Why Silver is set to explodeSubmitted by Paulreal on Sat, 10/06/2012 - 23:40
In 1980 two brothers almost cornered the silver PAPER market on COMEX.
Check out these videos to see how they almost did it:
They failed because they bought on margin and had to meet a margin call and the COMEX in order to thwart the Hunts brothers scheme only allowed SALES of silver once they saw how large the Hunt Brothers' position was.
The brothers did take physical delivery and that is what really spooked the comex
Today the amount of available investible silver on COMEX is about 40 Billion dollars.
Think about it -that is next to nothing in today's multi trillion dollar economy.
For context-Apple is worth $660 billion, Google and Microsoft $250 billion.
Heck, there are four MEN in the world worth more than $40 billion.
Comex allows no position limits so shorts can sell nearly a year's worth of silver production in five minutes.
While that acts to keep the price down, the large short positions are really not worth that many dollars even though those short trades may represent a large amount of the entire tradeable silver on Comex.
Think-governments own TRILLIONS of dollars of gold, but very little if at all,silver.
If two brothers could almost buy all the available investible silver back in 1980, think how easy it would be for a couple of billionaires or an investment trust to do the same today.
Buying all the world's gold could never be done in today's market.
Since silver is widely needed in the solar and electronics industry, and already is the cheaper monetary substitute to gold and the amounts of investible silver are relatively low compared to other intangible assets like stocks and bonds and low compared to even gold, where do you think silver is headed?