SILVER 0.30% $15.25 silver futures

raid!! cartel smashes silver back under $35, page-18

  1. 2,453 Posts.
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    Hobo,

    You are correct in saying there is a difference between volume traded vs leverage.

    i.e 1 ounce in the warehouse might change hands between you and I 20 times today. But that doesn't mean there is 20 to 1 leverage in paper to physical- it just means there's a whole lot of transacting going on (volume)

    But that's not what I am talking about.

    Eg The comex only has enough physical gold to support less than 4% of certificates.

    That means if you take out all the buying and selling, IGNORE VOLUME, and all you're looking at are the guys holding paper certificates, only 4% of those certificates can be honored with physical delivery - the remainder would be settled in cash.

    Have you seen the Kyle Bass interview where he goes to the Comex and claims delivery on $1b worth of gold - Kyle asks the head of deliveries what would happen if just 4% claimed delivery, and the response was, "it never happens... but if it did, price would solve everything"

    No one has 60m ounces of silver just lying around. But that's the amount of silver that was DUMPED (not 'traded') in minutes. It took Sprott 3 months to secure just 20m ounces for his trust... The metal is scarce. And yet someone goes short 60m.

    Whether you believe in the 'conspiracy' or not is pointless. The fact is that someone out there has an enormous short position that appears to be getting heavier - and when the price continues to persevere onwards and upwards, they're going to make the mother of all short-coverings and you and I will be very happy chappies as I note you are holding the stuff too.



 
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