We watch daily as the concentrated shorts press their game far beyond anything ever imagined as even possible. This has made all silver stocks positioned with a leverage potential to the upside that is historic and almost in the realm of fantasy. The regulators have been turning their heads from blatant, in-your-face fraud for ten years now and JP Morgan continues to trample the market (via paper shorts) with ever greater force and seeming immunity from regulation. Technically, silver is in oversold territory during this latest JPM directed liquidation phase down from $18.60 ish.

The short interest on the COMEX for silver futures is now ten times the annual total worldwide silver production. Silver bullion stores have depleted from over 2 billion ounces inventoried in 1980 to nearly none today. There is virtually no silver bullion to back these short positions with requested delivery. How long this can continue depends on how long the legal authorities look the other way and/or how long it will be before there is a default of delivery. This could very well emanate from a default of the SLV ETF which would ring an alarm bell globally that the game is over. If/when that happens, the price of silver will go ballistic. Those that actually mine/producer silver will benefit far beyond expectation. The same goes for gold…but silver has a far greater upside.

The gold bull is only about half done with gold being the best investment of the last decade with an average annual return of 15% vs. Warren Buffet’s 7%. This latest correction is near done and we might watch the major PM gold stocks to signal the next leg up in gold just before it bottoms. Think of all the price declines in gold over the past ten years followed by gaps to the upside. Think of all the naysayers calling for gold’s top all the way from $250 in 2002. They’re still at it such as the likes of Jon Nadler and Prechter and scores of Wall St. sycophants. Gold bubble talk is spin. The $US is toast since it is degrading rapidly and backed by nothing but the promise to pay off $Trillions more debt with only paper, more and more “quantitative easing” by the world’s biggest debtor nation.. The facts are abysmal. Many US States teeter on bankruptcy with California (13% of US GDP) and Illinois bankrupt now. The manufacturing base has been hollowed out. On and on it goes.

Well folks, the listing must be awfully close. It looks more and more that Mr. Quilliams will be addressed as Mr. Quilliams from now on. If so, he will have earned his respect the hard way and he will deserve every bit of it.

With the mill almost ready for installation of the equipment we should see some trial runs in the not too distant future along with the usual ramping up and tinkering required to achieve the highest efficiency production levels from the above ground tailings (actually discarded, high-grade waste from an era gone by that discarded material with 2 ozs. (62 gms ) or less gold content per ton) sitting just outside the door longing to be processed.