Friday, April 29, 2011

The battle intensifies...

Quick post for you as it is a busy couple of days for me.

Another interesting day for silver.

On a day when Gold surged $30 per ounce, Silver goes into the weekend down $0.54?

Even more contrary is the fact that in the after market hours Silver was pounded down $0.60 in less than 3 minutes and is down a total of $0.80 in the GLOBEX.

It is clear that the Cartel spent the day doing everything they could to keep Silver restrained.  For many analyst's it is all about surviving the May settlement in Silver.

How else to explain that, for the second time in less than 48 hours, the CME has raised margins on Silver trading. First it was for 9%, the second for 10%... in just one week!!

Following up on this, MF Global (run by former Goldman CEO Jon Corzine) has joined the fray and has hiked its silver margin to $25,397.

That's a hefty margin.  The CME margin is $14,513, or about 6% of the contract value of $241,750 if you assume a silver price of $48.35. That means MF Global's margin is 175% of the CME!

Meanwhile the media over the last two days is filled with a plethora of articles trying to tell you that silver has topped.  At the same time sell side analysts continue to raise or even maintain year end price estimates. This is important because year end estimates are critical to the calculation of miner share price forecasts.
What we are witnessing is truly an epic battle over Silver.

As analyst Turd Ferguson notes, "this 'topcalling nonsense' is just that. Since when has any market topped while everyone was telling you to sell. I'll tell you when...NEVER! Markets 'top' when the last buyer has bought... when there is no fear and no perception of risk. Is that today's silver market? Hardly! The fact that so many douchebags are trying to convince you to sell your silver is simply a sign that silver will trade even higher. 'Climbing the wall of worry', as they say."

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1 comment:

  1. There's a lot of discussion in the mainstream news media in Canada about the massive (total) debt the United States has, but so far I have not seen any discussion of the massive (total) debt we in Canada have, a massive (total) debt that is skyrocketing higher at a very alarming rate as we speak. The politicians and the mainstream news media absolutely refuse to discuss this issue.

    (Click on the link at the end of my post to find the links which back up all of the statistics I am using in this post.)

    The total Government (Federal, State, and Local), business, and household debt in the United States is 52.6 trillion$

    The total Government (Federal, Provincial, and Municipal) business and household debt in Canada is 4.51 trillion$, and it went up an eye-popping 248 billion$ over the last 12 months. To put things into perspective the (Canadian) Federal Government`s program spending in the year 2010 was 245 billion$

    Since the United States`s population and gdp are approximately 10 times higher than Canada`s, there is not a lot of difference in the total debt numbers in the USA (52.6 trillion$) and the total debt numbers in Canada (4.51 trillion$), relatively speaking.

    The total Government (Federal, Provincial, and Municipal) business and household debt to nominal gdp in Canada is 278%

    In the year 2010 the total Government (Federal, Provincial, and Municipal) business and household debt in Canada grew 2.46 times faster than its nominal gdp (economy) did.

    Our economy is one big ponzi scheme, and a "day of reckoning" is just around the corner. When it comes, it is not going to be very pretty.

    Canadians and their Governments: Digging the hole deeper and deeper