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Thread: Interesting Post from the JPM Board on Silver Contracts

  1. #11

    Default

    I'll bet my bottom dollar that if there's 50M ounces of silver standing for delivery there will be 50M ounces of silver that will magically appear and it will not come out of Comex. The longs would have 50M ounces to sell into a declining price of silver which would send silver back to $15, or below. It would be the proverbial getting your ass handed to you on a silver platter.

  2. #12

    Default

    You have to admit, with the constant news from Harvey referencing that COMEX may be settling the shorts vis a vis a premium to settle for cash, it spells an opportunity for deep pockets (hedge funds) to take advantage of this disparity. There may be some truth to this, arbitraging the short supply of physical (if true) for cash settlement preimiums.

    FM
    Red pill taken June 2008.

  3. #13

    Default March Raid

    Anyone read this thread?

    http://messages.finance.yahoo.com/St...2&frt=2#381868


    A taste-
    Major hedge fund traders are going to be buying hundreds of millions of dollars of March contracts during the last 3 weeks of February. The strategy is simple-force Comex to pay a hefty premium on contracts that CANNOT be delivered. Will this work? It worked like a charm in December. Those guys were all kicking themselves because they should have bought 10 times the amount of contract that they actually had in December.

    This time around, they are getting everyone they know to get involved in this trade. They will pool their money together in order to get a large number of contracts so that Comex will not be available to deliver-thus forcing a hefty premium. These former traders are gonna pull a train on Blythe with all their hedge fund buddies and there is not a thing Blythe can do about it.


    No matter what happens after March 1, the price of paper silver will skyrocket as March 1 approaches because hedge funds will be blackmailing silver contract sellers come March 1.
    Last edited by Jayhawk; 01-06-2011 at 06:45 PM.

  4. #14

    Default

    Yep, read it yesterday. I think I saw the link on the Coinflation site's news section.

    Makes me happy that I already own my core holding of silver. Also makes me want to buy more now, but I'm having difficulty pulling the trigger on a large buy at these prices.

  5. #15
    Join Date
    Feb 2010
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    Default

    Quote Originally Posted by Jayhawk View Post
    Anyone read this thread?
    Yes, it appeared in another thread here. It was written by someone who clearly isn't involved in serious silver trading. It's possible it was written by an amateur who happens to have heard about something real going on, but my guess it that it was written by an amateur who had a story to tell.

  6. #16
    Join Date
    May 2008
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    1,363

    Default Update---Jan-6- 2011-New Update From The Yahoo JP Morgan Message Board

    New Update From The Yahoo JP Morgan Message Board 6-Jan-11 12:43 pm

    Re: New Year Strategy from Blythe's Former Traders I guess I wasnt clear enough in my explanation about what the hedge funds are about to do in the silver pits in February, so I'll try it again.

    Assuming a silver price of $30 and the known fact that Comex only has 105 million ounces of silver of which allegedly 50 million ounces are available for delivery, this is what hedge funds can do to earn 20 percent like they did last December.

    This hedge fund would purchase over 21,000 contracts and deposit 3.15 billion dollars ($30 X 105 million ounces of silver = $3.15 billion). Once March 1 comes rolling around, guess what happens?

    You got it!! Comex doesnt have the silver to deliver.

    Now what? You got it again!! Cash Settlement.

    In December, the cash settlement was as high as 30 percent for some people and as low as 10 percent for others. The average was around 20 percent?

    Why was there a difference? Any guesses?

    The reason was that if you held a lot of contracts, you could extract (blackmail) a bigger amount for cash settlement. If you held a few contract say 100 contracts or less (the equivalent of 500,000 ounces or fewer, the Comex was less likely to give you a big premium). I heard that one customer who held about 1000 contracts extracted close to a 30 percent premium to settle in cash.

    What do you think would happen if you showed up holding a few thousand contracts?

    You got it!! Cssh Settlement with a hefty premium.

    What happens after March 1st? I dont really know. All I do know is that between February 15 to March 1, hedge funds will be buying a huge amount of contracts because they know the Comex cant deliver and will be forced to pay a premium or default.

    What happens to the sellers of contracts who "defaults" and cant deliver the silver? BANKRUPTCY and a seizure of all assets. Period.

    Either deliver the contracts that were sold or negotiate a CASH SETTLEMENT. No other choice PERIOD!!

    No matter what happens after March 1, the price of paper silver will skyrocket as March 1 approaches because hedge funds will be blackmailing silver contract sellers come March 1.

    How do I know this with near certainty? Because it worked so well the first time around from October to Decemeber. And back then hedge funds didnt even know Comex couldnt deliver.

    That is why silver went up 81 percent in less than 4 months. Remember silver was flat for the year as late as August 23. Yet it miraculously skyrockets 81 percent by December 31 with gold going essentially flat.

    Now did everyone including The Morgue's supporters get that?


    http://messages.finance.yahoo.com/Bu...868&mid=381959

  7. #17

    Default

    Well if true or not I hope the price does go up as I always do...
    Hope for the best but prepare for the worst...

    Great Depression II, NWO, Economic Collapse, Mega Volcanoes, Mega Quakes, Mega Tsunamis, Global Warming, Ice Age, Earth Changes, Pandemics, Famines, Global Killer Meteors, Mega Solar Flares, Galactic Equator, Planet X, EMP, Armageddon, Executive Bonuses...


    Paranoid? Not I...

  8. #18
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    Feb 2010
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    Default

    Quote Originally Posted by polcat View Post
    I guess I wasnt clear enough in my explanation about what the hedge funds are about to do in the silver pits in February, so I'll try it again.
    In other words, "My story didn't actually make sense, so let's try again."

    Quote Originally Posted by polcat View Post
    Assuming a silver price of $30 and the known fact that Comex only has 105 million ounces of silver of which allegedly 50 million ounces are available for delivery, this is what hedge funds can do to earn 20 percent like they did last December.

    This hedge fund would purchase over 21,000 contracts and deposit 3.15 billion dollars ($30 X 105 million ounces of silver = $3.15 billion). Once March 1 comes rolling around, guess what happens?
    The futures market doesn't work that way. If the POS is $30, and they want to go long (sorry to use such technical terms!) 50Moz, that's $1.5B of silver they control, but they only put down around $100M. The other $1.4B gets put down when they stand for delivery (when trading ends for the delivery month).

    Quote Originally Posted by polcat View Post
    In December, the cash settlement was as high as 30 percent for some people and as low as 10 percent for others. The average was around 20 percent?
    This would be AMAZING news -- if it came from a reliable source, not somebody who might be a real source, but keeps writing things slightly differently from how they actually work.

    Quote Originally Posted by polcat View Post
    What happens to the sellers of contracts who "defaults" and cant deliver the silver? BANKRUPTCY and a seizure of all assets. Period.

    Either deliver the contracts that were sold or negotiate a CASH SETTLEMENT. No other choice PERIOD!!
    He's confused again. The short won't go bankrupt by not delivering (although he can and likely will be sued). His assets cannot be "siezed" willy nilly. Lawsuits take years.

    And it's not the shorts that do cash settlements; if it is really occurring, it's COMEX that does it.

    It's time for Story Version #3.

  9. #19

    Default Quagmire, I seriously doubt your post.

    Quote Originally Posted by Quagmire420420 View Post
    My inside source, who is just getting involved with a congressional thing on budget and finance (don't worry he is a good guy, worked for Ron Paul for many years and they are personal friends) informed me that silver will be around $40 in March and gold will be around $1600.

    I am inclined to believe that there are going to be some DAZZLING FIREWORKS SOON
    didn't you just post yesterday on the miners forum about having "600 unrealized loss" and your "sick" about it ?

    Just looked it up, you authored the thread. Now all the sudden you have "insider info" in a "congressional thing" and he's a "good guy" and he is "personal friends with - - - "

    Whether or not silver goes up to 40 is besides the point. I wish you all the best in your stocks and PMs Quag but I gotta tell you, one day your "sick" about your equity going down $600 and now a day later you have "inside sources" in Congress ? Come on Quag, ease up, my BS detector is ringin' on all 5 bells LoL

  10. #20
    Join Date
    May 2008
    Posts
    1,363

    Default Morgue Is About To Undertake A Major Raid On GOLD In The Hopes That Silver Will Sell

    This was posted by a member on Bill Murphys'( GATA ) LeMetropole Cafe this evening. I copied this from the hecla yahoo message board.

    "In an earnest effort to help as many silver longs as I can I will relay information as I know it.

    Major hedge fund traders are going to be buying hundreds of millions of dollars of March contracts during the last 3 weeks of February. The strategy is simple-force Comex to pay a hefty premium on contracts that CANNOT be delivered. Will this work? It worked like a charm in December. Those guys were all kicking themselves because they should have bought 10 times the amount of contract that they actually had in December.

    This time around, they are getting everyone they know to get involved in this trade. They will pool their money together in order to get a large number of contracts so that Comex will not be available to deliver-thus forcing a hefty premium. These former traders are gonna pull a train on Blythe with all their hedge fund buddies and there is not a thing Blythe can do about it.

    HOWEVER THERE IS A CAVEAT!!!

    These traders have gotten word in the last 48 hours, that Blythe and The Morgue is about to undertake a major raid on GOLD in the hopes that silver will sell off too. Therefore, these traders are advising their colleagues to refrain from buying March silver contracts unless silver breaks $31 again. Their understanding is that Blythe cannot effectivley execute a silver selloff but Blythe and The Morgue can still execute an effective GOLD SELLOFF.

    If and when this GOLD selloff comes, scheduled for this Friday or perhaps next week at the latest, Blythe is hoping that gold will break $1300 and go as far down as $1250. Blythe will be short selling intermitently in the silver pit but her main goal is to cover as many silver contracts as possible.

    Once this Gold induced selloff is done watch for the mother of all rally in the silver pit. The hedge funds will be buying like crazy, but the MAIN assault will not take place until February wheren these former traders expect a rise of at least $10 (which was what happened to silver from October going into December).

    December was just a dry run (RAID) on the Comex. The success and ease of that RAID has emboldened these traders to re-try the same scheme with a lot more money this go around (March delivery). The only defense Blythe has is to engineer a GOLD SELLOFF in the next two weeks in order to suppress silver so that she can cover her SILVER contracts.

    So yes, I am very bullish on silver since I know that Comex cant deliver this March, but am expecting a selloff from a gold induced intervention.

    I have been tasked by Blythe's former traders to spread the word about the fact that there is not enough physical silver in the world to cover The Morgue's short contracts. That is my role.

    I hope this has been helpful.

    If this is true things are about to heat up!! "

    GO GATA!!!
    Dave Erfle

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