Must read article: Short Squeeze in SilverSubmitted by jollyroger2 on Mon, 04/05/2010 - 09:29
What is a short squeeze?
A short squeeze is one of the most exciting events in finance, and could drive silver to $100/oz. very quickly! A short squeeze happens when those who manipulate the market begin to act according to old Wall Street rhyme,
"He who sells what isn't his'n, buys it back or goes to prison!"
The silver shorts, who have been one of the key forces capping the price of silver ever since 1980, are buying back the silver they sold, the silver that they don't have, the silver that may not exist, and they are buying "contracts for it" from people who might not have it either, in a rising market, because the shorts have begun to panic.
Another way to say it, is that the fat cats are beginning to wake up, repent and change, and realize the error of their ways! Perhaps we are seeing the inevitable failure of a 100+ year war of the international bankers, a war waged against an inherent property of silver. But silver is a monetary metal, and the failure to recognize that truth has consequences.
Dan Norcini reports at http://www.jsmineset.com/ that the commercial shorts in silver last week were "buying on the way up!"