Big Money Clients Buying Physical Silver!

“The More Silver You Want, The More You Have To Pay."




by John Rubino on February 19, 2013 · 10 comments

In this week’s talk with National Numismatics’ Tom Cloud, we cover the debt ceiling negotiations, futures contract expirations and the activities of his biggest customers (they’re buying silver).

DollarCollapse: Hi Tom. It’s been an intense couple of weeks…


Tom Cloud: Yes, and it could get more intense. Short futures positions in silver are expiring and we’re waiting to see what JPMorgan Chase and Goldman Sachs do. If they take more short positions, silver could pierce support at $29.50/oz and fall another 3%-4%.


DC: The current silver short position in already at historic highs, isn’t it?


TC: It is extremely short. We’ve always known there are far more futures contracts outstanding for silver than there is physical silver. The commitment of traders (COT) numbers are certainly important, but they’re harder to use as an indicator because there’s so much deception going on. In the physical market there’s a shortage for sure. It hasn’t been this out-of-balance since 2008.
Yesterday, for instance, I made my biggest-ever sale, 116,800 ounces in 100-ounce Comex silver bars. That’s 1,168 bars worth about $3.5 million. It took me 8 or 9 days going back and forth while the price was moving. For an order this size you first go to the big boys and see what they have and start down the supply chain.


DC: Really? For a $3.5 million dollar order you can’t just make a phone call? That’s a pretty small amount of money in today’s world.


TC: No, you can’t. They can find 5,000 or 10,000 ounces, but more than that is hard. And suppliers want a bigger premium because you’re taking their inventory. It used to be that the bigger the order the deeper the volume discount but with silver in backwardation [where the spot price is above the 1-month futures price] they want a higher premium for an order this size. So the more you want the more you have to pay.
Just to be clear, these are Comex bars from the five major refineries, not from secondary refineries. These bars can be used to settle futures contracts so in a Comex default their premiums will soar, and as a result people are very interested in them. Even the biggest refineries don’t have millions of dollars of inventory sitting around.


DC: Meanwhile, the little guy is quiet.


TC: Orders in the $600 to $10,000 range have been really slow. Small buyers don’t want to go in when the market’s down, they want to wait. But the big players are active. Besides the huge order, we’ve had other very nice-size orders in the past few days.


DC: The main macro news on the horizon seems to be the debt ceiling debate.


TC: Conservative republicans are demanding spending cuts and democrats want tax increases. It’ll be a war for a while, but there’s no doubt that they’ll raise the debt ceiling by another $2 trillion. A higher debt ceiling has historically been great for gold, so the question is whether the reaction will be like 2011 when gold went up by $150 in three days. We know they’ll raise the debt ceiling, and we know that will be good for gold and silver. We just have to be patient.


http://dollarcollapse.com/precious-m...u-have-to-pay/

Great comment posted there:

The thing about the '08 crisis is that silver had enormous premiums, so for someone like myself who buys at a local coin shop, the price was nowhere near as low as it looked on paper, and there was very little available. Steady monthly accumulation is best if you want to buy your metals anonymously and locally, because if the spot price dives that's great, but it's harder to actually get metals then. Every time there's a sale there's a shortage.

The Automatic Earth folks (and others) say there are 100 paper claims on every real bit of wealth. If that's even close to the truth, then what matters is having no counterparty risk, not price. So yeah, just accumulate what you can... it's a guaranteed chair to sit on when the game of musical chairs ends.

Jim,

Sorry, but I’ve got to vent about the markets. I am not privy to the street smarts of the likes of Seligman or Livermore. I’m just your average Joe.

I’ve been reading all sorts of nonsense of late. I’m tired and I’m not going to take it anymore.

For example, everyone is aware of the Boeing problems, yet positive articles are being released stating good results… from “unnamed sources” or “sources not authorized to speak”. There are many more examples of such shenanigans in other stocks, as many are fully aware. You just can’t believe anything you read.

Sites such as Seeking Alpha and Motley Fool allow anyone to post articles, true or not. It presents a perfect venue for potential manipulation of stocks by those choosing to do so. Take Nokia, for example. Negative articles focus on the poor performance of the past year or two. Never taking into account the bright prospects of the future (China Mobile contract, Nokia Siemans venture developing the internet infrastructure, or their involvement with the next revolutionary industrial product… Graphene). Yet analysts always remind us in earnings seasons that what’s important is forward guidance, not past performance. You just can’t believe anything you read.

Government figures are well known to be manipulated with seasonal adjustments and such. Unemployment numbers are truly a joke, as those who fall off the roles are no longer part of the workforce. Taken to the extreme, perhaps one day we’ll see EVERYONE out of work yet ZERO unemployment. You just can’t believe anything you read.
Naked short selling, so prevalent, still not addressed by the SEC.

Massive short positions in Silver are not being addressed. Certain banks are accused of going beyond the allowable limits of short positions with nothing being done. Yet when the Hunt Bros. tried to corner the Silver market… well, you know how fast that was addressed. You just can’t believe anything you read.

TBTF banks area now bigger and more susceptible than ever with their massive derivative positions. In fact, their earnings come from using funds set aside as reserves for such risks. Pump up the earnings reports so all looks well. You just can’t believe anything you read.

With government intervention in the Bond Markets as well as in the stock market, it becomes impossible for any reasonably educated individual to make a sound judgment on his/her investments. What seems logical baffles you with the antithesis. Zero interest rates rob the retirees of their cherished income to live on. People seeking to purchase stocks on any pullback, because they see the economic distress we’re in, will never get it. Some day, when they can’t take it anymore, they’ll dive in and get scalped alive.

Anyone with any sense of history has already come to the conclusion the public has always been and will always be taken to the cleaners by the Street.

The only place where one can make a sound judgment call is in the Gold Market. Just buy and HOOOOOOOOOOOOOOLD! As long as money is being printed to keep the governments afloat, nothing but nothing in this world will alter the end result. You can’t print gold. Sure, you can go naked short in the paper markets or divert investment money from physical into the ETF’s (which in my opinion were created exactly for that purpose). They have also been accused of supplying shares, in lieu of physical which they or the COMEX couldn’t deliver. All I can say is that any new product offered to the public must be shunned. It certainly wasn’t created for you. But when the billionaires of this world are stockpiling the stuff and Central Banks are shoring up their currencies for an eventual global monetary collapse, you simply can’t lose by holding the real deal.

Remember, in 2004 the Rothschilds gave up their prestigious position as the Morning and Afternoon London Price Fixer in Gold and Silver. When asked why, on the financial network in an interview, the response was “there was no money to be made in those markets anymore”(sic). They are dead markets. It was exactly at that time that gold and silver began rearing their heads in the beginning of a massive upwards trajectory. AS the Price Fixers, the Rothschilds were forbidden to partake in holding massive amounts of these metals. They surely must have seen something UNBELIEVABLE on the horizon, for them to give up such a prestigious position. They wouldn’t do this for a small pop in price.

Hold a gold coin your hand the next time you feel like investing in something. It doesn’t lie to you. It’s solid and feels it’s worth. It’s honest as the day is long. And more importantly, it won’t make a fool of you (it hasn’t for thousands of years) nor will it prevent you from sleeping at night. Pleasant dreams all!


CIGA Wolfgang


http://www.jsmineset.com/

Ponce <---------- in the train in *first class looking at the little ants running all over the place.

*drinking a cold glass of milk

V

I'm thinking Gold-Silver.US should change the name to Greenbacks-Stocks.US
All the talk is about QE ending soon and how the econmy can stand on it's own now.
Stocks are the place to be!
Look at that DOW go baby!

Quote:

---

Originally Posted by EE_

I'm thinking Gold-Silver.US should change the name to Greenbacks-Stocks.US
All the talk is about QE ending soon and how the econmy can stand on it's own now.
Stocks are the place to be!
Look at that DOW go baby!

---

Et tu EE, et tu? (with the dripping sarcasm?)

look like the stock market the place to be right now . new highs everyday now . look at all the paper i am lossing by holding on to gold an silver

Quote:

---

Originally Posted by mick silver

look like the stock market the place to be right now . new highs everyday now . look at all the paper i am lossing by holding on to gold an silver

---

paper is cheap. and it's deliquescent - "tending to melt or dissolve; especially : tending to undergo gradual dissolution and liquefaction by the attraction and absorption of moisture from the air."