Great news for silver-large amounts to be delivered thru Comex
BigE
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No way the bull run is even close to over---------BigE
I'm glad I am a Tree
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I knew it would happen.
documentation?
anything?
Click on this link to see my ebay listings.
--Severian the Lame
Meltdown, it means that people who had paper contracts on the futures market are going to take delivery of the actual silver, forcing it to be replenished by Comex for their inventory which Comex has to keep at a certain level on hand. Many people never actually take delivery and just buy and sell the paper. -------------------------BigE
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
--Severian the Lame
<< <i>Found this info. need 84 million ozs instead of 12------------BigE >>
Very Old info, sorry. You want to follow Harvey Organ and his daily delivery updates.
The total number of silver oz standing for physical (and not cash) is: 3.0 million oz + 6,045,000 or 9.045 million oz.
It looks like 1 million oz of silver was settled for cash today.
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<< <i>Isn't this kind of what the Hunts did, or tried to do? Buy up all physical silver and then buy up contracts, then demand delivery knowing they alone held the metal needed to fulfill the paper contracts? >>
True or not? Interesting read.
Hunt Brothers
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<< <i>Isn't this kind of what the Hunts did, or tried to do? Buy up all physical silver and then buy up contracts, then demand delivery knowing they alone held the metal needed to fulfill the paper contracts? >>
True or not? Interesting read.
Hunt Brothers >>
True.
The Hunt Brothers run was a dry run at market control when about 5B ounces of silver existed above-ground. They believed that paper money would become worthless and wanted to protect themselves. Now-a-days about 1.5B or less ounces of silver is available. Industrial and medical use has destroyed the rest, plus the price suppression since the Hunts killed off the mining. Now silver is "by-product" of mining, not the main metal looked for. Since Bill Gates alone could buy all the silver on planet, just think what will happen to the price as silver resumes it's traditional role as money. I think silver goes to thousands of dollars per ounce and how fast is determined by how quickly the Central Bank system of control collapses.
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<< <i>Isn't this kind of what the Hunts did, or tried to do? Buy up all physical silver and then buy up contracts, then demand delivery knowing they alone held the metal needed to fulfill the paper contracts? >>
The Hunt Brothers didn't hold exchange traded paper contracts as they appear now on the stock exchanges. They held future contracts, which had certain limitations. As I recall, the game was changed by the exchange, forcing the Hunt brothers out of their future contracts, which in turn collapsed the silver market.
<< <i>Isn't this kind of what the Hunts did, or tried to do? Buy up all physical silver and then buy up contracts, then demand delivery knowing they alone held the metal needed to fulfill the paper contracts? >>
No. No, it's not.
They simply calculated that they had enough money to tie up enough silver through
purchase and long contracts to drive the available supply almost dry causing the price
to sky rocket. They made two mistakes. The more serious was that there was more
silver available than they estimated. This wouldn't have been a problemexcept they
overextended trying to sop up the excess and the commodity exchanged chopped them
off at the knees.
This was a small group doing this and they could be broken by having the rules changed.
This time is entirely different and has been inevitable since the day the banks conspired
to suppress the silver price and manipulate the market for their own profits. During a
time that supply and demand for silver should have been comiong into a new balance
to reflect fundamental changes and usage of silver the supply was artificially depressed
by the low prices and much of the available silver was wasted in low priority products
which were only possible due to the low price. Now appears to be the day of reckoning
for thirty years of wasting and failing to produce silver. Now real silver will begin to look
a lot different than warehouse receipts or promises to deliver silver the seller can't pos-
sibly produce. It's not longs who are going to be the ones buying silver but shorts and
industries that need actual metal to run.
This could get messy but physical longs should not lose sight of the fact that there can be
no true shortage. We can't run short at the current time because there is enough silver
to run the factories for at least a decade left and the price will get it distributed to those
who need it. There's little flexibility in silver supply and demand but a higher price will
increase production a little and decrease usage.
A lot of this might be people dumping warehouse receipts and the like and the sellers are
scrambling to replace the silver they no longer have. It's not just a matter of honoring con-
tracts but in many cases there may be legal considerations.
There isn't just a small group of longs but there are millions world wide. Many are buying
physical and changing the rules for trading just won't have very much affect on them.
I just hope the banks lose everything they ever made with their shenanigans and more
billions besides. It doesn't matter though because the bosses will still extort their bonuses.
There is available silver sitting in the SLV etf and on the London LMBA. If push comes to shove they can get enough real silver to meet "payroll" and replace it with paper contracts and derivatives. However, at some point even that game comes to an end. I believe this is why most of Buffet's 120 MILL oz of silver was used to initially fund SLV. It was more a control scheme than anything else. And it worked pretty darn well until about 2 months ago (ie about 4 yrs.). Ironic how they got SLV into existence just as silver was peaking in the spring of 2006. Then they rode the price of silver down from $15 to around $10/oz.
The Hunts were often focused on paper contracts until early 1979. At that point I think they realized how exposed they were to the whims of the Comex. It was at that point that they tried to shift more of their holdings from paper into physical. They knew there was more safety in the actual metal. But before they could get too far, they were crushed via new trading requirements. At one point the new futures' rules allowed sales only, no new purchases. Would if the SEC decided that you could only sell shares of Citi, not buy any?
roadrunner
--Severian the Lame
It has been suggested that this could be done or has already been done. And I'd be totally flabbergasted if this hasn't already been done. The means, motive, and opportunity have been there and it's not illegal. There is nothing in the prospectus or rules of GLD & SLV that would preclude paper gold/silver or derivatives or IOU's from replacing actual bullion. Rules have already been modified to allow GLD contracts to settle Comex gold future deliveries. They are all assuming GLD and SLV are 100% bullion. I think that's a bad assumption. The large shareholders of GLD for example (>100,000 shares) have the option to settle in physical gold at any time. In that category you have Paulson, Soros, China, etc. The small fish have no such option and would be paper bagholders if the gold ever ran out. Einhorn of Greenlight Capital was a former large stakeholder in GLD but decided to arrange for his own gold storage and went to all bullion. None of the principals of GLD claim to be actual shareholders. Makes you wonder. But they probably own their own bullion gold however.
When the LMBA got into a tight squeeze a year or so ago, they supposedly had gold shipped from the EU central bank(s) to fill the shortage. Why wouldn't these guys pull out all the stops if the need were there?
roadrunner
<< <i>Roadrunner, are you saying that Comex could have physical silver delivered from SLV or London to meet demand for December fulfillment if they are short?----------------------BigE
It has been suggested that this could be done or has already been done. And I'd be totally flabbergasted if this hasn't already been done. The means, motive, and opportunity have been there and it's not illegal. There is nothing in the prospectus or rules of GLD & SLV that would preclude paper gold/silver or derivatives or IOU's from replacing actual bullion. Rules have already been modified to allow GLD contracts to settle Comex gold future deliveries. They are all assuming GLD and SLV are 100% bullion. I think that's a bad assumption. The large shareholders of GLD for example (>100,000 shares) have the option to settle in physical gold at any time. In that category you have Paulson, Soros, China, etc. The small fish have no such option and would be paper bagholders if the gold ever ran out. Einhorn of Greenlight Capital was a former large stakeholder in GLD but decided to arrange for his own gold storage and went to all bullion. None of the principals of GLD claim to be actual shareholders. Makes you wonder. But they probably own their own bullion gold however.
When the LMBA got into a tight squeeze a year or so ago, they supposedly had gold shipped from the EU central bank(s) to fill the shortage. Why wouldn't these guys pull out all the stops if the need were there?
roadrunner >>
Wow, this could mean that GLD, SLV and LMBA paper could become a new form of currency both local and international used to settle debts backed by gold and silver, so called New Order Gold and Silver Certificates!!!!!!!!!!!!!!!!!!!!----------BigE