Al's Insights – Fri 20 Apr, 2012

Rye Patch Gold Update with Bill Howald

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Al KorelinBill Howald
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Comments:
  1. On April 20, 2012 at 1:45 pm,
    Peter says:

    Hi,

    Have a look at this VERY interesting chart. It looks like JPM has tripled its silver holdings in the last month alone.

    The increase went from 4 million ounces at the beginning of March to, lo and behold, 13 million. What are they up to? I speculate they are intending to make delivery on some of their short positions. This can’t be bearish for silver.

    http://www.caseyresearch.com/gsd/sites/default/files/JPMorgan%20Chase%20Silver.gif

  2. On April 20, 2012 at 2:09 pm,
    Marc says:

    Peter,
    Very, very interesting….Why in the world would JPM be doing this. Well, there is only one reason, in my humble opinion, and that is that they know stuff that others don’t. As in, they are preparing for a break out to the upside and they have started to”bunker” their position accordingly – and continue to do so? There might some guys here with a more sophisticated answer than that.
    All the best,
    Marc

  3. On April 20, 2012 at 2:42 pm,
    Brad says:

    That Casey silver chart is shocking. I like the pure demand of it. But, I. Don’t. Like. It. Seems like more power in JPM’s hands to manipulate down the road, even though they “claim” to only trade on their clients’ behalf…. unless I’m not getting something here.

  4. On April 20, 2012 at 3:21 pm,
    Peter says:

    What is also interesting is that they obtained this silver without the price moving up.

    I would still say that they NEED this physical stuff for something. My guess is still that they have to deliver to some customers.

  5. On April 20, 2012 at 3:30 pm,
    Peter says:

    The below is a translation from the German website where I found this:
    ———-
    The portion of the “registered” silver has remained the same. This might be the silver which actually BELONGS to JPM.

    “Eligible” silver on the other hand can become “registered” silver if the legitimate owner agrees to this (by way of payment). This means we could be looking at the holdings of a silver fund, for example, or that of other investors. These would receive payment, letting the silver become registered. This might mean that JPM does not actually own all this silver.

  6. On April 20, 2012 at 3:40 pm,
    Peter says:

    In case you want to know the difference between eligible and registered silver, here is a pretty easy to follow explanation:

    The Eligible category means that the silver meets the exchange requirements. Exchange requirements include purity, size (eligible silver bars must weigh within 10% plus or minus of 1000 ounces), and also must be from (stamped with) an exchange approved refiner.
    Eligible silver essentially means that the silver is stored in COMEX warehouses, and conforms to exchange standards. It is being stored in the COMEX warehouse for a private party, but it is NOT available for delivery to contracts.
    For example, Warren Buffet decides to store 30 million ounces of silver owned by Berkshire Hathaway (he has no intention of making the silver available for sale at current prices) in a COMEX vault rather than his Omaha basement, he could do so, and the silver would be eligible inventory.

    Registered silver means that the silver is fully available for delivery to longs who stand for bullion delivery.

    Registered silver used to have a paper bearer warrant attached for delivery, but these paper warrants are reportedly being phased out.

    To simplify, registered silver is deliverable- or available for delivery to a long standing or demanding bullion delivery.

    Eligible silver can become registered, and vice-versa. (i.e. the owner can decide to make his silver available for sale at a certain price)
    This is seen almost daily in the adjustments section of the COMEX inventory data reports.

    In order for eligible silver to become registered, the owner must have an exchange licensed depository (Brink’s, The Delaware Depository, HSBC, JPM, or Scotia Mocotta) issue a depository receipt (warrant).

    In addition, the bars must total 5,000 ounces (size of 1 contract) plus or minus 6%.

    As far as the silver manipulation and the dwindling COMEX silver supplies, registered and Total COMEX inventories have been substantially decreasing over the past few years. Just in the last few years registered silver has declined from 70 million + ounces to 33 million ounces (touching a low of 25 million oz in July), and Total inventories have declined from 140 million oz + to ~ 100 million oz. Eligible inventories meanwhile have been increasing.

    The most emphasis on COMEX silver inventories is placed on registered, as technically, this is the only silver that is available for delivery to longs. Theoretically, if 34 million oz worth of longs stood for delivery in September, the COMEX would default, as only 33 million ounces of registered silver remain.

    In actuality however, I believe that the TOTAL silver inventories are what matters. Eligible silver supplies meet exchange requirements- they are simply not currently offered for sale by the owners. Clearly this silver would become available at a certain price. I also believe it likely that the owners would likely be strong-armed or forced into converting their eligible supplies into registered should things become desperate for the cartel.

    • On April 20, 2012 at 7:32 pm,
      Big Al says:

      Evening Peter,

      Thank you for the elaboration on the explanation.

      Every little bit of information helps all of us!

      Big Al

      • On April 20, 2012 at 7:41 pm,
        Peter says:

        By the way, I just copied and pasted that.

  7. On April 20, 2012 at 4:23 pm,
    wyn harter says:

    IT SEEMS TO ME THAT JPM, THE GREAT FINANCIAL DECEIVER, IS SIMPLY KEEPING THEMSLVES IN POSITION TO CONTROL SILVER AND GOLD PRICING. I BELIEVE THEY WILL SELL, IN LARGE QUANTITIES, TO KEEP SILVER IN THE 30-33 PRICE RANGE. HOPE I AM WRONG, BUT I TRUST THEM LIKE AVIPER….WORKED DIRECTLY WITH DIMONE ONCE IN MY LIFE AND HAVE AN INKLING OF UNDERSTANDING ABOUT THE MAN. I AM GUESSING HE WANTS TO DISCOURAGE AS MANY AS POSSIBLE TO FLEE THE PRECIOUS METALS OVER NEXT YEAR.

    BEST TO ALL IN SILVER AND GOLD!

    WYN

  8. On April 20, 2012 at 4:45 pm,
    Jerry O^OTB says:

    wyn……It is hard to deal with (you fill in the blank)….like DIMONE (JPM),
    when they want to win under all cost…..being fair(not), they do not succeed in
    their positions, by fairness….but, control….

    • On April 20, 2012 at 7:34 pm,
      Big Al says:

      Mr. In the Box,

      I think that you are going to find some of the comments on the Weekend Show very interesting. (A lot of people happen to agree with you!)

      Best,

      Big Al

      • On April 21, 2012 at 3:17 pm,
        Jerry O^OTB says:

        THANK BIG AL,,,,LISTENED , AND WAS GREAT AS ALWAYS….

  9. On April 20, 2012 at 5:40 pm,
    Dai Uy says:

    Buy on the PM dips and stocks and and wait and wear out the bastards. Any thoughts?

    • On April 20, 2012 at 6:40 pm,
      Marc says:

      Your d____ right, Dai Uy…..D_____right!!
      FUBAR!
      Marc

    • On April 20, 2012 at 7:35 pm,
      Big Al says:

      Evening Dai Uy,

      That is exactly my philosophy!

      Big Al

  10. On April 20, 2012 at 7:06 pm,
    Clay says:

    JPM Silver???? You don’t suppose that all that silver reported to held by JP Morgan is paper do you?? Just hypothecating the question of doubt in those who report the data.

    For example, Bloomberg ran an article with a graph showing an major increase in the silver inventories at the comex as explanation why silver is and should be going down, but let us just doubt one minute the validity of these normally very honest bankers at JP Morgan. Perhaps all that silver on these graphs is “Paper”, after all who has connections in the Comex, CME, White House or Outhouse to take delivery of this silver should they try to.

    http://www.zerohedge.com/news/other-side-gold-and-silver-coin

    We know for a fact that our government is lying about !!!, ??, Let me rephrase that, what is the government NOT lying about? That is much easier to ask, but much harder to answer.

    Old age brings on senility and for old men cynicism, or is it just experience and memories of all the times I have been lied to and cheated. Al, what do you think, and what is your wise thinking on this issue.

  11. On April 21, 2012 at 8:53 am,
    Tony says:

    Thanks al for getting an update.

    Good things still to come.

    sounds like May could get very interesting