Bob Chapman confirms 80% cash settlements for silver

you tube interview ^ | 4/15/11 | Bob Chapman (interviewed)

[samtheman]

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?

[coloradan]

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.

[coloradan]

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.

[traderrob6]

My stash is equally divided between those two bar examples shown. The JM is prettier though, LOL.

[MSF BU]

Unless you are interested in paying the premium for Eagles, you can usually buy them at the local coin shops for spot silver plus.

[samtheman]

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.

[E. Pluribus Unum]

So does this mean I should sell CEF and buy SLV?

[Gaffer]

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.

[dennisw]

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
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http://www.goldshares.org/central+fund+of+canada/
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 fund’s shares are considered capital property, they qualify for the 15 percent capital gain tax treatment.

[E. Pluribus Unum]

Thanks for the response.

Actually, CEF is a gold and silver fund. Right now it has 41.2% gold bullion and 57.5% silver bullion.

http://www.centralfund.com/Nav%20Form.htm

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.

[CharlesWayneCT]

I heard that one group claimed they got an “80% profit” in order to give up their contract. There is no indication that this is an 80% premium over the current price. It seems more likely that it’s someone who bought a couple months ago at $20, and now they realise that the group doesn’t have any silver, and they want to get out, and the group offered them an “80% profit” to give up. Which if they bought at $20, would mean they got paid like $36 on a contract that theoretically was worth $46.

In fact, the entire tape seems to suggest that this is a horrid inside-job kind of payout, because when the reality becomes known, people who bought this unbacked paper were only likely to get 20-30% on the dollar. So this was an unethical move to keep the problem quiet by paying a higher but still not full payout.

I would note that in many of these types of arrangements, the person issuing the paper has the right under law to terminate them at any time by delivering the cash equivalent of the current price. So there would be no reason to have to pay more than the current price to get people out; it makes more sense to interpret this as a “profit” on a prior investment that is still less of a payout than the current price.

The tape also seems to suggest that the market will collapse at some point once all the speculators are driven out by the knowledge that people are selling worthless paper as if they have the physical assets.

Note: I have no idea if the claims are true, that the paper is worthless, I’m simply saying that the video doesn’t say that people are getting paid more than the current value of the silver.

[dennisw]

So far you have gone physical. If you want pure physical silver or pure physical gold then Eric Sprott has a fund for each. He is highly regarded in the ...um ...gold bug community. He has a long reputation. Spott silver website has a long list of the silver bars it owns for those who buy into it.

SLV= no premium to buy into
Spott silver= PSLV= fluctuates but currently a 20% premium to buy into it

I would not buy SLV unless it is short term. SLV is “paper silver” meaning it has your silver via silver futures and silver derivatives

Check the performance of Sprott silver -—>> http://www.google.com/finance?q=NYSE:PSLV

Here is a very good video of Eric Sprott-—>>
http://www.youtube.com/watch?v=T2w7wGwUZ9Y

[CharlesWayneCT]

By “Heard”, I mean that this is my interpretation of what I heard from the posted audio, not that I “heard” if from somewhere else.

[E. Pluribus Unum]

Thanks.

I forgot that the reason I went with CEF is because they actually own the physical metal.

Greed is bad.

[hinckley buzzard]

You can buy proof silver on line or by mail from the Mint. You can buy uncirculated silver from dealers. I am unaware of any actual window at the mints.

[dennisw]

SLV is very tempting because NO PREMIUM!!!!
Sprott silver has a 20% premium for a reason!! It is slam dunk physical plus the silver is held in Canada beyond loony US authorities (at least theoretically beyond them)

At a glance at charts Sprott silver is moving up faster than CEF. Must be because CEF is half physical gold

Sprott gold fund is also held in Canada beyond threats of gold confiscation

Why not diversify? Keep some CEF and buy some SLV but more PSLV? This way you get your SLV thoughts satisfied.

[Stentor]

I don't believe in reptilian overlords.

I respect your opinion and am disappointed. I heard they taste just like chicken.

[Stentor]

I’ll go read up on Chapman now.

For what it's worth; He's an Alex Jones regular.

[dennisw]

Sprott silver is PSLV so you can look it up.

[SE Mom]

Thanks- I discovered that as I began to research him- and though he may be telling the truth- it surely seems something odd is going on- hanging out with Alex Jones does not improve anyone’s credibility in my eyes.