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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Message: Will this make the Cartel start to cover short position on Silver?
Silver is up $0.50 to over $21.15 at 10PM. Is this going to force the illegal silver cartel to start to cover?. With apologies to Jason Hommel and Ted Butler whose words I have updated with current COT statistics.
"To put this another way, there's nobody left in the silver Commercial short category except the '8 or less' traders...not a soul. The rest are most likely spread trades. If the Cartel's short position evaporated over the weekend, the Commercials would be net long 9,201 silver contracts, and we'd have a three digit silver price in a heartbeat.""As of March 11, the commercials are long 53,700contracts, and short 124,600 contracts, for a net short position of 70,900 contracts. Multiplied by 5000 oz. per contract, that's 354 million ounces of silver that they might need to buy back, on the NYMEX alone.
But NYMEX only has 87 million oz. of silver in the warehouses, registered for delivery. http://www.nymex.com/warehouse.aspx
Thus, there is a shortage. And as they shorts pay up, the shorts are getting squeezed.
A short squeeze is one of the most exciting events in finance, and could drive silver to $100/oz. very quickly! "
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Mar 16, 2008 08:32PM
Mar 16, 2008 08:46PM
Mar 16, 2008 08:48PM
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