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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (6413)	12/27/2002 3:31:27 AM
From: The Vet	Read Replies (1) \| Respond to of 39344

To throw in my opinion on silver, (after all we all have opinions ... you know how it goes....) IMO there is no real oversupply of real silver but the fact is that there is an investment oversupply of paper silver which makes it appear that there is also an oversupply of physical silver. Silver is too cheap and too inconvenient for most investors and as a result almost all silver "investments" are in "paper silver" supplied by the always willing sellers, of naked short positions, confident that they can sell unlimited quantities at any time and in that way cover their book entries at a profit almost at will. While investors continue to accept trades on paper and never demand delivery this selling of virtually unlimited quantities of "paper silver" will continue. The imposition of delivery charges, holding charges etc. by the system the short sellers control, virtually ensures that all "investor" demand will always be settled in cash and real silver won't ever be needed to cover their positions. This disconnect between real silver and electronic entry silver (which is the trading of book entries unrelated to the real silver market) can continue until real silver becomes priced high enough so that the disconnect between the metal and the paper becomes sufficiently obvious to make the investors demand real metal for their investment. When that occurs defaults by the shorts will be allowed by COMEX and the various other markets in order to avoid a squeeze and save the shorts but when this occurs the physical is likely to make a sudden and dramatic rise as the market becomes highly unstable. They did it before to foil the Hunts why should this time be different? JMHO.....