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The coming silver price eruption - Gold Money, Dec 2012

The coming silver price eruption - Gold Money 2012-DEC. Two easy to read charts of Paper-Silver Options, Comex ®: Short vs Long.

While money managers (mostly hedge funds) have nearly doubled their longs and slashed their shorts since July, their longs are still only a little more than average: this hardly represents the overbought conditions suitable for a major bear raid.

On this evidence, the bullion banks which are short in the silver market are potentially in serious trouble, unless somewhere there is a pot of physical silver they can dip into. There isn’t, if we assume that iShares Silver Trust’s 315 million ounces is unavailable. There is no other identifiable source of silver, other perhaps than some producer supply, and there is anecdotal evidence that on every dip, cash silver migrates from West to East, confirmed by silver being constantly in backwardation.

The odds now favour a substantial bear squeeze.

Silver Option Price Timeline: Gaming the System. By Ted Butler Submitted by Mark Twain, 11/26/2012




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Cyril's picture

When the shorts finally run for cover...

"[...]When the shorts finally run for cover, the effect on the silver price is going to be spectacular."

Hear.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Still waiting...

Got a lot of pent up cash in blue balls territory, but waiting for the Ag price to manipulate downward....

"Give a man a gun, and he could rob a bank. Give a man a bank, and he could rob the world."

Out of curiosity, at what

Out of curiosity, at what price will you jump in? Any idea when it will get there?

Thanks!

Cyril's picture

My (wishful) thinking :

My (wishful) thinking : I would looove to see it go down below 32/oz by end of January 2013 (JPM ... pretty please !) and after that, not exceed up to 40, on a 3 month moving average for the entire 2013. That's all I ask for the short / mid term. I cross fingers it can still resist that much... which really isn't a given. Though I'd probably still buy at 50 over the same period.

(Wanna be able to stack a few more hundreds ounces over the next 2 years ... before I can't any longer at that pace.)

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

a substantial bear squeeze

The president found some silver:

http://www.govtrack.us/congress/bills/112/hr2453/text

and decided Mark Twain should have some of it!

I wonder...

how many frn's one of those will cost in 2016?

And I thought I was going to

And I thought I was going to buy them next month...

Cyril's picture

YMMV, but on this end I'm not waiting for 2016 to come around...

YMMV, but on this end I'm not waiting for 2016 to come around...

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Oh

I was talking about the Mark Twain commemerative gold and silver coins that the pres signed into law this month. I thought I could buy them now but they will not be ready until 2016.

I do need to figure out how to buy stuff. I keep sitting on my hands. There is a coin shop in the walmart town up the road, but I am shy and afraid to go in.

Cyril's picture

Needing pointers ? There you go ! :)

Shy ? I was shy, too ... decades ago. ;)

Seriously. You can't be so shy not to have a look at and consider the advice some Daily Paulers gave to this student :

http://www.dailypaul.com/264066/investing-in-silver-as-a-col...

Most of it can be done from behind a keyboard, you know. ;)

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

Five times as much, some say

At mark 12mins 20secs, Ian Williams contemplates it to be possibly worth 5 TIMES as much as it would be if minted today :

http://www.youtube.com/watch?v=uZr9G7s2zBQ

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

Thanks again for sharing this update, Mark Twain.

Thanks again for sharing this update, Mark Twain.

Relevant :

Eric Sprott had warned whoever had ears, in March 2011, and November 2012 ...

... There is NO MORE Silver (afloat) and we have a SHORTAGE OF GOLD :

http://www.dailypaul.com/264734/there-is-no-more-silver-and-...

Shortcuts :

On silver - http://www.youtube.com/watch?v=-DTbCBpFn-A

On gold - http://www.youtube.com/watch?v=gk600gFnlrk

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

BUMP

BUMP

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius