Get set, get ready.....Feb. near...This morning, with backwardation, guerilla tactics and oversold conditions in silver...we can all see the effort being expended at the top to get the bullion and stocks down (via shortng/naked shorting, and propaganda))...so SVM is in good company since all the Silver Stocks especially, have been fraudulently hammered. It is no coincidence that the "blitzkrieg" campaign was visited upon SVM. Guess it must be worth something to have such attention focused on it...like any other silver stock that has huge resource in the ground.
Ed Steer today...thanks to GWR
Interviewed today by Eric King of King World News, GoldMoney founder James Turk remarks that Europe's sovereign debt problems are being camouflaged and getting worse, not alleviated...and this will put a bid under the precious metals despite the usual bear raids. The headline reads "Gold and Silver to Take Off Despite Weakness"...and the link is here.
https://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/1/20_James_Turk_-_Gold_%26_Silver_to_Take_Off_Despite_Weakness.html
“Tyler Durden (Zero Hedge) has this to say about it..."Wonder why the smart money was rushing headlong out of gold and silver over the past few days, and especially today in the AM session? Here's your answer: in tried and true fashion the Comex just hiked margins in gold, and silver by about 6%, and threw in a few other commodities to mask things up."
As the headline reads, these are truly 'guerilla tactics' that are being used to force the technical longs to puke up their long positions. Needless to say, this was done at the behest of the bullion banks in cahoots with their 'friends' at the Comex. And, as I said before, 'da boyz' are really serious about getting out of their short positions this time...especially in silver...and they are leaving no stone unturned in their quest to pick up every speculative long Comex contract that they can find.
Ted Butler in the wee hours of this morning, Ted had this to say about yesterday's margin increases..."I don't think it's as critical this time, due to the damage already done...and the relatively small increase."
It's really impossible to tell how low JPMorgan et al are capable of moving the price...but as I've said a couple of times this month...they'll keep at it until there are no longs left that are prepared to liquidate. At that point, the bottom will be in. The changes in margin requirements yesterday were designed to help them speed that process along...which I'm sure it did. But to what extent, is hard to tell….
Silver volume yesterday was north of 80,000 contracts net of all roll-overs. That volume was almost 60% of the total net volume in gold...which is a huge percentage. Normally gold volume is always much higher than silver volume. I've never seen that high of a percentage before...so it's also obvious from this, that silver is the metal that 'da boyz' are really after…
I note that both metals are now diving deep into oversold territory. The RSI indicators can certainly fall more than this before we're hugely oversold...and it remains to be seen how low these indicators get before the bottom is in…
…it looks like the bullion banks are still gunning for more silver longs...and they found some… each passing day such as yesterday, strengthens the internal structure of the market for the next move up in both metals…You've heard me [and others] say that you should be buying while blood is running in the streets…”
Silver backwardation is hereIzabella KaminskaJanuary 21, 2011
https://ftalphaville.ft.com/blog/2011/01/21/465546/silver-backwardation-is-here/
(Backwardation is the name for the condition that the market quotes a lower price for a more distant delivery date, and a higher price for a nearby delivery date.)
Something is definitely up with silver.
Earlier this week we reported that rumours of physical silver shortages were doing the rounds in Europe.
On Friday, something stranger has taken place.
The silver forward rate — known as SIFO and published daily by the London Bullion Market Association — did something very unusual over the course of Wednesday and Thursday.
It plunged into negativity…..