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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (51379)	5/17/2006 1:45:43 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

From Rien who reads German Just read an interesting article in german: goldseiten.de It claims (by estimate) that in germany there are about 1.2Boz (yes B not M!) of silver sold short via call options. The total loss is estimated at USD 5B. That is a lot of money. Somebody is going to bleed for that. The word is that the german institutions that wrote the calls have hedged their exposure in the US as the US options are cheaper then the german ones. (Thus its basically a spread trade). Note: These will be settled in cash, no delivery needed. But it seems as if someone(s) could lose a lot of money if the prices stay where they are. Best, Rien.