Monday 23 April 2012

Panic, run, sell-sell-​SELL?....................from Rico

Classic Management of Perception by the CME (COMEX) which is claiming that warehoused Silver supply is at an 'all time high' when in reality stockpiles are at 'all time lows.'
- Talk about the Chicago Way!!!

The 'message' for the investors who are lovingly called Muppets by JPM and others is that this is BAD for Silver and you need to PANIC, RUN and sell-sell-SELL your Silver!
- Maybe you'd like some nice paper money instead, eh? (wink-wink, look at the devaluation of paper money chart attached).

Let's look at the numbers, and then you can decide for yourself.
- There are only 29 million oz of 'registered' (deliverable physical) Silver at the COMEX. The 'trend' shows that customers are increasingly taking physical delivery (standing for delivery), and not rolling their contracts into the future. There has been a bit of 'paper' settling on the COMEX for a while now, with some customers selling their contracts for paper money, but their numbers are few and declining. With the warehouses running on fumes, DEFAULT on the COMEX looms, and JPM is getting desperate...hence the increased frequency of the unbacked paper "raids" on both Silver & Gold lately.

- Which is bigger? 29 million oz or 3 billion oz?:
- - In 2011 Ted Butler/CFTC said there were about $90 billion in Silver "shorts" (3 billion oz.) with JPM holding half of those positions on the COMEX. This is a lot more than the annual production rate of $15 billion a year in Silver, and much more than the physical 29 million oz of Silver.

BTW, the FOMC wraps day 2 of it's meeting on the 25th of April and Bernanke speaks. It is also COMEX Silver 'expiry' day. Both are usually events that seem to draw massive unbacked paper "raids" but I'm sure it's merely a 'coincidence' so in the finest Chicago tradition, remember:
- "You didn't see nuthin' don't know nuthin' ...and we never had this conversation... unnerstan'? Nice knees you got there. It'd be a shame if something happened to 'em!"

1 comment:

PacRim Jim said...

After Democrats have spent all your money, your children's money, and your children's children's money, they are going to blame Republicans and launch vindictive mobs at them.
For that reason (among others) exists the Second Amendment.