And the suspicion is that the Chinese national funds are behind them...
This is obvious manipulation of the Silver and Gold markets... and for years... they have been allegedly "stealing" money from other traders by manipulating the price movements. And now, China is recognizing that this heavy short position is a disaster in the making for them... and the commodity exchanges have virtually no enforcement powers to make China cover or deliver the metals... China is threatening to walk away and leave the NY investment banks holding the bag.
Another thing... this massive short position in the relatively small precious metal market... is probably the major reason why we haven't seen a runaway price escalation in Gold and Silver yet... in spite of the 24/7 printing presses all around the world.
My conclusion is that things are going to end very badly for those of us who aren't prepared... this is the reason why I posted this thread...
It may very well happen... in my opinion... this is a very good article to read for any serious silver investor... Warning Ignored
Either that, or you sell gold. :-)
—So are you saying if these short positions don’t hold, gold and silver will go up even further than the run up in the past two weeks?
Am I wrong in thinking that part of this is China’s lack of confidence in Obama to pull America’s economic woes back into Capitalism where it belongs?
I've been expecting stagflation for some time and can't figure out why the stock indicies are trending up with all of the fundamental, structural issues simmering in plain sight just like the Internet and housing bubbles. Besides 2/3rds of the economy unemployed or on the sideline, prices and interest should be ramping up in relative proportion to Treasury monetizing our debt.
Well, D'UH!
Albeit all legal.
Million$ bonuses? Scams right and left? A system where the losers must significantly outnumber the winners for the croo... errr the investment firms and executives to rake their obscene salaries and bonuses off the top?
Individuals are pretty much at their mercy, but anyone who doesn't see the fundamental systemic flaws has to be brain dead.
Massive deficit spending and money supply creation leading to inflation SCREWS ALL SAVERS OF WHOM THE CHICOMS AND JAPANESE ARE THE MOST PROMINENT.
I think the Chicoms are engaging in economic warfare by vowing to renege on losing commodity trades.
I wonder if this all leads to a trade war? Smoot-Hawley and the trade war in Europe were major factors in the Great Depression. Could we see the same scenario unfold?
I wouldn’t put it past the US government that the way it is now constituted, with commies at the helm, and Bernake et al running things, that the Federal Reserve with its gold and silver hoards is somehow behind this crisis.
Thanks for posting. Would you define "prepared" please? Prepared can mean any of several different things and I'm doing my best to cover as many bases as possible.
Can someone explain this to the layman? To me a short position means an expectation of a falling price. Is the article saying that they expect the price to fall, or that they erroneously expected it to fall and are now stuck?