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XMFSinchiruna (26.58)

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July 21, 2011 – Comments (12)

Hi Fools,

I'm slammed today, but someone just sent me this link to a video presentation from some dude discussing anomalous trading activity in silver on 7/18/2011. He references a spike in silver volume on the COMEX equating to 50,000 contracts sold within 1 minute. That would equate to a sale of $10B worth of paper silver, so we need to ascertain and independently verify whether or not this analysis is correct regarding the volume.

http://www.youtube.com/watch?v=Y--jCrDOSjk&feature=youtu.be

Could someone familiar with futures have a look and see whether they can verify 50,000 contracts sold within a minute on 7/18/11. Please don't feel the need to comment on the remainder of the analysis; I could care less about the guy's interpretation. I'll draw my own interpretations, but I just need someone to vet the veracity of the volume spike. I'm knee deep in earnings reports at the moment, but I'll drop it all and write this up if someone really did sell $10B in contracts in a minute.

Thank you in advance to anyone who has the time or inclination to have a look for me!

Also, please stay tuned to my blog tomorrow, as Alexandria Minerals CEO Eric Owens will be making a return appearance to engage in dialogue with you all on the blogs, and asnwer any questions you may have about the company.

Thanks again,

Sinch

12 Comments – Post Your Own

#1) On July 21, 2011 at 10:10 AM, XMFSinchiruna (26.58) wrote:

http://www.magellanminerals.com/news/news_releases/index.php?&content_id=125

Nice drill results for Magellan Minerals

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#2) On July 21, 2011 at 10:11 AM, 100ozRound (28.80) wrote:

I don't see it Sinch.  I brought up my thinkorswim charts for the same period for Silver futures and the volume on there is nowhere near 50k for any single minute period.  Now the total volume for that entire day is around 73k.  It looks like that guy is using netdania.com for his charts.  It's a cool chart streaming site, but I have seen it send bad data from time to time.  So the only thing I can think of is that he got bad data and didn't verify it somewhere else before putting out his conclusions.

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#3) On July 21, 2011 at 10:40 AM, XMFSinchiruna (26.58) wrote:

Thank you 100oz! That's the sort of thing I was looking for.

I also just found this, which debunks the analysis in question.

http://www.youtube.com/watch?v=0rWrWesKyXM&feature=youtu.be

Sorry for the false alarm, but that's what we're all here for ... to keep a close collective eye on the TRUTH about gold and silver.

Thanks again!

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#4) On July 21, 2011 at 10:42 AM, XMFSinchiruna (26.58) wrote:

So just to be clear ... there was no $10B one-minute selloff in silver. The individual presenting the analysis was the victim of bad data.

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#5) On July 21, 2011 at 1:00 PM, L0RDZ (89.10) wrote:

Bad intell  can  kill...

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#6) On July 21, 2011 at 1:15 PM, tradeRR (< 20) wrote:

Just curious Sinch, what would be the result if 10B was actually sold? And how would you react to that trading wise?

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#7) On July 21, 2011 at 1:26 PM, XMFSinchiruna (26.58) wrote:

tradeRR

Had it been real, I think we would have seen a drop of several dollars in the silver price. I would, as always, have been buying the dip.  :)

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#8) On July 21, 2011 at 2:10 PM, leohaas (29.27) wrote:

This is how rumors get started. But thanks much for debunking it!

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#9) On July 21, 2011 at 3:12 PM, L0RDZ (89.10) wrote:

A  10 billion sell would have been  gov  sponsored....  black  opps  black gov   stuff.....

 Its hard to  trade against such  a  force....    but hey  when you're fighting   vampires  and  were - wolves you'll need all the silver you can get your paws on :)

 

Buy low

sell high

 works for me

 

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#10) On July 21, 2011 at 6:56 PM, ChrisGraley (28.80) wrote:

It would have dropped about $5 to $7 bucks a share.

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#11) On July 22, 2011 at 10:48 AM, golfer121501 (21.02) wrote:

Sinch,

I am not quite following.  IF 50,000 contracts of silver were sold, why would this drive the price down?  Why wouldn't it drive the price up due to increased demand?  Sorry for a simple question, just trying to understand how these futures contracts affect the price of silver.

Thanks

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#12) On July 27, 2011 at 4:07 AM, silvermind (< 20) wrote:

golfer121501,

If it would have happened there would have been an overabundance of Supply (sales) and that would drive the price down.  The premise is lots of stuff in a super-abundant supply drives the price down because all the demand has been fulfilled and then the stuff gets cheap.  pretty simple.

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