$37 SilverWhat we may be witnessing in the Silver market is a "reverse" raid on the CRIMEX. What appears to be a massive short squeeze on our criminal bankers may in fact be a coordinated effort by a disgruntled group of EX-JP Morgan traders, and their hedge fund friends, to hold JP Morgan's feet to the fire, and extract a heavy price for these traders dismissal from the hive of criminal banking.
The Friends Of Andrew Maguire [FOAM] look to align themselves as a group to punish the CRIMEX and force them to either deliver a massive quantity of Silver to them in March, or pay a heavy premium to them to keep the rigged CRIMEX game going.
FOAM have a target price of $37 Silver set for First Notice Day February 28. FOAM began their assault on the CRIMEX when price broke through $31 last Thursday. Their intent is to run price up to, and possibly through, $37 by First notice Day. If they can achieve a price of $37 or higher they will settle their long futures contracts with the Crimex at 20% premium to spot. If they fail to break the $37 barrier, they intend to actually fund their positions and force the CRIMEX to deliver Silver that FOAM believes they do not have.
With the US markets effectively closed yesterday for President's Day, Silver was run up to $34.32 in electronic trading on the NY Globex. FOAM has stated that in their efforts to run the price higher they may have to resort to the tactics of the criminal banks, and short the market, at times, themselves. They state that their short sided efforts will be quick, and in the interests of driving the price higher by squeezing the shorts already in the market as these entrenched shorts sense an opportunity to exit this massive short squeeze still standing. Those stubborn enough to remain short this market will be shown great pain if FOAM can run the price towards $37.
Last evening I came across a series of threads by an internet thread poster using the name WYNTER BENTON. This chain of threads began with a post on a Yahoo message board on January 5th, 2011 [Silver @ $29.30] as the Precious Metals began their January descent. The "message" is being sent to Blythe Masters, current head of global commodities at J.P. Morgan Chase. The message is clear and direct:
The strategy is as follows. We know that Comex only has 105 million ounces of silver of which only 50 million ounces are availabe for delivery. (I personally don't believe the Comex numbers are anywhere near that high, but that is neither here nor there for now.) Well, all it would take is 10,000 contracts on the Comex to buy up all the "available silver" at the Comex and 20,000 contracts to deplete it completely. The current front month March OI is north of 78,000.
Watch the OI closely. Blythe's former traders are advising major hedgefunds and billioniare investors to buy up as many contracts as possible as March 1 approaches and deposit the cash needed to stand for delivery for the month of March. The purpose is not necessarily to bust the Comex but to force the Comex to pay a premium (some as much as 30 percent) for cash settlement. Think about it. If a group of hedgefund gets together and bankroll $1 billion, they can buy more than 30 million ounces of silver. Of course, the contract sellers like The Morgue cant deliver the silver so a cash settlement is the only recourse. So what's wrong with $200 million in profit on a $1 billion investment that takes less than 4 weeks total?
Guess what Blythe? Your former traders are advising everyone they know to put on this trade come the first week of February. Is this what happened in the Decemeber contracts? Is this why silver went from $22 on September 30 to $29 by December 1? How much do you think silver will spike in February as we approach March 1? The traders think silver will be north of $45. Heck it went over $9 as we approached December and everyone who got a pay off in terms of a premium cash settlement will be back for more. And they are all gonna be bringing friends to partake in the bounty.
https://messages.finance.yahoo.com/Stocks_(A_to_Z)
This post was followed by another post on January 26, 2011 [Silver@ $29.40]. In this post Wynter Benton explains the efficacy and the possible outcome of their plan to "reverse" raid the CRIMEX. She even says exactly when their raid on the CRIMEX banks will launch. Remind yourself whilst reading this thread, it was posted on january 26, 2011. The market has played out exactly as it was laid out here in this thread post:
Assuming a silver price of $30 and the known fact that Comex only has 105 million ounces of silver of which allegedly 50 million ounces are available for delivery, this is what hedge funds can do to earn 20 percent like they did last December.
This hedge fund would purchase over 21,000 contracts and deposit 3.15 billion dollars ($30 X 105 million ounces of silver = $3.15 billion). Once March 1 comes rolling around, guess what happens?
You got it!! Comex doesnt have the silver to deliver.
Now what? You got it again!! Cash Settlement.
What happens after March 1st? I dont really know. All I do know is that between February 15 to March 1, hedge funds will be buying a huge amount of contracts because they know the Comex cant deliver and will be forced to pay a premium or default.
What happens to the sellers of contracts who "defaults" and cant deliver the silver? BANKRUPTCY and a seizure of all assets. Period.
Either deliver the contracts that were sold or negotiate a CASH SETTLEMENT. No other choice PERIOD!!
No matter what happens after March 1, the price of paper silver will skyrocket as March 1 approaches because hedge funds will be blackmailing silver contract sellers come March 1.
How do I know this with near certainty? Because it worked so well the first time around from October to Decemeber. And back then hedge funds didnt even know Comex couldnt deliver.
That is why silver went up 81 percent in less than 4 months. Remember silver was flat for the year as late as August 23. Yet it miraculously skyrockets 81 percent by December 31 with gold going essentially flat.