Silver now $35 per ounce

[qh4dotcom]

As of 3/2/11 12pm

 

[Cowlesy]

I sold a 1/4 of my leveraged silver ETF right before that.

 

[japes]

For anyone who follows this little conspiracy, Wynter Benton gave us another morsel:

http://screwtapefiles.blogspot.com/2011/03/wynterbenton-update-on-their-recent.html

Wynter_Benton update on their recent raid
With permission, I can update the results of our raid. It was successful beyond imagination but that "success" has spawned even more questions about the price of paper silver going forward. It was reported by SGS that he heard that on Friday Blythe was offering 30-50 percent premium and that at least 4500 hundred contracts will stand for delivery. I am here to give you a more accurate update (and a first hand account of what happened on Friday Feb 25). Our group was detemined to stand for delivery going into Monday because we were not going to take a 30 percent premium on a price of $33.50. It was reported that Blythe offered 50 percent premium. That was not even close in our case. We got over 80 percent premium. That's right. Over $50 per contract on the condition that our group sell all our contracts. Our counterparty even threatened us with the ghost of Herstatt. They openly admitted that they could not deliver even 20 million ounces to us but that if we stood for delivery they would be sure that they make delivery to everyone else before they defaulted on us which would make us 'unsecured creditors'. They told us directly that they could not allow even 5000 contracts to stand for delivery because they could not deliver a mere 20 million ounces. Like Vito Corleone said, "I'm gonna make him an offer he can't refuse." And indeed we did not refuse as this was our intention all along.

These sets of facts from our traders lead us to believe that the paper price of silver may have a difficult time surpassing $36 because if the counterparty at the Comex is so willing to pay north of $50 to dissuade people from standing for delivery yet the paper price of silver is still under $35, then we suspect that losses triggered by derivatives is the main reason for the price suppression of silver. We can see no reason why they would not allow the paper price to go up yet are so glad to pay off the comex contracts to show the world that so few are standing for delivery. In our mind, Comex could default with if as little as 4,000 contracts stood for delivery. We are very curious to see how high the paper price of silver actually trades during this run.

 

[jclay2]

Good gracious, this sucker needs a pull back. It is now back 34.85. Hopefully, by the time I get funds together next year, the pos won't have made another parabolic move to the upside. I just made my last purchase for a long time yesterday and bought 10 eagles at $ 37.

 

[Cowlesy]

Good gracious, this sucker needs a pull back. It is now back 34.85. Hopefully, by the time I get funds together next year, the pos won't have made another parabolic move to the upside. I just made my last purchase for a long time yesterday and bought 10 eagles at $ 37.

It's pulling back finally, w00t!

 

[Mogambo Guru]

It's pulling back finally, w00t!

Haha, I would like to see it test the ~$30 range. I need to buy a few hundred rounds, and 4 dollars on a few hundred rounds is considerable.. I just hope we do get a correction.

 

[lester1/2jr]

yeesh

 

[swissaustrian]

Short squeeze

Short Squeeze taking place RIGHT NOW
http://www.kitco.com/charts/livesilver.html
That Chart is so beautiful:o
Backwardation continues
http://news.goldseek.com/GoldSeek/1299247200.php

 

[pmbug]

Not sure its a short squeeze per se. Looks like it might be flight to safety over concerns in the Middle East.

 

[swissaustrian]

Also possible.
The last 15+ minutes were insane.
Never saw a 1$move on the upside. Looks like a "reverse" manipulation chart...

 

[AuH20]

Libyan oil wells on fire. The flight to safety is precious metals.

 

[swissaustrian]

The flight to safety is precious metals.

Look at the old school flight to safety in comparison:
http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/
Nobody wants them anymore.

 

[Kelly.]

Not sure its a short squeeze per se. Looks like it might be flight to safety over concerns in the Middle East.

far from a short squeeze imo,
rumors are the folks that "stood for delivery" were paid a hefty premium in exchange for not actually taking delivery.

i personally dont believe the 80% premium rumors, but i guess we will have to wait and see in the next few months...

 

[jclay2]

Look at the old school flight to safety in comparison:
http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/
Nobody wants them anymore.

Very interesting. Rates went down a little but not much in a historical context. I am wondering when the move up in rates is going to be the predecessor to QE3. My guess is 10 year at 4.5 is when it gets announced.

 

[hazek]

Fk my country for charging 20% sales tax on silver. If they weren't I'd sell some gold and buy some silver. But since they do, 20% is just too much.

 

[PeacePlan]

Fk my country for charging 20% sales tax on silver. If they weren't I'd sell some gold and buy some silver. But since they do, 20% is just too much.

Is there no way around it? How about buying from individuals - is there a craigs list or some method for finding people that want to sell?

Must be a VAT - where are you located.

 

[swissaustrian]

Fk my country for charging 20% sales tax on silver. If they weren't I'd sell some gold and buy some silver. But since they do, 20% is just too much.

I think there are some bullion dealers who exchange physical gold to physical silver directly. Maybe you can do this to avoid taxes. Depends on where you live but i´ve heard that this is a solution (note: i´m living in switzerland)...

 

[swissaustrian]

Very interesting. Rates went down a little but not much in a historical context. I am wondering when the move up in rates is going to be the predecessor to QE3. My guess is 10 year at 4.5 is when it gets announced.

From my point of view shorting gov bonds - specially long durations - will be one of the best trades in the years ahead:
1) The market is being manipulated due to the qe´s.
2) Interest rates are artificially low and there is no downside potential anymore.
3) Bonds had a nearly a 30 year bull market, looks like yields hit a long time low in late 2008.

 

[hazek]

Must be a VAT - where are you located.

Yep, 20% VAT here in Slovenian with exceptions, one of them is gold. I'll research a bit if I can get around it..

(note: i´m living in switzerland)...

Can you tell me why you Swiss voted in a referendum in 2000 to go off the partial 40% gold standard that you had you Francs backed by? What were the people thinking, what rhetoric convinced them to do such a stupid mistake?

 

[swissaustrian]

Can you tell me why you Swiss voted in a referendum in 2000 to go off the partial 40% gold standard that you had you Francs backed by? What were the people thinking, what rhetoric convinced them to do such a stupid mistake?

I´ve read a german book about goldprice-manipulation (dimitri speck - Geheime Goldpolitik [secret goldpolitics]) and it seems the swiss national bank was under heavy preasure by the fed and bis (bank for international settlements) to do so. The public then was told that gold is an "old relict from the past" etc. A few years later, things got even worse: A part of our goldreserves were sold to fund social security and state deficits
There is just one good thing about our gold: We still got enough reserves left, so our total money supply is in fact 100 % backed by gold - at the current prices. Look at this gold chart (gold in chf: http://www.finanzen.net/rohstoffe/goldpreis/chf), it still hasnt reached its March 2010 highs in swiss francs!

EDIT: You can find a short english summary of the book mentioned above here: http://www.geheime-goldpolitik.de/english/
----

As you happen to live in slovenia: You got some other countries not so far away, maybe one of it has no or a lower tax on coins/bars (austria?).