Crumpled napkins in dark corners.
posted on
Mar 09, 2010 11:02AM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Somewhere in the back of my mind there is a discarded napkin with silver thoughts scribbled on it. In vague terms what it says is that the concentrated shorts (and we won't mention JP's name) have still got time to rig, rig, rig. But how much time? How much of other people's silver is available to illegally leverage (about 100 million ounces I believe..before demand exceeds both inventory and supply) ? How much longer can the SLV con the world before delivery demands force them to surrender/default?. I say SLV knowing that GLD also has a role to play...but somehow I think that it has much more "rig-flex" than SLV.
Looking at all the fabulous information pouring in here on a daily basis can make a weary, amateur gold/silver bug's head spin...like a roulette wheel. Embry says gold up more than 30%this year. Sinclair says watch for a market move in 4 to 8 weeks...both markets and gold. GATA and Murphy think the PM markets could explode any time due to a commercial signal failure. Armstrong says this and Soros says that. Chartists are all over the map. GATA., Murphy and Butler are all working on the corrupt CFTC and trying to encourage Goldman's plant, Gensler, to force transparency and regulation. They have been undaunting in their quest while the CFTC has been "investigating" for 18 months now..
HMMMM. Well, I mumble to myself ( "WIMTM" as the Mogambo Guru would say) I think it will all burst with silver (like a boil being lanced) such as SLV being caught in a default ... which is what Mr. Sinclair espouses. I am siding with him. How can chartists be accurate in non-free-trading, managed markets where everything seems to hinge on desperation behind the curtain, gargantuan, nontransparent OTC derivatives, global currency debasement, sovereign bankruptcies growing and so much more to change the roiling landscape on a daily basis? Turbidity by algorithm.
So, it all "boils" down to one question then...for me. How long can "they" keep the silver monstor caged? Once the remaining physical inventory is completely stolen and squandered there will be no remedy. We will all look back in stunned disbelief at the total insanity that got us there. What will the desperate ones then do? ( I should say the desperate, western-bank-controlled desperate ones to be more precise ).
That will be the day that both gold and silver can no longer be "managed". That will be the day that the physical and the stocks will begin to soar.
I'm guessing anywhere from eight weeks to six months. Very crude (pun) but thats the best my little mind can do. I was going to buy more ECU yesterday on a gut feeling, so I didn't.