Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: The Barracuda™ who wrote (790)	2/23/1998 1:19:00 PM
From: The Barracuda™	Respond to of 8010

This was posted on Kitco Date: Mon Feb 23 1998 12:02 D.A. (silver) ID#7568: All: A few minutes back, the open interest numbers were released by the comex for Friday end of day. March silver still has about 42,000 contracts open or 210,000,000 ounces. First notice day is Friday. The price of silver firmed on the back of this release. The 'norm' for the silver contract has been between 15 - 20 thousand contracts open going into FND. This past Friday the open interest declined by about 4000 contracts. We are getting late in the game for the futures only players to be sticking around. The silver market, as RJ has repeatedly pointed out, is one of the most gamed markets in the world. All manner of deception is the rule. Keeping this in mind I cannot help but wonder if we are witnessing an interesting event. It is quite possible that we are about to see the second silver squeeze. The first squeeze was a squeeze in the cash market against WB's delivery requirements. The second one may be in futures market. A few weeks back when we were at the height of the cash market squeeze, the March EFP got to something around 20 - 25 cents. For a holder of physical silver this was an enormous incentive to loan metal to the market. One of ways this may have been done would be to sell the cash metal in London and become a holder of March silver in New York. If this was the case, then there may be large March longs who intend to stand for delivery, to replace the silver which they sold in London. With Comex inventories as low as they are, it could get rather exciting. Return to Kitco Homepage