At MAX: JP Morgan will default on silver within two months LIVE UPDATES

reply to post by Skerrako


So, what's your point? I lose everything in my retirement cuz of this? Cuz if so, need to go to perhaps Plan B?

Originally posted by mkkkay
reply to post by AmethystSD

 

Sorry but just had to post

We fix the price of gold and silver to make them valuable or not. - J.P. Morgan, in a letter to his son.

So it's all rigged?
Just like wrestling?

reply to post by queenofsheba


No, the silver default does not in itself mean that you will lose your retirement. It means that JP Morgan will have to do one of three things:

1. incur massive losses because they will have to buy silver on the open market (maybe leading to a crash)

2. Close out all silver contracts and pay cash, leaving many people upset they they now have dollars instead of silver.

3. Declare bankruptcy and suck on the taxpayer tit for more bailout money

If my retirement was with JP Morgan I would be worried because the company is basically a "dead man walking" but they will not be able to touch your accounts.

I do believe that down the road 401k's will be seized by the government when the financial system begins to fail (and used to buy bonds), but we are probably years away from that, although the silver default will be a step down that road

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I do believe that down the road 401k's will be seized by the government when the financial system begins to fail (and used to buy bonds), but we are probably years away from that, although the silver default will be a step down that road

I was thinking about that too, if they did seize all 401k and transfer them to T bill wouldent that make the stock market crash after pulling out and selling trillions in 401ks?

reply to post by camaro68ss


The market would have been nearly totally crashed by then anyways.

When under duress, all governments act like animals, seeking only to protect itself and it's power structure

reply to post by Skerrako


With the date you give being August 5th, do you see another possible drop in silver knocking it down under $30 before August?

Also what are your speculations of what silver will be this time next year? I thought I read your low of being $100………….What is your speculation of a high with all the economic issues and wars looming in the middle east……..?

reply to post by Cloudsinthesky


Yes there is a chance it will dip below 30, just like we saw in between QE1 and QE2 precious metals (and rare earths) dropped across the board. Once QE2 was announced they jump right back to the previous trendlines.Im not saying it will dip below $30 but it will certainly get close (until the inevitable QE3 announcement)

To your second point about the price of silver by the end of the year let me say this: It is a very tough call. The reason is that once silver is solidly past the $50 mark (probably around $55) there will be nearly no one selling silver because no one ever has bought it for higher than $50. This will cause the silver short squeeze out into the open, and the price will skyrocket. It is impossible to tell where it will stop because this is a once in a lifetime phenomena. Where ever it does stop will be the new floor for silver, and it will not be as low as it is now for at least the next 50 years.

Let me also say that my predictions are based on the physical price of silver (not spot). If spot price is $35 but retailers are selling a monster box for $50/ounce, then the real price is $50. Although once JP Morgan implodes the spot price will probably sync up again with the physical

So my prediction is that the price will be around $120-150 an ounce by the end of Q4.

But again, picking that number is near impossible, its like trying to count all the stars in the sky. You know there are a lot, but you can never get an accurate count

That's what a free market should be!

Two NEW developments to note.

1.As of today's CME Report, there are 42,810 open contracts for July's contract. That amount of open interest represents 214,050,000 ounces. (42,810*5000). Set against 28,000,000 Comex ounces?

Thats a recipe for trouble

www.cmegroup.com...

2. Here is an entry from a silver blog that is predicting the short squeeze on silver a month before me, somewhere between July 5-7. Everyone knows the default is close, but when is anyones guess.

BLOG

anything under $30 would deplete the comex within 24 hrs of what little or no silver it already thinks it has. Hopefully, people realize by now that my 30 day countdown is still in effect. July 5-7 is the end game for this place of trade. If its not, they will magically make up some arbitrary number overnight, saying they found some 34 million ounces or some insane #story like that.

reply to post by Skerrako


I figured you would know if there is any truth to the gold/silver OTC band coming in July?

reply to post by Cloudsinthesky


Well, it is certainly true, but not that big of a deal that many are making it out to be. Basically it stops some highly leveraged FOREX paper trading. However another large exchange (CMC) is suspending OTC metals AND stopping all gold and silver futures.

My opinion: Everyone knows that the silver shortage is close, and these private exchanges are just trying to minimize their exposure to the coming shortage. They are essentailly stopping paper trading on their own now, so that when the shortage is exposed by August their hands will be "clean".

It's like a game of musical chairs, someone is going to be left out at the end, and FOREX and CMC did not want to be without a chair

India's gold and silver buying increases 222% from April to May.

The import of gold and silver by India has risen by a whopping 222% between April and May 2011, as compared to a year ago. In the month of May alone, imports were a staggering $9 billion, with gold demand growing 25%.

Source

by the end of June they will have imported all the gold and silver for the years quota, but something tells me that they arn't going to stop....

Apologies for not being 100% on topic about how JPM screwed the pooch but has anybody been able to get physical delivery lately? I usually order from one of the larger metals dealers and am wondering if I should expect any delivery if I pick a little more up. Was considering selling some at the recent top but was concerned that I would not be able to pick more up during this trough before things go a little atmospheric.

Any chance JPM is holding the debt on that credit default swap from when Goldman cooked Greece's financials? If they are screwed anyway, why not pile it all on them. heh

Skerrako,

What is your opinion on Hong Kong ( HKME ) getting into silver contracts?

reply to post by Cloudsinthesky


Interesting that you would ask, because I was planning on making a post about it today.

The Hong Kong Mercantille Exchange opened about 2 months ago with only gold contracts, and has not made much of a difference on the world market. New York exchange trades anywhere within 100-350,000 contracts a month, and the HKME's is still under 5,000.

That being said, silver is a completely different game. Silver has long been known as "the peoples money" for a reason.

I think the within the first month of silver trading on the HKMX you will see a vast 15-25% difference in price than we see here. Not only have Chinese investors been flocking to silver, the government is telling it's citizens to buy silver as well! (there is a link to that story in this thread somewhere) The new emerging middle class in China will be buying silver at an even greater rate now that the exchange is more localized. Just in time for the burying of JP Morgan and the Comex. After the silver default, we will see the precious metals markets move away from America, to London, Hong Kong and Singapore.

China promoting buying silver:


Gold Silver. com

Interesting comments from a Chinese precious metals researcher:

The COMEX (Chicago Mercantile Exchange) has, for years, been suspected of participating in broad-based manipulation of the price of commodities traded on it. Recently, the exchange raised margin requirements for those trading silver futures contracts by over 80% which many commentators believe was at the behest of institutional investors holding large short positions.

“Minsheng Corp” analyst explained that short position holders would almost certainly have been “feeling acute pain” as the silver price closed in on its record $50+ high and they may have used their influence to “strong arm the COMEX into taking action.

“If there is manipulation at work on the COMEX, it’s likely that business will quickly migrate to the HKMEx, said the “Minsheng Corp” researcher.

Source

Heres a background of commodities in China if you or anyone else in interested"
LINK

Remember: Always do your own due diligence, I'm just a dude on an anonymous website

reply to post by dontshoot


No information I've seen points to that.....but I wouldnt be surprised. The JP morgue has it's fingers in many pies. But for the most part I think the Greek debt is squarely on the back of Goldman Sachs, They're the big "global investors' (aka professional mobsters). JP Morgue normally sticks to terrorizing us here at home. (a home the they've probably foreclosed on)

JP Morgan and HSCB added over 10 mllion ounces or silver during the 36% silver crash a few weeks ago:

In perhaps the best evidence of silver manipulation to date, the CFTC's Bank Participation Report for June shows that from May 4th to June 7th, the silver short position held by 4 large US banks increased from 20,613 to 22,628 short contracts. This means that the 4 largest US banks increased their short silver position from 103,065,000 ounces when silver was trading near $50 in early May, to 113,140,000 on June 7th. Basically, The Morgue and HSBS ADDED 10 MILLION OUNCES OF SILVER TO THEIR SHORT POSITIONS WHILE SILVER DECLINED 36% IN PRICE!

silverdoctors.blogspot.com...

I wonder were all that silver came from?

Oh that's right, it's just paper that says the word silver on it.

Loving the 5% silver jump today.

Some updates:

James Turk says we only have "a few days" left of silver being in the 30's.

“One never knows exactly how the markets will unfold, but my sense is that we only have several more days of silver in the 30’s. Once silver clears $38 on a closing basis, you are going to get back into the mid 40’s in a heartbeat.”

Jim Rogers still very bullish on silver (video at link)

When asked where silver will stop he says: 2000,5000, 10000 just pick a number. If currencies keep getting debased there will be no top until those currencies disappear.



Check out this Eric Sprott interview on Gold and Silver

It's very difficult to pick timeframes, because so many events can transpire, but I really believe that silver will trade at a 16:1 ratio to gold.

And dont look now, but in June JPM and HSBC increased their short positions by 2.28 million ounces



By august 5th my friends.....

reply to post by Skerrako


Thanks for the update..........I was hoping you would give some insight as the date draws near. Do you collect bars? I found 3 10oz and 6 5oz Keiffer bars

Keep us posted...