Get ready for even less physical silver to be available.

Discussion in 'Commodity Futures' started by peilthetraveler, May 10, 2011.

  1. Everyone wants to be a hunt brother.

    http://kiddynamitesworld.com/sprott-to-launch-silver-bullion-mutual-fund-but-why/

    Sprott is going to buy up tons of physical silver to launch this mutual fund. Its looking like the big boys are positioning themselves for the collapse of fiat money. A fund like this and PSLV will help keep spot price in line with actual physical silver demand.


    $38 is cheap silver. Buy now, or reget later just like you all regret not buying silver at $5-$10per oz.
     
  2. 20 bid right here...

    Why are you so desperate to puff people into this trade? You that worried that being long is wrong?
     
  3. Crispy

    Crispy

    Im a physical gold holder, have been since 2007. But I gotta admit, this silver fever ferver is extremely annoying. It makes me want to see SI go to 5 bucks tomorrow am and wash the entire mkt out...

    Stop being a damn pumper and quietly count the stack if you`re a physical investor.
     
  4. I thought the purpose of these message boards was to give information. Why am I a pumper because I am telling people that alot of silver buying is going on. If I told you all some information that the US military is going to order 100 million tons of wheat this summer to feed the poor in iraq & afghanistan, would I be a pumper for giving that info too? If I told you all news of a disease that affected 20% of all live cattle and made its meat unsuitible for human consumption, would that make me a pumper too?

    Somehow I'm a pumper though when I give news about silver.
     
  5. Exactly. He sounds kinda desperate
     
  6. is there a news like that? or is it just an example?
     
  7. A good post from another ETer:

    Some food for thought for those complaining about the evil margin increases:

    CME SI Silver Stats

    Data pulled from here: http://www.cmegroup.com/clearing/ri...al-margins.html

    4/30/2010 – Price $18.5, $5737 margin
    12/17/2010 – Price $29.14, $10462 margin
    Price Increase: 57.5%
    Margin Increase: 82%

    12/17/2010 – $29.14, $10462
    5/2/2011 - $48, $14513
    Price Increase: 64.7%
    Margin Increase: 38.7%

    The 8 preceding sessions to 5/2/2011 included a ~20% appreciation in price of SI. Clearinghouse/exchange collateral model has elasticity built into it so it doesn't adjust too quickly on one-off events. Over the past 10 years, all margin increases have lead to immediate price "appreciation" (immediate 10 sessions post adjustment) 76% of the time. Of those that did not appreciate, roughly 17% of remainder events dropped less than 2%.

    The above margin stats were likely based off only price (leverage ratio). The closely followed adjustments on and after May 2 were based on spike to historical intra-day volatility (Hit 80+ I believe?). Nearly $4 move in 4hrs for ex. That is insane on a contract worth 5000oz.

    This "margin increase" story was just a media/precious metal marketing machine scapegoat to cover the true identity what has occurred: a far over-heated market that appreciated 90% in 3 months built on the back of hugely speculative investor demand.

    Total 2010 investor demand accounted for approximately 142MM oz of total 950MM oz demand (15%). This segment can drive it a great length on a reasonably tight S&D curve, but only so far until it snaps back to reality.


    ----------------------------------------------------------------

    15% of demand is from investors, some of whom wear tin foil hats.

    Yes, silver is a great store of value.

    No, there's no paucity - you can buy silver now if you want to.
     
  8. Just an example. :)
     
  9. Hahahaha, so you just offer this purely objective, unbiased info to us eeejits out of the goodness of your heart? I don't know what to say, I am all choked up with gratitude. In fact, I am so grateful, I'm moving my bid to $20.5. Just for you, 'cause you're such a stand up guy, peil.
     
  10. jprad

    jprad

    You're daft if you think that any person, fund or other non-government entity will still be holding physical silver, or gold for that matter, after a fiat collapse.
     
    #10     May 10, 2011