Hi Ho "SILVER"

[CAM]

This from Jason Hommels latest .. if correct might see some short term upward price pressure.

As I write on Sunday evening, Feb. 20th, silver prices are up another 40 cents to $33.10, another 30 year high, going back to the previous high of $50 from Jan. 1980. In the last two trading days, last Thursday and Friday, silver prices increased about a dollar per day.

What's going on?
As I read on the blogs, about 53,000 silver contracts for 5000 oz. each are nearing the first delivery day on Feb. 28th. At that time, each contract must be fully funded to await delivery in the following 30 days, or sold before then. By the way, 53k x 5k = 265 million oz.
http://tfmetalsreport.blogspot.com/2011/02/wow.html
The crazy thing is that the four COMEX approved warehouses have only about 100 million oz. of silver in them. So, in essence, a default looms.
Will this be it? If so, what will happen?
Usually, all but a very few contracts roll over to the next months. The futures contract holders rarely stand for delivery, as in their view it is too difficult, and too costly; they are in this game for the leverage. They usually only put down 10% of the money, so that if silver gains another 10% in price, they double their investment quickly. And if silver moves down 10%, they lose everything!
But here's the kicker. COMEX just raised margin requirements 50% on Friday, meaning that the longs had to put up something probably like 15% instead of the usual 10%. (I have no idea of the real figures, as I have never traded futures, I have never had a futures broker, and don't know where to go for that data.) This means that the longs were not scared out of their positions, as the silver price went up, not down, as the manipulators had intended.
What I do know is that usually, the majority of futures contracts stand about 3 months away from delivery. But not now.
Tonight, 53,000 contracts are looming for either close out, or they will stand for delivery. Out of about 150,000 to 200,000 contracts!
Harvey says 150,000 contracts in open interest.
http://harveyorgan.blogspot.com/ 321gold.com says 200,000 contracts in open interest.
http://www.321gold.com/cot_silver.html

The current situation will be resolved in 8 days, and again, in another 30 days after that. Both deadlines are worth watching closely.

[JBmurc]

yeah the big silver shorters(Jp Morgan,HSBC,BOA) must be losing muti-millions holding there bad positions now if they ever reduce or close Silver will go ballistic I see JP Morgan hold a major holding in AYN

[JBmurc]

Brought some CLU today no real seller bout 50k at 8c about till I brought 250k at 8c then bamm another 99k 7.9c & 95k 8c so looks like if you want on board it wouldn't be hard to get a few with the 6c placement likely to sell a few for a quick buck...
Am confident the mexican assets will reward with high grade wide Silver drill results and in turn market interest

[drillfix]

JB,

Dont you mean GLOBAL RESOURCE CORPORATION?

New trading symbol will be GRM and commence trading on Wed, 2nd March 2011.

[shasta]

JB,

Dont you mean GLOBAL RESOURCE CORPORATION?

New trading symbol will be GRM and commence trading on Wed, 2nd March 2011.

CLU will become GRM, thanks for picking up on this Drilly, i keep refering to CLU which probably isnt helping others!

[JBmurc]

JB,

Dont you mean GLOBAL RESOURCE CORPORATION?

New trading symbol will be GRM and commence trading on Wed, 2nd March 2011.

yes to right drilly I see 360k on offer at 7.8c on close --had a bid at 7.8 the other day no sellers keen--looking forward to the drill results.....
• A drilling programme has commenced at Espiritu Santo and at the time of writing remains in progress.

shasta you should throw up a thread as you come across them first...if not I will when I get back from work wed-thurs.....remember reading a report on Mexico large silver resources having a major part in the future of silver production

[shasta]

yes to right drilly I see 360k on offer at 7.8c on close --had a bid at 7.8 the other day no sellers keen--looking forward to the drill results.....
• A drilling programme has commenced at Espiritu Santo and at the time of writing remains in progress.

shasta you should throw up a thread as you come across them first...if not I will when I get back from work wed-thurs.....remember reading a report on Mexico large silver resources having a major part in the future of silver production

I'll let you run with it, once ya finished buying of course

[drillfix]

yes to right drilly I see 360k on offer at 7.8c on close --had a bid at 7.8 the other day no sellers keen--looking forward to the drill results.....
• A drilling programme has commenced at Espiritu Santo and at the time of writing remains in progress.

shasta you should throw up a thread as you come across them first...if not I will when I get back from work wed-thurs.....remember reading a report on Mexico large silver resources having a major part in the future of silver production

Looks like somebody is selling due to 20+ million of shares at 6c placement just hitting the 3B ann today.

I guess easy after the dust settles this will march back would think?

Got an order filled @ 7c but someone dumped down to 6.6c

Ah well, not far off the mark, Williams %R starting to become oversold but RSI and OB falling so either a great buying opportunity or some more punishment looking at the 60 min chart, so this is gonna need some news to stay a float in the short term.

Dont forget, name change tomorrow folks (for those watching this stock)

[Skol]

yeah the big silver shorters(Jp Morgan,HSBC,BOA) must be losing muti-millions holding there bad positions now if they ever reduce or close Silver will go ballistic I see JP Morgan hold a major holding in AYN

Been hearing that hackneyed worn out story for years. LOL

[drillfix]

Decided to bail out at 7.3c due to some other trades also coming through so had to off load.

Will revisit this one once some dust settles a bit.