Silver prices dropping

[Rodebaugh]

Mortgaged the farm and am all in on Comex futures @ 26.72

So far so good...The system prevails.

Looks like it may be time to buy a larger farm with all of those profits. Nice call JFF

[Jonflyfish]

Mortgaged the farm and am all in on Comex futures @ 26.72

Ok- Starting to unwind from here ($33.72) to go buy a bigger farm.

Cheers!

[Deathwish_DW]

You probably made bank

[coppertone]

Nice job!!

[Jonflyfish]

Thanks guys. Never know for sure in advance of course.

Cheers!

[Jonflyfish]

Ok- This is where some gains are- $34.05

[Country]

Jonfly - Is JPM and friends covering their shorts as the worldwide hedgies put on their squeeze? Sure looks like it....

[68Camaro]

I don't think this is a "normal" run-up. A rise was somewhat due, but this is magnified by the world events. People all over the world are buying. There are (probably temporary) shortages of smaller amounts (big bars seem to still be available) as supply of small forms is depleted. While I believe in a long-term continued run-up, I'm personally hoping we get at least one more major pull-back so I can consider one more (and possibly last) volume purchase.

[Jonflyfish]

Jonfly - Is JPM and friends covering their shorts as the worldwide hedgies put on their squeeze? Sure looks like it....

Spent last week in London working on a major metals trading project for one of the principal members of the LBMA for Loco London and the LPMC.
They were long thousands of 1000 oz bars to benefit from the market development. It is quite fascinating to note that when it comes to silver, they refer to their trades and positions in terms of tons (many). A typical gold transaction is xx thousands of kilo bars.

As a side note- because of the bulk, silver transactions are transported by vessel, whereas gold is shipped via air.

[68Camaro]

Corporations operate in the billions - most of us here are operating in the teens, hundreds, maybe thousands at most... Big difference in scale! I would love to see one of those vaults!

[argent_pur]

Corporations operate in the billions - most of us here are operating in the teens, hundreds, maybe thousands at most... Big difference in scale! I would love to see one of those vaults!

I don't know much about much, but this much I know---every time I buy one more gold ounce, a hair stands up on the neck of some COMEX gold trader a thousand miles away...

...it promptly goes back down and he shrugs it off as nothing important

[68Camaro]

Corporations operate in the billions - most of us here are operating in the teens, hundreds, maybe thousands at most... Big difference in scale! I would love to see one of those vaults!

I don't know much about much, but this much I know---every time I buy one more gold ounce, a hair stands up on the neck of some COMEX gold trader a thousand miles away...

...it promptly goes back down and he shrugs it off as nothing important

Ah, there is that other scale which I didn't include but you implied. There are millions, tens of millions of us. That, times one ounce at a time, eventually equals billions.

[68Camaro]

Overnight gold has stayed over $1400 and silver over $33. Any comments from the seasoned traders?

[Jonflyfish]

Corporations operate in the billions - most of us here are operating in the teens, hundreds, maybe thousands at most... Big difference in scale! I would love to see one of those vaults!

I don't know much about much, but this much I know---every time I buy one more gold ounce, a hair stands up on the neck of some COMEX gold trader a thousand miles away...

...it promptly goes back down and he shrugs it off as nothing important

Ah, there is that other scale which I didn't include but you implied. There are millions, tens of millions of us. That, times one ounce at a time, eventually equals billions.

The caveat emptor, and irony that perhaps warrants some thought, is that the LBMA is the single largest physical PM market. So, when the principal members trade, it is from the vaults and not solely FRN digits on a screen. Many are aware of JP Morgan and the confirmed reports about the financial shorts on the CME NYMEX COMEX. What isn't disclosed is the physical position (not the custodial accounts) of JP Morgan, one of the handful of LBMA principal members trading PM physicals in the largest physical transaction size market (not to forget about the LME industrial physical metal positions).

Blythe may have been caught with the proverbial smoking gun, but there is always more to the story than the obvious.
This post is not to defend JPM. Just thought it may be relevant info worth sharing.

[Jonflyfish]

Interesting level now at 31.86

[Jonflyfish]

Couldn't help myself. Felt obligated to scoop it up.

[argent_pur]

The caveat emptor, and irony that perhaps warrants some thought, is that the LBMA is the single largest physical PM market.

I knew I should've snagged that 1 oz. gold Britannia from ebay Seriously, though, I get what you're saying. There's alot of gold out there to buy...heck, I was on a different forum today where a guy was trying to move over 14 tonnes of it. There are many countries that don't have that much gold! I have a book written by a guy named Jonathan Spall (dir. of commodities at Barclays Bank) and he was saying that, among the pros, it is considered extremely unprofessional, even offensive, to conduct transactions of less then 5,000 ozs. of gold.

I've said before, although I don't think here, that we won't see gold rise dramatically until BIG institutional money starts buying. A few central banks becoming net buyers is encouraging, but pension funds, mutual funds, hedge funds, 401k's---collectively have something like 1/3 of 1% of their portfolios in gold (paper, mind you, not physical).

Edit: Going back to a gold-backed int'l currency would also do the trick...

[Jonflyfish]

The caveat emptor, and irony that perhaps warrants some thought, is that the LBMA is the single largest physical PM market.

I knew I should've snagged that 1 oz. gold Britannia from ebay Seriously, though, I get what you're saying. There's alot of gold out there to buy...heck, I was on a different forum today where a guy was trying to move over 14 tonnes of it. There are many countries that don't have that much gold! I have a book written by a guy named Jonathan Spall (dir. of commodities at Barclays Bank) and he was saying that, among the pros, it is considered extremely unprofessional, even offensive, to conduct transactions of less then 5,000 ozs. of gold.

I've said before, although I don't think here, that we won't see gold rise dramatically until BIG institutional money starts buying. A few central banks becoming net buyers is encouraging, but pension funds, mutual funds, hedge funds, 401k's---collectively have something like 1/3 of 1% of their portfolios in gold (paper, mind you, not physical).

Interesting and thank you for commenting. BarCap is a principal member of the LBMA and the offensive trade there is anything less than $1mm in value and the common trade is in increments of x * 1,000 kilo bars of either .995 or .999 gold bars.

[argent_pur]

The further east you go, I think, the more .999+ becomes more common, I think I read that somewhere. 99.5% is the minimum standard of purity for LBMA 400 oz. bars, is that right?
Also, on the subject, I have a quick list here of the market-making members of the LBMA: (for everyone's enjoyment and info.)

Bank of Nova Scotia--ScotiaMocatta
Barclays Bank PLC
Deutsche Bank AG
Goldman Sachs Int'l
HSBC Bank USA NA
JP Morgan Chase Bank
Mitsui & Co. Precious Metals, Inc.
Royal Bank of Canada Ltd.
Societe Generale
UBS AG

Bear Stearns used to be on that list...have they been replaced or did I leave anyone out JFF?

[Jonflyfish]

argent_pur-
There are full memebers, market making members and then there are the members of the London Precious Metals Clearing limited, who are at the top of the food chain.
This list includes- BarCap, Deutsche , HSBC, JP Morgan, Scotia, and UBS.

The dealings are specified up front if they are in .995 or .999 since they are handled differently (Brinks) between different vaults.

[Jonflyfish]

Interesting level now at 31.86

Feeling lucky

[Jonflyfish]

Interesting level now at 31.86

Tight stop trail from $33

[Jonflyfish]

Dynamic stops trailing at 32.89 for half and 32.73 for the other half.

[Jonflyfish]

Some gains taken @ 34.47

[Jonflyfish]

Another slice out @ 34.63