iShares Silver Trust (SLV)

[ironyman]

January Consumer Credit Surges As Government Blows Student Debt Bubble To Epic Proportions
Submitted by Tyler Durden on 03/07/2012 - 15:22
Consumer Credit Gross Domestic Product headlines
One look at the just released consumer credit data would make one believe that the US consumer is getting back into it and the velocity of money is finally starting to ramp up: after all the headline January number came at a whopping +$17.8 billion on expectations of +10.5 billion. Nothing could be further from the truth. As the first chart below demonstrates, January revolving credit, as in that used on one's credit card, actually declined by $2.9 billion compared to December, and was back to $800.9 billion: the first decline in 4 months as consumers spend less following an already weak holiday season. Yet offsetting this was an absolutely massive surge in Non-revolving credit, i.e., mostly student debt, which soared by $20.7 billion in the month, the highest sequential jump in this category in history, leading to a very misleading print of a major increase in credit. For earlier observations on the soaring student loan bubble see here. And it gets worse: when spread by sources of credit, the only place where credit came from was the US government, which funded a near record $28 billion, all of it going into student loans, even as every other source of credit declined in the month! If this is not the most blatant gaming of headlines, we don't know what is. But yes, America's lucky students get ever deeper into debt slavery, only to realize upon graduation that there are no jobs that pay high enough to allow them to pay off this debt. Thank you uncle Sam - may we have another bubble.

[clownsj]

click on 'completed auctions' and see what doesn't sell and what things sell for.

[ASK]

Why it is so high.

Did not get it.

[hotrod34racer]

Canadian Silver Maple Leafs

Ebay buy it now $49.99 what the hell? lol... have they looked at spot today? less expensive at APMEX and I know there silver!



Anything going down tonight guys? cheers \_/

[MoneyBags77]

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/3/7_London_Trader_-_40%2B_Tons_of_Physical_Gold_Acquired_Yesterday.html

[vero]

Don't believe that Venezuela's gold has been saved by repatriation. Chavez is basically a looter that is ruining Venezuela. More than likely that gold is the hands of Cuban regime elites, who now make every decision and rule over Venezuela. My bet is that gold will hit the market (if it has not already). Looters are looters.

[S-BEES-BUMBLEBEE]

..so true!!!

(..) Paranoia is setting in and those that know what they hold will triumph. There is no bubble in silver as the inflation adjusted price alone speaks volumes. Good vs evil my friend good vs evil. Best of luck with your fiat investments because US debt and the USD are the true bubbles not Gold and Silver.

DD does not lie; posters do

[hotrod34racer]

45 minutes left, let’s see if they get out the battering ram and push this into the closing bell?

Nice price action but the volume is almost too low IMO would this be considered moving on air? Lol…



Looks like a good day for are team! Cheers \_/

[Bertsllc]

nice move today

[hotrod34racer]

Flat / low volume trading for about the last hour now? did all the big boys go to lunch? lol...



Cheers Buds \_/

[hotrod34racer]

The German lawmakers are following in the footsteps of U.S. Presidential candidate Ron Paul who has long called for an audit of the US’ gold reserves.

It is believed that some 60%of Germany’s gold is stored outside of Germany and much of it in the Federal Reserve Bank of New York.

Germany and other central banks may follow in Hugo Chavez’s footsteps and repatriate their gold to Germany so as to have direct possession of and ownership of their gold reserves in order to be better prepared for a systemic or monetary crisis.

Jim Rickards has outlined possible plans by the Federal Reserve to commandeer Germany’s and all foreign depositors of sovereign gold at the New York Federal Reserve in the event of a dollar and monetary crisis leading to intensified “currency wars” and the ‘nuclear option’ of a drastic upward revision of the price of gold and a return to a quasi gold standard is contemplated by embattled central banks to prevent debt deflation.

Kind of sounds like the fed doesn’t have there gold so we might have to NUKE THEM! IMO there is something going on with the US government and I’m sure it’s people are as valuable to it as the countries that want position of there gold!

[The GidDy uP Kid]

I would say this QE money printing shenanigans gave it a boost...

By JON HILSENRATH

Federal Reserve officials are considering a new type of bond-buying program designed to subdue worries about future inflation if they decide to take new steps to boost the economy in the months ahead.

Under the new approach, the Fed would print new money to buy long-term mortgage or Treasury bonds but effectively tie up that money by borrowing it back for short periods at low rates. The aim of such an approach would be to relieve anxieties that money printing could fuel inflation later, a fear widely expressed by critics of the Fed's previous efforts to aid the recovery.
[0307bernanake] Agence France-Presse/Getty Images

Federal Reserve Board Chairman Ben Bernanke

Fed officials are set to meet next week and have signaled that they are unlikely to launch new programs at that meeting. Moreover, it is far from certain the Fed will launch another program later on. If growth or inflation pick up much, officials seem unlikely to launch a bond-buying program because the economy might not need the extra help or because doing more could spur higher inflation. But if growth disappoints or inflation slows substantially, Fed officials might at some point decide to act again.

The Fed's approach to a bond buying program matters a lot to many investors. More money printing could push commodities and stock prices higher, or send the dollar lower, if it sparks a perception among investors that inflation is moving higher, said Michael Feroli, an economist with J.P Morgan Chase. However, if the Fed chooses a course aimed at restraining inflation expectations, the impact on those markets might be more muted.
Related Reading

MarketBeat: QE Trade Returns
MarketBeat: What Sent Stocks, Oil and Metals Prices Racing Higher?

Fed officials have used different types of bond-buying programs since 2008. In each case the aim has been to drive down long-term interest rates to spur investment and spending by businesses and households. In case they decide to act again, they're exploring three different approaches, according to people familiar with the matter. Those approaches are:

• First, they could use the method they used aggressively from 2008 into 2011, in which the Fed effectively printed money and used it to purchase Treasury securities and mortgage debt. The Fed has already acquired more than $2.3 trillion of securities in several rounds of purchases using this approach, widely known as "quantitative easing," or QE.

• Second, the Fed could reprise a program launched last year in which it is selling short-term Treasury securities and using the proceeds to buy long-term bonds. This $400 billion program, known as "Operation Twist," allows the Fed to buy bonds without creating new money.

• Third, in the new novel approach, the Fed could print money to buy long-term bonds, but restrict how investors and banks use that money by employing new market tools they have designed to better manage cash sloshing around in the financial system. This is known as "sterilized" QE.

The Fed's objective under any of these programs would be to reduce the holdings of long-term securities in the hands of investors and banks. The Fed believes that reducing the amount of long-term bonds in the hands of investors drives down long-term interest rates, encourages more risk-taking, and thus spurs spending and investment by households and businesses.

The differences between the three approaches involve where the money comes from and where it ends up. The Fed hasn't literally printed more money, but it has electronically credited the accounts of banks and investors with new money when it purchased their bonds under quantitative easing. The Fed has pumped more than $1.6 trillion in new money into the financial system this way, and has also rejiggered it existing holdings, as part of its bond-buying efforts.

Many Fed officials believe strongly the bank reserves it has created as part of this money creation aren't an inflation threat. But they are acutely aware of a popular perception, also held by a few inside the Fed itself, that the money the Fed has created could cause an inflation problem down the road. An approach that limits the amount of new money flowing into the system—through another Operation Twist or a sterilized operation—could help them manage that perception.

Under the third approach, the Fed would create new money as it buys long-term bonds. But then it would effectively lock up the money rather than letting it loose in the broader economy. The Fed would do this by borrowing the money back from investors for short periods—say, 28 days—in exchange for some low interest rate it would pay investors.

Transactions like those under the third scenario are called "reverse repos." A related program called "term deposits" also ties up short-term money held by banks. The effect of this approach is the same as Operation Twist: The Fed would hold more long-term bonds and investors and banks would get more short-term holdings in exchange.

Officials at the Federal Reserve Bank of New York have designed the reverse-repo program for use when the economy is much stronger and they want to tighten credit. But the same tools could, in theory, be used now to fine-tune a program meant to ease credit conditions.

Fed officials in New York and at the board in Washington are considering the costs and benefits of the different approaches. They have been pleased with the results of Operation Twist. But they would face some practical limits if they wanted to repeat it.

Louis Crandall, a money-market analyst with Wrightson ICAP LLC, estimates the Fed would have only about $200 billion of short-term securities left to work with in the second half of the year if it decides to repeat the Operation Twist program as currently designed. The current program ends June 30.

The third approach has some benefits the other options don't have. Unlike Operation Twist, the size of the program wouldn't be constrained by the Fed's own holdings of short-term Treasurys. This approach would also give officials an opportunity to try out some of their new tools to see how they work on a large scale.

Moreover, the program could be conducted with financial institutions other than banks, like money-market funds, increasing the Fed's flexibility in managing reserves. The reverse-repo program was designed to include money-market funds and these institutions don't participate directly with the Fed in other operations.

Still there are potential drawbacks. Reverse repos could push short-term interest rates—now near zero—higher than the Fed wants them to go. Moreover, the Fed has described the reverse-repo program as a tool to use when it wants to tighten credit. Using it in combination with a bond-buying program meant to ease credit could "send a lot of conflicting signals" to the markets, Mr. Feroli said.

http://online.wsj.com/article/SB10001424052970204276304577265803925182234.html

[$UPERMAN]

Looks like this may be the spike reason

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=72982688

[MWM]

i have puts on both SLV and GLD what are you telling me to be careful of? upside or downside?

[hotrod34racer]

Well if it's got to go up lets shoot for $46 lol... I hold PHIZ so up is always good IMO



Cheers Buds \_/

[The GidDy uP Kid]

I did also but either way is fine... 26 or 36... I guess now I want 36 LOL...

[hotrod34racer]

Looks like it's breaking through some resistance right now! lol...

SLV Chart:



Doesnt look bad to me! SPOT up .68 now, what is going on here?



Cheers \_/

[Bertsllc]

filling the gap

[Bertsllc]

all buying presure

[canestsal]

Be careful

It will suck you in, only to spit you back out a little poorer and none the wiser. Volume is extremely low, and there will be lots who want out.

[hotrod34racer]

It's moving fairly fast but the volume didnt jump way up!?

Spot is up .40 in the last 5 or 10 minutes as well.



Cheers \_/

[MWM]

It's not over yet!

[Captain Hindsight]

Silver bailed out by gold. There was an epic battle but gold would not give up the 200 MA. Battle for almost 32 hours. Tested, tested, breached, regained, over and over. Let's see what happens from here.

[Bertsllc]

i ment HO2D's

[Bertsllc]

SLV HOD

[Bertsllc]

that figures. i missed bottom last time too. need to be more conservative

[hotrod34racer]

Spot is going up to! looks like the bite might be on, I wanted more @ $28! lol... oh well lets see how today shakes out?



Cheers Buds \_/

[Bertsllc]

what just happened. SLV Big spike

[hotrod34racer]

In order for a leader to become a dictator he first must have something or someone to blame the demise on, just saying.



Cheers Buds \_/

[canestsal]

Default unlikely until elections are over

I doubt that a default will occur, in the PIIGS, or anywhere else for that matter, until the parliamentary elections in Europe and the Presidential elections in the United States are over.

[Captain Hindsight]

Typical typical typical

Everything is green this morning, everything and look at worthless silver. Can't even get above $33 and in the red.


Pathetic

[ironyman]

Just a thought...The Greek default might be indicated by the projected convergence of the 50 & 200 MDA lines. "Very little on Wall street isn't planned"

[Bertsllc]

Domino effect coming and it wont take long.

[hotrod34racer]

Rumours of a planned forced default by Greece on March 23 are gaining ground, following the leak of a document earlier this week stating all Greek bank accounts will be frozen on that date.
Earlier this week The Slog carried a disturbing report of "a seemingly planned/forced default by Greece on 23rd March 2012." However the author of the report clearly stated "I still lack concrete proof of the validity and source of the documents held by Wall Street banks in relation" to the forced default.

Read more:

[S-BEES-BUMBLEBEE]

100% agreed, Bud!

[hotrod34racer]

Is AMERICA DOOMED TO BECOME another GREECE?

[hotrod34racer]

Greek Debt Deal 'Warning to Spain/Italy'

Private investors take a 53.5% hair cut on their Greek bonds! And this is a good deal? Lol… it’s no wonder that the US dollar is going up!

[hotrod34racer]

I know right? lol... caught that last one @ 27 myself. Might be some good deals coming IMO



Cheers Buds \_/ and good luck

[The GidDy uP Kid]

yeap yeap... patiently waiting for another buy... can I get another 26... it will probably be a fast one...

[canestsal]

How PIIGS affect SLV and Silver

You would think Portugal, Ireland, Italy, Greece and Spain potentially defaulting on their debts would be good for silver. However, it is not.

As these countries struggle, money is moved out of European bonds and treasuries, and into the US dollar. The relationship between the US dollar and silver is inversely proportional. So as this money moves into the US dollar from Europe, silver falls.

As the risk of sovereign default increases in Europe, so increases the USD vs Euro.

[Extreme4Reality]

Silver Downtrend Continues

http://i1216.photobucket.com/albums/dd369/extrareal/SilverDowntrend-12.jpg

[jt6455]

I hope so my laser sighting is on and I'm locked n loaded. anything under 30 I'm a buyer but will gladly take low twenties

Watching and waiting

[MWM]

Look what happened the last two times SLV broke under the 50 day MA...

keep that in mind if we break lower...

[jt6455]

You only.lose if you sell ace. Besides did you see the article this morning in WSJ regarding money market accounts? Feds fear a run on these funds and are contemplating 2 plausible solutions meaning more regulation on the USD.

The jig is almost up and there are fewer places for investment capital to go. Yesterday commercial paper was the big winner. This too shall be short lived as treasuries continue to offer anemic returns. Minimal yield for higher risk is not a good investment philosophy even in corporate debt. Can't increase the spread without Bernankes blessing senior.

Paranoia is setting in and those that know what they hold will triumph. There is no bubble in silver as the inflation adjusted price alone speaks volumes. Good vs evil my friend good vs evil. Best of luck with your fiat investments because US debt and the USD are the true bubbles not Gold and Silver.

DD does not lie; posters do

[hotrod34racer]

I hope the paper market beats spot price so fare down into a hole that it needs a telescope to see out! Lol… I’ll look like Scrooge McDuck swimming through the piles of physical! ROFL

[Extreme4Reality]

"I am out. I can't lose 3% everyday"

Anthony is one of the smart and lucky ones, the others will get massacred.


Anthony1983 Said:

"I can't lose 3% everyday, this is headed to the 20's again and I just can't stomach it. Good luck fellas.

Well it was insightful and another expensive lesson learned but I am out. I will be selling my physical position and all paper GLD and SLV today. The trade is toast IMO

I can't lose 3% everyday, this is headed to the 20's again and I just can't stomach it. Good luck fellas."

[MWM]

Gold futures tumble to 6-week low as Greece default fears grow
By Forexpros | Commodities News | Mar 06, 2012 02:19PM GMT

ForexprosArticle

Forexpros - Gold futures came under heavy selling pressure on Tuesday, dropping to the lowest level since late-January as growing fears over a potential Greece debt default prompted investors to flock to the relative safety of the U.S. dollar.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,678.15 a troy ounce during early U.S. morning trade, tumbling 1.5%.

It earlier fell by as much as 1.65% to trade at USD1,676.55 a troy ounce, the lowest since January 25.

Gold futures were likely to find support at USD1,649.25 a troy ounce, the low from January 25 and resistance at USD1,717.65, the previous day’s high.

Markets remained jittery ahead of the March 8 deadline for bondholders to join the agreement under which they will exchange their existing Greek government bonds for new paper in a swap deal.

Earlier in the day, Greek finance minister Evangelos Venizelos strongly urged private sector creditors to take part in the debt swap deal and warned that it was the best offer they would receive.

At least 66% of private sector bondholders must be willing to participate in the deal.

A failure to agree on the swap would put the country back on the brink of a messy sovereign debt default and could reignite fears about the collapse of the single currency.

The news saw the U.S. dollar strengthen to a two-and-a-half week high against the euro. Gold remains more sensitive to moves in the euro/dollar exchange rate in the short term than to rising risk aversion, which in the past has been a positive driver of prices.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.5% to trade at 79.81, the highest since February 16.

Although gold’s appeal as a safe-haven is boosted during times of economic uncertainty, the euro zone’s debt crisis has done little to bolster appetite for the precious metal. A weakening euro and stronger dollar have weighed on gold instead.

Meanwhile, market participants also cited steady selling by macro funds and institutional investors. Some traders also sold profitable gold positions to offset losses in other markets, while others pulled cash out of broader markets on concerns of a sharper downturn.

Prices came under further pressure as investors remained wary from entering the market, amid a weak near-term technical outlook for the precious metal.

Market participants noted that gold prices remain vulnerable to a further pullback in the short-term, should prices drop below a key technical support level.

Gold has held its 200-day-moving average, currently at USD1,675 an ounce, since mid-January. Should it slip below that level, analysts said the metal could test USD1,650.

Elsewhere on the Comex, silver for May delivery plunged 2% to trade at USD33.01 a troy ounce, while copper for May delivery tumbled 2.6% to trade at USD3.758 a pound.

[MWM]

Edit

double post

[HotStockAce]

Likewise. Don't want to hear you either.

[PipBoy]

Silver will be worthless long term, its a short term commodity pump n dump LOL