<<No options, not setting new highs, and taking delivery means no manipulation. All done through London means no U.S. regulatory authority. The Hunts were heavy on margin so the U.S. regulators torched them by merely raising the margin requirements. This would have no effect on Buffet.>>
Gerald,
Thanks for the link, it verifies that Buffet is just working on fundamentals, as always. The London connection is pretty smart, and taking delivery without stocking up on options also makes it clear it's not a play. What is scary is that the entire purchase so far only represents 2% of their holdings, so they could buy up a very significant percentage of all available silver without resorting to margin. Of course, if they proceed much further, they will set off a huge price increase, if they haven't already. The only missing piece is how the SEC could change the margin rules on the Hunts in the middle of the game without everyone putting up a squawk. But you have clarified why they came to different conclusions about intent very nicely.
Thanks,
Marc |
