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SILVER WHEATON CORP. T.SLW

"Silver Wheaton is a pure, unhedged paper proxy on silver prices with a unique business model. The company purchases silver for sale through long-term purchase contracts from counterparties. Currently, the company has long-term silver purchase contracts with more than a dozen mines. Silver Wheaton purchased and sold roughly 28 million silver-equivalent ounces in 2012 through its purchase sales contracts."


TSX:SLW - Post by User

Bullboard Posts
Post by strannickon Aug 18, 2012 11:22pm
413 Views
Post# 20234471

Trigger-fingered silver market

Trigger-fingered silver market

From Zerohedge...

Just one Billionaire to place an order on the COMEX for Silver and POOF...it's all over!

Seriously, this is true, just a single $1 Billion order would basically wipe out ALL deliverable Silver held at the COMEX. Not only that, if a huge order came through (which is discouraged by position limits on the long side), much of the supposed "deliverable" Silver would change categories or even evaporate prior to being delivered.

Think about how small $1 Billion is. It is equal to roughly a mere 8 hours time of which our government borrows 24/7. It is like going to bed and getting a good 8 hours of sleep...wake up and we borrowed another $1 Billion. Only in this case, once this market gets broken and trust me, $1 Billion will do it, we will go to sleep, wake up, and no Silver will be available.

Years ago, Warren "Gold ain't money, it's barbaric" Buffett held 129 million ounces of Silver (equal to nearly $4 Billion at today's price). It was speculated at the time when he sold it that he had his arm twisted to do so, maybe, maybe not. There are now no hordes of this size available, ANYWHERE and the "threshold" to breaking this market goes down every single day.

Have you ever wondered what will happen when this market does get broken? You might at first think "who cares?" but that would be shortsighted because any action in Silver will surely spill over into the Gold arena and Gold exploding higher is definitely not a "confidence" builder, on the contrary, fear is THE greatest financial emotion of them all.

Putting the Gold market aside, what really will happen when the COMEX Silver pit gets broken and cannot make delivery?

Obviously, the price of Silver will rise. It will rise because the shorts will get scared and buy, the specs will get greedy and buy BUT, the real catapult will be sellers, or lack there of! When sellers, whether they be paper or physical get a whiff of this, they will pull their offers and create an upside air pocket where anyone who wants in...will have to do so at much higher prices. The physical sellers will probably go into TOTAL hibernation for a long spell where they will not accept any amount of fiat paper until they can "trust" what it is that they are getting in return of sale.

A busted Silver market will spill over into everything. This one "little white lie" will expose many and far larger lies up to and including the fact that the entire system is a Ponzi scheme. It is really this simple, Silver CANNOT be allowed to be "outed" because it will expose everything else so don't hold your breath for a miraculous CFTC ruling, failure to deliver WILL be the catalyst

 This is all basic stuff but it is important to understand just how little money is now necessary to detonate the global financial system. It could be a Chinese or Russian billionaire, it could be a Carlos Slim or someone else that has mining investments, it could be a coalition or whatever. It WILL be done for the simple reason that it CAN be done, and it can now be done with very little money and very little effort. The U.S.S.A. has made many many enemies over the years. Stupid it is to have left exposed such an obvious and easily attacked Achilles heal to the entire system.

If a foreign sovereign government were to enter the Silver market?

$1 Billion? $5 Billion?

Are you kidding me?

Bullboard Posts