Since I am just a simple man, how about someone with far more knowledge and understanding of the silver market explain this to me; In the NEW, latest article (link next) we have a strong conspiracy theorist, one of the Silver Groupies as I like to call them all. He shows proof that although the manipulation continies, it is coming to an end. Implication is prices will move north, of course as usual. BUT, if they reduced their short position by this much, why would the prices of PMs dip this week?
This sounds positive for us longs (from the link) " . . .One thing does stand out, however... and that is that JPMorgan is heading for the exits in silver. In his note to private clients yesterday, silver analyst Ted Butler had this to say... "What has come to be my central theme over the past year or so, is the inexorable march towards the resolution of the silver manipulation. My premise has been that one way or another, the 25-year downward manipulation of the silver price, via excessive and concentrated commercial short-selling on the Comex, would be terminated in the relative near future. There have been many milestones indicating the end is near for the manipulation, not the least of which has been price behavior, as silver has moved to a series of new 30-year highs."
"The two leading contenders for causing the end of the silver manipulation have been a silver physical shortage which will bring a certain end to the scam... and potential regulatory actions which would end it sooner by enforcing the spirit of commodity law. Based on recent developments, it's starting to appear that it has turned into a real horse race as to which contender passes the finish line first."
I'll p;robably be called a simpleton, or even an idiot, but why is a huge short position bad for longs? By shorting heavily the "conspirators" may have brought the price down, but they will eventually, sooner or later, have to cover. shouldn't their buying boost prices?
Dear Simpleton, let me answer your question. First, they drop the maket by using collusion to pull bids. We know this, because Andrew maguire, who was making money on the fix, turned and ratted them out publically.
Next, when silver falls, they cover as much as they can. Since OI is very stubborn now, because they're not fooling anyone anymore, they were only able to cover a net of 1K contracts. They still are short a net of 250K contracts, or 250 million dollars.
You really make yourself look like an idiot, who doesn't know what he's talking about, when you defend JPM. Do some reading, and much less talking, to save yourself the embarassment.
Bart Chilton has told you what is happening. Hard to believe you're too dumb to listen.
Haha If you think I am defending JPM, better re-think that idea. I am long silver. Have been long (gold and silver) for close to 2 years. I am not defending JPM. I am NOT a believer in the conspiracy theory you and others seem to be banking on. I am a fundamental long on PMs having nothing to do with the Silver Groupies. His entire argument banks on a corrupt CME, CTFC, price manipulation (when it works to his favor). I simply believe PMs go up in the new world environment we have, Post 9/11 terror, dollar debasement, debt monetization, etc etc. All market followers have notions they are being screwed by some conspiracy when the price of the object of their affection goes down. Thousands believe their stock, bond, commodity is the target of a conspiracy when it loses value. Silver's gone from $4 to near $30. Gold seeing new highs except the "Groupies" complain that adjusted for inflation they are too low. (lol) Will they go higher? Yes, if this economic and geo-political environment continues. And I'm betting it will. So I won't shoot at you because you obviously do not know who you are debating. Not do I. But his article only makes sense if you believe in the JPM conspiracy theory. I won't bank on it. I'll bank on real world fundamentals.
Make that, they are short 250 million ounces, or $7 billion. Derivative positions show them short $121 billion. So they are naked almost 20 to 1. With that exposure, they will do anything to not be run over, the way they have been running over investors for years.
Go to Silverssek.com, and read the last 100 articles. you'll be more knowledgeable. Better yet, spend a few hundred dollars and subscribe to Ted Butler and Jim Willie's news letters. You'll be worth listening to before you know it.