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mamboni
9th January 2011, 07:57 PM
COMEX Silver Threatened with Extinction

COMEX is fighting tooth and nail to prevent a silver default as the open interest explodes higher and more and more investors and speculators question the validity of claimed inventory levels of bullion. The hedge funds and big money smell blood in the water.

This from Zero Hedge:

Blythe,

This is what I am hearing from your former traders (who made "very interesting career decisions"). Well it seem that they are on to a new scheme to corner the Comex and drive the price of silver up $10 to $15 dollars in a matter of weeks.

The strategy is as follows. We know that Comex only has 105 million ounces of silver of which only 50 million ounces are availabe for delivery. (I personally don't believe the Comex numbers are anywhere near that high, but that is neither here nor there for now.) Well, all it would take is 10,000 contracts on the Comex to buy up all the "available silver" at the Comex and 20,000 contracts to deplete it completely. The current front month March OI is north of 78,000.

Watch the OI closely. Blythe's former traders are advising major hedgefunds and billioniare investors to buy up as many contracts as possible as March 1 approaches and deposit the cash needed to stand for delivery for the month of March. The purpose is not necessarily to bust the Comex but to force the Comex to pay a premium (some as much as 30 percent) for cash settlement. Think about it. If a group of hedgefund gets together and bankroll $1 billion, they can buy more than 30 million ounces of silver. Of course, the contract sellers like The Morgue cant deliver the silver so a cash settlement is the only recourse. So what's wrong with $200 million in profit on a $1 billion investment that takes less than 4 weeks total?

Guess what Blythe? Your former traders are advising everyone they know to put on this trade come the first week of February. Is this what happened in the Decemeber contracts? Is this why silver went from $22 on September 30 to $29 by December 1? How much do you think silver will spike in February as we approach March 1? The traders think silver will be north of $45. Heck it went over $9 as we approached December and everyone who got a pay off in terms of a premium cash settlement will be back for more. And they are all gonna be bringing friends to partake in the bounty.

Your former traders are telling everyone who would listen that all they need to do is purchase a huge amount of March contracts near the end of February and stand for delivery and they will all make 20 percent in a matter of days. Is this what you are hearing Blythe? If so, shouldnt you let the price of silver move up so that you can get some physical to deliver before March 1?

http://www.zerohedge.com/article/silver-bears-are-back-round-three-explaining-two-key-recent-developments-world-silver

Cebu_4_2
9th January 2011, 08:08 PM
50.00 oz might be sooner than later?

jimswift
10th January 2011, 07:13 AM
http://www.youtube.com/watch?v=AId_UiPtPpQ&feature=player_embedded

mamboni
10th January 2011, 07:21 AM
50.00 oz might be sooner than later?



The COMEX paying cash premiums in lieu of physical delivery reminds me of the waning days of the Roman Empire, where successive barbarian invaders were paid tribute not to sack Rome. It's a perfectly logical stalling tactic - until Rome runs out of gold (they didn't accept paper IOUs in those days). Eventually, the city gets sacked. It would appear that COMEX's days are numbered. However, the FED can funnel free money into the back door to pay off the Hedgies for a very long time. Whether one takes a long or short term view, this is all VERY bullish for silver.

Shami-Amourae
10th January 2011, 07:45 AM
So we basically have a 2 month window to buy, that's what I'm getting out of this. Anyone think it will drop to $25 or lower, or is now probably as good as it gets?

old steel
10th January 2011, 03:40 PM
Massive Silver Withdrawals From The Comex

We witnessed a massive withdrawal of silver unprecedented in the history of the comex. First there was a smallish 6507 oz of silver deposited to two customers, one being 497 oz and the other 6010 oz). But just look at the huge withdrawals:

Four customers (not dealers) withdrew a total of 1,019,310 oz from the comex vaults. This is real silver leaving from 4 registered vaults. The individual withdrawals are: 579,081, 30,380, 399,994 and 9855 oz.

The dealer (our bankers) also were involved in the withdrawal of silver to the tune of 769,941 oz (there were 2 dealers involved removing 102,866 and 667,875 ozs). When you see this massive drain of silver, the fire is raging. The total silver withdrawal by both dealer and customer totalled an astronomical 1,789,251. The Brink's trucks must have been very busy yesterday.

The comex folk notified us that an amazing 85 notices were sent down for servicing for a total of 425,000 oz of silver. The total number of silver notices sent down so far total 323 or 1,615,000 oz. To obtain what is left to be served, I take the open interest for January at 153 and subtract 85 deliveries leaving a total of 68 notices or 340,000 oz left to be serviced.

Thus the total number of silver ounces standing in this non delivery month of January is as follows:

1,615,000 oz + 340,000 = 1,955,000 oz (Thursday total = 1,625,000). As promised to you, this number is rising and will continue to rise until the end of the month as our banker cartel scrambles to get any morsel of silver to satisfy the massive demand for this metal. Our bankers are stunned to see such a huge amount of silver options in a traditionally slow month.

I hope everyone caught the Eric Sprott story on Kingworld news that he is having trouble locating silver."

http://www.marketoracle.co.uk/Article25465.html

SilverMagnet
10th January 2011, 03:54 PM
The spot price that you see on your screen is a completely fictional number intended to have Silver perceived as less valuable than it actually is. Since the Gold/Silver ratio is at such a large gap, the general interpretation is that if Silver goes up, Gold must also. This is a severe threat to the true value of the FRN, and hence the reason the Silver spot price is being suppressed.

Bullion_Bob
10th January 2011, 03:56 PM
So we basically have a 2 month window to buy, that's what I'm getting out of this. Anyone think it will drop to $25 or lower, or is now probably as good as it gets?


I picked up a few lbs over the weekend. It could go lower, it always can, but my gut is telling me 28-29 is strong resistance. Everyone is itching to get in as large as possible right now. Many people in the game now that started at $17+ are dying to see $25 or lower for a 500 ounce+ buy. I think those $25 days are over.

I did all my big purchases years ago, so I am just grabbing bits here and there on the dips as often as I can.

I saw my window this weekend, and so far it proved to be right. Up today, and didn't feel like taking the chance of waiting weeks/months to get more if that opportunity ever comes.

It can easily be in the 50's is the underlying trend. It's coming. Any dip now from a high is a good time to buy imo.

Libertarian_Guard
10th January 2011, 05:11 PM
COMEX Silver Threatened with Extinction . . . .



http://i51.tinypic.com/rk2ahd.jpg


Perhaps what is left of their bones will soon be on display.

Rebel Yarr
10th January 2011, 05:19 PM
I've read this a few places now - at first it sounds kinda screwy...then it starts to make sense...and one gets all giddy inside....but...

Nobody knows what/how the upcoming rule changes are going to really do...will be interesting how/if it unfolds...


CFTC to Hold Open Meeting on Ninth Series of Proposed Rules under the Dodd-Frank Act
Commission to also Consider Adoption of a Final Rule

Washington, DC – The Commodity Futures Trading Commission (CFTC) will hold a public meeting on Thursday, January 13, 2011, at 9:30 a.m. to consider:

* the issuance of a proposed rulemaking regarding position limits for derivatives;
* the issuance of a proposed rulemaking regarding swap trading relationship documentation requirements for swap dealers and major swap participants; and
* the adoption of a final rule that addresses requirements for derivatives clearing organizations, designated contract markets and swap execution facilities regarding the mitigation of conflicts of interest.

The meeting will be open to the public on a first-come, first-served basis.

What: Meeting of Ninth Series of Proposed Rules under the Dodd-Frank Act

Where: CFTC Hearing Room, 1155 21st Street, NW, Washington, DC

When: Thursday, January 13, 2011, 9:30 a.m.

Viewing/Listening Information:

• Watch a live broadcast of the meeting via webcast on www.cftc.gov

• Call-in to a toll-free or toll-telephone line to connect to a live audio feed. Call-in participants should be prepared to provide their first name, last name and affiliation. Conference call information is listed below:

Domestic Toll-Free Number: 877-951-7311
International Toll Numbers: Listed Under Related Document
Participant Passcode/Pin: 8960163

steyr_m
10th January 2011, 08:02 PM
50.00 oz might be sooner than later?



The COMEX paying cash premiums in lieu of physical delivery reminds me of the waning days of the Roman Empire, where successive barbarian invaders were paid tribute not to sack Rome. It's a perfectly logical stalling tactic - until Rome runs out of gold (they didn't accept paper IOUs in those days). Eventually, the city gets sacked. It would appear that COMEX's days are numbered. However, the FED can funnel free money into the back door to pay off the Hedgies for a very long time. Whether one takes a long or short term view, this is all VERY bullish for silver.


"History may not repeat itself, but it rhymes a lot."

-- Sam Clemens

Serpo
10th January 2011, 08:48 PM
COMEX Silver Threatened with Extinction . . . .



http://i51.tinypic.com/rk2ahd.jpg


Perhaps what is left of their bones will soon be on display.



No bones where discovered only a jelly like substance where the backbone was supposed to be .......

Libertarian_Guard
10th January 2011, 09:14 PM
COMEX Silver Threatened with Extinction . . . .



http://i51.tinypic.com/rk2ahd.jpg


Perhaps what is left of their bones will soon be on display.



No bones where discovered only a jelly like substance where the backbone was supposed to be .......


For the most part, parasites are nothing more that blood sucking creatures, not worthy of further study. Therefore, no museum space should be dedicated to them.

http://i52.tinypic.com/mhx3f6.jpg