Icarus Posted January 25, 2011 Report Share Posted January 25, 2011 They just don't know when to stop. Jeff Nielson talks about the informal defaults that have already been taking place in this article. 'For obvious reasons, there has been a great deal of discussion about actual, formal “defaults” in the gold and silver markets. Among those “obvious reasons” is that informal defaults are apparently already taking place in both markets. Beginning in the London gold market over a year ago, and now rumored to be occurring in New York’s “Comex” silver futures market, buyers who have legally contracted to take “physical delivery” of the metals they have purchased are said to be accepting large, paper bribes to accept a “cash settlement” instead.' http://www.bullionbullscanada.com/index.ph...&Itemid=131 If you are offered spot plus ten percent to settle in cash they are not doing you a favour. These are not generous people making you a kind offer from the goodness of their heart. But you are doing them a favour if you accept. When the COMEX can't deliever you can ask for as much cash as you like and they will pay. 'I'll take a two hundred dollars per ounce thanks very much. Or the physical silver, that I know you don't have.' Remember the proposed limits tell us that going short 125% of the entire physical supply is acceptable. So going long 125% of the deliverable supply and standing for delivery must also be acceptable. March is going to be a month to watch. http://standfordelivery.com/stand.php Link to comment Share on other sites More sharing options...
aliveandkicking Posted January 25, 2011 Report Share Posted January 25, 2011 So, your thinking that inflation fears are being tackled and the flight to PM's as a traditional safe haven is reducing. The latest GDP figures for the UK would surely suggest a likelihood that additional QE may be required to support the economy thereby exacerbating inflationary pressure. I don't think the US really know how to stop QE, it seems to be supporting the whole system. I have read extensively with regards to JPM and silver manipulation, do you think that the weakness in PM's is purely down to changing perspectives by the markets? USA QE could be in run off mode by early next year with maturing bonds having to be balanced by a lesser amount of QE so that QE eventually fades and rates rise. If QE2 had not been announced then maturities from the MBS alone would have reduced QE by 200B over just 2010? For 2011 and onwards, treasury maturies will reduce QE annually by about another 100-200B?, that would create a massive drag on the economy so a new amount of QE seems likely to reduce the impact of the run offs while even so QE is reduced and rates rise. One alternative possibility is that China india and Brazil have hard landings and mean the west has to keep an easier policy for longer - but this is not particularly inflationary if the other economies crash because most people are living there. I have no idea of the real silver story but you can see also other things happening which do seem real which may account for market moves today. And call me a cynic but i suspect there there is an entire industry of creative writing out there designed to ensure people want to buy metal they have no purpose for whatsoever. Link to comment Share on other sites More sharing options...
warpig Posted January 25, 2011 Report Share Posted January 25, 2011 I'm calling the bottom here and I'm piling in to a metal that "has no purpose whatsoever." Anyone else have any thoughts? Link to comment Share on other sites More sharing options...
Schaublin Posted January 25, 2011 Report Share Posted January 25, 2011 USA QE could be in run off mode by early next year with maturing bonds having to be balanced by a lesser amount of QE so that QE eventually fades and rates rise. If QE2 had not been announced then maturities from the MBS alone would have reduced QE by 200B over just 2010? For 2011 and onwards, treasury maturies will reduce QE annually by about another 100-200B?, that would create a massive drag on the economy so a new amount of QE seems likely to reduce the impact of the run offs while even so QE is reduced and rates rise. One alternative possibility is that China india and Brazil have hard landings and mean the west has to keep an easier policy for longer - but this is not particularly inflationary if the other economies crash because most people are living there. I have no idea of the real silver story but you can see also other things happening which do seem real which may account for market moves today. And call me a cynic but i suspect there there is an entire industry of creative writing out there designed to ensure people want to buy metal they have no purpose for whatsoever. Avert your eyes - this is the really valuable stuff that everyone wants and is in very short supply - get it while you can! Link to comment Share on other sites More sharing options...
Schaublin Posted January 25, 2011 Report Share Posted January 25, 2011 I'm calling the bottom here and I'm piling in to a metal that "has no purpose whatsoever." Anyone else have any thoughts? Every time there is a big correction of the fiat price of PMs, there will be armies of 'creative writers' attempting to persuade 'late to the party' weak hands to swap their metal for dollars while they still can. Those who purchased PMs as a result of studying the big picture regarding unpayable debt and lack of productive capacity of the US cannot be fooled into thinking everything is going to be ok because... Link to comment Share on other sites More sharing options...
Icarus Posted January 25, 2011 Report Share Posted January 25, 2011 I'm calling the bottom here and I'm piling in to a metal that "has no purpose whatsoever." Anyone else have any thoughts? I'm waiting to see if JP Morgan and co can take the price down some more. Hopefully the price will go lower. I'm not good at calling the market but I think they might be able to get it below 25. Or even $20. I'd say hold off and let the suckers take the price down. I can't guarentee there wont be a rally, but I'm hoping for a real gift here. Link to comment Share on other sites More sharing options...
G0ldfinger Posted January 25, 2011 Report Share Posted January 25, 2011 ... people want to buy metal they have no purpose for whatsoever. Storing wealth is a very good purpose. As for other purposes, that they can't apply the metal to its uses personally does not mean that they don't make use of it in general. Do you use electronics, by any chance? Link to comment Share on other sites More sharing options...
novice Posted January 27, 2011 Report Share Posted January 27, 2011 scrap Silver.. Any trustworthy sources/links for UK buyers? I noticed the gate crash by bullion stores, but I'm looking for dirty coins. P.s. GEI is excellent, my favorite site on the interweb. Alas, I have little to contribute, hence my handle, but thank you all. Link to comment Share on other sites More sharing options...
creditcrunch Posted January 27, 2011 Report Share Posted January 27, 2011 Do you use electronics, by any chance? Interesting question... I do understand the importance of silver in our modern way of life. We all use electronics, does anyone have a chart for the weight of silver per electronic product? It would be useful to estimate the cost of living rise if Silver did go to the moon. Product | Weight ==================== Laptop | ? Television | ? Phone | ? Electric Cooker | ? Transport | ? Internet | ? An what about medical equipment and other devices that keeps our current standard of living and health? I'm not disagreeing with the forecasts I have seen while watching Max Keiser and reading this forum, but I would like to ask the question if wishing and acting for a higher price of silver only going to shoot ourselves in the foot? I don't think all of us can afford to buy enough silver to last the rest of our lives if the cost of life increases? I'm not a fan of JPM, or Crimex and am only playing devils advocate by asking the following questions.... Have JPM short shenanigans (if true) actually done humanity a favour by encouraging the cheap proliferation of modern technology? And would you risk the world going back to the stone age, just to profit on you silver holdings? Is speculating on silver as immoral as speculating on food? CC Link to comment Share on other sites More sharing options...
huntergatherer Posted January 31, 2011 Report Share Posted January 31, 2011 Gold Is Looking Risky, But Silver Looks Much Worse Jan. 31, 2011, 8:17 AM Intuitively, investors knew that the price of silver appreciated much faster than that of gold. It does however sink in much more when observing the drop in the ratio on a chart. From a technical perspective, one could now see a retracement of the ratio back to somewhere around 55, perhaps even 60. The Fibonacci retracement levels are in that range as well. To reflect this scenario, an investor would have to buy gold and sell silver in equal dollar values. Not an easy and certainly not a risk-free trade to put on. Having said that, it might be less risky than a straightforward purchase of gold, certainly that of gold futures. http://www.businessinsider.com/gold-silver-etf-2011-1 Link to comment Share on other sites More sharing options...
warpig Posted January 31, 2011 Report Share Posted January 31, 2011 I fired a few K in to silver on 25th, I believe the bottom is in. With supply as tight as it as the moment, I think <$25/t.oz is wishful thinking. I'm waiting to see if JP Morgan and co can take the price down some more. Hopefully the price will go lower. I'm not good at calling the market but I think they might be able to get it below 25. Or even $20. I'd say hold off and let the suckers take the price down. I can't guarentee there wont be a rally, but I'm hoping for a real gift here. Link to comment Share on other sites More sharing options...
warpig Posted January 31, 2011 Report Share Posted January 31, 2011 I wouldn't advise that! sell silver Link to comment Share on other sites More sharing options...
huntergatherer Posted February 2, 2011 Report Share Posted February 2, 2011 Analysis: Gold to tough out ETF outflows; silver to struggle LONDON | Tue Feb 1, 2011 9:42am EST (Reuters) - Gold prices may suffer short-term damage if selling from physically backed exchange traded funds extends for a second month, but silver is more vulnerable in the longer run as it lacks gold's broad-based sources of demand. The largest gold ETF, the SPDR Gold Trust, recorded its second-biggest monthly outflow ever in January, while gold prices posted their worst monthly performance since December 2009. http://www.reuters.com/article/2011/02/01/...E7104JU20110201 Link to comment Share on other sites More sharing options...
Pixel8r Posted February 2, 2011 Report Share Posted February 2, 2011 Analysis: Gold to tough out ETF outflows; silver to struggle LONDON | Tue Feb 1, 2011 9:42am EST (Reuters) - Gold prices may suffer short-term damage if selling from physically backed exchange traded funds extends for a second month, but silver is more vulnerable in the longer run as it lacks gold's broad-based sources of demand. The largest gold ETF, the SPDR Gold Trust, recorded its second-biggest monthly outflow ever in January, while gold prices posted their worst monthly performance since December 2009. http://www.reuters.com/article/2011/02/01/...E7104JU20110201 Yeah there is a real lack of demand for silver; US Mint Sells Absolute Record 6.4 Million Ounces Of Silver In January, 50% More Than Previous Highest Month As the topic of US Mint silver sales is not new to our readers, after we first brought attention to the record January sales by the Mint, we will not dwell much on it, suffice to say that the final January tally is in. And at 6,472,000 ounces, this is nearly 50% higher than any prior month in the Mint's 26 years of published sales history. This has occurred, despite supposed profit taking in the paper silver market in January. And just today, another 50k, were sold. It seems that physical buyers continue to enjoy the dip in paper silver that is providing them with an attractive entry point. Link to comment Share on other sites More sharing options...
Concrete Jungle Posted February 3, 2011 Report Share Posted February 3, 2011 I managed to add a bit more physical to my stash on the latest dip, it just turned up in the post. Link to comment Share on other sites More sharing options...
G0ldfinger Posted February 3, 2011 Report Share Posted February 3, 2011 I managed to add a bit more physical to my stash on the latest dip, it just turned up in the post. Did you get serviced/delivery right up to your bathtub? (Some do.) Link to comment Share on other sites More sharing options...
DoctorSolar Posted February 3, 2011 Report Share Posted February 3, 2011 Did you get serviced/delivery right up to your bathtub? (Some do.) azazel? Link to comment Share on other sites More sharing options...
jerpy Posted February 3, 2011 Report Share Posted February 3, 2011 Me too, nice 1kg bars are now back in stock, beats having the wallpaper lying around. Link to comment Share on other sites More sharing options...
azazel Posted February 3, 2011 Report Share Posted February 3, 2011 azazel? Nope....... dont get it....... Link to comment Share on other sites More sharing options...
huntergatherer Posted February 4, 2011 Report Share Posted February 4, 2011 Why silver might fall to as low as $21-$24 Still not the time to be buying. http://www.straightstocks.com/precious-met...e-even-further/ Link to comment Share on other sites More sharing options...
warpig Posted February 4, 2011 Report Share Posted February 4, 2011 Nonsense. Now may be your last chance to buy. Why silver might fall to as low as $21-$24 Still not the time to be buying. http://www.straightstocks.com/precious-met...e-even-further/ Link to comment Share on other sites More sharing options...
cranberryDog46 Posted February 5, 2011 Report Share Posted February 5, 2011 Just bought my first Silver coin, it's a 1oz Silver Eagle and looks absolutely beautiful. I do have a question though the picture on the front is of an eagle and the picture on the back is of a lady. What seems unusual is that they are upside down with respect to each other, the eagles had is opposite the lady's feet and the lady's head is opposite the eagles tail. Is this normal? Link to comment Share on other sites More sharing options...
Jake Posted February 5, 2011 Report Share Posted February 5, 2011 Nonsense. Now may be your last chance to buy. Larry E is pretty good IMO. He has been and is a long term gold/silver bull. I also can't see the big deal on gold and silver falling to 1250/21-24. I also see your point of view as last chance to buy. So I see this not as a chance to sell out but rather as a chance to accumulate more with regular buys. I woul love a drop down in both metals. The run on solver recently to 30 has been breathless and whilst enjoying the ride one must be wary of falls to 23- which is still bullish. I have just received some more 'junk' mercury dimes and walking liberty half dollars- the very availability of which at this point in time, I consider bearish. Usually one can't get theses two 'collectible' junk coins so someone is selling big.(and I am scooping them up while they are there). I asked my dealer for more yesterday and he has sold out of both coins now. So there are plenty of buyers whatever ghe price. People want to get that ball in the back of the net( because they sure ain't minting those two coins any more. If Larry is right I'll be loading up on modern bullion coins before the Chinese get every last oz. Btw didn't David Morgan recently suggest silver would fall to23/24 or there abouts? But he also said physical bullion is the only asset outside of the matrix. So 28 or 22, it's not so different when you consider the scheme of things. Ditto gold. I'd rather have this quandary than silver at 40 and gold at 1650. make hay while the sun shines, gather ye rose buds etc etc. Excuse errors, I'm on iPod with flip function broken whichakes typing a chore. Anyone know what is wrong with my iPod? Finally we received a flyer in our newspaper here today offering to buy old mobiles for4500 yen a piece. The recyling companies are coming to the fore? Link to comment Share on other sites More sharing options...
warpig Posted February 5, 2011 Report Share Posted February 5, 2011 I have 2 x 2006 silver dollars in front of me and they're the same as yours, they're fine! Just bought my first Silver coin, it's a 1oz Silver Eagle and looks absolutely beautiful. I do have a question though the picture on the front is of an eagle and the picture on the back is of a lady. What seems unusual is that they are upside down with respect to each other, the eagles had is opposite the lady's feet and the lady's head is opposite the eagles tail. Is this normal? Link to comment Share on other sites More sharing options...
Icarus Posted February 5, 2011 Report Share Posted February 5, 2011 Just bought my first Silver coin, it's a 1oz Silver Eagle and looks absolutely beautiful. I do have a question though the picture on the front is of an eagle and the picture on the back is of a lady. What seems unusual is that they are upside down with respect to each other, the eagles had is opposite the lady's feet and the lady's head is opposite the eagles tail. Is this normal? Never noticed that before. I only have a few ASEs, but mine are like that. New silver coins have a lovely white quality to them. It's easy to see if you look at the reeded edge. They also ring like a bell if you jangle them together. Link to comment Share on other sites More sharing options...
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