Shanghai traders suddenly have become rabid buyers of silver, said an anonymous King World New (KWN) trader out of London, taking the price in Shanghai to a mind-blowing 6% premium to the COMEX, yesterday.
“China is trading gold at a $17 premium today vs COMEX futures,” Anonymous told KWN’s Eric King. “Silver is trading at a premium of $2.48 vs futures price (COMEX).”
What does that ultimately mean to silver bugs?
The game of contracting to buy physical silver in Shanghai after New York’s routine price pounding with naked shorts has trapped the manipulators into systematically booking bigger and bigger losses at JP Morgan. Ahhh, the ole’ Chinese Water Torture technique.
Either the situation in the silver market is the eventual result of another failed attempt to fight the invisible forces of the hand, or it’s a convenient method for Beijing to acquire this critical metal for its infrastructure plans as well as to provide its people with financial protection above and beyond Beijing’s massive gold accumulation activities.
In any event, this Yellow Brick Road to force majeure in the silver market could be the cumulative result of decades of Karma payback and Sun Tzu tactics rolled up into one neat one-world multi-cultural package. We wonder if New York Times’ Thomas Friedman had all of this in mind when he wrote his version of Mao Tse-Tung’s The Little Red Book, entitled, The World is Flat.
Back to Anonymous: “If there is that strong of a bid for gold out of the Eastern hemisphere, what that tells me is that all of the heavily leveraged paper manipulation in the West will not have much more downside impact,” said Anonymous. “All the manipulators are doing at this point is compressing a spring, but at some point this market is eventually going to gap up incredibly hard against them.”
And that “some point” is nearing, said Anonymous, and will usher in “a religious experience” for the cartel and record prices in both gold and silver as these market goes into a Jim Sinclarian liftoff.
But, as many in the hard-money camp icons have always warned through the years, patience is the key to scoring big in the silver (and gold) trade. The great stock trader Jesse Livermore (1877-1940) — and incidentally, a once partner of Jim Sinclair’s father, Bert Seligman—once said, “It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!”
And even the Department of Homeland Security has graced silver traders with its wisdom for patience in the fight against the evil forces of darkness.
“We ask for cooperation, patience and a commitment to vigilance in the face of a determined enemy.”