rocked by fears of Italian and Spanish debt spirals

Global stock and bond markets suffered a rout as traders fled the renewed spectre of a eurozone default and fresh evidence of a global recession.

Italy's leading MIB index plunged 5pc and Spain's Ibex fell 3pc amid fears that the eurozone's third and fourth biggest economies were in the grip of a deadly and uncontrollable spiral of debt and recession.

The borrowing costs of both "sinner states" soared. The yield on Italy's benchmark 10-year bonds jumped to 5.7pc, heading into the danger zone that is considered unsustainably high. The equivalent Spanish debt climbed to 6pc. Meanwhile, the yield on safe-haven German bunds was pushed to an almost record low of 1.6pc. UK gilts benefited, too, dropping to 2pc.

The yields reflected a level of fear on the bond markets not seen since the fraught period before Christmas when traders bet that the eurozone could collapse.

France's CAC index fell 3.1pc, Germany's DAX dropped 2.5pc and in London more than £33bn was wiped off the value of Britain's biggest companies as the FTSE 100 fell 2.2pc. In the US, the Dow fell 1.7pc - its worst day so far this year.

Posted on The Telegraph .....and the link is here.

BUDDHA PRINCESS
Apr 11, 2012 - 10:37am

Surrender now or we'll bomb you later

Surrender now or we'll bomb you later

By Pepe Escobar

Former United States president George W Bush issued an ultimatum to Saddam Hussein before bombing and invading Iraq. Nine years later, US President Barack Obama has issued an ultimatum to the leadership in Tehran before ... setting optimal conditions for an "all options on the table" exercise. Obama has made an offer to Tehran to "negotiate" its nuclear program - ahead of long-delayed talks between the "Iran Six" (P5+1 - the five permanent members of the UN Security Council - the US, the United Kingdom, China, Russia and France - plus Germany) and Iran scheduled for Istanbul on Saturday

For starters, it's not an offer; it's a list of demands - even before any negotiation takes place. And these "near term" concessions are packaged - according to the president's own rhetoric - as a "last chance".In modern times, this used to be known as an ultimatum. In the post-everything era, it passes for "international diplomacy". In modern times, this used to be known as an ultimatum. In the post-everything era, it passes for "international diplomacy".

Posted at the Asia Times and the link is here.

BUDDHA PRINCESS
Apr 11, 2012 - 10:42am

Chinese Imports of Gold are Massive Right Now".

"Chinese Imports of Gold are Massive Right Now".

By Von Greerz

“We are going sideways at these levels, but I’m still of the opinion the next move, in coming weeks, will be to the upside. The news flow that is coming out every day continues to reinforce our position.”

“We talked about Spain last week and the problems in the Spanish banks. Now the Italian banks are being attacked. The Italian banks are down almost 10% in the last two days. Also, spreads are widening dramatically in the German bonds.

So, here we are as we have always expected. Italy is next, just like Spain. This is a never-ending story, Eric. The problem is that investors are in denial. People are not seeing the massive catastrophe that is just around the corner. Most investors are living in an illusion that things will work out in the end. So, we have Spain, we have Italy, Portugal, and the UK will also be a big problem.

Of course, at some point the dollar will crash. This is when we will really see gold moving up. All of this is still to come, which is why people should take advantage of corrections to accumulate physical gold and physical silver. We are continuing to see very large flows of capital into physical gold on our end....

Posted at KWN

BUDDHA PRINCESS
Apr 11, 2012 - 10:48am

JPM’s TV Appearance - TED BUTTLER

There was a very interesting and potentially significant development dropped into the silver equation this week. I’m speaking of the appearance of the head of commodities for JPMorgan, Blythe Masters, in a short interview Thursday on CNBC. There has already been widespread reaction to the clip and I must admit that it touched off a whirlwind of different thoughts in my mind. Quite frankly, I’m glad I’ve had a bit of time to sort them out before commenting.

If you haven’t had the opportunity to view the segment, here’s the link.https://www.cnbc.com/id/46969993

​I first discovered and revealed that JPMorgan was the big concentrated short in COMEX silver in the fall of 2008 (having inherited the position from Bear Stearns).https://news.silverseek.com/TedButler/1226344970.php Since then, Ms. Masters has become somewhat of a lightening rod in the silver manipulation discussion world. Although I don’t believe I have ever mentioned her by name, she has been, more often than not, vilified in most Internet quarters. While I can empathize with the extreme sentiments that can arise from the outrage over the lingering silver crime in progress and the damage that it has caused to many, I don’t see much benefit in personal attack. Now, more than ever, we need to focus on the facts.

Since my thoughts are varied, let me see if I can put them into some semblance of order. First, let me give you my visceral feelings and then settle into a more measured and objective analysis. There were quite a few important statements that did come from the interview that go to the very heart of my allegations of manipulation in silver by JPMorgan. I won’t dwell on my knee-jerk reactions, but I do feel I should make them known.

There is no doubt that this wasn’t a spontaneous event. The presentation wasn’t accidental. I’ve watched CNBC fairly religiously for as long as it has been in existence (but with the sound muted for much of the day) and the last firm recollection I have of any mention of a silver manipulation was more than three years ago, when Joe Kernan commented on the Wall Street Journal article on Sep 25 2008 about a CFTC investigation into silver. I remember him joking about some new Hunt Bros plot to drive prices higher. Never again have I heard the silver manipulation mentioned on that network. CNBC has never seriously broached the subject to my knowledge. So I was taken back when the reporter specifically asked about the allegations of manipulation in silver, as if they were widely recognized as common knowledge. I got a special kick out of the reference to all these allegations coming from the “blogosphere.” (As opposed to the mainstream media, I suppose).

To read the rest of this very important article go to the silverseek.com website.

The link is here.

SRSrocco
Apr 11, 2012 - 10:54am

HERE WE GO AGAIN WITH MORE MSM RUBBISH

Silver prices could fall short term as physical market consolidates

Mitsui and Co Precious Metals strategic analyst, David Jollie, says he can see a medium term outlook which is not that negative for silver but in the short term there has to be some concern prices might fall.

Author: Geoff Candy
Posted: Wednesday , 11 Apr 2012

After a fairly strong start to 2012, it seems much of exuberance with which silver started the year has dissipated.

For Mitsui and Co Precious Metals strategic analyst, David Jollie, there are a number of good reasons why investor sentiment has been tempered.

"We've seen some reduction in silver demand this year and there's a whole range of reasons for that," he told Mineweb.com's Metals Weekly podcast.

"Quite widely we've heard people talking about the photovoltaic market but you could also look at other industrial markets, the plasma display panel market where silver is used as well, where demand is lower than it was last year. And you see that manifested in things like the Comex Silver Stocks rising in lower silver physical premiums in some markets than last year."

---------------------------------------

We are seeing RISING COMEX SILVER STOCKS?? Maybe in the Customer, but not in the Dealer. Take a look at this chart from 24Gold.com that I found from one of the bloggers here a few days ago. We had nearly 90 million ounces in 2009 of Dealer, and today we have 29.3 million. After yesterdays transfer of 1.5 million from dealer to customer, we are heading back towards RECORD LOW TERRITORY.

These poor fools who write this CRAP have no idea that the world that they know about is about to end and a new one is coming in which very few are prepared.

Patrancus
Apr 11, 2012 - 10:57am

Treasury Floaters

Turd, Treasury Floaters they say , why not do better for bond buyers take those floating bonds and tie the bond too commodities, banks have offered these commodity backed floaters to clients over the past 10 years, they worked very well for this crow. Why not do the same for Treasuries, and get this debt / dollar / inflation, paradigm shift really kicking into high gear, it would more than soften the blow to treasury bond holders when the interest rates head higher, bond prices tank, but looky here, commodities explode to the upside and then maybe the banks metals manipulation goes away, hey we could call them Commodity Backed Turd Floaters, put me down for 50 large.

SS121
Apr 11, 2012 - 11:02am

121n33?

The 2 following links are posts that describe a 33 year pattern of times, dates, and events between our current Silver market (from '79/'80), and Christ's life in the flesh some 2012 to 1980 years ago.

https://www.tfmetalsreport.com/comment/82157#comment-146995

https://www.tfmetalsreport.com/comment/84540#comment-151747

For Silver, the pattern completes at the end of a 40 day period, on May 14th 2012, ( about 33 days from today), with the Gold to Silver ratio of 1:1 (121).

This is not financial prediction or analysis, as again, a 1:1 GSR could be at 10 bucks for all I know! Rather as something to watch/consider regarding Silver in more of a big picture Biblical "sign of the times" perspective. Where currently.....

Today is April 11, 2012

Day 7 of 40

and the G/S ratio is 52.38

Big Buffalo
Apr 11, 2012 - 11:08am

Flat, Flat, Flat

I can't remember the last time the metals were trading so flat.

My wife thinks I'm crazy...

If metals go up: I wish I had bought more.

If metals go down: I wish I had sold more.

If metals are flat: I just want it to move either way.

Aquaponics update: Build my first bell valve last night, success on the first try. Completed drawings for plans.

achmachat
Apr 11, 2012 - 11:14am

the new normal

remember last year when 30 or 40 cents moves in silver were a big deal?

remember when during those times, the silver gurus were predicting this kind of volatility?

in other words: we're right on track!

Dr G
Apr 11, 2012 - 11:20am

Gold trending higher while

Gold trending higher while silver trending lower. Hmm.


Apr 11, 2012 - 11:27am
Monedas
Apr 11, 2012 - 11:33am

My "The British are coming !" post was deleted ?

It was pretty tame....and no Mod explanation ? Wardrobe malfunction ? Monedas 2012 Comedy Jihad Censored Jokes !

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