The word is that The Ben Bernank is fronting the money to The JP Morgue to short silver. To what end? I assuem to keep silver from going upto prop up the worthless fiat paper.
That video seems to be found here:
I don't know anything about that. I have also heard rumors that the Chinese are shorting to get the price down to buy more. Are they short for some monetary reason to help the government, or do they make money somehow using derivatives or hedges? I don't know and I am not that sophisticated an investor.
In the end, it doesn't matter if the Fed or Chinese are trying to get the price down, if they physically run out of silver in the COMEX and spot markets. Silver has industrial uses, and to suddenly run out of silver would be very bad for industry. They can't just paper it over with accounting games forever. The price of silver must rise to at least the cash settlement price for investors standing for delivery. As long as the price for silver remains this low, investors will be buying more, because they feel silver is on sale, and those who have silver won't sell, for the same reason. The current inventory will be sold off, not replaced as quickly as is being sold, and the COMEX will be paying a cash premium to everyone. This is a free money ATM cash machine to a Wall Street shark, who can sense blood in the water around silver.