Post by DerekTheBear

“There were rumors on WS that Blythe offered a 30 to 50% premium above current forward contracts. One of the group leaders said.
Friday 25 February, the group decided to request for their delivery on Monday because they did not want to settle for the 30% premium while the price of silver had been capped at $33.50. Some said Blythe Masters had already offered a 50% premium. In our case, it was very far from the truth. We got 80% premium. That’s the truth.
More than $50 on condition that we sold all our contracts. Our partners even planned the threat of systemic bankruptcy like Herstatt bank. (see Wikipedia).
They even admitted that they would not be able to give us 20 million ounces, and that if we remained in a position awaiting delivery, they would ensure delivery to all others except us, before making default on us, and this could have put us in the uncomfortable position of “unsecured creditors”. They told us that they could not allow a request for delivery of 5,000 contracts because they could barely deliver 4,000. As Vito Corleone stated in “The Godfather”, “I will make them an offer that they cannot refuse”... and in fact, we did not refuse, since we have achieved the goal we set from the start.
Silver-paper might struggle to exceed $36, if JPM & associates are ready to
pay more than $50 an ounce to dissuade anyone from requesting for delivery. If the price of « silver paper » remained under $36, it means the losses from the derivatives would be fatal for JPM, because they had short sold the equivalent of 7 years of production. This was the main reason behind the suppression of the price of silver.
We don’t see any reason why they didn’t allow the price of silver to increase since they are happy to pay handsome prices for the contracts, to show the world that few people really care about delivery.
For us, COMEX may not be missing anything except the 4,000 forward contracts pending delivery. We are really anxious to know how far the price of paper silver will rise in this transfer.”

That's how Silver climbed to 49$
... and then, the gang of OCC, CME, +++ changed the rules and crushed the price, like they did in 1980 with the Hunt Brothers

Cyrille author of "Silver throughout History"