Suppose for a moment that there is a PPT. Now imagine how many billions per day it would take to artificially support the SM. (BOJ dollar purhases are 1 visible indicator).
Now suppose that in order to keep the SM afloat, you have to maintain an illusion that there is no inflation. The prime indicator of inflation is gold & silver price so you determine to supress the price. No problem, that can be quite efficiently done through paper trades.
But what about those who persist in requiring delivery of physical silver from Crimex? No problem, just intice what silver is available into the market with a secret 2nd tier price, say $20/oz. Buffet has stated afterall that he would not let any of his stash go for less. No big deal, in comparison to the quantities of fiat confetti spent to keep the SM afloat, the silver market is a fraction of that expenditure.
OK, but the powers that be aren't idiots, they have to know that physical silver supply will run out soon.
Of course they know. Since 90% of silver mining is as a by product of copper mining, all you have to do is allow the price of copper to rise dramatically. The public could care less what the copper price is, they don't watch it. Problem solved.
http://www.insightmag.com/main.cfm/include/detail/storyid/632699.html] where there is smoke there is fire. Seems like things are heating up in the silver market. Silver is a good place to be right now. Glad I have 35K shares of CDE at an average cost of just over 2 dollars per share. drooys turn will come later this year, and I am still holding my drooy for the long term. But silver, and cde are a great place to be at this time. My target for cde is 18.5 to 25 in 04.
"the prime indicator of inflation is gold & silver"
well...if they cared about the price of gold, which they dont, they'd only have to have one fed gov come out and say they thought the euro was overvalued, or just raise rates .25 and the ensuing dollar rally would crush gold
or - they'd just find a way to not release an inflationary PPI!
NEW YORK, March 16 (Reuters) - Kennecott Utah Copper Corp. raised by 2.25 cents its copper premiums for the second quarter of 2004 over quotes for the first quarter of the year, the company said on Tuesday. Kennecott set its electrolytic copper premiums for Midwest destinations at between 4.90 and 6.20 cents a lb above copper futures prices on the COMEX division of the New York Mercantile Exchange.
Premiums for Amarillo, Texas, and Warner, Utah, rose to 5.95 cents and 4.90 cents, respectively. The Cedar City, Utah, premium was set at 5.35 cents.
On the West Coast, premiums in Southern California were up at 5.70 cents while Seattle/Tacoma, Washington, climbed to 5.55 cents.
The premium at East Helena, Montana, which Kennecott added to its list of destinations in the fourth quarter of 2003, rose to 5.80 cents. Quotes for other Western states hit 5.95-6.10 cents.
Premiums for locations in the U.S. East and Southeast reached 6.05 to 6.35 cents, with Carrollton, Georgia, the highest.
COMEX copper futures for May delivery (0#HG:: Quote, Profile, Research) fetched $1.3570 a lb at midmorning, up sharply from about 99 cents in mid-December, when Kennecott set its first quarter premiums.
Kennecott Utah Copper Corp. is a U.S. subsidiary of global miner Rio Tinto Ltd/Plc (RIO.AX: Quote, Profile, Research) (RIO.L: Quote, Profile, Research) .
Our final chart, below, compares current copper and silver up trend development. This weekly perspective suggests that silver, rather than nearing a high, may be verging on uptrend acceleration. (These charts are coincident in time, both low points at 0 and 0' respectively being November 2001.) Both markets developed extensive sideways consolidation areas after their initial rally highs (points 1 and 1' respectively). The obvious difference at this time is that copper has gone into a radical acceleration phase. We think that the overall pattern similarity that includes the circled volatile high level consolidation pattern after the run up through copper's point 3 and silver's point 3' warrant keeping a close watch on silver for similar upside acceleration.