Silver Futures Contract - a sign of things to come in PM's?

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SamLinder's picture
SamLinder
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Silver Futures Contract - a sign of things to come in PM's?

http://jessescrossroadscafe.blogspot.com/2009/04/silver-first-notice-day...

30 April 2009

Silver First Notice Day

This note just received from a metals trader:

"Today is first notice day for the silver futures contract. The open interest as of the end of yesterday is a good approximation for the number of contracts that will stand for delivery, as brokers typically require any longs not funded for delivery to be sold or rolled forward by the end of trading the day before 1st Notice (some require this up to 3 days before).

Comex May silver Open Interest as of yesterday's close was 4365. I don't think this includes the old CME contract, which is the NYSE Liffe contract, so this number ultimately may be low.

These 4365 contracts equate to 21.8 million ounces, or 33% of the amount of silver on the Comex that is registered for delivery. Not enough to do real damage to the Comex inventory, but probably enough raise some eyebrows around the world. I am absolutely convinced that part of this week's pure paper attack on silver was designed to discourage longs from taking delivery."

 

The silver market has been manipulated for some time now based on what we have seen. Interestingly enough one of the principle players had been the London crew of AIG, who apparently had to find a new routine when AIG exited that trade a few years ago. What was an insurance company doing as a major trading player in the metals markets? Because they had not yet discovered the benefits of selling increasingly worthless derivatives.

 

If this is true, if these markets are being used in this way, then we should see increasing shortages of the physical products until the exchange delivery mechanism is broken, and the contracts force settled in cash, with defaults in funds galore.

 

The investigation into the metals and energy markets by the CFTC and other government agencies makes the SEC appear to have the wisdom and integrity of Solomon.

 

Let's see how this plays out, and how it is spun if and when it breaks. It's sure to be amusing.

r101958's picture
r101958
Status: Martenson Brigade Member (Offline)
Joined: Aug 24 2008
Posts: 257
Re: Silver Futures Contract - a sign of things to come in ...

I agree there is a lot of manipulation in both gold and silver. I got some silver back when it was a bit cheaper (not much) and I am glad I did. You can't eat it in an emergency but you can be sure that will hold some value and can be used in lieu of barter in many cases.

SPM's picture
SPM
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Joined: Mar 20 2009
Posts: 241
Re: Silver Futures Contract - a sign of things to come in ...

I'm in the silver boat myself, so I hope it does well. I think it will.

Have you guys read this article yet? I saw the title posted on another thread, so maybe it has been passed around already. - http://www.garynorth.com/public/4857.cfm "Why Gold Owners Are Targets of the Government"

 

 

SamLinder's picture
SamLinder
Status: Diamond Member (Offline)
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Re: Silver Futures Contract - a sign of things to come in ...
SPM wrote:

I'm in the silver boat myself, so I hope it does well. I think it will.

Have you guys read this article yet? I saw the title posted on another thread, so maybe it has been passed around already. - http://www.garynorth.com/public/4857.cfm "Why Gold Owners Are Targets of the Government"

Yep. I posted it in the "Gold's near future" thread on 22 April. My post #246. 

SPM's picture
SPM
Status: Silver Member (Offline)
Joined: Mar 20 2009
Posts: 241
Re: Silver Futures Contract - a sign of things to come in ...

Sorry about that. I absorb everything, although I don't always remember where it came from.

SamLinder's picture
SamLinder
Status: Diamond Member (Offline)
Joined: Jul 10 2008
Posts: 1499
Re: Silver Futures Contract - a sign of things to come in ...
SPM wrote:

Sorry about that. I absorb everything, although I don't always remember where it came from.

No biggie. I read so many threads on this site that I can't keep up myself.

LogansRun's picture
LogansRun
Status: Diamond Member (Offline)
Joined: Mar 18 2009
Posts: 1444
Re: Silver Futures Contract - a sign of things to come in ...

Gold and Silver are so manipulated that it's hard for me to understand the purpose of trading in paper.  You'll consistently be working against tptb as they will take it up or down at their discretion.  The CONEX will find a way to get around default just as they did in February (It could have been march) when Deutsche Bank got a large amount of gold at the last minute to pay it's shorts....funny thing that on the same day the European Central Bank had a sale of almost the exact same amount. 

Silver for the long term in physical form is the only way I'll go.  But ultimately, I own silver to buy more gold.

 

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