Gold and silver have been red hot all year in response to Helicopter Ben's determination to destroy the value of the dollar. Oil and food are also getting pricey these days. Silver investors have been handsomely rewarded with gains of 50% this year alone, as silver jumped from $30 to its current price of $47.87 at the end of April.
There's been a lot of talk about how the big banks and hedge funds are heavily short the silver market and are in big trouble with paper losses on their positions estimated to be in the hundreds of millions. With no silver to settle their short positions they are now desperate to push the price of silver down so they can get out of their losing positions.
But they're backed by the federal reserve and the government, so they really don't have to worry too much. In the unlikely case that they face a margin call on their naked short positions and are threatened with financial collapse on account of their attempts at manipulation of the markets, it turns out the government will consider them too big to fail and they surely expect the government (and the taxpayers) to bail them out again with a carload of newly printed cash.
Normally when the big boys want to step on a market they flood the exchanges with sell orders and force the paper price of gold and silver down almost at will. But today there are other big players in the game who are demanding delivery on their contracts and there is not enough gold or silver in fort knox and certainly not the Comex, to cover their positions.
Meanwhile the bulls have the bears by the balls and someone was trying to push silver around today...and failed miserably. Gold did climb to new all-time highs today at 1568.88, before settling at 1563.18 at week's close. Silver battled to approach $50 an ounce, reaching 49.17 in interday trading before being pushed all the way down to 47.87 at the close of trading. Guess the market manipulators just let gold run while they were concentrating on making sure silver didn't get to $50.
Demand is so high for silver right now and supply so limited, various market pundits are now predicting silver to double again before the end of the year. Silver is also an important industrial metal, used and consumed in the photography, solar and electronics industries and with today's increased investor interest in silver, demand is outpacing supply by approximately 30%. And J.P. Morgan is shorting them. Ha Ha!
There's been a lot of talk about how the big banks and hedge funds are heavily short the silver market and are in big trouble with paper losses on their positions estimated to be in the hundreds of millions. With no silver to settle their short positions they are now desperate to push the price of silver down so they can get out of their losing positions.
But they're backed by the federal reserve and the government, so they really don't have to worry too much. In the unlikely case that they face a margin call on their naked short positions and are threatened with financial collapse on account of their attempts at manipulation of the markets, it turns out the government will consider them too big to fail and they surely expect the government (and the taxpayers) to bail them out again with a carload of newly printed cash.
Normally when the big boys want to step on a market they flood the exchanges with sell orders and force the paper price of gold and silver down almost at will. But today there are other big players in the game who are demanding delivery on their contracts and there is not enough gold or silver in fort knox and certainly not the Comex, to cover their positions.
Meanwhile the bulls have the bears by the balls and someone was trying to push silver around today...and failed miserably. Gold did climb to new all-time highs today at 1568.88, before settling at 1563.18 at week's close. Silver battled to approach $50 an ounce, reaching 49.17 in interday trading before being pushed all the way down to 47.87 at the close of trading. Guess the market manipulators just let gold run while they were concentrating on making sure silver didn't get to $50.
Demand is so high for silver right now and supply so limited, various market pundits are now predicting silver to double again before the end of the year. Silver is also an important industrial metal, used and consumed in the photography, solar and electronics industries and with today's increased investor interest in silver, demand is outpacing supply by approximately 30%. And J.P. Morgan is shorting them. Ha Ha!
