Rumours Of A Short Squeeze And Cornering Of Siliver Market

Well said Hockingzig! Watching "Fast Money" last night, all the "Experts" were predicting silver to go considerably higher. All were worried about the Hunt Brothers experience but were definitely looking for a sudden jump to higher levels.

Also, yesterday, the dollar index was lower than I've ever seen before. I still say, if it goes below 70, we're in for a rough ride. I hope that we don't see another "progressive stroke of the pen" as we did in 1933.

Don't know who said it, but someone uses it in his signature box: "A government large enough to give you everything can also take everything away." Banning bullion holding would definitely cause a real to do. It would certainly help to shore up government financing.

Well, according to what Sel691 was reading, that means there would only be 40 million oz left of silver, so I think to say there is a silver shortage is dead accurate. If there was ample amounts of silver an no one could make a sell, do you guys think it would be closing in on 47 oz on Easter weekend, lol....

Oh, man! I sure hope not. Every single time I hear someone say that something is "going to the moon", a complete market meltdown is never very far behind. Can we say "Internet stocks", "houses", etc.?



Indeed not! Me and my .41 mag are REAL attached to my share of that gorgeous stuff and it isn't going anywhere without my OKing the deal!



The info that I have found on the net indicates that a LOT of the former government and big bank silver hoards have been sold off gradually over the years and it is this selling that has depressed the price of silver for so long. Now that those stocks are pretty well depleted, silver prices are off to the races.

As to cornering a market... that is not as difficult as some might think. By using the leverage of derivatives, it is possible to control MUCH more of a given commodity or stock than one can actually afford to buy. These are VERY risky bets but if they pay off they tend to pay off BIG! Also, when one is dealing with a market where production and demand are about even, then even small moves in demand and production can lead to LARGE price swings. The oil market is currently in this position and I believe that the silver market is as well. Oil gets a lot more attention, though, so the silver market has been flying under the radar. That is now ending and lots of people are now aware that silver is more valuable than its price indicates. Silver has terrific upward price momentum and will likely maintain that for some time yet.

my opinion is the ones that bought in at 50+ an ounce and still have their silver now will dump all their silver back in the market as soon as it hits that price because they may not have another 31 years to wait for them to make their money back. At that point I think it will drop quite a bit, but that is just my opinion. I have talked with a few old investors that used to own businesses that we did some work for that had over 3000 pounds (50,000 ounces) he bought in the late 70's early 80's and he told me back then (this was probably 10 years ago) that if it ever got to that price again he was unloading his stock fast because he may never get another chance and he said he knew others that are going to be competing against each other to see who can cash theirs in faster then the others. I am sure they will not cash their whole holdings in but I am sure it will be enough to make the price drop when they do just as anything else would when the market floods with product. I am sure since its physical silver the price would have to be above the price they bought at for them to make their money back but just stating what he told me back then

Itll be hard to get a panic sell off at this point,due to the fact that people are buying all the dips...so shaking the tree to loosen up all the weak hands is not working,as,the strong hands are grabbing everything in sight!!

I agree with this. Also, I don't think that enough emphasis is given to the fact that the dollar was very strong back in the early 1980s and the silver price spiked anyway. Yes, there were a lot of things going on back then but there usually are. Today is not a whole lot different in that regard. Today, the US dollar is VERY weak... and getting weaker by the day. Anyone want to invest in the DXY? The only people making money there are the shorts.

In the early days of the Euro, for example, it was set to par with the US dollar. That didn't last too long, though, and it soon slid to what the world currency market thought it was worth... about US $0.87. Today, it is worth US $1.46. That is about a 68% decline in dollar purchasing power vs. another fiat currency since about 2000. Against the PMs, the dollar is weaker yet. Since all PMs are priced in US dollars, the weaker the US dollar gets, the stronger the PMs get.

The fly in the ointment, as they say, however, is that none of us knows when the current trend will stop or reverse itself. Some of us are wondering if a reversal is even possible. In any case, owning some PMs is the modern day equivalent that "keep your powder dry" was back in the flintlock era. I would not put more than about 10% of my net worth into PMs but not having at least 5% there is VERY risky, IMHO. My advice is free... and worth every penny! Double your money back, if not satisfied!

when everyone is buying it is the time to sell. when everyone is selling that is the time to buy.

In general, that's not bad advice. The PM markets, however, seem to defy gravity at times and we may well be in one of those times. If you bought silver at $10/oz., as it was in October 2008, you could have sold it later at $20/oz. and doubled your money. Was that a good idea? Not in light of silver then going to $40/oz., doubling again. Commodity prices have a tendency to rise and fall quickly. Most times, there are good reasons for this and they are well published and known. At other times, the reasons are there but just not at all visible to most of us. That is the time to be very careful because there can be forces at work that we do not know but that are capable of moving and shaking the markets.