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Gold/Mining/Energy : Silver prices -- Ignore unavailable to you. Want to Upgrade?

To: michael overland who wrote (335)	12/25/1997 2:26:00 PM
From: Mark Bartlett	Read Replies (1) \| Respond to of 8010

Michael, <<This means that the commitments for silver remain extremely bearish, though they have improved modestly compared with two weeks ago.>> I find this extremely interesting also. Silver has been in a state of backwardization for a few weeks now .. meaning that the short-term price on the futures market is higher than the long-term; something that usually suggests a shrinking supply due to strong short-term demand - and therefore higher prices. The fact that the insiders are short much more than long seems to imply that they expect the price to fall. The only two thing that comes to mind for me are: 1) The commercial insiders really are right, and it is you and me that are wrong with our assessment of the silver supply - but if that were the case, why would we be in backwardization. 2) The other reason that does come to mind, is the insiders are short more due to the fact that gold has been hit so hard they figured silver would continue down in step. However, now that it appears gold may be turning (personally I am not 100% convinced, but am becoming more bullish than bearish) I would expect the silver shorts to start to cover there butts .... will be interesting to follow the silver commercial positions in the upcoming months. MB