Skip to comments.Bob Chapman confirms 80% cash settlements for silver
Posted on 04/24/2011 3:05:06 AM PDT by Daisyjane69
If you want to cut right to the chase, start paying attention at the 4:00 minute mark.
This 80% cash settlement for not taking physical delivery of silver contracts has been rumored for a while now. This is the first time I've seen someone with a name and some credibility seemingly confirm it.
I changed the title because it was not germane to this particular clip.
Why don’t you post the actual link to the clip?
I’m sorry. I thought it would come up at the “you tube interview” part of my post.
The link went straight to Youtube for me.
That means it worked, right?
LOL Yes, that is what I meant. Sorry if I wasn’t clear about that.
What means what worked?
Sorry, I guess you were talking about the link when you said “worked”, not about the scheme or the plan talked about in the audio.
Can someone translate this subject into plain English?
Yes, I’m sorry for not being more clear. I was referring to my limited and sometimes primative link posting skills. LOL
With respect to the content of the clip, for those “silver bugs” who notice such things, this has been a hot rumor for a number of weeks now. The notion that these banksters would be willing to pay an 80% premium for people to not demand the silver they were entitled to, seemed almost hard to believe. Can you imagine getting an 80% cash return on your silver and YOU STILL GOT TO KEEP OWNERSHIP OF YOUR SILVER? That’s nuts. And it sure makes me wish I were holding one of those 5,000 oz silver contracts, believe me. Man, I would do that all day long & twice on Sundays!!!!
Until now, it’s always been a rumor. No one has officially come out and said it is going on and it almost seemed like an urban legend or something. But Bob Chapman has some credibility on this. If he claims he has parties telling him this, I am inclined to believe him.
Does that mean they send you a check for 80% of the current value? Like a dividend?
Does that mean they send you a check for 80% of the current value? Like a dividend?>>>>>>>
Means that at the end of your silver futures contract the Comex cannot scrounge up a 5,000 oz silver bar to pay you off. So this week that silver is worth say $46/oz. They are going to pay you that plus 80% more...roughly another $38
So you will paid off to go away at $84/oz. Thus making the true price of physical silver $84/oz and “paper silver” $46/oz
I understand that you can demand a 5000 oz silver bar only if your Comex contract is 100% bought in cash...not on margin. So I hear
And you still own the silver!
The Sprott physical silver trust in Canada is charging a 20% premium to buy in. Meaning the silver ounces you buy there that they store for you cost you 20% above silver spot of $46. This also reflects a shortage of physical silver
Your characterization is absolutely genius:
They pay you off to go away. Perfect way to state it.
But only for a while. If they want you to go away next month, they have to pay you again!
Lord, I wish I held just ONE of these contracts.
I don't believe in reptilian overlords.
I thought this was going to happen with gold, with the price starting to split. I guess I’m a sucker with my spdr gold shares? I can see it now running across the bottom of the screen on CNBC: GOLD SPOT 2500..GOLD PAPER..1550...
Saturday, April 23, 2011
JP Morgan and HSBC are short silver 45 to one (HBSC is a major Anglo-Chinese bank)
ShareBob Chapman - Sovereign Economist - 04-20-2011 :
And by "go away" you mean 'let your contract ride' and as Daisyjane69 says you still own it.
It does sound too good to be true but if they can't make good with physical silver it just may be. Great news if you have a silver contract and terrifying news if economic collapse scares you.
In any case; thank you both for helping me understand that.
The real essence is there is a huge shortage of COMEX approved deliverable 5000 ounce silver bars so COMEX pays people off at +80% to walk away and don’t bother COMEX
Silver bar of 100oz are available much much cheaper at about 3% over spot silver http://www.apmex.com/Product/20/100_oz_Engelhard_or_Johnson_Matthey_Silver_Bar_999_Fine.aspx
I have to read up on it more but at 80% over “paper silver” that contract is finished. You go out and buy another if you want to try this stunt again
But I hear you can only demand delivery of physical silver when your contract was bought in cash, not on margin
The question in my mind is will they someday just renege on the contract because things never turn around for them?
One easy change would be --- You can have your 5000 oz silver bars but you have to wait 3-6-12 months to get them. This way the silver refineries could catch up and manufacture more of those COMEX certified 5000 ounce silver bars
You bring up exactly what Chapman talks about. He says that they will end up with 3 choices:
1. To partically renege on the contracts owned, paying 20-30 cents on the dollar for them
2. To completely renege on SLV or GLD, investors getting zero.
3. OR...the FED bailing out JPM & the usual suspects at a cost of between 90-130 BILLION dollars, depending on the price at which they pull the trigger.
“Silver bar of 100oz are available much much cheaper at about 3% over spot silver.”
True although my last buy took two weeks to get here.
Ok so what about the Ishares... SLV can you get the government to pay on those and how?
100 oz Engelhard or Johnson Matthey Silver Bar .999 Fine
|Credit Card & Bank Wire Orders Ship In (1-3) Business Days!|
I just listened to the interview and am wondering how much this rumor is circulating- I am not familiar with Bob Chapman so can’t know whether he’s a credible guy, but this is a helluva story, if it’s true.
I’ve been watching SLV closely in the last 4-5 weeks and it’s nuts.
I’ll go read up on Chapman now.
He has a website:
You can go back months, probably years, to see what he’s been saying.
Hope that saves you some work.
SLV is iffy
Buy Sprott silver fund in Canada if you want to be assured physical silver...But they charge 20% premium
thanks:) I found it as soon as I started my search. What I was wondering is if he’s a classic conspiracy guy or if he’s level-headed and grounded in the real world. One thing is clear, GS, JP Morgan and their pals have power so amazing that it doesn’t make for sound sleeping..
Thank you both again for patiently clarifying things for me.
Oh God. I am old enough to remember the 20 times face value paid for silver coins go around form the early 80’s. People were being told it was going to go to 40 times so buy silver coins. Then it crashed.
If it sounds too good to be true; it probably is.
PS: One is born every minute aren’t they...
I guess that answers my question- and Chapman “outed” him on the Alex Jones show...say no more.
Thanks for the post but I’m still a little unclear. I’m only recently a silver buyer and that of old quarters in a bag that I walk away with in my backpack.
The contracts and all that I know nothing of.
So people will be getting 80% of the value of a contract that they hold and still get to hold the contract and this benefits whom and why are the banks doing it?
Sorry for my ignorance on this subject but I am interested.
It’s pushing 34x face right now
My grandfather lost his shirt going long in silver along with the Hunt Brothers. I’d be quite wealthy today if I still had all the silver bars he owned at one point.
"They" aren't charging the premium. Shares in Sprott's trust are freely bought and sold on the open market. Presently-existing holders are the ones offering shares for sale. They are the ones willing to part with their shares for the 20% premium.
If you own a fully-paid for silver futures contract and you “stand for deliver” then the seller of contract has agreed to, and is legally obliged to, deliver you the physical silver you paid for when buying the contract. One contract is 5,000 oz of silver. The story is, JPM is a big seller of contracts, but doesn’t have and can’t find the silver to deliver, so they are willing to pay an 80% cash premium over the going market price of silver, to make you go away, given that they can’t deliver the goods. So they pay you 180% of the market value, which you paid 100% for (it being a “fully-paid-for” contract on your part).
Thing is, next month, you can turn around and buy another contract for 100% of the then-current cash value; lather, rinse, repeat.
Bummer for JPM ... so the story goes.
The bad news is, 5000 ounces of silver at 46 dollars/ounce = $230,000, so not every mom and pop can get in on this deal - although there are “mini-contracts” of silver, 1000 ounces, but I don’t know if they are being settled at the same premium, or indeed for any premium. Those would cost only $46,000 each to find out.
Wow, that’s quite a story. Thanks for all the detail making it clear.
Here’s a question on the general subject of silver:
Can a US citizen walk up to a US Mint (DC, Denver) and buy Silver Eagle coins direct from the mint?
You’re welcome. Typo on my part, “stand for delivery” not stand for “deliver.”
The rumor is a bunch of traders who were unceremoniously fired from JPM by Blythe Masters, the ice-queen head of commodities trading at that firm (and who incidentally invented CDOs), and they are aware of JPM’s “book” which is what positions they hold, hatched the scheme to bankrupt their former employer, and have gained the interest in some wealthy Asian hedge fund managers to join in the fun. Look up “Wynter Benton,” the pen name of one of these former JPM traders.
I don’t know if the Mint has an actual storefront or not.
I do know the sell to a bunch of dealers, and that you can place web orders directly to them. http://catalog.usmint.gov/webapp/wcs/stores/servlet/CategoryDisplay?langId=-1&storeId=10001&catalogId=10001&identifier=1000
I’m also absolutely positive that they won’t require proof of citizenship ... or even a birth certificate ... to do business with them.
My stash is equally divided between those two bar examples shown. The JM is prettier though, LOL.
Unless you are interested in paying the premium for Eagles, you can usually buy them at the local coin shops for spot silver plus.
I expect to pay the “plus” no matter where I buy them, but what I want to do is avoid the risk of counterfeits. It’s such a bothersome subject and I want to minimize it as much as possible.
So does this mean I should sell CEF and buy SLV?
It means that is all you’re likely to ever get. You won’t get the silver, but they will sell you more at much inflated prices. THEY DO NOT HAVE IT AND CANNOT GET IT. The only reason they are still in business is to keep creditors, you from demanding real silver and bringing lawsuits if you can’t get it, and the second reason is to keep the doors open so they can sell “certificate silver” to new suckers at inflated prices so they can pay you the 80%. If you have vouchers for silver, demand the silver. If you want to buy it, insist on DELIVERY of the silver - no paper.
CEF is 85% physical and SLV deals in theoretical “paper silver”. So CEF is safer and better but a premium is charged to get in same as with Sprott physical silver trust which is also good
Central Fund of Canada
The Central Fund of Canada is a commodity mutual fund established in 1961. The fund is headquartered in Calgary, Canada and managed by Central Group Alberta Limited. This body is the largest closed-end fund in Canada which trades in Canadian and US dollars. In 2008, the fund held more than 28 tonnes of gold and 1423 tonnes of silver. A small percent of the assets is held in cash.
The Calgary Branch of the Canadian Imperial Bank of Commerce is the custodian of the fund. The gold and silver bullion is stored in the underground vaults of the bank. It is inspected by the directors and officials of the fund twice a year. The inspections take place in the presence of external auditors and bank employees. The Board of Directors mandates that the Central Fund maintains a minimum of 90 percent of its net assets in the form of long-term passive holdings. At least 85 percent of the assets have to be in a physical form. Unlike the iShares Silver Trust and the SPDR Gold Trust, the Central Fund of Canada does not lease out its gold bullion. Consequently, investment in the fund can be considered relatively safe.
The shares of the fund are listed on the NYSE and the TSX under the symbol CEF. The Central Fund of Canada raises capital through public and non-public offerings. The shares are traded at a 12.2 percent premium to their net asset value. This premium is actually lower than the premium paid on physical bullion. As of April 2009, the fund has priced its public offering of 19.05 million class A shares at $10.5 per share. As a rule, these proceeds are invested in accordance with the investment policy of the Central Fund. The latter mandates the purchase of gold and silver bullion in a ration of fifty ounces of silver to one ounce of gold.
Long-term gains in other exchange-traded funds are taxed at 28 percent. Given that the funds shares are considered capital property, they qualify for the 15 percent capital gain tax treatment.
Actually, CEF is a gold and silver fund. Right now it has 41.2% gold bullion and 57.5% silver bullion.
I bought it three months ago and am up 40%, so I think the premium has been covered.
I've been watching SLV go up faster, though. I actually started watching SLV two years ago. Should have bought it then.