Silver/SLV smoking hot pre-open...
I continue to like over-weighting silver and silver stocks
here. Silver is up strong this morning in pre-open trading.
Interesting article below from last week which hammers home
my mantra of "trade paper to accumulate physical."
Especially troubling given they can use the ETF's to make
delivery on COMEX...
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zerohedge.com
Project Mayhem has released its first working paper on statistical and factual anomalies in silver ETFs. The conclusion is distrubing:
During our research into the inventory lists of the iShares SLV and London-based ETFS physical silver funds, we discovered multiple anomalies which cannot be easily dismissed. These included the presence of internal duplicates, rough internal duplicates, weight duplicates, statistical clustering, and cross-reference duplicates. Taken together, these anomalies are cause for concern, and we suggest that more capable teams conduct further research into these issues, as they effect price discovery within the precious metals market, as these ETF shares are being used for settlement and possibly pricesuppression on the COMEX.
If these problems are caused by accounting errors, they are disturbing and perhaps profoundly incompetent, and we suggest both these funds should have their senior management replaced.
In our opinions, the only way for all of these anomalies to occur together as noted in this paper, is via systemic fraud or gross accounting error bordering on jaw-dropping incompetence.
Entire report here:
scribd.com
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Great "discrepancy betweeen price and risk" trade on Silver...
The Silver:Gold ratio trend is positive.
And the trend is your friend...
HI HO SIL-VUH~
SOTB
PS: I know the supply:demand fundamentals for natural gas
are negative. And it's the red-headed step child among
commodities here, but it's also historically the cheapest
in it's price relationship to oil, to gold, and to the crb
since the inception of the UNG ETF.
It's also gotten strong buying support and very tradeable
bounces on every pullback.
Don't chase it, but stepping in on every pullback and then
flipping a bit on the rallies has been a relatively easy
mechanical trade here of late.
I think the market gets propped up here throught the September
vote for Cap & Trade and Health Care.
The public will be flooded with more greenshoots talking points,
and copius amounts of Kool-Aid, Helium, and Lithium until
those 2 bills get passed.
Then reality sets in, and watch Goldman pull the plug & book
those front runnin' high frequency profits.
Then, once again Newton, gravity, and reality will rule. |
