silver short covering

[bellevuebully]

http://www.safehaven.com/article/18524/the-long-and-short-of-whats-happening-with-silver-these-days?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+safehaven%2Fall-articles+%28Safehaven+-+Most+Recent+Articles%29&utm_content=My+Yahoo

Interesting article on the short covering of silver positions over the last couple of weeks.

[mike88]

thank you bellevue, leverage is great when the market goes the way you want, not so great when you are short and the price relentlessly climbs higher. i am staying long for now, averaging in monthly with the physical metal. i believe silver is a bargain @ anything under 30.00/oz. good article.

[mike88]

silver shorts and margin calls on their positions.........glad to be long today.

[Neuro]

http://www.safehaven.com/article/18524/the-long-and-short-of-whats-happening-with-silver-these-days?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+safehaven%2Fall-articles+%28Safehaven+-+Most+Recent+Articles%29&utm_content=My+Yahoo

Interesting article on the short covering of silver positions over the last couple of weeks.

From the article:

"While it can be speculated on how short covering could impact the market, a short squeeze could feed upon itself as it attracts capital. In five trading days of buying a net 3286 contracts the price of silver rose by $1. However the commercial banks are still a net 62,127 contracts short so at that linear rate it would take them 94 trading days to cover with a silver price of roughly $117. The resulting losses would be around $15 billion. Of course markets aren't linear and after the second or third week of covering traders would begin to purposefully front run and squeeze the commercial shorts so it is unlikely that the positions could be covered that low or if at all."

I feel dizzy...

[cedarchopper]

I feel the elation and that scares me. The big banks can send the price of silver back to $10 in a flash...just like they did a couple of years ago from over $21 to $8. I don't want to ride it back down again...

[Ragnarok]

The big banks can send the price of silver back to $10 in a flash...

And that's all it would be - a flash-in-the-pan down imo.

2c, R.

[cedarchopper]

The big banks can send the price of silver back to $10 in a flash...

And that's all it would be - a flash-in-the-pan down imo.

2c, R.


Yes, it wouldn't stay down long, but they could put the fear into leveraged longs and break the market for a while. The Big Money runs this system, and they are not running scared, they are just setting it up for a killing. We'll see...I hope my timing is good this time, it wasn't last time.

[Serpo]

I feel the elation and that scares me. The big banks can send the price of silver back to $10 in a flash...just like they did a couple of years ago from over $21 to $8. I don't want to ride it back down again...


I know what you mean as it is painful even though you know it has to come back up but this time is different,dont you think.Its not going to be that easy as everyone and his dog are starting to realise that money is becoming worthless.