BUY PHYSICAL SILVER to expose JP Morgan's Fraud...BANKERS OR US

[Letsbereal]

Is There a Silver Supply Shortage?
28 January 2011, by Jason Hamlin (Seeking Alpha)
http://seekingalpha.com/article/249426-is-there-a-silver-supply-shortage

There are some bizarre things going on in the silver market at the moment, reminiscent of the supply shortages and high premiums witnessed in 2008. For starters, silver is currently in both short-term and long-term backwardation, suggesting there is higher demand for silver now than in the future. This is backed up by the U.S. mint reporting all-time record sales for silver eagles during the month of January, with three days still left to go. Sales are on pace to breach 5 million coins sold, shattering the November 2010 record of 4.6 million. It is worth noting that all of the 2010 American eagle gold proof coins also sold out, but the focus of this article will be on the increasing signs of a shortage in silver.

Just yesterday, King World News interviewed one of the top gold and silver dealers in the United States about tightness in the silver market. Bill Haynes is President and owner of CMI Gold & Silver, and when asked about a shortage in silver he stated:

All of the major suppliers of 100-ounce silver bars are either weeks or months out; some will not even take orders. I had some conversations with a number of people who buy from them, had to dig through the information and some of them revealed that they thought the refineries were having trouble and the manufacturers were having trouble getting the physical product which falls right into the silver shortage.

It does surprise me because we did not see the buying that we saw in 2008, 2009 when our safes were absolutely emptied of 100-ounce silver bars, and that’s the type of buying I thought we would have to see in order for there to be a shortage of 100-ounce silver bars.

I was able to get 100ounce silver bars (recently) and then all of a sudden these guys I call them and say, "Okay, we are talking 100-ounce silver bars." They’ll say, "Well, it’s a month out on any order you place today." And then I have people telling me they will not take any orders on 100-ounce silver bars until May.

There’s a couple of things that are going to happen that are going to shut a lot of people out of this market. All of the 100-ounce bars are going to be gone in a matter of days -- not weeks, days. Then people are going to have to put up their money and they are going to have to wait weeks or months before they get their bars. They are also going to have to pay higher premiums for that product because the marketplace will put a higher premium on the bars on a price drop that depletes all of the vaults around the country.

Zerohedge also reported that the U.K. was the latest region affected by growing silver shortages after a British bullion dealer notified clients that the company had no remaining silver bars in stock, and BullionVault posted a page on their site saying they were not accepting orders for silver in London.

In addition, Eric Sprott had to wait over two months to finally take delivery of the 22 million ounces needed for his new silver fund. He was recently quoted as saying:

Frankly, we are concerned about the illiquidity in the physical silver market. We believe the delays involved in the delivery of physical silver to the Trust highlight the disconnect that exists between the paper and physical markets for silver.

Another example of the growing disconnect between the paper spot price and free market pricing is the fact that silver coins such as Silver Eagles or Canadian Maple Leafs are selling for $4-6 over spot on Ebay (EBAY). This is a fairly liquid worldwide market for exchange ... and the premiums have been increasing in the past few months to as high as 20%.

Even one of the largest online dealers of silver bullion is now offering to buy back silver coins such as American Eagles for $1.75 or more over spot price. That's right: While the official spot price was $26.75 this morning, Apmex was offering to buy Silver Eagle coins for $28.50.

[Letsbereal]

Why do vampires react to silver in such a lethal way?

Because of the mysticism surrounding silver’s lunar associations, as well as the aesthetic qualities of the white, reflective metal that cause it to be associated with purity, silver in European Folklore has long been traditionally believed to be an antidote to various maladies and fictional monsters.

Notably, silver was believed to be a repellant against vampires (this primarily originates from its holy connotations; also, mirrors were originally polished silver, and as such, vampires allegedly cannot be seen in them because they are wicked) and it was believed that a werewolf, in his bestial form, could only be killed by a weapon or bullet made of silver, and was equally effective against vampires, as described in Eastern European folklore.

This has given rise to the term “silver bullet,” which is used to describe things designed to cure or fix a wide array of maladies.

Answer was taken from: http://en.wikipedia.org/wiki/Silver#Superstition

btw Silver works antibacterial

Also listen to Max & Stacy - [1187] The Truth About Markets – 29 January 2011
http://maxkeiser.com/2011/01/29/1187-the-truth-about-markets-29-january-2011/

Download MP3: http://ia700404.us.archive.org/17/items/MaxKeiserRadio-TheTruthAboutMarkets-29January2011/TaM290111.mp3

[Letsbereal]

Eric Sprott - Expect $50 Silver, Gold Possibly $2,150 by Spring
28 January 2011, by Eric King (King World News)
http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/1/29_Eric_Sprott.html

With gold and silver rallying off the lows today, King World News interviewed Eric Sprott, Chairman of Sprott Asset Management which has $8 billion under management. When asked about the Sprott physical silver trust acquiring silver Eric stated, “We had to go into the market and buy about 15 million net ounces from third parties and it took us about ten weeks. It was a very, very long process and the one thing we can read out of it is obviously there weren’t 15 million ounces sitting around somewhere.”

Sprott continues:

“I haven’t had time to study where the bars came from, but I can tell you by looking at the pictures of the bars they look like they came right out of the refineries. So I suspect it’s a hand to mouth situation in silver.

I think if we went in to buy twenty million ounces of silver it would take a long time. I know we had an order to buy a million ounces about five weeks ago for a different account and the delivery was going to be two months. So I think silver is as tight as a drum.

When asked about price targets for both gold and silver Eric responded, “Our best technical advisor, he thinks (gold) it’s going to $2,150, and he thinks it is going to $2,150 this spring.

I think silver is a little easier to predict because I think it’s going to change relative to gold which is a more predictable event and more timely. I’ve always thought that silver should touch $50, and I’m not going to be surprised if it touches it by the middle of this year as people realize there is an absolute shortage.”


Eric Sprott discussed the gold and silver markets in great detail as well as other critical monetary events. To listen to the entire in-depth KWN interview with Eric Sprott:
 Download MP3 from site http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/1/29_Eric_Sprott.html (right click -->--> save link as)

[infowarrior_039]

I just bought my first silver coin and I couldn't be happier. it feels good to have something real in your hand !

[Letsbereal]

US Mint Sells Absolute Record 6.4 Million Ounces Of Silver In January, 50% More Than Previous Highest Month
2 February 2011, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/article/us-mint-sells-absolute-record-64-million-ounces-silver-january-50-more-previous-highest-mont

As the topic of US Mint silver sales is not new to our readers, after we first brought attention to the record January sales by the Mint, we will not dwell much on it, suffice to say that the final January tally is in.

And at 6,472,000 ounces, this is nearly 50% higher than any prior month in the Mint's 26 years of published sales history.

This has occurred, despite supposed profit taking in the paper silver market in January. And just today, another 50k, were sold.

It seems that physical buyers continue to enjoy the dip in paper silver that is providing them with an attractive entry point.

[Amos]

What is amazing is this is happening in a depression! Hello

[agentbluescreen]

 
It seems that physical buyers continue to enjoy the dip in paper silver that is providing them with an attractive entry point.

Quite the contrary as this ridiculously backwardated phony-fixed Rothschild Mafia 'futures paper price' is an "entry point" to a physical vacuum of no or not much actually more highly priced real physical silver remaining to be had.

Don't be surprised if "Cash 4 Silver" signs start popping up all around you very soon.

[Letsbereal]

Scotia Mocatta Sells Out Of All Silver Bars
2 February 2011, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/article/scotia-mocatta-sells-out-all-silver-bars

When a week ago we noted that ScotiaMocatta sold out of the Valcambi 1 kg block, yet once again showed the 100 oz silver bar as  back in stock, we said: "We will keep tabs on how long before this also becomes "sold out."" We have the answer and it is 7 days.

As of today, Canada 's biggest bullion bank is out of not only the 100 oz silver bar, but all silver bars!

This follows yesterday's news that in January the US mint sold 50% more silver than in any month before.

[Letsbereal]

Gold Will Reach Unbelievable Price and Silver Will Outperform Gold
3 February 2011, (GoldCore)
http://campaign.r20.constantcontact.com/render?llr=nid4i7n6&v=001dsGnuBrFqEENobiRH0L7AnI0FhRq1f_RXXQBRG2Gjwpgye6KJIiSbWLEcr6cZ3PQkHg8-LWMrT9pcnhpAgyD_0coGMmf_ibPBkckneQepfs%3D

Excerpt:

[Letsbereal]

Keiser Report: Silver Stick for JP Vampire (E118)
http://www.youtube.com/watch?v=41dSuyRrj6w

[Letsbereal]

$6,000 Silver and ONE BANK
6 February 2011, by Bix Weir (Road to Roota)
http://www.roadtoroota.com/public/94.cfm

The silver markets are rigged. Every day. Every trade. Every option. Every derivative. The silver markets have been rigged since the early 1970's when Alan Greenspan introduced computer market trading systems to the world beginning the long term commodity market rigging operation.

http://www.roadtoroota.com/public/101.cfm

Since that time there has not been a day when the silver markets have been "freely traded". Nobody, and I mean NOBODY, knows the true "Fair Market Value" of silver!

But like all price suppression schemes, the silver manipulation must come to an end and we are on the brink of that moment. The only remaining question should be "What is the true value of silver in terms of money?"

----

COME ON PEOPLE! I'm starting to think my $6,000/oz silver call is too conservative!

What's going to happen when JP Morgan's derivative monument comes crashing down…which it almost did in September 2008?

So here's where I get to $6,000 per oz for silver.

1) I know silver has not been freely traded in 40 years so today's price if irrelevant.

2) I, like many, estimate there is only about 1B ounces in above ground physical silver for investment purposes.

3) I, like many, estimate there is only 5B ounces of above ground physical gold for investment purposes.

4) If the price of gold is not manipulated, like the banks claim, then the price of silver should be 5x the price of gold due to its supply/demand fundamentals.


CONCLUSION: The price of gold is around $1,200/oz so the true Fair Market Value of Silver should be around $6,000/oz in a FREE market!

It's simple, if you remove ONE BANK from the supply side of the equation the price of silver will SKYROCKET overnight.

ONE BANK controls the price of silver.

ONE BANK controls the fate of our monetary system.

ONE BANK is behind the curtain pulling the silver manipulation levers.

ONE BANK has control over a nation that was founded by "We the People".

ONE BANK MUST GO AWAY TO SAVE OUR LIBERTY!

May the Road you choose be the Right Road.

[Letsbereal]

Guest Post: Silver Breaks Its Golden Shackles
6 February 2011, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/article/guest-post-silver-breaks-its-golden-shackles

Excerpt:

Since September 2010 silver has broken its golden shackles. The algorithmic trading that kept the price of silver subdued for seven years has been completely annihilated.

On Friday silver closed in complete backwardation on the Comex. Spot silver closed at $29.075/oz while FEB 2011 closed at $29.064/oz and DEC 2015 closed at $29.026/oz. I believe this is the first time in history that this has happened. Silver traded in backwardation between the spot price and futures contract up to one year out during the blatantly manipulative precious metals bashing of January, but now the entire futures structure is in backwardation. This is a sure sign there are shortages of silver because it means that buyers will pay a premium for silver delivered sooner rather than later.

Signs of shortages have also been apparent from a shrinking silver inventory on the Comex in the face of rising prices. The registered inventory stands at a paltry 43 Mozs. In addition there is lots of anecdotal evidence that there are tight supplies everywhere. There are reports of refineries refusing to take new orders due to insufficient silver feedstock.

News out of China recently showed that China's net imports of silver quadrupled in 2010 to 3,500 tonnes (112 Million ozs). China has traditionally been a silver exporter. For example, in 2005 China made net exports of 3,000 tonnes of silver.

The US mint reported last week a record month in silver eagle sales in January of 6.4 million ozs.

This update of my previous work adds more fuel to the fire that the dynamics of the silver market have dramatically changed. Because silver has been suppressed for so long we do not know what its free market price should be, but we are going to find out soon and I strongly suspect it will be many multiples of the current price.

Adrian Douglas
Editor of Market Force Analysis
Board Member of GATA

[Letsbereal]

Physical Silver is $50 in the UK (WARNING GRAPHIC CONTENT NO JOKE)
http://www.youtube.com/watch?v=5FdXCcC1nsk

[agentbluescreen]

Physical Silver is $50 in the UK (WARNING GRAPHIC CONTENT NO JOKE)
http://www.youtube.com/watch?v=5FdXCcC1nsk

How can this be? who would pay 75% over spot?

[wembley87]

How can this be? who would pay 75% over spot?

Because we have to pay 20% VAT on Silver over here , and i dont think you have to .

[agentbluescreen]

Because we have to pay 20% VAT on Silver over here , and i dont think you have to .

That is ludicrous. Can you not buy it from Africa over the internet by mail? What the hell kind of a sales tax is that? They may as well not even have prices and just sell everything for the tax.

[wembley87]

That is ludicrous. Can you not buy it from Africa over the internet by mail? What the hell kind of a sales tax is that? They may as well not even have prices and just sell everything for the tax.

Not sure about Africa , but yeah 20% sucks , but we sell it on for the same inflated price here in the UK.

[Letsbereal]

Silver Closes Well Above $30 As The Dip Is Now Fully Bought
8 February 2011, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/article/silver-closes-well-above-30-dip-now-fully-bought

Excerpt:

It looks like the much maligned correction in silver is over.

After surging nearly 3% on the day, silver is now back above the 20, 50 and 100 DMAs, and what was formerly resistance is now support.

In fact, silver is less than $1 away from its recent nominal highs of $31.2375.

It appears that speculators have Bought TFD with a vengeance.

Hopefully, this also explains the massive silver purchases disclosed by the Mint (already at 838,000 ounces for February) and presented previously on Zero Hedge.

[Letsbereal]

Silver Lease Rates Rise Sharply – Bond Yields in Portugal Rise to Record
10 February 2011, by GoldCore (Zero Hedge)
http://www.zerohedge.com/article/silver-lease-rates-rise-sharply-%E2%80%93-bond-yields-portugal-rise-record

Excerpt:

Gold, and particularly silver, lease rates (see chart) have been rising recently. The rate is found by subtracting the silver forward offered rate from the London Interbank Offered Rate (LIBOR). This likely signals increasing tightness and illiquidity in the bullion markets (as recently said by Sprott Asset Management, and UBS yesterday).

The rise in silver has been very sharp, having gone from 4.29 basis points (0.0429%) to 77.65 basis points (0.7765%) since the start of the year (31 December 2010).

While the rise is very sharp, it is important to put it in context, and silver lease rates remain well below the levels reached after the Lehman Brothers systemic crisis in late 2008 when silver lease rates surged to 2.5%.

At the same time, the very small silver bullion market is clearly under strain as seen in the continuing backwardation. This clearly shows that demand for physical is robust, evident from retail demand in the US where there were record US Mint silver eagle sales last month. There are delays (3 to 4 weeks) to get branded LBMA silver bars (100 oz) in volume.

Strong demand is also seen in the import figures in Asia – particularly from China and India. This Asian demand is both for silver for industrial purposes, but also retail demand from Asians buying silver to protect themselves from surging inflation.

[Letsbereal]

Turk - Silver Backwardation for Years, Possible Hyperinflation
10 February 2011, by Eric King (King World News)
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/2/10_Turk_-_Silver_Backwardation_for_Years,_Possible_Hyperinflation.html

King World News has received word from James Turk that silver is in extreme backwardation. Turk stated, “There is a huge story that is brewing. Silver is in backwardation to 2015, which is 13-cents cheaper than spot.

This is unbelievable. Money does not go into backwardation except ‘in extremis’!”

Turk continues:

“If this situation continues, and there is no reason to suspect that it is about to end quietly because the demand for physical silver is not abating, there are only two alternatives:

One, as we discussed on Friday, the silver price has to rise in order to dislodge physical metal from the strong hands that now own it. But why would anyone accept some national currency in exchange for physical silver unless the price is much, much higher?

Two, the shorts declare force majeure and use government force to let them escape from their untenable position. The fall-out from this outcome is very complex because there are so many factors to consider. But I would expect that any default would only strengthen the resolve of the strong hands now owning physical metal. Meaning that the market for physical silver would become even more tight than it is now, even if the price shoots higher as I expect.”

Turk also went on to make the following points:

“Look for a short squeeze in silver already underway as evidenced by the backwardation to intensify as we move toward silver option expiry at the end of this month, and silver delivery on March futures contracts in early March.  In a short squeeze, what matters is ownership, not price. When you own physical metal, you are protected from government sanctioned force majeure that bails out the shorts.

As I mentioned Friday, the paper market for silver is losing its significance in the process of price discovery. Everyone who owns physical silver should make their decisions based on what is happening in the physical market, not the paper market.

A basic premise of precious metals is that silver leads gold, which is a point we have discussed before. It will be interesting to see whether the backwardation in silver will lead to a backwardation of gold. If it does, the end game for the US dollar is near. It would mean hyperinflation of the dollar is upon us.”

Turk brings up a key point here about keeping an eye on the physical market in both metals.  Paper gyrations aside, in the end the physical market will have the last word.

[Matt Hatter]

Max Keiser Suggests Silver Bombshell In A Few Weeks.

http://www.youtube.com/watch?v=DuSc79rccwc

[Letsbereal]

Extremely Bullish Silver Price Forecast By Jim Willie Thu 10 Feb, 2011
http://www.youtube.com/watch?v=hjYmLI8x6RM

[Letsbereal]

BACKWARDATION and the fall of the bankers
http://www.youtube.com/watch?v=u-owMEgK95c

[Letsbereal]

Eric Sprott on The Financial Sense News Hour 12 Feb 2011
http://www.youtube.com/watch?v=uA8OfGe9mxI

[Letsbereal]

US silver term structure inverts as supply tightens
11 February 2011, by Frank Tang (Reuters)
http://www.reuters.com/article/2011/02/11/silver-backwardation-idUSN1133112820110211

Excerpt:

* COMEX silver stocks falls to four-year low

* First silver futures backwardation since '97-98

* Strong industrial, coins demand, producer hedging cited

The tightest physical silver supplies in four years have tipped the U.S. silver futures market into backwardation this week, making near-term prices more expensive than more distant months.

Market watchers said that it has been more than 10 years since silver futures were last in backwardation, an unusual term structure, associated with shortage of physical supply.

Warehouse stocks of the white metal have dropped to a four-year low on surging demand, while miners have hedged their future production.

Booming industrial demand for silver and record U.S. coin sales, combined with a surge in demand from mining companies to borrow the metal for their hedge programs have led to a squeeze in the physical silver market.

"The problem is that there is great industrial demand for a specific grade of silver, and there is not enough coming fresh from the mines," said Miguel Perez-Santalla, vice president of Heraeus Precious Metals Management.

"The stocks are being pulled for all the high grade and better materials, and that essentially put a squeeze on the physical market," he said.

Perez-Santalla said that silver futures have not been in backwardation since billionaire Warren Buffett bought 130 million ounces of silver between 1997 and 1998.

Backwardation is a condition where cash or nearby delivery prices are higher than the price for delivery dates further in the future. Usually, forward prices are higher than cash prices to reflect the costs of storage and insurance for stocks deliverable at a later date.

"The extent of the backwardation in silver is unprecedented. It suggests that retail investment and industrial demand internationally is very robust and the small silver bullion market cannot cater to the level of demand for refined coin and bar product," bullion dealer GoldCore said in a note on Friday.

[Letsbereal]

Silver Bullion COMEX Stocks at 4-Year Low as Backwardation Deepens
14 February 2011, (GoldCore)
http://campaign.r20.constantcontact.com/render?llr=nid4i7n6&v=001s0rRepf3dPaOBtJhmi7Tc96-aavDbXGi_g-nWzDdnX8csyyPdT0uQikbadXTKZQoifldsSg6WwZpxsE2MklqkZJ15mKbNiyUCfDIxqgGX18%3D

Excerpt:

Silver’s backwardation has deepened with spot silver at $30.16/oz, March 2011 contract at $30.13/oz and April’s at $30.00/oz. While spot silver has risen nearly 1% so far today, the July 2012 futures contract was down 0.187% to $29.81/oz.

The gradual drain of COMEX silver inventories seen in recent months continues and COMEX silver inventories are at 4 year lows. Total dealer inventory is now 42.16 million ounces and total customer inventory is now at 60.68 million ounces, giving a combined total of 102.847 million ounces.

The small size of the physical silver market is seen in the fact that at $30 per ounce, the COMEX silver inventories are only worth some $3 billion. The US government is now paying some $4 billion a day merely on the interest charges for the national debt. It is also the same value as Twitter’s new venture round of financing or Ford’s debt pay down in the first quarter.

Talk of a default on the COMEX is premature but the scale of current investment demand and industrial demand, especially from China, is such that it is important to monitor COMEX warehouse stocks.

The Hunt Brothers were one of a few dozen billionaires in the world in 1979 when they attempted to corner the market. Today there are thousands of billionaires in the world, any number of whom could again corner the silver market. Also, today unlike in the 1970s, there are sovereign wealth funds and hundreds of hedge funds with access to billions in capital.

The possibility of an attempted cornering of the silver market through buying and taking delivery of physical bullion remains real and would likely lead to a massive short squeeze which could see silver surge as it did in the 1970s.

[Letsbereal]

The Mexican silver coin system – Hugo Salinas Price
http://www.youtube.com/watch?v=6nD6UY_gzgk

In this video, Hugo Salinas Price, President of the Mexican Civic Association Pro Silver, A.C. (http://www.plata.com.mx) interviewed by James Turk, outlines the basic details of his proposal to let silver ounce coins circulate as money again in Mexico.

He tells the viewers what led him to believe that silver coins should be money again.

Hugo and James explain what sound money is.

The video was recorded in London.

[Letsbereal]

Silver price at 30-year high
16 February 2011, by Debbie Carlson - Kitco News (CommodityOnline)
http://www.commodityonline.com/news/Silver-price-at-30-year-high-36496-3-1.html

Excerpt:

Silver prices are within striking distance of re-testing the 30 year highs set on Jan. 3 at $31.275 an ounce as silver benefits from industrial metal strength and tight physical supplies.

The March silver contract on the Comex division of the New York Mercantile Exchange is currently trading around $30.805, about 47 cents from the January high.

Conversely, gold prices remain well-below their all-time high of $1,431.10 an ounce made on Dec. 7, trading around $1,373.

----

Frank Lesh, futures trader and broker at FuturePath Trading, said physical silver supplies are the tightest in four years and that’s helped push futures prices into a small backwardation, an unusual situation when the nearby price is higher than the deferred price.

Comex warehouse stocks are around 102.76 million ounces as of Tuesday. Reuters reported that at their peak, warehouse stocks were as high as 141 million ounces in June 2007. Silver coin sales from various worldwide mints have also been strong.

Lesh said it’s hard to say whether or not silver prices will stay in backwardation. “I don’t know about that yet. You can get into backwardation and you can come right out,” he said, noting that recently the crude oil market was only in backwardation briefly.

Silver has also benefitted from some speculative buying, he noted, as gold has fallen a bit out of favor. “The gold market has matured, so it’s harder to see that we’ll have the same gains from gold this year that we did last year. It’s not to say it won’t gain ground,” he said.

He noted that many of the big index funds rotated out of gold and into silver and copper, too.

----

Price Outlooks

Daly said he expects silver prices could reach $35 by the summer.

Lesh said silver prices should be able to pierce the recent $31.275 high, although $31 will offer some psychological resistance first.

He believes silver could eventually trade up to $50, but before that happens, silver will likely try to expand the trading range if it can break through the recent high.

The next target is the $31.50 area.


Wrap Up: Lindsey Williams on AJS January 2011

SILVER AND GOLD – Silver and Gold is the only money the elite rely on.

Comex only has 107 million ounces of silver against 720 million ounces of obligations.

[Letsbereal]

Silver,Gold,Currencies and stock market predictions by Web bots creator Cliff High P.1 http://www.youtube.com/watch?v=4-ahxnW3bEY


Silver,Gold,Currencies and stock market predictions by Web bots creator Cliff High P.2 http://www.youtube.com/watch?v=sNBbznXMFMs

[Letsbereal]

London Source - Asians Buying SLV to Take Delivery of Silver
15 February 2011, by Eric King (King World News)
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/2/15_London_Source_-_Asians_Buying_SLV_to_Take_Delivery_of_Silver.html

With gold up over $10 and silver attacking multi-decade highs, the London Source has given King World News major news on the activities of the Asian buyers, “Not only have the the Asian buyers been purchasing large numbers of shares of the ETF GLD in order to take delivery of gold, but they have now in fact decided to buy SLV with the intention to take physical delivery of silver directly from that ETF.”

The London Source continues:

“You have to remember that BlackRock sponsors SLV and I don’t believe they will let anything happen to tarnish their good name. It would reflect badly on BlackRock if in fact SLV did not contain the physical silver to back up the shares, so the Asians will be successful in draining physical silver directly from SLV. The bottom line is they are comfortable with BlackRock being involved in the ETF SLV.

In the end, BlackRock will have to ensure that the silver ETF makes good on redemptions from SLV.

Another complicating factor is that there are currently 16.12 million shares short on SLV. This is an increase of almost 2 million ounces over the prior reading. In other words BlackRock will also have to make sure that this silver which has been borrowed will be returned.

We have serious backwardation, a supply shortage, short interest growing on SLV and now we have the Chinese waking up to the fact that there is metal in SLV and saying, ‘let’s go get it.’ Let’s not forget the paltry inventories on the Comex. Any short would have to be frightened by that data.

There are two options left for the shorts, one is to naked short the heck out of this market in an attempt to drive the price down. But if they decide take this option it will worsen their position longer-term. The other option is to capitulate and let the price of silver rise in an attempt to let the silver market get into equilibrium.” 

It will be very interesting to see which option the shorts take here, but for now the wind is in their face and we will look to see if silver can clear $31 on good volume. The London Source closed with this question, “If you were a for-profit trader yourself and you were short here, what would you do?”

[Letsbereal]

Turk - Massive Short Squeeze in Silver, Gold to Hit New Highs
16 February 2011, by Eric King (King World News)
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/2/16_Turk_-_Massive_Short_Squeeze_in_Silver,_Gold_to_Hit_New_Highs.html

Excerpt:

With gold recently strengthening and silver attacking multi-decade highs, today King World News interviewed James Turk out of Germany. Turk commented, “Eric, there are a lot of stories making the rounds talking about silver hedging. People should not be scared by them. When you actually analyze it and consider what is happening, the implications are bullish for silver.”

---

The ownership of physical metal - as opposed to paper-silver - is becoming increasingly important.

[Letsbereal]

Thieves steal $750K in silver bullion
16 February 2011, (CBC News)
http://www.cbc.ca/canada/british-columbia/story/2011/02/16/bc-silver-theft.html

LOLz – “Wolbeck said investigators don’t know why the victim was collecting silver bars.”

[Letsbereal]

Crash JP Morgan - Buy Silver!
http://www.youtube.com/watch?v=VCQ4RMrMJyE

[Letsbereal]

Demand for Silver, Platinum ETFs in India
17 February 2011, Mumbai (CommodityOnline)
http://www.commodityonline.com/news/Demand-for-Silver-Platinum-ETFs-in-India-36547-3-1.html

Excerpt:

Demand for exchange traded funds (ETFs) in precious metals other than gold is growing in India, as bullion experts say that the country requires more funds in commodities like silver and platinum.

India is the largest importer and consumer of gold in the world. And Indian households own the largest chunk of physical gold in the world, in the form of gold jewellery coins, bars etc. But Gold ETFs got introduced in India only four years back.

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Silver like gold is a hot investment in India. Jewellery chains across India are promoting silver as affordable and modern jewellery in place of gold.

India’s silver imports, which in US dollar terms were $309.8m in June 2010, up 854% on the year, while in the first six months of 2010 they are up 579%, at $1.69bn.

India’s appetite for silver has been boosted because gold has become too expensive at current prices.

Globally, with gold prices having just scored a new all-time record high and with silver futures prices still not even close to the all-time high, many investors reckon silver futures are still a buying opportunity with still more upside price potential in the coming weeks and months.

[wembley87]

Silver price at 30-year high
16 February 2011, by Debbie Carlson - Kitco News (CommodityOnline)
http://www.commodityonline.com/news/Silver-price-at-30-year-high-36496-3-1.html

Excerpt:

Silver prices are within striking distance of re-testing the 30 year highs set on Jan. 3 at $31.275 an ounce as silver benefits from industrial metal strength and tight physical supplies.

The March silver contract on the Comex division of the New York Mercantile Exchange is currently trading around $30.805, about 47 cents from the January high.

Conversely, gold prices remain well-below their all-time high of $1,431.10 an ounce made on Dec. 7, trading around $1,373.

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Frank Lesh, futures trader and broker at FuturePath Trading, said physical silver supplies are the tightest in four years and that’s helped push futures prices into a small backwardation, an unusual situation when the nearby price is higher than the deferred price.

Comex warehouse stocks are around 102.76 million ounces as of Tuesday. Reuters reported that at their peak, warehouse stocks were as high as 141 million ounces in June 2007. Silver coin sales from various worldwide mints have also been strong.

Lesh said it’s hard to say whether or not silver prices will stay in backwardation. “I don’t know about that yet. You can get into backwardation and you can come right out,” he said, noting that recently the crude oil market was only in backwardation briefly.

Silver has also benefitted from some speculative buying, he noted, as gold has fallen a bit out of favor. “The gold market has matured, so it’s harder to see that we’ll have the same gains from gold this year that we did last year. It’s not to say it won’t gain ground,” he said.

He noted that many of the big index funds rotated out of gold and into silver and copper, too.

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Price Outlooks

Daly said he expects silver prices could reach $35 by the summer.

Lesh said silver prices should be able to pierce the recent $31.275 high, although $31 will offer some psychological resistance first.

He believes silver could eventually trade up to $50, but before that happens, silver will likely try to expand the trading range if it can break through the recent high.

The next target is the $31.50 area.

Well we just broke the $31.50 barrier 

Wrap Up: Lindsey Williams on AJS January 2011

SILVER AND GOLD – Silver and Gold is the only money the elite rely on.

Comex only has 107 million ounces of silver against 720 million ounces of obligations.

[Letsbereal]

Silver Hits Highest Price Since March 7, 1980
17 February 2011, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/article/and-silver-hits-new-high

The "correction" is over. The last time silver was here, the 10 Year was at 12.45%, the 2s10s was inverted -210 bps, and gold was $600.

[wembley87]

Silver now at $31.780 , Wow !! 

[Letsbereal]

Silver rises to 30-year high as mints start to ration coins
17 February 2011, by Jack Farchy (The Financial Times)
http://www.ft.com/cms/s/0/7f316ac4-3acc-11e0-9c1a-00144feabdc0.html

Excerpt:

Silver jumped to a 30-year high amid record levels of investor buying that has drained mints of silver coins.

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The world’s leading mints have reported record sales of silver coins in January and some, including the Royal Canadian Mint and Austrian Mint, have had to ration sales.

“We have sold everything we can produce in silver and have demand for at least twice that volume,” said David Madge, head of bullion sales at the Royal Canadian Mint, which produces the silver Maple Leaf coin.

Silver coin sales at the US Mint and the Austrian Mint also hit record levels in January.

The surge of buying has both boosted silver prices and helped push the market into “backwardation” – an unusual condition in which forward prices are lower than prices for immediate delivery.

While investors are buying, miners have been selling their future silver production to lock in gains, which has depressed long-dated futures prices.

Dealers said smaller investors saw silver as a cheaper alternative to gold with greater potential for gains as they look to preserve their wealth against rising inflation and currency weakness.

The Austrian Mint sold 1.53m ounces of its silver Philharmonic coin in January, more than double the level a year earlier, according to Andrea Lang, marketing director.

“We could have sold more,” she said, adding that the mint would boost production to 2.2m ounces in February and March.

The US Mint sold 6.4m ounces of silver American Eagle coins in January, 50% more than the previous record month, and have already sold 1.7m ounces so far in February.

Silver prices have outpaced gold in recent months as the improving economic picture has caused investment demand for gold to wane but has boosted silver’s industrial demand – which, in spite of rising investor flows, still accounts for 80% of total silver consumption.

[Letsbereal]

Short Squeeze In Silver! Could Be The Big One: John Rubino
http://www.youtube.com/watch?v=a1YqpGwp-mY

[mr anderson]

$32.79 03:45am AEST.

 

I'm waiting for dip..