Hi bazilbrush, yeah probably is a bit off topic/out of order -...

Hi bazilbrush,
yeah probably is a bit off topic/out of order - but so is this..

GATA are definitely very vocal but I think their concerns may be a bit overblown. I'm sure there are many short positions and they often talk about the number of ounces traded of silver per day sometimes being more than total annual production, but I think there are also many reasonable explanations for this apparent horseplay.

Regardless if the price is suppressed, then it is by definition undervalued and if one believes that - then it is a buying opportunity (obviously doesn't help if your high cost producer goes under in the meantime!).

On the topic of 'paper gold' etc, there is quite an interesting interview I recently heard regarding how arbitrage between physical, ETFs, futures,contango/backwardisation occurs/works. Worth a listen I think..

You can find it here:
http://www.financialsense.com/financial-sense-newshour/next-level/bron-suchecki-precious-metals-arbitrage

Summary:
Bron Suchecki: The Role of Arbitrage in Precious Metals Markets
Few investors are fully aware of the extent to which arbitrage influences precious metals markets, including Commitment of Traders reports and other data commonly used in fundamental analysis. In this interview, Perth Mint's Bron Suchecki gives listeners the low-down on how price is transmitted through arbitrage between both physical locations and various investment instruments.

Cheers
Ben