Posted on 08/05/2011 2:35:41 PM PDT by SeekAndFind
Eric Sprott, Chairman of Sprott Asset Management, and James Turk, Director of the GoldMoney Foundation, talk about how there isn't enough silver in the silver market to back existing "paper silver" commitments. While there is much in the attached interview, the bottom line is that Sprott thinks that "silver will be the investment of this decade".
And with 3 out of 5 central banks having just embarked on monetization, and two more imminents, he will almost certainly be right.
CLICK ABOVE LINK FOR THE VIDEO
"He who sells what isn't his'n
Must pay it back, or go to prison.."
Didn’t we hear this same claim this Spring?
Lol...I wish! We have more silver than I know what to do with.
Hmmm,,,the stock market shits the bed and Silver drops $5 an ounce and gold drops $10? Explain to me how this can be logical and not manipulated...as though no one would cash out paper stock and buy precious metal? Not logical.
If this were actually true the owners (who are they?) of The Federal Reserve banks would all be in jail.
July 15 was the end of paper contracts on precious metals. After July 15, they had so many days to convert to bullion in hand. Now if you buy in metal, you take delivery, and if you sell, you deliver.
One word...The Euro.
I will tell you this. If it wasnt for the European nations going belly up, our dollar would be as only as good a toilet paper.
I got a lot of silver. Am waiting for the price to hit about 80 to 90 bucks.
The rational that I heard:
People are selling gold and silver and gold and silver stocks/funds to cover margin calls. Seemed like a stretch to me but it could be a partial explanation.
bump
If that’s true I don’t understand the price falling. Then again, I don’t understand a lot of things.
As for waiting for it to get to $90, what will you do then? Sell it for useless dollars? Just wondering.
Does the name Soros ring a bell?
In the clip, he mentions a huge shortage of actual silver available for delivery..thus implying a short squeeze..which means that some exchanges are in a lot of trouble..yet they suppsoedly monitor these carefully..so we should have seen calls for more margin, and/or an increase to the margin %
Silver is subject to serious margin pressure as the CME raised margin requirements 8 times leading up to the $49 price peak during May. They haven’t loosened those margin rates. So liquidating a silver contract releases a tremdendous amount of margin.
When traders are under margin pressure, they do not necessarily sell what they want to; they sell what they can. Silver may have been *priced* up at $40-7x-41.5x in recent days on global economic worries but it is my view that silver does not have much volumetric support up there. Silver is NOT, repeat, IS NOT the same kind of monetary metal that gold is. It has much more of an industrial flavor. Thus, when recent market turmoil also implied there was going to be economic slowdown as well as equities crunching, silver got whacked. Note how this also happened to Platinum and Palladium, metals whose primary use is in cat converters. hence those metals are quite a bit more industrial-use dudes as opposed to gold. Silver behaves (in most cases) more like Pt & Pd, *sometimes* like gold, but under pressure it does NOT act like gold.
You could sell it to me, that is something to do with it!
There’s plenty out there for sale.
Sell it and buy ammo. A couple more years of Obama and you’ll need all you can get.
The stock market went down, silver, and gold went down. With the weakening dollar (Mr.Geithner will soon arrange for the FED to print over a trillion dollars) one would expect silver and gold to rise. However these markets are manipulated. They do this by forcing silver and gold to be sold by abruptly and without notice, markedly raise margin on the futures of gold and silver. If these investors do not cover margin, then the brokerage houses ‘force’ selliing of those commodities. When people are forced to sell the price goes down.
What is happening is that they are buying up US treasuries since it is more stable now, than the euro. That in turn makes our dollar stronger. A few days ago, it took $1.05 to buy one Canadian dollar. Today I see its 1.01. That is why oil dropped. But, this cant go on forever. Eventually, we will see massive inflation when they go away from those treasuries and the fed has to buy that debt which results in more printing of our currency.
My silver will become a means of exchange.
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