Volatility GALORE at the comex in silver

Harvey Organ, Monday, April 25, 2011

Volatility GALORE at the comex in silver

 

Apmex Starts Reverse Inquiry: Seeks To Buy "Any Quantity" Of Silver From Clients At $3 Over Spot

Submitted by Tyler Durden on 04/25/2011 19:22 -0400

Over the past hour Zero Hedge has been inundated with reader comments notifying us that Ampex has, validating the earlier post speculating about a possible silver shortage at the metals distributor, launched a "reverse ïnquiry" in which it will pay "you $3.00 over the current spot price of Silver for your Silver American Eagles. ANY year, ANY quantity!" and "We will pay you $38.00 over the current spot price of Gold for your Gold American Eagles. ANY year, ANY quantity!" So aside from this first public confirmation that one of the biggest wholesale retailers of precious metals is now inventoryless [sic], we can certainly see why Asia has decided to take silver down in the afterhours electronic session.

Things That Make You Go Hmmm.... Like Silver Conspiracy Theories (Part 2)

Submitted by Tyler Durden on 04/25/2011 17:17 -0400

Grant Williams chimes in with another (first one is here) off the beaten path observation on the ongoing parabolic rise in silver (and for those confused no, silver is not tracking the CPI). "We have discussed at length in the various iterations of this publication going all"the way back to my BTIG days, the various ‘conspiracy theories’ surrounding alleged shorts in the silver futures market which are allegedly held by, amongst others, JP Morgan and HSBC. Initially, these theories were dismissed as the ramblings of the insane and, speaking as one who was called insane many times, even I have to admit that the stories were somewhat far-fetched. Far-fetched? Certainly. Impossible? Hardly. Implausible? Less so now. There have been all sorts of assertions about the fact that the short positions purported to be in place on the COMEX couldn’t, in fact, exist. These assertions, like the accusations which they attempt to answer, are all offered without proof - the general defence being along the lines of “it’s too preposterous to be true” which, to me at least, is an extremely weak offering. As silver has exploded higher, various estimates have been made at the potential losses being accumulated by those parties short of silver futures. The sums are astronomical. If we take JP Morgans alleged short position as an example, and we assume there is some truth to the assertions about the size of that position, a move to $50 could potentially cost JP Morgan upwards of $4 billion - or, as it’s still known, ‘real money’.

A Pros And Cons Analysis Of QE3

Submitted by Tyler Durden on 04/25/2011 16:53 -0400

"I think they might be pressured into launching a version of QE3 in June, but I think it will look very different from QE2. I expect that it would target longer dated treasuries and possibly even mortgages, in an effort to create the most political support. I also believe it will be more open ended. Rather than saying we will spend $X billion in 6 months and here is our purchase schedule and target portfolio, he will create a ‘war chest’. QE3 will be positioned as we have $X billion that we are prepared to use to purchase longer dated treasuries and mortgages if and when we see the need to add support. This would be a true compromise. It does not force the Fed to create a schedule of auctions like QE2, in fact if the data remains stable they don’t have to do anything. That should appease the hawks. By targeting maturities that directly impact mortgage rates, its more palatable to the average American, and by keeping the activity less obvious they can deflect any links to inflation more easily. It also keeps the purchases open at a time when there must be some real concern that this alternative tool could be restricted in the future." TF Market Advisors 

 

 

 

Ron Paul Launches Presidential Campaign, Tells Truth To Whoopi's View

Submitted by Tyler Durden on 04/25/2011 19:17 -0400

Well, it's official: Ron Paul has launched his 2012 presidential campaign. Per the National Journal: "Rep. Ron Paul, R-Texas, whose outspoken libertarian views and folksy style made him a cult hero during two previous presidential campaigns, will announce on Tuesday that he's going to try a third time. Sources close to Paul, who is in his 12th term in the House, said he will unveil an exploratory presidential committee, a key step in gearing up for a White House race. He will also unveil the campaign’s leadership team in Iowa, where the first votes of the presidential election will be cast in caucuses next year." 

 

 

 

Net Working Capital Contributes $135 Million Of Netflix'$79.3 Million In Adjusted Free Cash Flow, Sub Acquisition Costs Surge By 33%

Submitted by Tyler Durden on 04/25/2011 16:34 -0400

"Looking forward, our prior period comps for net adds are going to get tougher, and while we expect our net adds the rest of this year to continue to exceed those of the prior year, it won’t be at a pace of nearly 2X like in Q1. With net adds forecast to grow every quarter on a Y/Y basis, we remain in the first half of the S curve of adoption. As always, we will remain focused on improving our service, keeping Netflix in the first half of the curve, and thereby increasing Y/Y net adds, as long as possible." 

 

 

 

 

QE 3 is Coming… It’s Just a Matter of What Form It Will Take

In The News Today

Posted: Apr 25 2011     By: Jim Sinclair      Post Edited: April 25, 2011 at 6:33 pm
Filed under: In The News

Final Thought For The Evening

Apparently the Chinese have scared the dickens out of someone as the Exchange Stabilization Fund runs to the rescue of the dollar, having fallen under .7400 earlier this US evening one more time.


Afternoon Thought

The risk of supporting the dollar at such an obvious point at USDX .7400 is to make that number more important than .7200 in market terms.


Jim Sinclair’s Commentary

The choice is simple: QE or default, because there is no solid balance sheet economic recovery in the Western world.
The dollar will go down in flames before the US defaults on anything.

US default could be disastrous choice for economy
WASHINGTON (AP) — The United States has never defaulted on its debt and Democrats and Republicans say they don’t want it to happen now. But with partisan acrimony running at fever pitch, and Democrats and Republicans so far apart on how to tame the deficit, the unthinkable is suddenly being pondered.
The government now borrows about 42 cents of every dollar it spends. Imagine that one day soon, the borrowing slams up against the current debt limit ceiling of $14.3 trillion and Congress fails to raise it. The damage would ripple across the entire economy, eventually affecting nearly every American, and rocking global markets in the process.
A default would come if the government actually failed to fulfill a financial obligation, including repaying a loan or interest on that loan. The government borrows mostly by selling bonds to individuals and governments, with a promise to pay back the amount of the bond in a certain time period and agreeing to pay regular interest on that bond in the meantime.
Among the first directly affected would likely be money-market funds holding government securities, banks that buy bonds directly from the Federal Reserve and resell them to consumers, including pension and mutual funds; and the foreign investor community, which holds nearly half of all Treasury securities.
If the U.S. starts missing interest or principal payments, borrowers would demand higher and higher rates on new bonds, as they did with Greece, Portugal and other heavily indebted nations. Who wants to keep loaning money to a deadbeat nation that can’t pay its bills?
More…