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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (16934)	7/25/2006 11:28:41 PM
From: John McCarthy	Read Replies (1) \| Respond to of 78419

DAK Glad you posted back. Before I begin - lets remember - I'm real and very stupid - so its gonna take some extra patience on your part. OK/ First a PREFACE then a QUESTION: PREFACE - About two months back (can't support with a link) but I recall the article well - some writer - whats the word - opined - the following: The big guy in Kansas City didn't elect to leave silver rather - he was forced out as follows: (a) His folks were shorting silver and covering on some cycle for a number of years - and all was well. This was while he held real silver oz. (b) Going into 2006 - based on prior experience - his folks did the same thing - shorted - but silver went up - they shorted more - and silver went up - and finally (April/May) he had to use his real oz to cover his short postions. Could it be bullshit? Sure. But by the same token why would such an astounding astute person choose to leave silver - right when it busted into some new higher cycle. Anyway - thats why one writer thought - and (I can hide behind my ignorance) it makes sense to me. And so - when I saw this story tonight - I thought - did other thingies/people/institutions/whatever fall into the SAME TRAP - as the guesswork story above - and hence - their short but don't have the same oz the the Kansas City guy had to cover. Question: What does their probably long options from producers mean? Give me a SEE SPOT RUN example - if you would not mind. Are you saying in effect they have options to buy silver at - to be dramatic - $4 bucks on oz - and hence can call those options to cover their short positions. Finally - you said - There is NO WAY an investment bank is hiding billions in losses IMHO... no way. I totally agree with you .... but I can't stop thinking about what might have happened to the Kansas City guy and - if it did happen - did it happen to others. regards, John