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.

    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


    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:

    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


    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