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Edmund Law
7th February 2011, 19:31
BHP's Cannington mine is the joint largest silver mine in the world. Retail investors such as us will be the last to know what the damage assesment is (if any) to the mine and the resultant delays in silver production (if any). However be certain that the big banks shorting silver will by now have accurate data.
Our best clue is to look at what silver has done over the last few days relative to gold which is much less affected by the Queensland floods and then the cyclone. Normally the two precious metals correlate 80-85% especially over the shorter term.
Silver has decisively outperformed gold during the last few days. Not conclusive evidence that all is not 100% normal with this crucial element to global silver supply but at least suggestive.
If there is any delay or impact at all on silver the effect will be marked due to the already very tight silver physical supply situation evidenced by backwardation etc etc etc.........

Matthew Shelley
8th February 2011, 09:43
If there is any delay or impact at all on silver the effect will be marked due to the already very tight silver physical supply situation evidenced by backwardation etc etc etc.........

Please show me hard evidence of backwardation in Silver. Musings of the Silver froofers doesn't count, neither does the price of a one ounce coin.

Edmund Law
8th February 2011, 12:04
Please show me hard evidence of backwardation in Silver. Musings of the Silver froofers doesn't count, neither does the price of a one ounce coin.

Just look at the CME futures charts for spot versus the next several months or look at the spread bet quotes for spot versus March and later months........The backwardation is current on LBMA as well. The backwardation is by comparing spot to the futures not the first future to the next and is admittedly slight - but it is there.
From CME site a few mins ago:
Feb 2011
29.890 +0.542 29.348 29.870 29.890 29.870 2 No Limit 10:04:46 AM CST
2/8/2011
Mar 2011
30.095 +0.752 29.343 29.350 30.150 29.260 49,634 No Limit 10:48:35 AM CST
2/8/2011
Apr 2011
30.095 +0.746 29.349 29.370 30.100 29.360 20 No Limit 10:43:38 AM CST
2/8/2011
May 2011
30.130 +0.763 29.367 29.420 30.165 29.285 5,096 No Limit 10:48:21 AM CST
2/8/2011
Jul 2011
30.130 +0.747 29.383 29.700 30.145 29.330 685 No Limit 10:42:53 AM CST
2/8/2011


Disclaimer and Disclosure: All posts by Edmund Law are for discussion / debate purposes only and do not constitute trading advice. E&OE. Edmund is long silver.

Steadfast
8th February 2011, 12:10
Just look at the CME futures charts for spot versus the next several months or look at the spread bet quotes for spot versus March and later months........The backwardation is current on LBMA as well. The backwardation is by comparing spot to the futures not the first future to the next and is admittedly slight - but it is there.
From CME site a few mins ago:
Feb 2011
29.890 +0.542 29.348 29.870 29.890 29.870 2 No Limit 10:04:46 AM CST
2/8/2011
Mar 2011
30.095 +0.752 29.343 29.350 30.150 29.260 49,634 No Limit 10:48:35 AM CST
2/8/2011
Apr 2011
30.095 +0.746 29.349 29.370 30.100 29.360 20 No Limit 10:43:38 AM CST
2/8/2011
May 2011
30.130 +0.763 29.367 29.420 30.165 29.285 5,096 No Limit 10:48:21 AM CST
2/8/2011
Jul 2011
30.130 +0.747 29.383 29.700 30.145 29.330 685 No Limit 10:42:53 AM CST
2/8/2011
.


WOOOOOP, there it is.... ha ha!

Matthew Shelley
8th February 2011, 12:25
Ah hah! Someone who isn't aware that February Silver could be the least delivered futures contract there is every year. Meaning that the price has little meaning. Look at the volume in your listing. A whopping two contracts. I guess that's the difference between an 'analyst' and someone down in the trenches who actually trades the stuff day in and day out.

Again, an explanation without the musings of the froofers?

Matthew Shelley
Commodity Broker

As always: Trading in futures and options is very high risk investing. You can lose all or more of the money you invest. Only risk capital should be used.


Just look at the CME futures charts for spot versus the next several months or look at the spread bet quotes for spot versus March and later months........The backwardation is current on LBMA as well. The backwardation is by comparing spot to the futures not the first future to the next and is admittedly slight - but it is there.
From CME site a few mins ago:
Feb 2011
29.890 +0.542 29.348 29.870 29.890 29.870 2 No Limit 10:04:46 AM CST
2/8/2011
Mar 2011
30.095 +0.752 29.343 29.350 30.150 29.260 49,634 No Limit 10:48:35 AM CST
2/8/2011
Apr 2011
30.095 +0.746 29.349 29.370 30.100 29.360 20 No Limit 10:43:38 AM CST
2/8/2011
May 2011
30.130 +0.763 29.367 29.420 30.165 29.285 5,096 No Limit 10:48:21 AM CST
2/8/2011
Jul 2011
30.130 +0.747 29.383 29.700 30.145 29.330 685 No Limit 10:42:53 AM CST
2/8/2011


Disclaimer and Disclosure: All posts by Edmund Law are for discussion / debate purposes only and do not constitute trading advice. E&OE. Edmund is long silver.

ccjoe
8th February 2011, 13:59
BHP's Cannington mine is the joint largest silver mine in the world. Retail investors such as us will be the last to know what the damage assesment is (if any) to the mine and the resultant delays in silver production (if any). However be certain that the big banks shorting silver will by now have accurate data.
Our best clue is to look at what silver has done over the last few days relative to gold which is much less affected by the Queensland floods and then the cyclone. Normally the two precious metals correlate 80-85% especially over the shorter term.
Silver has decisively outperformed gold during the last few days. Not conclusive evidence that all is not 100% normal with this crucial element to global silver supply but at least suggestive.
If there is any delay or impact at all on silver the effect will be marked due to the already very tight silver physical supply situation evidenced by backwardation etc etc etc.........
This unequivocal backwardation could be the snow flake that causes the avalanche as we all know except rog/dun/matt./bozo/gump.
This composite Einstein denying backwardation is like bernanke denying tomorrow to Ron Paul that there is NO INFLATION> the fucking bozo obviously doesn't even fill his gas tank or go to the grocery store because he knows people may kill him if he goes out in public.
Even the populace is NOW catching on so we will see 100 silver this year.

Matthew Shelley
8th February 2011, 14:59
This unequivocal backwardation could be the snow flake that causes the avalanche as we all know except rog/dun/matt./bozo/gump.
This composite Einstein denying backwardation is like bernanke denying tomorrow to Ron Paul that there is NO INFLATION> the fucking bozo obviously doesn't even fill his gas tank or go to the grocery store because he knows people may kill him if he goes out in public.
Even the populace is NOW catching on so we will see 100 silver this year.

This bozo doesn't drive, but I'm hardly afraid of goobers on the internet who bluster. Spent too many years as a bouncer in downtown bars for that. Would you like to know which bus routes I use for the daily commute? The owner of the local store likes me and will always try to accommodate my requests. I suppose it's because I'm there every other day and quite cognizant of prices. I guess that's a side benefit of my work, numbers get stored and remembered as if they were in a file cabinet. The checkout women and butchers all seem to like me too. Maybe it's partly because they never hear me swearing like a teenager.

Since no one else has been able to do it so far, perhaps you could take a stab at correctly explaining the unequivocal backwardation you are talking about. When all the froofers started, first they told us that it was clearly shown out to a year out. Then it was pointed out that was wrong and not in the numbers so they started talking about the flat price ladder. Then it was pointed out that was due to the low interest rates and was hardly something new. Then they started talking the front month. It was pointed out that February was almost an untraded delivery month so the price is unimportant.

Care to add to the fun? I'll be more than happy to shoot down the next flyer that someone makes up.

Matthew Shelley
Commodity Broker

As always: Trading in futures and options is very high risk investing. You can lose all or more of the money you invest. Only risk capital should be used.

ccjoe
8th February 2011, 15:09
This bozo doesn't drive, but I'm hardly afraid of goobers on the internet who bluster. Spent too many years as a bouncer in downtown bars for that. Would you like to know which bus routes I use for the daily commute? The owner of the local store likes me and will always try to accommodate my requests. I suppose it's because I'm there every other day and quite cognizant of prices. I guess that's a side benefit of my work, numbers get stored and remembered as if they were in a file cabinet. The checkout women and butchers all seem to like me too. Maybe it's partly because they never hear me swearing like a teenager.

Since no one else has been able to do it so far, perhaps you could take a stab at correctly explaining the unequivocal backwardation you are talking about. When all the froofers started, first they told us that it was clearly shown out to a year out. Then it was pointed out that was wrong and not in the numbers so they started talking about the flat price ladder. Then it was pointed out that was due to the low interest rates and was hardly something new. Then they started talking the front month. It was pointed out that February was almost an untraded delivery month so the price is unimportant.

Care to add to the fun? I'll be more than happy to shoot down the next flyer that someone makes up.

Matthew Shelley
Commodity Broker

As always: Trading in futures and options is very high risk investing. You can lose all or more of the money you invest. Only risk capital should be used.
MAN are you self obsessed. I meant BERNANKE OBVIOUSLY MATT> I wish you NO HARM. I MEANT BERNANKE may be killed and does not shop or drive. I'm nonviolent but the jareds of the world are catching on to the criminal banksters and tomorrow may be a crucible point as the whole world MAY see the truth if Ron can be at his best.

Matthew Shelley
8th February 2011, 15:21
MAN are you self obsessed. I meant BERNANKE OBVIOUSLY MATT> I wish you NO HARM. I MEANT BERNANKE may be killed and does not shop or drive. I'm nonviolent but the jareds of the world are catching on to the criminal banksters and tomorrow may be a crucible point as the whole world MAY see the truth if Ron can be at his best.

You still haven't explained your "unequivocal backwardation".

gollumthegreat
8th February 2011, 16:31
Backwardation or not, somethings happening. And anyway, Backwardation and/or Contago are just further examples of Orwellian doublespeak designed to keep the Layman bewildered. And another thing, if these reported figures are just lies, like every other statistic we get to hear, then what exactly is the relevance of Contago or Backwardation.

And finally. Am I wrong, but is the reason why people starve to death in the third world, due to greedy parasitic paper speculators of the futures market. Matt?

ccjoe
8th February 2011, 16:35
You still haven't explained your "unequivocal backwardation".

Matt--I'm stupid with the technical stuff but have given 50 links of real experts who all say we ARE in backwardation.

Matthew Shelley
8th February 2011, 17:44
Matt--I'm stupid with the technical stuff but have given 50 links of real experts who all say we ARE in backwardation.

If that's the case, then they're not really experts. They are just listening to each other without bothering to look it up for themselves. Being as this is my family business, this is something I learned around the dinner table when I was young. It's also something I have had to completely understand since I started on the floor as an arbitrageur and a spreader.

wdwexe
8th February 2011, 17:50
If that's the case, then they're not really experts. They are just listening to each other without bothering to look it up for themselves. Being as this is my family business, this is something I learned around the dinner table when I was young. It's also something I have had to completely understand since I started on the floor as an arbitrageur and a spreader.

Matt will take your money, and give you a receipt to prove ownership. No problem there. Let him type you another. Go long, or go home would be my guess.

Steadfast
9th February 2011, 08:37
If that's the case, then they're not really experts. They are just listening to each other without bothering to look it up for themselves. Being as this is my family business, this is something I learned around the dinner table when I was young. It's also something I have had to completely understand since I started on the floor as an arbitrageur and a spreader.

Alright, since you have a dinner table understanding of things, which we seem to not understand,
perhaps you could educate us as to what "backwardation" and "contango" both mean in layman's terms,
and how you go about "looking it up for yourself" so we may also do the same.

Matthew Shelley
9th February 2011, 09:16
Alright, since you have a dinner table understanding of things, which we seem to not understand,
perhaps you could educate us as to what "backwardation" and "contango" both mean in layman's terms,
and how you go about "looking it up for yourself" so we may also do the same.

Contango, for physical commodities, means that each successive month's forward delivery carries a higher price due to the opportunity cost of capital(interest). Backwardation is the reverse. Full backwardation would only occur in a negative interest rate environment. You can see backwardation commonly in commodities that have crop cycles or demand/delivery cycles that bring larger or smaller amount to the market unevenly at times. In interest rate futures, the price ladder and definitions of contango and backwardation are reversed.

Need more?

Matthew Shelley
Commodity Broker

As always: Trading in futures and options is very high risk investing. You can lose all or more of the money you invest. Only risk capital should be used.

Steadfast
9th February 2011, 10:08
Contango, for physical commodities, means that each successive month's forward delivery carries a higher price due to the opportunity cost of capital(interest). Backwardation is the reverse. Full backwardation would only occur in a negative interest rate environment. You can see backwardation commonly in commodities that have crop cycles or demand/delivery cycles that bring larger or smaller amount to the market unevenly at times. In interest rate futures, the price ladder and definitions of contango and backwardation are reversed.

Need more?


Yes....
and make it "retarded clear" for the newbies with examples they can understand.

Like: physical gold has been mostly in contango for the last ten years,
because averaged out, it has consistently gone up, and can be pretty much counted on to continue to go up in the future.

"zero contango" in silver ETF's means?

Is there such a thing as "negative contango" or is that "backwardation"?

And, how do we go about
looking it up for ourselves....

Matthew Shelley
9th February 2011, 11:18
On the CME website there is a "search" box at the top right. You can look up just about anything regarding commodities and futures with it. That would be considered going to the source. Zero contango is something the Silver froofers just started touting over the weekend which clearly shows their lack of understanding of the market they blather about. Contango applies to futures contracts, not ETFs. The price ladder in interest rate instruments could be called negative contango, because it goes down rather than up in a positive interest rate environment. The Gold (and Silver) market has been, and will be, in contango as long as interest rates are above zero.

Matt


Yes....
and make it "retarded clear" for the newbies with examples they can understand.

Like: physical gold has been mostly in contango for the last ten years,
because averaged out, it has consistently gone up, and can be pretty much counted on to continue to go up in the future.

"zero contango" in silver ETF's means?

Is there such a thing as "negative contango" or is that "backwardation"?

And, how do we go about
looking it up for ourselves....

gollumthegreat
9th February 2011, 21:15
I must be retarded because I'm none the wiser.

valerb
9th February 2011, 23:35
Even the populace is NOW catching on so we will see 100 silver this year.

Damn it CC, your starting to piss me off. It wasn't but a few hours ago and you said July 4th and now it's this year!!! I was already counting the number of Gold ounces I was going to get for my $100 Silver and now I'll have to try and convince my wife, all that drool on my shirt was from your $100 post and not some smoking hot blond!!

ccjoe
10th February 2011, 07:34
Damn it CC, your starting to piss me off. It wasn't but a few hours ago and you said July 4th and now it's this year!!! I was already counting the number of Gold ounces I was going to get for my $100 Silver and now I'll have to try and convince my wife, all that drool on my shirt was from your $100 post and not some smoking hot blond!!

My wife is pissed off at me too as I promised her 100 by xmas 2010!:)

Steadfast
10th February 2011, 09:11
My wife is pissed off at me too as I promised her 100 by xmas 2010!:)

I only make promises to put away the laundry...

As for silver, I simply report the numbers only when it rallies.
and say things I KNOW like,
"Its going to surge up during this month."
or
"We need to buy NOW because it is in correction and will be for the next few weeks."

Long term... I only tell her that in the year 2020 all silver reserves will become exhausted
and the metal will become "endangered like Rhodium" as an element.

Which makes me a financial Nostradamus in her sight...
Which means I "get lucky" more often, then you guys who promise too much....

Matthew Shelley
10th February 2011, 09:22
I only make promises to put away the laundry...
As for silver, I simply report the numbers only when it rallies.
and say things I KNOW like,
"Its going to surge up during this month."
or
"We need to buy NOW because it is in correction and will be for the next few weeks."
Long term... I only tell her that in the year 2020 all silver reserves will become exhausted
and the metal will become "endangered like Rhodium" as an element.
Which makes me a financial Nostradamus in her sight...
Which means I "get lucky" more often, then you guys who promise too much....

There are people who make ridiculous predictions in Silver? I thought that if you did that, you were required to sell a newsletter and have a last name like Lawnjockey or Chauffer or something like that?

Steadfast
10th February 2011, 10:50
There are people who make ridiculous predictions in Silver?
I thought that if you did that, you were required to sell a newsletter and have a last name like "Lawnjockey" or "Chauffer" or something like that?

yup...
Makeing ridiculous predictions in Silver in a news letter is one thing,
however, if you do that with your wife,
you would be better off sleeping with a pillar of ice in your bed!

Because, a pillar of ice is just as cold, and yet does not get all mouthy and mean.

Edmund Law
15th February 2011, 12:23
Finally on backwardation we now have even the mainstream media talking about it so I think that pretty much confirms that it is real given how loath they are to talk up silver, I think reuters has more credibility than Matthew. I still can't find confirmation that the Cannington mine has been affected by the floods/cyclone but recent price action in silver seems suggestive that all may not be 100% OK. The Aussie govt has talked in terms of the coal mines (which are close to Cannington) being affected for years.

http://www.reuters.com/article/2011/02/11/silver-backwardation-idUSN1133112820110211

PlataTruth
15th February 2011, 20:46
Ah hah! Someone who isn't aware that February Silver could be the least delivered futures contract there is every year. Meaning that the price has little meaning. Look at the volume in your listing. A whopping two contracts. I guess that's the difference between an 'analyst' and someone down in the trenches who actually trades the stuff day in and day out.

Again, an explanation without the musings of the froofers?

Matthew Shelley
Commodity Broker

As always: Trading in futures and options is very high risk investing. You can lose all or more of the money you invest. Only risk capital should be used.


Ok Matt, now what is your prediction for the Month of March with nearly 50k contracts delivered, if the present backwardation persists will that cause someone to take notice, or is all this froofing about nothing and should we be much more concerned with the interest rate.

PlataTruth
16th February 2011, 16:16
bump for Mr. Shelley

ccjoe
16th February 2011, 17:00
bump for Mr. Shelley

But Plata ---There is NO backwardation says Matt.

Matthew Shelley
17th February 2011, 10:57
But Plata ---There is NO backwardation says Matt.

I'll try this one more time, but it will mean you will have to go to the exchange's website and read the numbers. They don't post these numbers on Youtube, so you may need to ask someone to help you with it. Go look at the price ladder of "settlements" price for the next year. You will notice that the prices go up in more or less of a straight line. A lot of times, the guys who make their living talking about the market rather than trading in it make the mistake of looking at prices on a fifty cent up day and don't realize that the front price is much higher than the back simply because no one has executed an outright trade in the back for two hours. If they understood it, they would talk to the spreaders and find out that the back is perfectly in line with the actively traded front month contracts.

PS, the reporters at Reuters commonly call experts like myself to get hard data to use in their articles. But they are reporters, not market experts, so sometimes they call the wrong 'expert'. Would you like some of their names and birthdays?

Matthew Shelley
Commodity Broker

As always: Trading in futures and options is very high risk investing. You can lose all or more of the money you invest. Only risk capital should be used.

PlataTruth
17th February 2011, 11:59
Thank you for your clear, concise and laymans response to my inquiry Matt. I hope you still have the physical ability to bounce at those downtown bars because the people are starting to realize the stock market and corporate whores are only interested in themselves. These mergers with TSX/LME and NYSE/Borse are merely the dieing gasps, they see the writing on the wall, as soon as the governments can no longer funnel our money into these fraudulent systems thru QE and we drain what little money is left, you will be out of work.

SilverHawk
17th February 2011, 12:05
There are people who make ridiculous predictions in Silver? I thought that if you did that, you were required to sell a newsletter and have a last name like Lawnjockey or Chauffer or something like that?

Imagine that. Back in 2001-2002 when I told people to buy as much silver as they possibly can, one guy asked me "How high will it go?" I said I really don't know, but I see at least $100 before it peaks.

How do I start a news letter?

Matthew Shelley
17th February 2011, 12:44
Thank you for your clear, concise and laymans response to my inquiry Matt. I hope you still have the physical ability to bounce at those downtown bars because the people are starting to realize the stock market and corporate whores are only interested in themselves. These mergers with TSX/LME and NYSE/Borse are merely the dieing gasps, they see the writing on the wall, as soon as the governments can no longer funnel our money into these fraudulent systems thru QE and we drain what little money is left, you will be out of work.

Well the bouncing thing is more a matter of size. Being 6'4" got me the first job. There was a time when my younger brother who is 6'6" worked at the same bar as me but he was under 21 so there were a lot of things it wasn't legal for him to do yet, bouncing being one of them. But there were plenty of times when an owner or bouncer would call him over if a problem was brewing and say "Don't do a thing. I just want you to stand right here and look serious.". You'd be amazed at how well that worked.

Did you want me to correctly explain any misconceptions you are carrying about the markets, or did you just want to swing at me.

SilverHawk
17th February 2011, 13:08
Well the bouncing thing is more a matter of size. Being 6'4" got me the first job. There was a time when my younger brother who is 6'6" worked at the same bar as me but he was under 21 so there were a lot of things it wasn't legal for him to do yet, bouncing being one of them. But there were plenty of times when an owner or bouncer would call him over if a problem was brewing and say "Don't do a thing. I just want you to stand right here and look serious.". You'd be amazed at how well that worked.

Did you want me to correctly explain any misconceptions you are carrying about the markets, or did you just want to swing at me.

BAM ! ! !

I didn't know ya had it in ya, Matt.

Over 6 foot? 180 pounds or 240?

Matthew Shelley
17th February 2011, 13:15
BAM ! ! !
I didn't know ya had it in ya, Matt.
Over 6 foot? 180 pounds or 240?

I'd like to see 180 again. Usually about 225. Size is also an edge on the trading floor. Not only is it easier to see and be seen, but back then they were very physical places. I once got knocked unconscious right at the closing bell with a market order in my hand because some girl broke one of the trading floor rules.

SilverHawk
17th February 2011, 13:21
I'd like to see 180 again. Usually about 225. Size is also an edge on the trading floor. Not only is it easier to see and be seen, but back then they were very physical places. I once got knocked unconscious right at the closing bell with a market order in my hand because some girl broke one of the trading floor rules.

I don't think I could be a Floor Trader.
That job is too nuts...

Matthew Shelley
17th February 2011, 13:32
I don't think I could be a Floor Trader.
That job is too nuts...

It's one of those jobs where you either thrive on the pressure or you quit right away. Members of my family are noted for the ability to sleep on the trading floor. Kind of a weird talent. I would regularly have people ask "How can you possibly sleep in a place this loud and crazy?". And you have to be able to have mental alarms that make you wake up and step into the fray when your price is hit.

Matthew Shelley
Commodity Broker

As always: Trading in futures and options is very high risk investing. You can lose all or more of the money you invest. Only risk capital should be used.

ccjoe
17th February 2011, 13:44
It's one of those jobs where you either thrive on the pressure or you quit right away. Members of my family are noted for the ability to sleep on the trading floor. Kind of a weird talent. I would regularly have people ask "How can you possibly sleep in a place this loud and crazy?". And you have to be able to have mental alarms that make you wake up and step into the fray when your price is hit.

Matthew Shelley
Commodity Broker

As always: Trading in futures and options is very high risk investing. You can lose all or more of the money you invest. Only risk capital should be used.
I hear ya Matt as I learned to sleep literally sitting up in Disney World waiting for rides with 1000's of people around.

Edmund Law
28th March 2011, 17:26
Interesting straw-in-the-wind on this point. There is an article in today's (UK) Daily Telegraph by Garry White, and Rowena Mason. This article is actually cautious at best or bearish at worst on silver but makes the following throw-away comment at the start when admitting that "certainly, the fundamentals are sound.". It says "declining mine production has resulted in a tight supply as demand continues to rise." Whoaah..wait a minute here.."declining mine production"..who says? All the primary silver miners from the largest (Fresnillo- which I hold) to the smaller ones that have 'silver' in their name (which I don't hold - Silver Wheaton I do hold but it is not a miner) are mostly trumpeting increasing production.
As a retail investor I still can't find anything on the public internet giving an update on the status of the BHP Cannington after the cyclone/floods (which I find strange...) but yet these journalists are stating something that is news to me as it contradicts the press briefings and updates coming out of the primary silver miners. So that leaves us with BHP Cannington and maybe the other Aussie base metal miners but BHP is the big one re silver output as a by-product of its base metal mining.
Meanwhile of course since I posted this thread silver has continued to diverge from gold to the upside. Maybe just maybe some people know something we don't know.
I stress for the umpteenth time I have no hard or direct data at all as to whether silver production from Cannington is down. You must draw your own conclusions!
Disclaimer and Disclosure: This post is not meant as nor can be taken as financial or investment advice, always consult your own financial advisor before making investment decisions. Long: SLW, FRES and of course physical silver.

Edmund Law
31st March 2011, 08:22
Hmmm...............add this to the Aussie floods/cylcone.
(Reuters) - A week-old strike at Bolivia's San Cristobal mine has totally paralyzed production and exports of silver, zinc and lead, a union leader said on Wednesday. According to the article this is the world's third largest silver mine which I am not so sure I about as that would put it behind Fresnillo and BHP Cannington but clearly it is a biggie.

Edmund Law
13th April 2011, 04:01
Watch closely today for Fresnillo and Rio Tinto results and then for BHP. Should give us more data on the silver supply side re floods etc. Fresnillo has today reported lower ore grades and a slight reduction thereby in silver mined. (I am long Fresnillo and BHP).

buffalo3
13th April 2011, 04:43
Edmund, Love your posts' might get or not get beat up by commidities brokers that work for jpm. That would be the big bad Shelley bros.

Edmund Law
15th April 2011, 09:48
There is publicity now on the wires about Bolivia's president Evo Morales nationalising Bolivia's silver mines with subsequent interruption to production..............................

Edmund Law
20th April 2011, 09:13
I was right in my suspicion. Cannington produced 22% less silver than last quater. Miningweekly reports "Lower lead and silver grades and weather related disruption of mining activities reduced production at Cannington, in Australia, in the March quarter, with BHP only producing some 40,2-million tons of zinc and some nine-million ounces of silver."
I hope that regular watchers of this increased their holding of silver since I posted this thread.

None of the posts of Edmund Law are intended as financial advice and can not be taken as such. Always consult your financial advisor before taking investment advice. Edmund is long BHP.