Hmmm... I like that, shorters can currently execute trades as long as they have a reasonable belief that they can get the stock (or commodity) in the future. Which obviously works well when we know that the total silver supply is roughly one billion oz and we note that 90 times that amount is "traded" on the reporting exchanges... doesn't seem likely that this is all above board does it? Of course not... although apparently naked shorting doesn't manipulate the silver price... uh sure.

I think a change, even a subtle change in the way shorting is regulated to insure that those shorting silver have some real possibility in getting their hands on the real physical stuff (and not just some more paper posing as physical metals... there lays the rub) would have a monumental and immediate effect, potentially sending the price into the stratosphere. I cannot think of any stock or metal which would react in anywhere near the same fashion or to the same degree.

I guess what I don't understand is why investors would ever buy the paper that is really just paper in the first place? I have always bought from an established ETF that allows me to take the metal bars when I like with little or no hassle (which I do). I routinely hear that silver is the most shorted of the shorted, massively influenced by naked shorters etc... what I don't understand is how? Who are these trusting souls who look at silver on paper and go 'cool' without asking the institution where the physical stuff is and 'can I see it, hold it, touch it, hoard it... lay naked with it... normal bullion bug things :).

Anyhow if we can see a real change to the rules, even inadvertently assisted by concerns over traditional stocks and subsequent tightening... a billion ounces under the ground is surely bound to be worth a bit more than .50 odd cents per share... right? Fo' Shur...