Tuesday, March 8, 2011

Guest Post: Short Squeeze! Here Comes 50-dollar Silver

Smart Money Europe – http://www.smartmoney.eu
Short squeeze! Here comes 50-dollar-Silver
Silver is blasting through all barriers, topping $36.5 this morning! The white bullion market is tight, and the short squeeze in the futures market is exerting a constant upward pressure on the price. If current trends persist, the all-time high of $49.45/ounce will be reached in the near future.
Silver is performing exceptionally, outstripping a vast array of commodities and stocks. Even unrest in the Middle East has not stopped the price increasing, whereas during similar circumstances in the past, silver would have taken some serious blows.
As far as silver is concerned, we are living in exceptional times. Supply shortages have existed since the Fifties, but this deficit was traditionally eliminated with the (once strategic) reserves of central banks and other financial institutions, who wanted to get rid of their silver due to its lack of monetary use. Consequently, bank supplies have fallen rapidly. Today, the shortage on the silver market is mainly supplemented by recycling used silver, aka ‘scrap’.
Nick Laird of ShareLynx, who supplied the chart below, gave the following explanation in a recent MoneyWeek interview: “Since 1950, the demand for silver increased up to 925,000 tonnes, while the production only amounted to 570,000 tonnes. This equals a silver production deficit of 16 years!”


  1. 50 State Attorney General 27 Page “Settlement” on Fraudclosures
    After a failure to prosecute systemic institutionalized loan fraud In the MERS SCAM by these very state procecutors , state AGs are now agreeing to this bankster rule/laws for theft crime "serttlement"


    Property contact law and individual sovereign states past property law recording systems are now overruled completely and officially abandoned in Corporate State America. (The CSA)

  2. Re silver: Elsewhere I read that more banks have placed thousands of short selling orders for silver. I looked up the definition of short selling and it says that these banks are betting on the price of silver falling--which is the opposite of this guy saying silver should rise in price.

    Maybe these banks have insider information?

  3. 7:04 That short selling is for "paper silver" not real physical silver and is intended to keep the price of silver from going up.

    What people should be worried about is their US Dollars being eaten up by inflation (5%-15% this year) and a possible US Dollar devaluation of between 50%-70%.

    The Banks are scared of Bank Runs and people losing all confidence in paper (fiat) money. Look at how many states are now looking at alternative currency to the US Dollar. Maybe the State leaders have some inside information or simply can read the handwriting on the wall.

  4. well copper coins have been used historically and china's poorer loaded up on copper-bullion-yep bullion couple years ago..interesting. tungsten-no..some oaf will dip it in gold and pawn it off as gold. maybe the PM's drop a bit, have to watch the QE announcement, if no then all things will drop, except oil, not so much. then using the crash as excuse more QE, PM's back up. physical holders won't care-won't sell so any drop still try and find amounts of physical at bit lower cost-ha...paper pushers will lose out, eventually the paper derivative market will default-kaboom.


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