silver market

interesting titbit from todays midas on silver


The potential significant news in silver is the noticeable tightening of the spreads. From Mitsui this morning, courtesy of JB:

The main news over the last 24 hours has been the borrowing in the silver forwards, which began yesterday and has continued this morning into London time. Forwards are now sharply tighter, with buying seen on spot yesterday to 7 bucks, and this morning topping out around 7.08 before coming back to 7.01, which has now prompted questions about how deep the squeeze will be. Normally you would expect spot prices to continue higher, not be sold off. –END-

Nothing is ever normal when it comes to gold and silver, the two most rigged markets in history.

However, if the bums are running out of physical supply, they won’t be able to keep the silver price at these levels much longer. They will be overpowered by the demand.

On that score I just heard from my STALKER source. He tells me his London source is very upbeat. One of his clients who usually trades in paper silver just bought 1 million "British Pounds" worth of physical silver. The reason is that he is suddenly concerned about a severe derivatives problem developing very soon in the paper silver market. The bottom line is the paper shorts DO NOT HAVE, or have access to, the silver to back up their positions.

Yes, a number of us have been talking about this for some time. However, it appears the jig is finally up and all hell could break loose at any time – "unglued" was his precise word. This is what the tightening of the spreads could be telling us.

The London silver source was also very pleased silver recovered so fast after its recent trouncing. It is unusual and adds further credence that a market explosion could be close at hand.