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Are Asian Traders Preparing A Major Squeeze Of Silver Shorts?
Some distributing news for the precious metal cartel, courtesy of King World News:
A King World News contact out of London has confirmed that, “Massive Asian buying is going to squeeze the shorts in the silver market. Any reactions in the price of silver will be heavily purchased, and these buyers will take delivery of physical silver.” The source who wishes to remain anonymous agreed with Eric Sprott that this squeeze could take the price of silver to $50 in a matter of months.
I have recently been discussing a coming commercial signal failure with John Embry, James Turk and Eric Sprott. As previously mentioned, this is an extremely rare event but when it occurs it is a sight to behold.
Right now, sentiment levels are nowhere near what we see at a top. Keep in mind that Rick Rule was recently discussing with KWN the possibility of future supply shortages in silver, and we are also not seeing the type of dealer activity that is suggestive of topping behavior. These factors are all supportive of a significant move higher in the price of silver.
Read full report here.
With spot having been halted just south of $25 earlier today, courtesy of what was likely another major paper shorting assault on the metal, it will be interesting to see what the timing of this supposed retaliation, if the rumor is valid, by longs will be.
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they used to love the fed... now it's a political liability... or quickly there becoming. The only question at this juncture is how much pain we are willing to take in the deleveraging process before we repudiate our debts.
It will be interesting to see if the US dollar ramps after the election and QE announcement. Silver's reaction to that would be telling, if there is truth to the rumor (which I am betting on), then it will rise with it.
Short ZSL... There are still shares to short at Ameritrade...
$30 in 18 days...
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/10/28_James_Turk_-_Silver_$30_in_Less_Than_18_Days.html
counting down...
Everyone knows that there's only a one percent coverage of contracts by physical metal. Big traders know this full well. Why would they risk losing billions on an exchange going defunct when they can buy silver directly from producers and dealers without risk?
When it's time to cash up. If a group did effectively grab enough physical off the exchange to break it that would reflect very well on the metals they already have. If they want to accumulate, then you are correct they would not psuh on the exchange. However if they are ready for the revaluation they nuke the exchange and ride the wave.
Not exactly smart. The big guys know that you can topple the exchanges by driving the spot metal prices through the roof. When the divergence is large enough there is a stampede to exchange contracts for metal. The exchanges will attempt to protect themselves by handing out SLV and GLD shares in exchange for contracts. Can SLV and GLD grab enough metals to cover the shares? Probably, not. Everyone is deep in naked shorts. The whole system will come down. Oh the humanity!
The Big Boy's sure are ramping up Gold production around the world, I monitor West Africa, and have never seen job postings like this...ever.
http://www.ghanaweb.com/GhanaHomePage/jobs/
Basic facts: Actual silver (global) physical supply is small.
Paper silver, ETFs, derivatives, etc. Is massive. Dwarfs physical supply, may actually be leveraged at 100:1
Manipulation will work until it doesn't. China has drastically cut down on exports and is hoarding her supply. That leaves mountains of paper denonminated silver. They don't want paper. Stand and deliver. Now please.
What do you mean - you don't have it! BOOM.
Lets say we get a squeeze, what would be the best Call Option Play?
The best way to play it is with options on the double silver AGQ. If silver gets to$30 (a certainty imo) AGQ is around 145. If silver gets to $50, AGQ will be over 300. Currently AGQ is at 105.
The big caveat is that AGQ might not be around to pay you off. AGQ is a paper vehicle that mimics the price of silver. If there is a silver default, then how can AGQ be expected to pay?
As long as silver doesnt default (Comex, LBMA, SLV, or whatever) then call options on AGQ is the best option play.
sorry repost
I feel for your family...
Much as Helen Keller once did.
Roger that. Bought PSLV Friday at 9.96. Oughta be a good hold during this tsunami.
I don't buy silver paper in ANY circumstance. No matter how reputable or not the parties may be. Silver is NOT for flipping. Silver is something you buy a lot of for the full haul and later when its worth a WHOLE LOT and you can buy LOTS and LOTS of other things at cheap prices, only then do you sell any imo. The miners are the ones to flip. The miners have a WHOLE LOT of CATCHING UP to do. They led gold strongly most of the way from 2001 to 2005-6, but since then they have lagged as gold price has vaulted. There will be a reversion to the mean and that means higher gold/silver stock prices.
Another poster was trumpeting ACQ a derivative play on silver. I much prefer a good silver miner like First Majestic. There will be lots of 10 baggers and more. The best will do even better.
the longs will not be getting any silver, they will get cash settlement while the value of physical goes higher and there cash settlement goes lower. they will be the ones who will end up vacating not the shorts.
Those cash settlements will still be painful!
Hi
Just found this swiss website, seems to make it easy to purchase PM's. They also hold as allocated with the possibility to receive with 7 days notice.
http://suissegold.ch/home.php
As a NON swiss bank they are probably not required to inform the IRS, this needs checking on!
Does anyone really know what's going on?
Probably not. But some of us are a little more objective and therefore sobering in our views..
"Does anyone really know what's going on?"
After weeks of high-level meetings, Mssrs. Fan and Shite will be announcing their findings on Wednesday. ZH "analysts" fear the worst.
Short squeeze? Isn't that what has already happened?
Hey guys - off topic a bit but not in the overall picture of things around here . Anybody know of a bank that provides precious metal banking in the west ?
In other words, I take my fiat deposit it into the bank, my fiat is then converted to precious metal , I am given a check book in a currency of choice and a debit card . When I make purchases my precious metal is reconverted to fiat and payment is made .
If anybody knows of a bank which does this let me know . The only bank I know who is doing this is ICBC in China and I would rather have a western bank that has some branches (for ease of deposits ) locally . Thanks any suggestions are helpful .
The closest thing I know if is goldmoney.com, but you don't get a card or check book. You have to have the funds wired to your "fiat bank" if you want to use it like that.
I don't know why this is such a pain in the ass . Seems there is a market for it
Yer gonna get squeezed by some asians
Paper silver to $2, premium for physical $48. Seems about right to me.
go asia go.....bring it all home and crush the wall street assholes...
For a Silver Short Squeeze play look at Hecla (HL). 17% of the float sold short. Balance sheet (DYODD) is solid, producing Silver at a -$1.00 per ounce due to by-product credits. Shorts piled on speculating a $200M debt issuance to build a new deeper shaft at the Lucky Friday Mine. Looks like it could be self financed over time with cash on hand.
its everywhere...prosecution is irrelevant as confidence lost n all completley fraudulent debt coupon based markets is the trump holding the house of cards together...
http://www.reuters.com/article/idUSTRE6A03W720101101?pageNumber=1
I hear Judge Bruce Levine is the go-to-guy on this stuff.
I'm backing Silver all the way!
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