Ted Butler has a knack of saying something new when you think that everything has been said. In effect, he has laid down his hypothesis for silver and the experiment is now playing itself out.
Russia and China have sold/leased their silver to the market in orderly succession. Ross Beatty (PAAS, The Silver Institute) recently announced that the estimate of remaining silver bullion inventory in China is about 30 mozt. India is the next source, but with most of its silver privately held, the bullion scrap will not be free flowing, at least not at the current low price.
Why the hell would a company issue derivatives with an upside of 2 MUSD and a potential downside of perhaps one hundred times this amount? It makes me wonder whether the company is run by nutters or the holder of some very privilaged information; perhaps even at least 30 mozt of silver bullion. I guess that this strategy would give a better return than leasing, with the added advantage of keeping your silver. Having your cake and eating it too, I suppose.
