Comment

Comment by Maria De Wind on May 2, 2011 at 8:32pm

Why People are Buying Silver Now!

(At $40-50/oz., it's better than all the alternatives!)

Silver Stock Report

by Jason Hommel, Feb 5th, 2011

In April, we had a record month in buying and selling silver and gold.  Business volume increased 57% over our prior month's record.

Many customers are walking in, and saying, "I need silver."  Not "I'd like to buy".  Not "I want".  But "I need." 

Most of our customers mention that they are aware of the recent government budget battle and near shutdown of the government.  People are aware that the government's budget is short by $1.6 trillion, which is $1600 billion dollars-- that they are printing, to meet the "need," and yet, the political parties were arguing over a mere $30 billion difference.  (And yet, investment demand for silver stands at a paltry 250 million oz., at $50/oz, which is a mere $12.5 billion.)  Our customers are aware that there is zero political will (neither among the politicians, nor among the population) to even remotely fight for something close to a balanced budget for nearly the next two years, until after the next election in the fall of 2012.  They say it would be one thing, if the budget fight was whether to cut $500 billion to $700 billion from the budget, but it was nothing like that.  They are aware that the current crop of politicians are so weak, and so ineffectual, even with the new tea party tax cutters in office, that inflation is guaranteed for the next two years or many more.  People are aware that the entitlement mentality in America is now so strong, and since so many people are "on the dole" from the government, that they will likely continue to vote for more government spending for decades to come.

I'm 41.  For the first time in my life, an older customer actually apologized to me.  He apologized as a representative of the older generation, to me, as a member of the younger generation, because America has been destroyed on their watch, and they know that they made our lives worse by stealing our freedoms, and by increasing our tax burden.  But he said he did not know what to do about it.  And I said that buying silver is far more than enough.  After all, if voting counts, and if writing letters counts a thousand times more than voting, then buying silver counts a thousand times more than writing letters!

In my opinion, our customers should not be so concerned with the current new money printing, as much as they should be over all the prior money printing over the past 100 years, that has yet to show up as demand for real money. 

Money in US banks stands at about $18 trillion.  If 1% of that money were to be spent on silver, it would be $180,000 million.  But with only 700 million new oz. of silver mined each year, that implies a price of $257/oz. for silver, which would leave no silver left over for industry or the rest of the world.  Since industry and the rest of the world will need silver, too, this implies that silver prices will hit about $500 oz. or more by the time a mere 1% of money in the US tries to buy silver to protect itself from inflation.

In fact, many people are now realizing that price is simply not a factor.  They know that silver, at any price, is better than paper, or nearly all the alternatives.  They know that paper is merely paper, and silver is something real.  Some people are now realizing that plastic forks will likely outperform the dollar now, due to inflation.  People are now realizing that any real good is better than paper money.

But plastic forks don't do the job.  They cost about $1 a box.  Nobody wants to try to store, and then later re-sell, 100,000 boxes of plastic forks. 

Even copper can't do the job.  A copper brick that weighs 33 pounds recently sold for about the same price as a 10 oz. bar of silver.  The silver is infinitely more portable and practical.  The copper brick also had a 100% markup over the value of the copper in it.  That leaves silver and gold as the only real alternatives.

None of the other major investment alternatives are even remotely attractive now.

Bonds pay next to nothing, a tiny fraction of 1% at the bank.  Yet inflation is over 10%, guaranteeing your loss.  And as interest rates must rise, bond values will be guaranteed to go down both numerically, but also in value as the dollar drops.

Housing remains a basket case of woes, as the banks are sitting on properties that are decaying, and prices will continue to plummet.

Stocks are still trading at up to 50 times earnings in many cases, and earnings are often fraudulent.  Companies are also in debt up to their eyeballs, and won't survive interest rate hikes.  Besides, most baby boomers will be selling stocks for their retirements to live on, and so, stocks will go down for the next two decades or so.

April was crazy.  We had 2-3 people in the shop nearly non stop all month long. A few days, I never had a chance to eat lunch.  I'm sorry I've not had time to write.  I've been exhausted, and stressed.

Being a precious metals dealer in this environment is very difficult.  Setting the price for metals is also difficult.  If our prices are too low, we risk selling out, and then our labor and shop will be wasted.  And if our prices are too high, product won't move, and then the capital is wasted.   We must sell a minimum, just to pay the rent, ads, and wages of our 5 workers.  The free market keeps our prices honest.  Also, many other suppliers are getting backordered, and delivery times are increasing, or no metal is available at all, at any price.  How do we deal in such an environment?  How do we set prices if I cannot replace the exact product from any other dealer?

And then, tonight, silver prices dropped 11.5% in a few minutes, from $48 to $42.  How can a dealer deal in such conditions?  The underlying spot price is supposed to be rather stable.  President Nixon fixed wages and prices when inflation exceeded 4% in an entire year.  Prices are not supposed to move more than that in a year.  Clearly, manipulation still rules the day. 

To cope with the price volatility, I have widened our spreads, that is to say, I have increased the price that we sell, and lowered the price at which we buy.  I apologize, but I didn't create the national conditions under which we now live and must all figure out how to adapt to, but rather, I've fought against them my entire adult life.

I urge you to buy real silver, while real silver is available.  It won't always be available!  Some kinds are NOT available now, not at any price!  Consider the alternatives.  Can you go to Wal-Mart and fill the largest U-haul you can rent with $50,000 worth of goods on a Saturday?  Would you want to, if silver or gold were not available?  Would that even be feasible?  Would the shelves of the mega stores be empty if that were the only alternative?  Prepare now.  It's getting crazy out there, and the hurricane of hyperinflation is just about upon us.

Please follow me on Facebook.  So much has happened over the last two weeks, I've not had time to write.  Osama Bin Laden is dead.  Does this mean the three US wars will end, and the dollar will get stronger?  No.

Obama released his Birth Certificate, showing his real father is not an American, thus proving him ineligible to be "natural born" under the Constitution.  

Ron Paul formed an exploratory committee to determine if he should run for President again.  See www.ronpaul2012.com.

Visit my facebook page, to find these links, my comments on these links, and comments from others on these links, in the past two weeks.

http://www.facebook.com/jason.hommel

http://silverdoctors.blogspot.com/2011/04/where-has-silver-come-from-and-where-is.html

http://blogs.wsj.com/deals/2011/04/30/buffett-on-the-dollar-gold-and-oil/

http://numismaticnews.net/article/Buyers_sellers_flock_to_silver/

http://www.fool.com/investing/general/2011/04/29/warning-silver-will-fall-by-66.aspx

http://www.zerohedge.com/article/paul-oneill-people-who-refuse-raise-debt-ceiling-are-our-version-al-qaeda-terrorists

http://www.facebook.com/photo.php?fbid=10150166363962245&set=a.441224162244.230274.647792244&type=1&ref=nf

http://fofoa.blogspot.com/

http://harveyorgan.blogspot.com/

http://lemetropolecafe.com/

http://gata.org/

http://dont-tread-on.me/picking-a-fight-with-5-silver-traitorstraders/

http://silverliberationarmy.com/

http://www.smartmoney.com/investing/economy/6-signs-the-silver-market-has-gone-nuts-1303502720960/

http://www.thestreet.com/story/11090806/1/why-silver-prices-wont-quit.html

http://www.safehaven.com/article/20736/more-silver-than-you-imagined

=====

I strongly advise you to take possession of real gold and silver, at anywhere near today's prices, while you still can.   The fundamentals indicate rising prices for decades to come, and a major price spike can happen at any time.

Follow me on facebook!
http://www.facebook.com/jason.hommel 

Or Youtube!
http://www.youtube.com/user/bibleprophesy

JH MINT & Coin Shop, Grass Valley, CA -- minimum order $5000 for free shipping, USA shipping only.
Open 10AM to 5PM Pacific Time, Monday to Friday, closed weekends and bank holidays.  
www.jhmint.com
(530) 273-8175
Kerri and/or Jay and/or Cody handles internet phone orders:
kerri.jhmint@yahoo.com
(530) 273-8822

Comment by Locutus on May 2, 2011 at 1:46am

Comment by truth on May 1, 2011 at 10:12am

Americans Will Flock Into $5,000 Gold and $500 Silver http://snardfarker.ning.com/video/americans-will-flock-into-5000

Comment by truth on May 1, 2011 at 10:11am

People are Cashing In Their IRAs Early To Have Physical Silver Regardless Of Penalties!

Comment by Nikki on April 28, 2011 at 8:06pm

Comment by truth on April 28, 2011 at 8:49am

How The Comex Lost 20% Of Its "Registered" Silver In One Week, Or W...

Comment by Anti Oligarch on April 27, 2011 at 8:33pm

Andrew Maguire & Adrian Douglas: Discuss What Could Be the Largest Fraud in History – Andrew is an independent metals trader turned whistleblower at the center of a storm for exposing what could be the largest fraud in history involving countries, banks and government leaders. Adrian Douglas Board of Director from GATA, the man who Andrew reached out to joins in this interview where they discuss a fraud so extraordinary and so unimaginable that it is the kind of thing that only happens in hollywood thrillers. They also discuss the CFTC sponsored meeting on metals which was an unmitigated disaster because it additionally exposed the fraud on a grander scale.

Full interview here.

Andrew Maguire’s documented e-mail exchange with the CFTC:

A LONDON TRADER WALKS THE ‘CFTC’ THROUGH A SILVER MANIPULATION IN ADVANCE
By: Andrew Maguire

* * *

From: Andrew Maguire

Sent: Tuesday, January 26, 2010 12:51 PM

To: Ramirez, Eliud [CFTC]

Cc: Chilton, Bart [CFTC]

Subject: Silver today

 

Dear Mr. Ramirez:

 

I thought you might be interested in looking into the silver trading today. It was a good example of how a single seller, when they hold such a concentrated position in the very small silver market, can instigate a selloff at will.

 

These events trade to a regular pattern and we see orchestrated selling occur 100% of the time at options expiry, contract rollover, non-farm payrolls (no matter if the news is bullish or bearish), and in a lesser way at the daily silver fix. I have attached a small presentation to illustrate some of these events. I have included gold, as the same traders to a lesser extent hold a controlling position there too.

 

Please ignore the last few slides as they were part of a training session I was holding for new traders.

 

I brought to your attention during our meeting how we traders look for the "signals" they (JPMorgan) send just prior to a big move. I saw the first signals early in Asia in thin volume. As traders we profited from this information but that is not the point as I do not like to operate in a rigged market and what is in reality a crime in progress.

 

As an example, if you look at the trades just before the pit open today you will see around 1,500 contracts sell all at once where the bids were tiny by comparison in the fives and tens. This has the immediate effect of gaining $2,500 per contract on the short positions against the long holders, who lost that in moments and likely were stopped out. Perhaps look for yourselves into who was behind the trades at that time and note that within that 10-minute period 2,800 contracts hit all the bids to overcome them. This is hardly how a normal trader gets the best price when selling a commodity. Note silver instigated a rapid move lower in both precious metals.

 

This kind of trading can occur only when a market is being controlled by a single trading entity.

 

I have a lot of captured data illustrating just about every price takedown since JPMorgan took over the Bear Stearns short silver position.

 

I am sure you are in a better position to look into the exact details.

 

It is my wish just to bring more information to your attention to assist you in putting a stop to this criminal activity.

 

Kind regards,

Andrew Maguire

 

 

* * *

From: Ramirez, Eliud [CFTC]

To: Andrew Maguire

Sent: Wednesday, January 27, 2010 4:04 PM

Subject: RE: Silver today

 

Mr. Maguire,

 

Thank you for this communication, and for taking the time to furnish the slides.

 

 

* * *

From: Andrew Maguire

To: Ramirez, Eliud [CFTC]

Cc: BChilton [CFTC]

Sent: Wednesday, February 03, 2010 3:18 PM

Subject: Re: Silver today

 

Dear Mr. Ramirez,

 

Thanks for your response.

 

Thought it may be helpful to your investigation if I gave you the heads up for a manipulative event signaled for Friday, 5th Feb. The non-farm payrolls number will be announced at 8.30 ET. There will be one of two scenarios occurring, and both will result in silver (and gold) being taken down with a wave of short selling designed to take out obvious support levels and trip stops below. While I will no doubt be able to profit from this upcoming trade, it is an example of just how easy it is to manipulate a market if a concentrated position is allowed by a very small group of traders.

 

I sent you a slide of a couple of past examples of just how this will play out.

 

Scenario 1. The news is bad (employment is worse). This will have a bullish effect on gold and silver as the U.S. dollar weakens and the precious metals draw bids, spiking them higher. This will be sold into within a very short time (1-5 mins) with thousands of new short contracts being added, overcoming any new bids and spiking the precious metals down hard, targeting key technical support levels.

 

Scenario 2. The news is good (employment is better than expected). This will result in a massive short position being instigated almost immediately with no move up. This will not initially be liquidation of long positions but will result in stops being triggered, again targeting key support levels.

 

Both scenarios will spell an attempt by the two main short holders to illegally drive the market down and reap very large profits. Locals such as myself will be "invited" on board, which will further add downward pressure.

 

The question I would expect you might ask is: Who is behind the sudden selling and is it the entity/entities holding a concentrated position? How is it possible for me to know what will occur days before it will happen?

 

Only if a market is manipulated could this possibly occur.

 

I would ask you watch the "market depth" live as this event occurs and tag who instigates the move. This would surly help you to pose questions to the parties involved.

 

This kind of "not-for-profit selling" will end badly and risks the integrity of the COMEX and OTC markets.

 

I am aware that physical buyers in large size are awaiting this event to scoop up as much "discounted" gold and silver as possible. These are sophisticated entities, mainly foreign, who know how to play the short sellers and turn this paper gold into real delivered physical.

 

Given that the OTC market (where a lot of the selling occurs) runs on a fractional reserve basis and is not backed up by 1-1 physical gold, this leveraged short selling, where ownership of each ounce of gold has multi claims, poses a very large risk.

 

I leave this with you, but if you need anything from me that might help you in your investigation I would be pleased to help.

 

Kind regards,

Andrew T. Maguire

 

 

* * *

From: Andrew Maguire

To: Ramirez, Eliud [CFTC]

Sent: Friday, February 05, 2010 2:11 PM

Subject: Fw: Silver today

 

If you get this in a timely manner, with silver at 15.330 post data, I would suggest you look at who is adding short contracts in the silver contract while gold still rises after NFP data. It is undoubtedly the concentrated short who has "walked silver down" since Wednesday, putting large blocks in the way of bids. This is clear manipulation as the long holders who have been liquidated are matched by new short selling as open interest is rising during the decline.

 

There should be no reason for this to be occurring other than controlling silver's rise. There is an intent to drive silver through the 15 level stops before buying them back after flushing out the long holders.

 

Regards,

Andrew

 

 

* * *

From: Andrew Maguire

To: Ramirez, Eliud [CFTC]

Cc: BChilton [CFTC]; GGensler [CFTC]

Sent: Friday, February 05, 2010 3:37 PM

Subject: Fw: Silver today

 

A final e-mail to confirm that the silver manipulation was a great success and played out EXACTLY to plan as predicted yesterday. How would this be possible if the silver market was not in the full control of the parties we discussed in our phone interview? I have honored my commitment not to publicize our discussions.

 

I hope you took note of how and who added the short sales (I certainly have a copy) and I am certain you will find it is the same concentrated shorts who have been in full control since JPM took over the Bear Stearns position.

 

It is common knowledge here in London among the metals traders that it is JPM's intent to flush out and cover as many shorts as possible prior to any discussion in March about position limits. I feel sorry for all those not in this loop. A serious amount of money was made and lost today and in my opinion as a result of the CFTC's allowing by your own definition an illegal concentrated and manipulative position to continue.

 

Bart, you made reference to it at the energy meeting. Even if the level is in dispute, what is not disputed is that it exists.

 

Surely some discussions should have taken place between the parties by now. Obviously they feel they can act with impunity.

 

If I can compile the data, then the CFTC should be able to too.

 

I would think this is an embarrassment to you as regulators.

 

Hoping to get your acknowledgement.

 

Kind regards,

Andrew T. Maguire

 

* * *

From: Andrew Maguire

To: Ramirez, Eliud [CFTC]

Sent: Friday, February 05, 2010 7:47 PM

Subject: Fw: Silver today

 

Just logging off here in London. Final note.

 

Now that gold is undergoing short covering, please look at market depth right now in silver and evidence the large selling blocks in a thin market being put in the way of silver regaining the technical 15 level, which would cause a short covering rally and new longs being instigated. This is resulting in the gold-silver ratio being stretched to ridiculous levels.

 

I hope this day has given you an example of how silver is "managed" and gives you something more to work with.

 

If this was long manipulation in, say, the energy market, the shoe would be on the other foot, I suspect.

 

Have a good weekend.

Andrew

 

 

* * *

From: Andrew Maguire

Sent: Tuesday, February 09, 2010 8:24 AM

To: Ramirez, Eliud [CFTC]

Cc: Gensler, Gary; Chilton, Bart [CFTC]

Subject: Fw: Silver today

 

Dear Mr. Ramirez,

 

I hadn't received any acknowledgement from you regarding the series of e-mails sent by me last week warning you of the planned market manipulation that would occur in silver and gold a full two days prior to the non-farm payrolls data release.

 

My objective was to give you something in advance to watch, log, and follow up in your market manipulation investigation.

 

You will note that the huge footprints left by the two concentrated large shorts were obvious and easily identifiable. You have the data.

 

The signals I identified ahead of the intended short selling event were clear.

 

The "live" action I sent you 41 minutes after the trigger event predicting the next imminent move also played out within minutes and exactly as I outlined.

 

Surely you must at least be somewhat mystified that a market move could be forecast with such accuracy if it was free trading.

 

All you have to do is identify the large seller and if it is the concentrated short shown in the bank participation report, bring them to task for market manipulation.

 

I have honored my commitment to assist you and keep any information we discuss private,however if you are going to ignore my information I will deem that commitment to have expired.

 

All I ask is that you acknowledge receipt of my information. The rest I leave in your good hands.

 

Respectfully yours,

Andrew T. Maguire

 

 

* * *

From: Ramirez, Eliud

To: Andrew Maguire

Sent: Tuesday, February 09, 2010 1:29 PM

Subject: RE: Silver today

 

Good afternoon, Mr. Maguire,

 

I have received and reviewed your email communications. Thank you so very much for your observations.

Comment by TheLasersShadow on April 27, 2011 at 2:11pm

On the 25th last Monday someone sold hundreds of millions of dollars worth of paper silver into the market to prevent a comex short.

 

But it was silver that JPMorgan et al were after…and did they ever do a number on it. Both Ted and I agree that the big rise in silver during the first seven hours of trading in the Far East was probably a short covering rally…especially the two dollar jump shortly after midnight New York time. Then it appeared that the usual not-for-profit seller was there to sell silver down below forty-nine dollars…and from there it stayed pretty steady until precisely 9:30 a.m. Eastern when it, along with gold, were trashed.

Silver got smacked for almost $3.50 before the bottom was in…and although silver recovered nicely from there…it only closed up about 40 cents on the day…instead of the $2.50 it would have closed up if ‘da boyz’ hadn’t pulled their bids.

If silver had closed up that $2.50…there would have been around $1 billion dollars worth of margin calls going out to the Comex short holders this morning. That was prevented from happening…and that’s not the first time the bullion banks have pulled that stunt during the last week of trading.

Comment by Swtnlovabl on April 27, 2011 at 12:51pm

Worst Trade of All Time – EC Sells 3,800 Tons of Gold for $280 Oz.

http://oilprice.com/Metals/Gold/The-Worst-Trade-of-All-Time.html

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