I think China knows their shorts on the COMEX can never be settled with physical silver if they ever had to be. COMEX rules state that settling must be physical. In saying this it is thought that cash settling at a premium has been occuring which is illegal and no one seems to be doing anything about it. Anyhow with China piling on these paper shorts they are stopping the price of silver. In the meantime they are buying up physical where ever possible at these artificially reduced prices. Down the track this will no doubt squeeze the COMEX when physical is demanded in any sort of panic. People speculating the COMEX could default as a result.
Some CFTC hearing is about to take place. People anticipating the result will not be good for silver causing the price to take a hit in the short term.
I don't know, even if silver spot hits $ 25 an ounce I reckon CCU can still weather this storm with their announcements coming out soon on financing...
It will be interesting to see what happens in this silver battle. China + silver investors vs JP Morgan + US Fed? US dollar currency crisis is coming and silver will be a winner in the end one way or the other.
All my opinion.
CCU Price at posting:
62.7¢ Sentiment: Buy Disclosure: Held
