More good news for PMs

derryb

The Global Physical Gold & Silver Reserves Race is the New Nuclear Arms Race

roadrunner

Author J.S. Kim writes some pretty good stuff on precious metals. Thanks for the link.

roadrunner

CaptHenway

A commentary on the new Chinese silver market, and manipulation of the silver market:

Link

pf70collector

Silver contracts were selling higher and at about 1:40PM they started to sell off for no reason. Then at 2:03PM there was a trade for 50,000 contracts of silver sold. (This would lead anyone to conclude that the sale was known 23 minutes before it occurred.) This is not a typo -- 50,000 contracts in one minute! Each contract is for 5,000 ounces of silver. So if we do the math 50,000 contracts by 5,000 ounces per contract equals 250,000,000 ounces of paper silver contracts. If we do some further math and we multiply 250,000,000 contracts by the proxy price of silver yesterday, which was $40.00 per ounce, then that trade was for 10 billion dollars in one minute.

Just another reason why paper should be decoupled from physical. The paper needs to implode. I will be waiting patiently.

cohodk

<< <i>Silver contracts were selling higher and at about 1:40PM they started to sell off for no reason. Then at 2:03PM there was a trade for 50,000 contracts of silver sold. (This would lead anyone to conclude that the sale was known 23 minutes before it occurred.) This is not a typo -- 50,000 contracts in one minute! Each contract is for 5,000 ounces of silver. So if we do the math 50,000 contracts by 5,000 ounces per contract equals 250,000,000 ounces of paper silver contracts. If we do some further math and we multiply 250,000,000 contracts by the proxy price of silver yesterday, which was $40.00 per ounce, then that trade was for 10 billion dollars in one minute.

Just another reason why paper should be decoupled from physical. The paper needs to implode. I will be waiting patiently. >>




Due to the relative lack of physical metal vs other assets, it is possible that trading in PMs could virtually cease to exist. The markets would be extremely thin and big players would not want to get involved. The spread--difference between bid and ask--could be 20% wide. It is only because of paper --making trading easy and accessible--that PMs have been able to perform so well.

Silver never would have run to $50 in 1980 if not for the Hunt Bros playing in the futures market. The same thing happen just a few months ago---paper silver pushed prices higher--which is obvious in that when paper became harder to trade (increased margins reqs), the price fell 40%.

derryb

<< <i>Silver never would have run to $50 in 1980 if not for the Hunt Bros playing in the futures market. The same thing happen just a few months ago---paper silver pushed prices higher--which is obvious in that when paper became harder to trade (increased margins reqs), the price fell 40%. >>


I agree 100% which makes it strange that yesterday's purchase of 250 million ozs. in silver contracts had little to no effect on market price. Makes one wonder what the big contract purchase was really about and who was really behind it.

cohodk

<< <i>

<< <i>Silver never would have run to $50 in 1980 if not for the Hunt Bros playing in the futures market. The same thing happen just a few months ago---paper silver pushed prices higher--which is obvious in that when paper became harder to trade (increased margins reqs), the price fell 40%. >>


I agree 100% which makes it strange that yesterday's purchase of 250 million ozs. in silver contracts had little to no effect on market price. Makes one wonder what the big contract purchase was really about and who was really behind it. >>



It may simply have been FCX or NEM or ABX or any other big mining company hedging a position. I really wouldnt read much into it.