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Scary silver story?

I checked my silver records again this morning. Today is the 24th trading day since the April 29 peak price of $48.58 a troy ounce that coincidentally occurred during the Central States Numismatic Society convention in Chicago.

In 1980, the close on the 24th day after the record high was set was $34.56 a troy ounce. Checking the Kitco site as I write this I see the current price is $35.24. A lot can happen in the next few hours, but I still find it remarkable that there is only a 68-cent difference for days 31 years apart.

On other days in the last few weeks, the gap was even narrower.

I should also note that two days ago, the close on the 22nd trading day after this year’s peak, silver’s price was $37.69 as compared to a price of $31 in 1980. Obviously, there is a price swoon and recovery in the 1980 pattern that has not occurred in 2011.

Mark Twain said history doesn’t repeat itself, but it rhymes, so we will have to continue to wait until June 21 to see if silver in 2011 resists the complete breakdown it suffered in 1980 by falling under $30 on the 36th day of post-record trading.

In 1980 that breakdown took silver all the way down to $10.80 just 49 days after the high was put in.

Will it happen again?

Perhaps.

Or this information could turn out to be just an adult version of the summertime scary camp-out stories that were told at night around the fire when I was a kid.

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2 Responses to Scary silver story?

  1. Tom Snyder says:

    I’m sticking to the ratio of 40:1 with gold. Today is 42:1 which is a little cheaper but not a “MUST BUY”
    At 48.58 it was 31:1 which was my “MUST SELL” A few months ago the ratio was 62:1 = “WHO KNEW?” I hefted a 1,000 ounce bar off the table of a dealer in January who wanted $25,000 for it.
    “Woulda, Coulda, Shouda” ! ! !

  2. AHEPLER says:

    Our banking cabal is doing every thing to drop silver, they would love to see it go to zero for that matter as they could cover their short postitions. What ever the price drop, keep your physical silver and not on paper….you will be rewarded for your patience. Here is a link which will document the entire story and the articles are written way before the price increase….hope you fine it interesting.

    Some very interesting changes in Silver on the CFTC’s May Bank Participation Report. Here’s the link to the report:

    http://www.cftc.gov/dea/bank/deaMay11f.htm

    As expected the net short position has been significantly lowered but not to the extent that I thought it would given the size and scope of the Silver Slam.

    US Banks
    April Long: 825 May Long: 1,783
    April Short: 25,412 May Short: 20,613

    So the net result is a covering of 5,757 contracts or 28,785,000 ounces. Not bad for a months worth of market rigging.

    But here’s the real interesting part of the report. A while back JP Morgan complained to the CFTC that by listing the number of US Banks in the report the CFTC is revealing where the concentration lies because there were only 2 banks on the short side. This, JPM claimed, was illegal and the CFTC changed their reporting format to keep JPM happy. Now when there is less than 4 banks they will not report the number of banks at all. They leave it blank. But once the number of reporting banks hits 4 they will list the number again.

    Voila! The April report has no number listed but the May report lists 4 banks in the US Bank category.

    Here’s what I think this means…

    First you must understand that the rigging of the silver market is part of the entire Banking Cabal’s rigging system and not just a JP Morgan operation. The silver “Hot Potato” is the concentrated silver short that must be maintained and managed to rig the price of silver. Aig had it then pawned it off to Bear Stearns and then it landed in the lap of JP Morgan. With the recent announcement of potential silver Position Limits JPM was way off-sides with a 25,000 short contracts concentrated position as the limits were being suggested in the range of 7,000-8,000 contracts. So JPM needed to either cover around 17,000 contracts OR they had to transfer these positions out of their account to other members of the banking cabal.

    That’s where I think the new 4 bank revelation came from. The Banking Cabal used the massive volatility in the latest Silver Slam to both cover 5,757 short contracts as well as TRANSFER 13,000-15,000 contracts to other US Banks who are in on the manipulation.

    Now JP Morgan may be below the position limits required by the new CFTC Laws.

    Going forward the Banking Cabal will have to continue to coordinate between each other to manage the Silver Hot Potato but that’s nothing new with these crooks.

    Do I think this will allow them to rig the markets FOREVER?

    No. At any moment the Good Guys can take them down by taking delivery of physical silver.

    “When?” is the only question we have left to discover.

    The battles continue.

    Bix Weir
    http://www.RoadtoRoota.com

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