Alasdair Macleod: The coming silver price eruption |  |
GoldMoney research director Alasdair Macleod reports today that the big commercial shorts in silver are approaching record levels again even as public demand seems to be at merely normal levels.
Macleod writes: "On this evidence, the bullion banks short in the silver market are potentially in serious trouble, unless somewhere there is a pot of physical silver they can dip into. There isn't, if we assume that iShares Silver Trust's 315 million ounces are unavailable. There is no other identifiable source of silver, other perhaps than some producer supply, and there is anecdotal evidence that on every dip, cash silver migrates from West to East, confirmed by silver being constantly in backwardation. The odds now favor a substantial bear squeeze. And as the managed funds that lost money on their shorts in June-July sniff sweet revenge, this could rapidly escalate."
Macleod's commentary is headlined "The Coming Silver Price Eruption" and it's posted at GoldMoney's Internet site here:
http://www.goldmoney.com/gold-research/alasdair-macleod/the-coming-silve...
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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