Monday, February 21, 2011

Turk - Silver Backwardation Now “Unprecedented 73 Cents” We Are Winning

I cannot stress this enough, there is something BIG happening in silver.  On KWN James Turk discusses how silver backwardation is now at a whopping $.73!!!  Investors are willing to pay a premium to get physical silver in their hands today, as opposed to waiting.  The problem is backwardation is a sure sign there are shortages in physical silver, so this backwardation spread will likely increase.  Priced in Euros silver has already taken out all time Hunt Brother highs. 

The positive news is silver investors are on the verge of looking like geniuses.  The negative is I believe the US Dollar and silver are intertwined.  What I mean by this is after silver exploded through key resistance of $31.23 the silver fraud officially ended.  Although we have not seen the massive fireworks yet, the evidence this fraud has ended will soon be noticeable to all. 

The problem moving forward is I believe for every $1 dollar silver moves higher we will see a noticeable weakness in the US Dollar.  I believe silver backwardation will increase not only because there is little physical demand, also because investors do not want  fiat paper.  When silver hits $40 it will be obvious the economy is much worse than what the media wants you to believe.  When silver hits $50 the dollar could be in free fall.  The amazing thing is the public will not get a clue until we hit $50, then more money will flood into this tiny sector sending silver even higher. 

The silver fraud is over.  We won the war against JP Morgan and HSBC, you will realize this when silver hits $50.  GREAT JOB!!  Moving forward we will not see a straight line higher, however we will likely see a disorderly move higher.  Continue to add to you physical position monthly. 

Full Article Here

Sunday, February 20, 2011

Will We See Fireworks Going Into Option Expiration????

With option expiration coming up will we see any fireworks? Typically we see pullbacks in gold and silver going into option expiration, however with the technical breakout last week we may see upward momentum accelerated.  This week will be interesting, particularly for silver.  It feels like silver is moving higher.  With silver at these levels more shorts will likely be forced to cover.


Saturday, February 19, 2011

Silver Bankers May Be Sitting on Big Derivatives Losses and the Fed May Be Funding Them By: Jesse's Café Américain

Jesse's Café Américain had a great article asking important questions concerning bullion banks, specifically JP Morgan and HSBC.  These questions include:



Why do these banks have such massive naked short positions in silver?

If this is legitimate, what is with the secrecy? 

The banks are in big trouble, this silver manipulation fraud is coming to an end.  It does not matter what the banks do at this point, physical demand is to strong.   Here is a quote from Harvey Organ recent post:

"The huge rise in silver price has caught the silver bankers totally offside on the silver banking. The BIS data released in November (www.goldexsextant.com) shows that the G 10 bankers have collectively sold forwards and swaps to the tune of 4 billion oz and short naked calls for another 3 billion oz. The total, 7 billion oz represents 10 years of production. If you just do the forwards, then it is 7 years of annual silver production.

Let us say the average cost of acquiring these derivatives and forwards equate to $15.00 for silver. Thus collectively the entire G10 bankers are feeling massive pain (losses) to the tune of:


7 billion oz of silver( 32.30-15.00) = 7 billion x $17.30 = 121.1 billion dollars of losses.
This is in a market of only 14 billion dollars. It begs the question to what economic need was this done.This is still off balance sheet.

If you include only the forwards or swaps (the lending of actual metal to which nothing has come back yet) then the losses are:

4 billion x 17.30 or 69 billion dollars.
Regardless how you look at it, the bankers are in serious trouble with this huge rise in silver prices. I hope you understand the severity of the situation."
There is blood in the water.  Think of JP Morgan and HSBC as a grenade.  Silver is the pin in the grenade.  When you pull the pin the grenade explodes.  Get ready the pin has been pulled.

Full Article Here

COMEX gold, silver margins raised 50%

In another sign of desperation the COMEX has raised gold and silver futures trading margins by 50%.  The COMEX has raised gold and silver trading margins multiple times over the past several months.  The COMEX needs to understand, THEY CANNOT SUPPRESS THE PRICE!!  If you want to suppress the price talk to Helicopter Ben and other central banks around the world about stopping the currency war.  You cannot continue to create fiat paper out of thin air and expect people to believe that fiat paper stores value.  The big secret is central banks will not stop until the whole damn system blows up, they have no other options.

Precious metals are the cannery in the coal mine.  When metals soar, we know there is something seriously wrong in fiat paper.  We are on the verge of seeing something spectacular.  It may very well implode the COMEX in the process.  Buy physical while you still can.

Article here, here

KWN Weekly Metals Wrap

This week was a game changer.  We saw a technical breakout in silver, it feels like silver is going to explode higher, my guess is we will see $37 soon.  We have stressed the importance of following the physical market weekly, here we have the weekly wrap on KWN.  This should be considered a must listen to interview each week.

Listen Here

Friday, February 18, 2011

Silver Squeeze??

There is something big happening here. 



Could This Be The Silver Short Squeeze We Have Been Waiting For?

How long have we been discussing the silver short squeeze?  Yesterday was a very important day that may have solidified the silver short squeeze.  Slicing through $31.23 on high volume may have been the catalyst which will send silver soaring.  If this is the short squeeze we have been patiently waiting for, it will not be a straight line up.  There will be dips and you need to take advantage of dips. 

Silver longs won a major battle yesterday, but we cannot declare victory on the war.  Bullion banks have enormous amounts of capital, and our system is filled with fraud and corruption at every level.  However, there is nothing the bullion banks can do about the demand for physical silver we are seeing.  Campaigns like Keiser's "Buy Silver Crash JP Morgan" have gone viral.  We are seeing large withdrawals from the COMEX, when the COMEX admittedly does not have silver to cover their contractual obligations.The scenario we may see if silver continues to rise, is an implosion of the COMEX sending silver much higher.  We do know there is explosive news on the horizon that according to Keiser "will send people to jail." 

This year is going to be wild.  The people informed will have opportunities, but things are accelerating, you must pay close attention.

Thursday, February 17, 2011

Zerohedge: Silver Hits Highest Price Since March 7, 1980

This is a victory for all of you out there sick and tired of our fiat fraudulent system.  If we close above this $31.23 on high volume the silver fraud is likely over.  Congratulations, continue to accumulate physical.  Cash is trash!!

Article here