James Turk - $400 Silver by 2013 to 2015

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/11/16_James_Turk_-_$400_Silver_by_2013_to_2015.html

With Comex increasing margin requirements for a second time so quickly, King World News interviewed James Turk today out of Spain.  Turk commented, “This may explain why Comex is raising margins a second time so quickly, they aim to put more pressure on the buyers.  Obviously the Comex is trying to put more pressure on market participants by forcing them to liquidate their longs.”  
 

Turk continues:

“Eric, here we are at $25.50 which is the price that was identified by your London source last week.  So they painted the tape, but the Comex open interest shows that they haven’t driven out any buyers which is very surprising.  Normally you would expect to see some longs liquidating on any pullback like the one that we have seen over the past few days, but that hasn’t happened this time around.

The buying pressure in the physical market remains, we are starting to see the industrial buyers coming back in to secure supply.  My guess Eric is that the industrial users will be there on any price dip like we have had at present.  Up to this point we haven’t seen the boomerang effect that I have been anticipating but I am still expecting a sharp snap back in prices.

As we pointed out in the piece which had Mark Lundeen’s illustration in it, gold is dramatically undervalued and this can only result in much, much higher prices over time.  I would just add that I expect the gold/silver ratio to decline over time to under 20 to 1, so silver will be exploding along with the price of gold.

As you know Eric I have been projecting gold to hit $8,000 by 2013 to 2015, so that would equate to silver hitting $400, and that is well within the realm of possibility as silver reverts back to its historical mean.”

This is what happens in bull markets, prices climb to levels that previously seemed unimaginable.

The Day The Silver Suppression Stopped How To Navigate The New Silver Market

The Golden Economizer
November 11, 2010

Tuesday was a landmark day in Silver Metal Trading in the United States. Trading action this day clearly indicates to those attuned to the Silver Market that the long term price manipulators have finally lost control over the price of Silver Futures Contracts on the COMEX, and thus over Physical Silver Metal as well. Who are these manipulators? The largest are undoubtedly JP Morgan Chase and HSBC who have recently been indicted in a class action suit in connection with an alleged conspiracy to manipulate silver futures and options contracts on the COMEX. Unfortunately, this will probably only result in a slap on the wrist for these powerful banks, if that.

Fed Rescues Bear Stearns From Chapter 11 to Obscure
Its Huge Silver Short Position From The Public Eye

It is common knowledge by those more well informed on the recent history of Silver Trading on the COMEX that JP Morgan has been sitting on a Huge Short Position In Silver for years, about equal to a full years' production from US mining, part of which was inherited from the "takeover" of Bear Stearns for mere pennies on the dollar in 2008. The more well informed of us recognize that the Last Minute Deal To Save Bear Stearns when no legitimate buyers could be found was more of a White Elephant, Gifted From The Treasury and Fed to JP Morgan rather than an actual corporate acquisition (Bear Stearns had a negative fair market value because of the reckless, losing silver short position, but was allowed to go under because they were threatening to start covering it), with the unstated obligation implicit that JP Morgan would safeguard and perpetuate the huge Bear Stearns Silver Short Position. This is certainly the reason why Bear Stearns was not allowed to fail and go through Chapter 11 bankruptcy, in which case their short position would have been made public and forcibly unwound by the courts causing silver to explode upward in price, thereby exposing the worthlessness of federal reserve notes.
Since JP Morgan is also the custodian for SLV, the largest of the Silver Bullion ETF's, any sane person would view this as an obvious conflict of interest. Shorting a vital commodity such as Silver should by all rights be limited to those with a valid need to hedge production, and a short this size is obviously being held by JP Morgan's Own Proprietary Trading Desk, since the mathematical odds of them having enough legitimate hedging clients to justify a position of this magnitude would be astronomical. NAKED SHORTING SHOULD BE ILLEGAL by every player and market maker in Every Commodity and Every Security in Every Market as it amounts to NOTHING MORE THAN COUNTERFEITING.

[Continued]

http://www.gold-eagle.com/editorials_08/thegoldeneconomizer111210.html

James Turk - Kamikaze Attacks in the Silver Market

With gold and silver in retreat, King World News interviewed James Turk out of Spain.  When asked about silver specifically James said, “They are not dislodging physical silver by running the paper market down.  In fact the silver market is getting tighter and tighter.  That’s why I am perplexed at why they are trying to run this paper market lower.  If they want to get physical silver they are going to have to take the price higher, not lower.”

Turk continues:

“I’ve not seen this kind of tightness in the silver market before and you know that I have been talking about how tight the physical market has been these past few months.”

James, is this sort of like the kamikazes flying into aircraft carriers at the end of the war?

“That’s it exactly.  There is no other logical answer.  What we’re seeing now is exactly what your source out of London said would happen and where the source said the Asians would be aggressively buying.  It’s actually sort of good to have the script ahead of time from your London source. 

Maybe what we are seeing here is the silver shorts trying to make a few bucks in the paper market by dislodging the weak longs.  Liquidity is at its lowest point of the week late on Friday.

From all indications there is going to be a major boomerang effect, and everybody who has been scrambling in the physical market is going to become even more aggressive trying to find and then buy physical metal at these low prices. 

So the shorts who are selling here are playing with fire because if they are called on to deliver, they are going to have a herculean task trying to find physical metal.

Regarding gold, the important thing to remember is that we are still in an uptrend.  The 21 day moving average has not been broken and gold is resting back at key support in the $1,360’s.  The same thing applies for silver, the 21 day moving average is at $25 so it is still above strong support.”

Well there you have it, James Turk has tremendous connections in the physical market and it is extremely tight.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/11/12_James_Turk_-_Kamikaze_Attacks_in_the_Silver_Market.html

CME Taps the Brakes on Silver

Published: Tuesday, 9 Nov 2010 | 3:50 PM ET

Tapping the brakes on the silver rally, the CME sent a letter to its clearing member firms and others Tuesday raising the amount of margin needed to trade silver futures contracts.

The change will go into effect after the close of business Wednesday, November 10th, 2010. 

The reason cited for the increase was a “…normal review of market volatility to ensure adequate collateral coverage…”

Michael Shore, a spokesman for the CME, said the exchange evaluates margins from time to time and they often change—nothing unusual.

New Tier 1 “Spec” Positions will require an initial margin of $8,775, up from $6,750 currently. New “maintenance” margin calls for those positions will rise to $6,500 from $5,000 currently.

Margins on Tier 2 and 3 “Hedge/Member” Positions will go from $5,000 to $6,500 for both new “initial” positions and also, for ongoing “maintenance” margin calls.

http://www.cnbc.com/id/40095040

Hagens Berman Sobol Shapiro: JP Morgan and HSBC Face RICO Charges in Silver Futures Class Action Lawsuit

Banks alleged to have used naked short-selling to rig market

NEW YORK, Nov. 3, 2010 /PRNewswire/ -- JP Morgan Chase & Co. (NYSE: JPM) and HSBC Securities Inc. (NYSE: HBC) face charges of manipulating the market for silver futures and options in violation of federal commodities and racketeering laws, according to a new lawsuit filed Tuesday in the U.S. District Court for the Southern District of New York.

The suit – which alleges violation of the Commodity Exchange Act and the Racketeering Influenced and Corrupt Organizations (RICO) Act – alleges that the two banks colluded to manipulate the market for silver futures starting in the first half of 2008 by amassing huge short positions in silver futures contracts they had no intent to fill, but did so to force silver prices down to their benefit.
The suit was filed on behalf of Carl Loeb, an independent investor in silver futures and options, by Seattle-based Hagens Berman Sobol Shapiro LLP, a class-action and complex litigation firm.
"The practice of naked short selling has long been a serious issue on Wall Street," said Steve Berman, co-counsel and managing partner at Hagens Berman. "What we know about the scope and intent of JP Morgan and HSBC's actions in this short-selling scheme dwarfs any other similar attempt to manipulate a commodities market."
According to the complaint, JP Morgan amassed a sizeable short position in silver futures and options in part through its March 2008 acquisition of investment bank Bear Stearns. By August 2008, JP Morgan and London-based HSBC controlled more than 85 percent of the commercial net short position in silver futures contracts.
The suit alleges that, starting in early 2008, the two banks began manipulating the silver futures market by accumulating unusually large "short" positions and then secretly coordinating enormous sales of silver futures contracts on the Commodity Exchange, which is known as "COMEX" and is part of the New York Mercantile Exchange.
According to the lawsuit, JP Morgan and HSBC used a variety of methods to coordinate their manipulation of the market for silver futures contracts, signaling when to flood the COMEX market with short positions, which caused the price of silver futures and options contracts to crash.
The suit describes two "crash" events that were set in motion by JP Morgan and HSBC, one in March 2008, and the other in February 2010, after defendants had amassed large short positions.  In the wake of both events, the suit alleges, COMEX silver futures prices collapsed.

[CONTINUED]

http://www.prnewswire.com/news-releases/hagens-berman-sobol-shapiro-jp-morgan-and-hsbc-face-rico-charges-in-silver-futures-class-action-lawsuit-106624128.html

Silver investment is breaking records in 2010--Silver Institute 30 year high

Silver investment is breaking records in 2010--Silver Institute

Recent data gathered by the Silver Institute reveals record silver investment, as well as soaring bullion coin demand.

Author: Dorothy Kosich
Posted:  Tuesday , 02 Nov 2010

RENO - 
The Silver Institute noted Monday that silver investment has soared this year with record highs in silver-backed ETFs as U.S. silver bullion coin demand remains "exceptionally strong."
Total global holdings in silver ETFs now stand at 448,997,000 million ounces with 326 million ounces being held by the iShares Silver Trust alone, the Silver Institute said.
Net assets in the iShares Silver Trust totaled $7.8 billion as of October 29^th.
Other notable silver ETFs are being managed by ETF Securities and Zurcher Kantonalbank, with Sprott Inc. recently announcing its IPO for the Sprott Physical Silver Trust, which will be listed on the Toronto and NYSE Arca exchanges.
The Silver Institute also advised that silver bullion coins are "also particularly buoyant" this year with sales of the U.S. Mint's one-ounce Silver American Eagle Bullion coin already surpassing 28 million coins this year. The Mint believes sales could exceed last year's record of 28.7 million coins.
The Royal Canadian Mint is reporting that this year's sales of its Silver Maple Leaf bullion coin are already 30% higher than last year's sales to date, the Institute said.
"Today, the silver price is approaching $25 per ounce and thorugh 2010, the silver price has risen an impressive 47% to levels not seen in 30 years," Silver Institute Executive Director Mike DiRienzo observed Monday. "While this is primarily due to solid investment demand, there is evidence that industrial demand for silver is also on the rise, and that too bodes very well for silver in the long run."



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