Gold and Silver • London Trader – Massive Physical Silver Orders Filled Near $
London Trader – Massive Physical Silver Orders Filled Near $33
With many global investors concerned about the recent action in the silver market, King World News interviewed the “London Trader” to get his take on what has taken place in silver and what to look for going forward. Here is what the source had to say: “The Chinese are divesting out of paper right now. So we are seeing a huge uptick in euro physical silver purchases, as well as dollar silver purchases. When silver took out $33, a huge amount of physical orders were filled.”
“The Chinese are doing the exact same thing in the silver market that they are doing in the gold market, massive accumulation on dips. It is also important to note that the local traders in silver are short and nervous. Everyone is short silver and so that market can move violently higher when it turns.
When silver reverses, it will be the one that leads the market higher. Also, the commercials have been covering in silver the same way they have been in gold….
“The physical silver orders that were just filled have been waiting since February 16th. Those orders near the $33 level were filled in huge size on Tuesday. These long-term accumulators are buying every dip. There were some fills at $34, but some very large orders were filled near $33.
As long as we stay under $34, there is going to be constant accumulation. What does it matter if you buy silver at $32 or $38, when it is going to go multiples higher from these levels? The Chinese know this and that is why they are accumulating in size.
What is happening here is essentially criminal, but the smart money is capitalizing on it by accumulating. They take advantage of the manipulation. Remember, a lot of this is spot indexing that will be converted to physical over the next few days.
These guys (bullion banks) are so naked short and the last thing they need is to have physical disappear at this time. This is the ammunition they have to drive the market lower and they don’t have very much ammunition.
Even in the virtual market they are running out of sellers they can cover into. There simply aren’t enough weak hands for them to cover in size and as I said, the last thing they need is for physical to be disappearing at these levels.
The real (physical) market is taking over now and the virtual (paper) market will not be as important going forward as the price of silver begins to rise again.”
Statistics: Posted by DIGGER DAN — Fri Mar 09, 2012 4:04 am
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