The coming silver price eruption - Gold Money, Dec 2012Submitted by Mark Twain on Mon, 12/03/2012 - 01:13
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