silver squeeze?

Howdy,

Interesting article about the divergence between physical and paper silver (and gold). We're all aware of manipulation and naked shorts having somewhat of a constraining impact on the price of silver.

The battle cry is still, 'Take delivery and hold real bullion'.

http://seekingalpha.com/article/199037-silver-short-squeeze-once-in-a-lifetime-opportunity

It asked me to register, but I just closed the dialog box.

peace,

rono

 

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There are also alot of articles out there about how there is more gold above ground than silver. Soon the demand for silver won't be able to keep up with the supply. Look for cashforsilver.com

 

GATA has been flooding my e-mail box for weeks with warnings about imminent default in the bullion markets, short squeezes, and runs on the bullion banks. Along with requests to e-mail my congressmen etc. All presented as a noble crusade for justice . But this I think is the real point:

I don't like being manipulated anymore than the next person. Especially by people who have made a career out of "exposing manipulation". Do I think that GATA is trying to create a run on the bullion markets? I can't prove it, but it certainly looks like it. Considering how edgy the markets are about currency instability and global sovereign debt default risk, I think they are playing a dangerous game, despite the possibility of "once-in-a-lifetime massive returns" for the few who are adequately hedged.

 

I watch GATA and others who claim there will be gold and silver defaults. So far, I haven't seen any evidence that the large shorts don't possess the bullion to deliver, if asked. There are no doubt speculators on the long and short side who can move the price up and down, but that doesn't really prove anything. Just because GATA doesn't know where the bullion is doesn't mean it doesn't exist [think China]. That said, the downside risk from buying silver at any price below $20 is low, and the potential profits are huge, so it probably pays to own silver while being skeptical about the default story.

 

I won't argue with that! Just because I may dislike some of the games I think they play is no reason to avoid a good investment. Although a price in the $15s would be more tempting for me ...

 

This might be associated ( story about Paulson's GLD fund, and his Alleged involvement in Goldman Sach's problem with the SEC today. It will be interesting to see if GLD has a lot of redemptions or not next week.

http://247wallst.com/2010/04/16/paulson-inadvertently-kills-gold-gld-ng-kgc-au-gfi/

 

Thanks. That might turn out to be usable information. Some folks believe GLD has major problems even without this one. The prospectus is eye-opening.

 

Interesting take on the silver short squeeze. Supply is now 40 million ounces short of demand: http://theostrichhead.typepad.com/index/2010/04/the-silver-short-squeeze-has-started.html

 

I shorted 2300 ounces 2 days ago before the nose dive,I helped to push it down

 

Next time let us know before the fact and you'll have more credibility.

 

shorted April 15 when my MACD twisted dow. To tell you the truth I was only expecting a minor fall. I was just lucky that I kept changing my take profit limit.

 

Congratulations on a successful trade. Now if you and J.P. Morgan can get the price down to $12, and for more than just a couple of days, I will give you... a big thank you . Seriously, although we were due for a correction, and some think we still are, be careful tomorrow in case of a bounce. Good luck!