The Golden Truth: Silver Squeeze Coming?

Monday, November 1, 2010

Silver Squeeze Coming?

Take this intel any way you want to take it, I'm just passing on the information. This is from the highly recommended daily reading of the King World News blog:

A King World News contact out of London has confirmed that, “Massive Asian buying is going to squeeze the shorts in the silver market. Any reactions in the price of silver will be heavily purchased, and these buyers will take delivery of physical silver.” The source who wishes to remain anonymous agreed with Eric Sprott that this squeeze could take the price of silver to $50 in a matter of months.

Here is the link - I recommend bookmarking this site: LINK

My take: I have been wondering for the better part of 9 years when a big fund/funds/foreign central bank might take a shot at squeezing the living hell out of JP Morgan's absurd paper silver short and the U.S. Governement's absurd short position in gold (via leasing and its "fractional" bullion system - see Rome for verification that the "fractional" method of bulliion ownership/lending has been in place for thousands of years).

Is the Big Squeeze finally coming. All I can say is that we'll know when when we know and that I would not want to be short any part of the precious metals market when the Big Squeeze arrives.

12 comments:

EdwardoMonday, 01 November, 2010
Here's to JPM being reduced to dog squeeze.
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JesseMonday, 01 November, 2010
I have not yet found a link to a site showing the NAV and accumulation of bullion, but the introduction of the Sprott Physical Silver Trust is going to introduce about a half billion dollars of demand for silver bullion into the market. I can't believe he has not already secured sources, but probably has not yet taken delivery. When he brought out the Gold trust I was able to track the actual accumulation of bullion over a period of about two weeks.
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Dave in DenverMonday, 01 November, 2010
I guess you found it. I just got your "tweet" LOL.
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AnonymousMonday, 01 November, 2010
If this news is out there today, then why are silver and my silver stocks down today?
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Dave in DenverMonday, 01 November, 2010
Obviously the "market" isn't buying into it. On the face of it, it is an extreme piece of news. I'm sure it's being met with a high degree of skepticism/disbelief.

I'm not rushing out and going on margin based on this news. E tu?

But then again I have 90% of my money in this sector already.
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RothbardMonday, 01 November, 2010
Reports of the demise of (insert entity here) are greatly exaggerated at this point....until they are not.

Downfalls of any large entity take time and those who make predictions often look like fools...until they are right. Usually much later than anticipated.

I remember Michael Metz from Oppenheimer on PBS Nightly Business Report in late 90's early 2000's. He was the guy they trotted out to identify the bubble in Tech. On the other side, Joseph Battaglia (?) was always taliking of a new paradigm. Metz looked like he was an old-timer who didn't get it. Joe was a hot shot with an orange tan who went on about a new era.

Who was right and who was wrong? Depends on your time frame I guess.

Haven't watched hardly any CNBS and PBS Business in years, but when the meltdown was on I noticed JOseph make some appearances again. This time he was bearish and said essentially get out. I thought maybe he got religion.

Then I thought he may be clueless, as the market gained so much of the losses back.

Then I thought maybe he was a useful idiot to get the public to go the wrong way at pivot points.

Or he just isn't a good market timer.

Who knows, but it stuck with me.....
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AnonymousMonday, 01 November, 2010
Physical gold and silver are cool. But shares? Don't you think that after price of both metals rise significantly mines will get nationalized?
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Dave in DenverMonday, 01 November, 2010
I think that risk is greater in the U.S. than in eastern hemisphere countries. We are seeing the east shift toward more freedom and the west, especially the U.S. shift toward totalitarianism.

I haven't watched that latest NIA video yet but I'm sure that's what it's about w/respect to the U.S.

What you point out is always a risk. I think I can ride the shares far enough and time my exit ahead of that possibility.

Of course, if that happens in the U.S., you have to ask yourself if you want to continue living here. Jim Rogers already made his decision about that...
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Joe KernanMonday, 01 November, 2010
They'll be nationalized alright. By the Chinese! LOL!
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AnonymousMonday, 01 November, 2010
Hi

I am from Mumbai, India. I am following your blog for quite some time. In Mumbai there is a huge demand for Gold and Silver in physical form at present. The prediction was this Diwali (a major festival in India which is starting this week and a big event for all Indian household when we buy Gold and Silver every year) Gold and Silver demand will fall because of high price. But I just saw a news artcile today in one leading Indian daily that this time Gold and Silver demand is at record high level defying the earlier logic of high price dampening demand. I used to purchase Silver Bars from TBZ Thane, Mumbai who are one the oldest & biggest dealer for Gold & Silver in India. Surprisingly last weekend when I visited them for buying Silver I was told that they have stopped selling Silver and Silver ornaments for the time being as there is shortage in the market and TBZ wants to hold their physical position.

Definite the demand from India is huge and specifically silver is getting hoarded in physical form.

Rana
Mumbai
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Dave in DenverMonday, 01 November, 2010
Hi Rana. Thanks for you comment. That's great color!
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AnonymousWednesday, 03 November, 2010
Dave, Rana,
If you want you can try at NIBR at Zaveri bazar/Paydhoni area. They would have 800-900 gm raw silver bricks/bars. They would be cheaper by almost 7-10% from TBZ, Thane, Mumbai. Here is the address and link http://www.nibr.in/contact.html.
Contact Mr Ajay Arora, if you want to buy more than 3-4 Kg or more. I don't think there is any shortage. When I was there last time and seen people have asked 10 Kg Gold and no eyebrows were raised.

Dave: Some GK about this area, this area called in Hindi "Paydhoni", when I visited this area last time, the taxi driver was joking, "Sir, here Money is washed like no tomorrow". English translation of "Paydhoni" means "KICKWASH".

Rana: let me know if you have any problems.

From India.
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Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.