http://www.zerohedge.com/article/si...ning-two-key-recent-developments-world-silver <object width="640" height="385"><param name="movie" value="http://www.youtube.com/v/AId_UiPtPpQ?fs=1&hl=en_US"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/AId_UiPtPpQ?fs=1&hl=en_US" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="640" height="385"></embed></object> And for those who are confused by the above, here is another explanation of what may be happening courtesy of a "letter" to Blythe (thanks John). Blythe, This is what I am hearing from your former traders (who made "very interesting career decisions"). Well it seem that they are on to a new scheme to corner the Comex and drive the price of silver up $10 to $15 dollars in a matter of weeks. The strategy is as follows. We know that Comex only has 105 million ounces of silver of which only 50 million ounces are availabe for delivery. (I personally don't believe the Comex numbers are anywhere near that high, but that is neither here nor there for now.) Well, all it would take is 10,000 contracts on the Comex to buy up all the "available silver" at the Comex and 20,000 contracts to deplete it completely. The current front month March OI is north of 78,000. Watch the OI closely. Blythe's former traders are advising major hedgefunds and billioniare investors to buy up as many contracts as possible as March 1 approaches and deposit the cash needed to stand for delivery for the month of March. The purpose is not necessarily to bust the Comex but to force the Comex to pay a premium (some as much as 30 percent) for cash settlement. Think about it. If a group of hedgefund gets together and bankroll $1 billion, they can buy more than 30 million ounces of silver. Of course, the contract sellers like The Morgue cant deliver the silver so a cash settlement is the only recourse. So what's wrong with $200 million in profit on a $1 billion investment that takes less than 4 weeks total? Guess what Blythe? Your former traders are advising everyone they know to put on this trade come the first week of February. Is this what happened in the Decemeber contracts? Is this why silver went from $22 on September 30 to $29 by December 1? How much do you think silver will spike in February as we approach March 1? The traders think silver will be north of $45. Heck it went over $9 as we approached December and everyone who got a pay off in terms of a premium cash settlement will be back for more. And they are all gonna be bringing friends to partake in the bounty. Your former traders are telling everyone who would listen that all they need to do is purchase a huge amount of March contracts near the end of February and stand for delivery and they will all make 20 percent in a matter of days. Is this what you are hearing Blythe? If so, shouldnt you let the price of silver move up so that you can get some physical to deliver before March 1?
Any spike like that and what do you do, short the heck out of it at $50+ hoping for a return to a level of $20-$30.
A spike like that you would wonder if that is a trend leading into a 10 year bull run up. Unlike the current S&P, the Silver Market shows far more true signs of Bullish Incentives. As the economy is uncovered as anemic, the earnings season is shown it's full royal flush, as the EMU enters into even more trouble, as Energy Prices and Agi prices move higher,etc,etc The pressure on the Silver Market as a "Safe Metal" will be to the upside. And the downward Pressure of "Smoke and Mirrors" being cleared and shattared by Factual numbers, will be forced on the S&P. Risk/Reward is with the Long silver if one wants to trade paper. Even if it spikes, it's still on the long side considering both Geo-economic outlook as well as Geo-politcal out look based on current numbers and not Pundit Cheerleading and Coolaid Serving bullshit. But this is on a Longer time Frame than a few seconds to a day. It's building and managing a position vrs trying to "Day Trade" one.
The spike cometh Let he who has wisdom dollar cost average And let him covereth his position at a goodly profit
History shows us that the average life of a fiat currency is 40 years. We're on year 40 since the gold standard was abolished in 1971. If you can print Federqal Reserve notes but you can't print silver, gold, oil, agriculture(wheat, soy, corn) then what will go up in nominal value ,anyone, anyone? .
I will take the other side of this call all month long/ all the size you want. Who wants to take the other side a binary? We can make it a gentlemans agreement on ET.