Commodity Trade Mantra

Posts Tagged ‘Paper Silver’

Why the Dangerously Big Silver Short? Here's the Answer

Why would any banking institutions go so dangerously short silver? It’s profitable & they can get away with it. Because they are effectively the ONLY shorts & also as they’ve been able to build these positions, then subsequently push prices over the edge & cover positions for a profit. Controlling the price mechanism with dirt cheap leverage – Over and over again.

Further Surge in Silver and Gold will kill Commercial Traders

In contemplating what occurs next, will the silver and gold commercial traders succeed in turning prices lower & triggering off technical fund selling on the COMEX & also cool off ETF demand for physical metal? To be fair, either outcome, a price selloff or surge, must be considered possible, but recent developments raise the odds of a commercial failure in which prices surge, especially for silver.

The Chinese Start Buying Silver - Momentum Breaks Out To Highest In Years

Silver has gained 21% this year & is the best performing asset. Is a continuation of the breakout imminent or will silver suffer its traditional intraday slamdown as someone dumps enough paper silver to take out the entire bidstack and reprice the commodity lower? It all depends on what the patriotic Chinese, now in possession of a brand new gold fixing mechanism, do next.

Why do Banks Continue Silver Shorting so Aggressively?

A CoT survey taken on Tue, Dec 29, 2015, when silver was at $13.93, showed Commercial NET short position was just under 30,000 contracts as they were long 52,149 contracts & short 82,027. Data on Tue, Feb 16, 2016 when silver was at $15.33 (up 10%), showed long 44,638 contracts & short 114,700 for a NET short position of 70,062 contracts – largest since 2008. Why now?

Silver: Until Paper Currencies Stop Losing Value

It is relatively easy to increase debt, increase currency in circulation, devalue currencies, and spend more on warfare and welfare. It is difficult to increase silver and gold reserves. The prices for silver and gold will eventually reflect their scarcity, their high demand, and the ease with which central banks can devalue their currencies.

Silly Debt, Paper Dies, Gold Thrives

The purchasing power of our debt based fiat currency will be exponentially eroded until the catastrophic “debt withdrawal” occurs. The agony of withdrawal occurs now … or later, when it will be even worse. You can now: Protect your purchasing power with silver and gold, or Trust that purchasing power will not decrease, in spite of 100 years of history.

Rush to Physical Silver Indicates System is On the Verge of Economic Collapse

Rather than hope for a paper (or digital) promise in the future, buyers would rather have the real thing – Physical Silver, in their hands. When investors are not even willing to wait a few weeks for delivery, it’s a clear sign that investors are nervous about the state of the financial system & that the system is on the verge of economic collapse.

Despite Gold & Silver Being Just A 'Pet Rock', Premium On Physical Bullion Is Exploding

One important aspect of the physical market that is often overlooked is the premium it commands over spot price. Right before the Global Financial Crisis in 2008, the spot Silver price fell as low as USD 9 per oz., whereas the price of a 1 oz. Silver Eagle was around USD 17 on the wholesale market and even higher on the retail market! That’s a price premium of 188%!

The Comex Silver Short Bubble Is Huge

Yesterday the total Comex silver OI rose by another 4,909 contracts to close at 200,273. That’s the first time in the history of the Comex silver that total OI has exceeded 200,000 contracts. Why is Comex silver OI at record highs when price is at 5-year lows? From a CoT standpoint, this is all extraordinarily bullish for paper silver.

One Of The World's Largest Silver Miners Slams The CFTC About Silver Market Manipulation

A Canadian silver miner has decided to take the CFTC to task about the concentrated shorting in Comex silver market. We salute First Majestic with this first public appeal by a corporation to CFTC to stop the rigging in the silver market, but have absolute certainty that this complaint too will promptly end up in trash.

What could go wrong with our systems that might assist Silver Prices?

What’s wrong with paper silver? Paper silver has been aggressively sold and that pushes prices down – just the opposite of what occurred between 2009 and April 2011. What is wrong with paper silver is … probably nothing. Buyers and sellers do their thing, sometimes in fractions of a second, and they define a price for paper.

Silver Will Be The Gift That Keeps On Giving In 2015

Bullion banks that are massively short paper silver might have a bigger problem with delivering physical silver right now than they do with gold. It’s almost as if the bonafide physical silver accumulators are removing as much physical silver possible. Even HSBC issued a report forecasting an 11 million ounce supply deficit in 2015.

China’s Role In The Global (Paper) Silver Market

The Big Long in the paper-called-silver market (China?) is an entity only concerned with its own economic agenda, and should never be thought of as any “champion” of the small investor, even though it stands (more or less) against the corruption of the One Bank. It brings to mind the ancient, Arabic proverb: the Enemy of my Enemy is my Friend.

Silver Open Interest Anomaly

Open interest is roughly 175,000 contracts, which is about 875,000,000 ounces of paper silver. At market price that is about $13 Billion, or only about 15% of what the Fed created each month during QE3. It would take very little digital currency, relatively speaking, to buy all the open interest, or to crush prices via naked sales of paper contracts.

Primary Silver Miners: Losing Nearly $3 Per Ounce Of Production

With more than half of the primary silver miners financial results for the third quarter finally out, the group is now losing nearly $3.00 an ounce at the current market price of silver. We can thank the Fed and Bullion Banks for rigging the paper silver price well below the estimated average break-even for the primary silver miners.

Is a Silver Supply Shortage on the Horizon?

It’s in part because of the many uses, both as an investment and industrial metal, that some silver market watchers think at some point — perhaps in the near future — demand for the metal will exceed supply, creating a shortage. Silver also has myriad technological and medical applications.

$100 Silver and The Dirty Secret of Silver Monetary Demand

Paper price discovery is a nebulous construct calculated by using futures price in a market where investment banks have primary influence & rig the price. The result is the price of Silver and Gold, not derived by physical demand or supply, but manipulation.

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